Digital cooperation

Global AI adoption rises quickly but benefits remain unequal

Microsoft’s AI Economy Institute has released its 2025 AI Diffusion Report, detailing global AI adoption, innovation hubs, and the impact of digital infrastructure. AI has reached over 1.2 billion users in under three years, yet its benefits remain unevenly distributed.

Adoption rates in the Global North are roughly double those in the Global South, highlighting the risk of long-term inequalities.

AI adoption depends on strong foundational infrastructure, including electricity, data centres, internet connectivity, digital and AI skills, and language accessibility.

Countries with robust foundations- such as the UAE, Singapore, Norway, and Ireland- have seen rapid adoption, even without frontier-level model development. In contrast, regions with limited infrastructure and low-resource languages lag significantly, with adoption in some areas below 10%.

Ukraine exemplifies the potential for rapid AI growth, despite current disruptions from the war, with an adoption rate of 9.1%. Strategic investments in connectivity, AI skills, and language-inclusive solutions could accelerate recovery, strengthen resilience, and drive innovation.

AI is already supporting cybersecurity and helping businesses and organisations maintain operations amid ongoing challenges.

The concentration of AI infrastructure remains high, with the US and China hosting 86% of the global data centre capacity. A few countries dominate frontier AI development, yet the performance gap between leading models is narrowing.

Coordinated efforts across infrastructure, skills, and policy are crucial to ensure equitable access and maximise AI’s potential worldwide.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Nvidia stake sale powers SoftBank’s $22.5bn OpenAI bet

SoftBank sold its entire Nvidia stake for $5.83 billion and part of its T-Mobile holding for $9.17 billion, raising cash for OpenAI. Alongside a margin loan on Arm, the proceeds fund a $22.5 billion commitment and other projects. Nvidia slipped 2%; SoftBank referred to it as asset monetisation, not a valuation call.

Executives said the goal is an investor opportunity with balance-sheet strength, including backing for ABB’s robotics deal. Analysts called the quarter’s funding need unusually large but consistent with an AI pivot. SoftBank said the sale recycles capital, not a retreat from Nvidia.

SoftBank has a history with Nvidia: the Vision Fund invested in 2017 and exited in 2019; group ventures still utilise its technology. Projects include the $500 billion Stargate data centre programme, built on accelerated computing. Shares remain volatile amid concerns about the AI bubble and questions regarding the timing of deployment.

Results reflected the shift, with $19 billion in Vision Fund gains helping to double profit in fiscal Q2. SoftBank says its OpenAI stake will rise from 4% to 11% after the recapitalisation, with scope to increase further. The group aims to avoid setting a controlling threshold while scaling exposure to AI.

Management stressed liquidity and shareholder access, flagging a four-for-one stock split and ‘very safe’ funding plans. Further portfolio monetisation is possible as it backs AI infrastructure and applications at scale. Investors will closely monitor execution risks and the timing of returns from OpenAI and its adjacent bets.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

MK1 joins AMD to accelerate enterprise AI and reasoning technologies

AMD has completed the acquisition of MK1, a California-based company specialising in high-speed inference and reasoning-based AI technologies.

The move marks a significant step in AMD’s strategy to strengthen AI performance and efficiency across hardware and software layers. MK1’s Flywheel and comprehension engines are designed to optimise AMD’s Instinct GPUs, offering scalable, accurate, and cost-efficient AI reasoning.

The MK1 team will join the AMD Artificial Intelligence Group, where their expertise will advance AMD’s enterprise AI software stack and inference capabilities.

Handling over one trillion tokens daily, MK1’s systems are already deployed at scale, providing traceable and efficient AI solutions for complex business processes.

By combining MK1’s advanced AI software innovation with AMD’s compute power, the acquisition enhances AMD’s position in the enterprise and generative AI markets, supporting its goal of delivering accessible, high-performance AI solutions globally.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

OpenAI loses German copyright lawsuit over song lyrics reproduction

A Munich regional court has ruled that OpenAI infringed copyright in a landmark case brought by the German rights society GEMA. The court held OpenAI liable for reproducing and memorising copyrighted lyrics without authorisation, rejecting its claim to operate as a non-profit research institute.

The judgement found that OpenAI had violated copyright even in a 15-word passage, setting a low threshold for infringement. Additionally, the court dismissed arguments about accidental reproduction and technical errors, emphasising that both reproduction and memorisation require a licence.

It also denied OpenAI’s request for a grace period to make compliance changes, citing negligence.

Judges concluded that the company could not rely on proportionality defences, noting that licences were available and alternative AI models exist.

OpenAI’s claim that EU copyright law failed to foresee large language models was rejected, as the court reaffirmed that European law ensures a high level of protection for intellectual property.

The ruling marks a significant step for copyright enforcement in the age of generative AI and could shape future litigation across Europe. It also challenges technology companies to adapt their training and licensing practices to comply with existing legal frameworks.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UK strengthens AI safeguards to protect children online

The UK government is introducing landmark legislation to prevent AI from being exploited to generate child sexual abuse material. The new law empowers authorised bodies, such as the Internet Watch Foundation, to test AI models and ensure safeguards prevent misuse.

Reports of AI-generated child abuse imagery have surged, with the IWF recording 426 cases in 2025, more than double the 199 cases reported in 2024. The data also reveals a sharp rise in images depicting infants, increasing from five in 2024 to 92 in 2025.

Officials say the measures will enable experts to identify vulnerabilities within AI systems, making it more difficult for offenders to exploit the technology.

The legislation will also require AI developers to build protections against non-consensual intimate images and extreme content. A group of experts in AI and child safety will be established to oversee secure testing and ensure the well-being of researchers.

Ministers emphasised that child safety must be built into AI systems from the start, not added as an afterthought.

By collaborating with the AI sector and child protection groups, the government aims to make the UK the safest place for children to be online. The approach strikes a balance between innovation and strong protections, thereby reinforcing public trust in AI.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Judges in Asia join UNESCO-led training on ethical AI in justice

Judges and justice officials from 11 countries across Asia are gathering in Bangkok for a regional training focused on AI and the rule of law. The event, held from 12 November to 14, 2025, is jointly organised by UNESCO, UNDP, and the Thailand Institute of Justice.

Participants will examine how AI can enhance judicial efficiency while upholding human rights and ethical standards.

The training, based on UNESCO’s Global Toolkit on AI and the Rule of Law for the Justice Sector, will help participants assess both the benefits and challenges of AI in judicial processes. Officials will address algorithmic bias, transparency, and accountability to ensure AI tools uphold justice.

AI technologies are already transforming case management, legal research, and court administration. However, experts warn that unchecked use may amplify bias or weaken judicial independence.

The workshop aims to strengthen regional cooperation and train officials to assess AI systems using legal and ethical principles. The initiative supports UN SDG 16 and advances UNESCO’s mission to promote moral, inclusive, and trustworthy governance of AI.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Joint quantum partnership unites Canada and Denmark for global research leadership

Canada and Denmark have signed a joint statement to deepen collaboration in quantum research and innovation.

The agreement, announced at the European Quantum Technologies Conference 2025 in Copenhagen, reflects both countries’ commitment to advancing quantum science responsibly while promoting shared values of openness, ethics and excellence.

Under the partnership, the two nations will enhance research and development ties, encourage open data sharing, and cultivate a skilled talent pipeline. They also aim to boost global competitiveness in quantum technologies, fostering new opportunities for market expansion and secure supply chains.

Canadian Minister Mélanie Joly highlighted that the cooperation showcases a shared ambition to accelerate progress in health care, clean energy and defence.

Denmark’s Minister for Higher Education and Science, Christina Egelund, described Canada as a vital partner in scientific innovation. At the same time, Minister Evan Solomon stressed the agreement’s role in empowering researchers to deliver breakthroughs that shape the future of quantum technologies.

Both Canada and Denmark are recognised as global leaders in quantum science, working together through initiatives such as the NATO Transatlantic Quantum Community.

A partnership that supports Canada’s National Quantum Strategy, launched in 2023, and reinforces its shared goal of driving innovation for sustainable growth and collective security.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Finland to enforce stricter crypto tax reporting from 2026

Finland will introduce stricter reporting obligations for crypto asset service providers from 2026 as part of international efforts to enhance tax transparency.

The move aligns with the OECD’s Crypto Asset Reporting Framework (CARF), which aims to standardise the exchange of crypto-related tax information globally. More than 70 countries and jurisdictions have already committed to the framework.

Finnish and foreign crypto providers must collect and report users’ transaction data, including purchases, sales, and transfers. The Finnish Tax Administration will begin receiving annual reports in 2027, enabling cross-border exchange under the CARF and the amended EU DAC8 directive.

The government proposal, due for parliamentary debate in autumn 2025, would extend Finland’s reporting requirements beyond international standards. Providers must also supply data allowing authorities to calculate capital gains and losses for Finnish residents and estates.

The Tax Administration will review and update its guidance on financial account reporting to align with these changes.

Despite the increased flow of information, individuals trading crypto assets will still need to declare profits, losses, and related income in their annual tax returns. The first international exchange of crypto asset data is expected to take place by September 2027.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

UN calls for safeguards around emerging neuro-technologies

In a recent statement, the UN highlighted the growing field of neuro-technology, which encompasses devices and software that can measure, access, or manipulate the nervous system, as posing new risks to human rights.

The UN highlighted how such technologies could challenge fundamental concepts like ‘mental integrity’, autonomy and personal identity by enabling unprecedented access to brain data.

It warned that without robust regulation, the benefits of neuro-technology may come with costs such as privacy violations, unequal access and intrusive commercial uses.

The concerns align with broader debates about how advanced technologies, such as AI, are reshaping society, ethics, and international governance.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Winning the AI race means winning developers in China, says Huang of Nvidia

Nvidia CEO Jensen Huang said China is ‘nanoseconds’ behind the US in AI and urged Washington to lead by accelerating innovation and courting developers globally. He argued that excluding China would weaken the reach of US technology and risk splintering the ecosystem into incompatible stacks.

Huang’s remarks came amid ongoing export controls that bar Nvidia’s most advanced processors from the Chinese market. He acknowledged national security concerns but cautioned that strict limits can slow the spread of American tools that underpin AI research, deployment, and scaling.

Hardware remains central, Huang said, citing advanced accelerators and data-centre capacity as the substrate for training frontier models. Yet diffusion matters: widespread adoption of US platforms by global developers amplifies influence, reduces fragmentation, and accelerates innovation.

With sales of top-end chips restricted, Huang warned that Chinese firms will continue to innovate on domestic alternatives, increasing the likelihood of parallel systems. He called for policies that enable US leadership while preserving channels to the developer community in China.

Huang framed the objective as keeping America ahead, maintaining the world’s reliance on an American tech stack, and avoiding strategies that would push away half the world’s AI talent.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!