Digital identities

US security process delays Nvidia chip sales

Nvidia’s plans to export its H200 AI chips to China remain pending nearly two months after US President Donald Trump approved. A national security review is still underway before licences can be issued to Chinese customers.

Chinese companies have delayed new H200 orders while awaiting clarity on licence approvals and potential conditions, according to people familiar with the discussions. The uncertainty has slowed anticipated demand and affected production planning across Nvidia’s supply chain.

In January, the US Commerce Department eased H200 export restrictions to China but required licence applications to be reviewed by the departments of State, Defence, and Energy.

Commerce has completed its analysis, but inter-agency discussions continue, with the US State Department seeking additional safeguards.

The export framework, which also applies to AMD, introduces conditions related to shipment allocation, testing, and end-use reporting. Until the review process concludes, Nvidia and prospective Chinese buyers remain unable to proceed with confirmed transactions.

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Greece nears plan to restrict social media for under-15s

Preparing to restrict social media access for children under 15s, Greece plans to use the Kids Wallet app as its enforcement tool amid rising European concern over youth safety.

A senior official indicated that an announcement is close, reflecting growing political concern about digital safety and youth protection.

The Ministry of Digital Governance intends to rely on the Kids Wallet application, introduced last year, as a mechanism for enforcing the measure instead of developing a new control framework.

Government planning is advanced, yet the precise timing of the announcement by Prime Minister Kyriakos Mitsotakis has not been finalised.

In addition to the legislative initiative in Greece, the European debate on children’s online safety is intensifying.

Spain recently revealed plans to prohibit social media access for those under sixteen and to create legislation that would hold platform executives personally accountable for hate speech.

Such moves illustrate how governments are seeking to shape the digital environment for younger users rather than leaving regulation solely in private hands.

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Bitcoin drops to 2024 low as AI fears and geopolitics rattle markets

A cautious mood spread across global markets as US stocks declined and Bitcoin slid to its lowest level since late 2024. Technology and software shares led losses, pushing major indices to their weakest performance in two weeks.

Bitcoin fell sharply before stabilising, remaining well below its October peak despite continued pro-crypto messaging from Washington. Gold and silver moved higher during the session, reinforcing their appeal as defensive assets amid rising uncertainty.

Investor sentiment weakened after Anthropic unveiled new legal-focused features for its Claude chatbot, reviving fears of disruption across software and data-driven business models. Analysts at Morgan Stanley pointed to rotation within the technology sector, with investors reducing exposure to software stocks.

Geopolitical tensions intensified after reports of US military action involving Iran, pushing oil prices higher and increasing market volatility. Combined AI uncertainty, geopolitical risk, and shifting safe-haven flows continue to weigh on equities and digital assets alike.

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India pushes Meta to justify WhatsApp’s data-sharing

The Supreme Court of India has delivered a forceful warning to Meta after judges said the company could not play with the right to privacy.

The court questioned how WhatsApp monetises personal data in a country where the app has become the de facto communications tool for hundreds of millions of people. Judges added that meaningful consent is difficult when users have little practical choice.

Meta was told not to share any user information while the appeal over WhatsApp’s 2021 privacy policy continues. Judges pressed the company to explain the value of behavioural data instead of relying solely on claims about encrypted messages.

Government lawyers argued that personal data was collected and commercially exploited in ways most users would struggle to understand.

The case stems from a major update to WhatsApp’s data-sharing rules that India’s competition regulator said abused the platform’s dominant position.

A significant penalty was issued before Meta and WhatsApp challenged the ruling at the Supreme Court. The court has now widened the proceedings by adding the IT ministry and has asked Meta to provide detailed answers before the next hearing on 9 February.

WhatsApp is also under heightened scrutiny worldwide as regulators examine how encrypted platforms analyse metadata and other signals.

In India, broader regulatory changes, such as new SIM-binding rules, could restrict how small businesses use the service rather than broadening its commercial reach.

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Ofcom expands scrutiny of X over Grok deepfake concerns

The British regulator, Ofcom, has released an update on its investigation into X after reports that the Grok chatbot had generated sexual deepfakes of real people, including minors.

As such, the regulator initiated a formal inquiry to assess whether X took adequate steps to manage the spread of such material and to remove it swiftly.

X has since introduced measures to limit the distribution of manipulated images, while the ICO and regulators abroad have opened parallel investigations.

The Online Safety Act does not cover all chatbot services, as regulation depends on whether a system enables user interactions, provides search functionality, or produces pornographic material.

Many AI chatbots fall partly or entirely outside the Act’s scope, limiting regulators’ ability to act when harmful content is created during one-to-one interactions.

Ofcom cannot currently investigate the standalone Grok service for producing illegal images because the Act does not cover that form of generation.

Evidence-gathering from X continues, with legally binding information requests issued to the company. Ofcom will offer X a full opportunity to present representations before any provisional findings are published.

Enforcement actions take several months, since regulators must follow strict procedural safeguards to ensure decisions are robust and defensible.

Ofcom added that people who encounter harmful or illegal content online are encouraged to report it directly to the relevant platforms. Incidents involving intimate images can be reported to dedicated services for adults or support schemes for minors.

Material that may constitute child sexual abuse should be reported to the Internet Watch Foundation.

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EU AI Act guidance delay raises compliance uncertainty

The European Commission has missed a key deadline to issue guidance on how companies should classify high-risk AI systems under the EU AI Act, fuelling uncertainty around the landmark law’s implementation.

Guidance on Article 6, which defines high-risk AI systems and stricter compliance rules, was due by early February. Officials have indicated that feedback is still being integrated, with a revised draft expected later this month and final adoption potentially slipping to spring.

The delay follows warnings that regulators and businesses are unprepared for the act’s most complex rules, due to apply from August. Brussels has suggested delaying high-risk obligations under its Digital Omnibus package, citing unfinished standards and the need for legal clarity.

Industry groups want enforcement delayed until guidance and standards are finalised, while some lawmakers warn repeated slippage could undermine confidence in the AI Act. Critics warn further changes could deepen uncertainty if proposed revisions fail or disrupt existing timelines.

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EU moves closer to decision on ChatGPT oversight

The European Commission plans to decide by early 2026 whether OpenAI’s ChatGPT should be classified as a vast online platform under the Digital Services Act.

OpenAI’s tool reported 120.4 million average monthly users in the EU back in October, a figure far above the 45-million threshold that triggers more onerous obligations instead of lighter oversight.

Officials said the designation procedure depends on both quantitative and qualitative assessments of how a service operates, together with input from national authorities.

The Commission is examining whether a standalone AI chatbot can fall within the scope of rules usually applied to platforms such as social networks, online marketplaces and significant search engines.

ChatGPT’s user data largely stems from its integrated online search feature, which prompts users to allow the chatbot to search the web. The Commission noted that OpenAI could voluntarily meet the DSA’s risk-reduction obligations while the formal assessment continues.

The EU’s latest wave of designations included Meta’s WhatsApp, though the rules applied only to public channels, not private messaging.

A decision on ChatGPT that will clarify how far the bloc intends to extend its most stringent online governance framework to emerging AI systems.

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France targets X over algorithm abuse allegations

The cybercrime unit of the Paris prosecutor has raided the French office of X as part of an expanding investigation into alleged algorithm manipulation and illicit data extraction.

Authorities said the probe began in 2025 after a lawmaker warned that biassed algorithms on the platform might have interfered with automated data systems. Europol supported the operation together with national cybercrime officers.

Prosecutors confirmed that the investigation now includes allegations of complicity in circulating child sex abuse material, sexually explicit deepfakes and denial of crimes against humanity.

Elon Musk and former chief executive Linda Yaccarino have been summoned for questioning in April in their roles as senior figures of the company at the time.

The prosecutor’s office also announced its departure from X in favour of LinkedIn and Instagram, rather than continuing to use the platform under scrutiny.

X strongly rejected the accusations and described the raid as politically motivated. Musk claimed authorities should focus on pursuing sex offenders instead of targeting the company.

The platform’s government affairs team said the investigation amounted to law enforcement theatre rather than a legitimate examination of serious offences.

Regulatory pressure increased further as the UK data watchdog opened inquiries into both X and xAI over concerns about Grok producing sexualised deepfakes. Ofcom is already conducting a separate investigation that is expected to take months.

The widening scrutiny reflects growing unease around alleged harmful content, political interference and the broader risks linked to large-scale AI systems.

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AI legal tool rattles European data stocks

European data and legal software stocks fell sharply after US AI startup Anthropic launched a new tool for corporate legal teams. The company said the software can automate contract reviews, compliance workflows, and document triage, while clarifying that it does not offer legal advice.

Investors reacted swiftly, sending shares in Pearson, RELX, Sage, Wolters Kluwer, London Stock Exchange Group, and Experian sharply lower. Thomson Reuters also suffered a steep decline, reflecting concern that AI tools could erode demand for traditional data-driven services.

Market commentators warned that broader adoption of AI in professional services could compress margins or bypass established providers altogether. Morgan Stanley flagged intensifying competition, while AJ Bell pointed to rising investor anxiety across the sector.

The sell-off also revived debate over AI’s impact on employment, particularly in legal and other office-based roles. Recent studies suggest the UK may face greater disruption than other large economies as companies adopt AI tools, even as productivity gains continue to rise.

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Major Chinese data leak exposes billions of records

Cybersecurity researchers uncovered an unsecured database exposing 8.7 billion records linked to individuals and businesses in China. The data was found in early January 2026 and remained accessible online for more than three weeks.

The China focused dataset included national ID numbers, home addresses, email accounts, social media identifiers and passwords. Researchers warned that the scale of exposure in China creates serious risks of identity theft and account takeovers.

The records were stored in a large Elasticsearch cluster hosted on so called bulletproof infrastructure. Analysts believe the structure suggests deliberate aggregation in China rather than an accidental misconfiguration.

Although the database is now closed, experts say actors targeting China may have already copied the data. China has experienced several major leaks in recent years, highlighting persistent weaknesses in large scale data handling.

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