Digital standards

Nvidia and FCA open AI sandbox for UK fintechs

Financial firms across the UK will soon be able to experiment with AI in a new regulatory sandbox, launched by the Financial Conduct Authority (FCA) in partnership with Nvidia.

Known as the Supercharged Sandbox, it offers a secure testing ground for firms wanting to explore AI tools without needing their advanced computing resources.

Set to begin in October, the initiative is open to any financial services company testing AI-driven ideas. Firms will have access to Nvidia’s accelerated computing platform and tailored AI software, helping them work with complex data, improve automation, and enhance risk management in a controlled setting.

The FCA said the sandbox is designed to support firms lacking the in-house capacity to test new technology.

It aims to provide not only computing power but also regulatory guidance and access to better datasets, creating an environment where innovation can flourish while remaining compliant with rules.

The move forms part of a wider push by the UK government to foster economic growth through innovation. Finance minister Rachel Reeves has urged regulators to clear away obstacles to growth and praised the FCA and Bank of England for acting on her call to cut red tape.

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

Odyssey presents immersive AI-powered streaming

Odyssey, a startup founded by self-driving veterans Oliver Cameron and Jeff Hawke, has unveiled an AI model that allows users to interact with streaming video in real time.

The technology generates video frames every 40 milliseconds, enabling users to move through scenes like a 3D video game instead of passively watching. A demo is currently available online, though it is still in its early stages.

The system relies on a new kind of ‘world model’ that predicts future visual states based on previous actions and environments. Odyssey claims its model can maintain spatial consistency, learn motion from video, and sustain coherent video output for five minutes or more.

Unlike models trained solely on internet data, Odyssey captures real-world environments using a custom 360-degree, backpack-mounted camera to build higher-fidelity simulations.

Tech giants and AI startups are exploring world models to power next-generation simulations and interactive media. Yet creative professionals remain wary. A 2024 study commissioned by the Animation Guild predicted significant job disruptions across film and animation.

Game studios like Activision Blizzard have been scrutinised for using AI while cutting staff.

Odyssey, however, insists its goal is collaboration instead of replacement. The company is also developing software to let creators edit scenes using tools like Unreal Engine and Blender.

Backed by $27 million in funding and supported by Pixar co-founder Ed Catmull, Odyssey aims to transform video content across entertainment, education, and advertising through on-demand interactivity.

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

Elon Musk’s X tightens control on AI data use

Social media platform X has updated its developer agreement to prohibit the use of its content for training large language models.

The new clause, added under the restrictions section, forbids any attempt to use X’s API or content to fine-tune or train foundational or frontier AI models.

The move follows Elon Musk’s acquisition of X through his AI company xAI, which is developing its own models.

By restricting external access, the company aims to prevent competitors from freely using X’s data while maintaining control over a valuable resource for training AI systems.

X joins a growing list of platforms, including Reddit and The Browser Company, that have introduced terms blocking unauthorised AI training.

The shift reflects a broader industry trend towards limiting open data access amid the rising value of proprietary content in the AI arms race.

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

OQC outlines bold 50,000 qubit quantum computing vision

Oxford Quantum Circuits (OQC) has revealed plans to develop a 50,000 qubit fault-tolerant quantum computer by 2034, using its proprietary ‘Dimon’ superconducting transmon technology.

Achieving such scale would require millions of physical qubits but promises to outperform global rivals, including Google and IBM, with real-world applications ranging from cyber threat detection to drug discovery.

The roadmap includes a significant push to reduce error rates and optimise chip materials, with recent breakthroughs enabling error detection at the hardware level. OQC claims it achieves a 99.8% gate fidelity in just 25 nanoseconds and a tenfold improvement in qubit efficiency compared to competitors.

Interim CEO Gerald Mullally said the roadmap marks a turning point, calling on finance and national security organisations to prepare for a quantum-driven future.

Now seeking $100 million in Series B funding, the firm plans to install its first quantum system in New York, later this year.

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

Anthropic debuts AI tools for US national security

Anthropic has launched a new line of AI models, Claude Gov, explicitly tailored for US national security operations. Built with direct input from government clients, top-tier agencies already use the models.

These classified-use models were developed with enhanced safety testing and are optimised for handling sensitive material, including improved handling of classified data, rare language proficiency, and defence-specific document comprehension.

The Claude Gov models reflect Anthropic’s broader move into government partnerships, building on its collaboration with Palantir and AWS.

As competition in defence-focused AI intensifies, rivals including OpenAI, Meta, and Google are also adapting their models for secure environments.

The sector’s growing interest in custom, security-conscious AI tools marks a shift in how leading labs seek stable revenue streams and deeper ties with government agencies.

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

ChatGPT adds meeting recording and cloud access

OpenAI has launched new features for ChatGPT that allow it to record meetings, transcribe conversations, and pull information directly from cloud platforms like Google Drive and SharePoint.

Instead of relying on typed input alone, users can now speak to ChatGPT, which records audio, creates editable summaries, and helps generate follow-up content such as emails or project outlines.

‘Record’ is currently available to Team users via the macOS app and will soon expand to Enterprise and Edu accounts.

The recording tool automatically deletes the audio after transcription and applies existing workspace data rules, ensuring recordings are not used for training.

Instead of leaving notes scattered across different platforms, users gain a structured and searchable history of conversations, voice notes, or brainstorming sessions, which ChatGPT can recall and apply during future interactions.

At the same time, OpenAI has introduced new connectors for business users that let ChatGPT access files from cloud services like Dropbox, OneDrive, Box, and others.

These connectors allow ChatGPT to search and summarise information from internal documents, rather than depending only on web search or user uploads. The update also includes beta support for Deep Research agents that can work with tools like GitHub and HubSpot.

OpenAI has embraced the Model Context Protocol, an open standard allowing organisations to build their own custom connectors for proprietary tools.

Rather than serving purely as a general-purpose chatbot, ChatGPT is evolving into a workplace assistant capable of tapping into and understanding a company’s complete knowledge base.

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

New York Times sues OpenAI over data use

The New York Times has launched legal action against OpenAI, accusing the company of using its news articles without permission to train AI language models.

The NYT has asked the court to make OpenAI keep all ChatGPT user data indefinitely to find evidence for its case.

OpenAI’s Chief Operating Officer, Brad Lightcap, criticised the demand, saying it conflicts with privacy commitments and longstanding industry standards. OpenAI is appealing the order, arguing it represents an excessive overreach that weakens user privacy protections.

Despite the ongoing appeal, OpenAI must comply with the court’s directive until further notice. A limited, audited legal and security team will manage the stored data securely and only use it to meet legal obligations.

The data retention order impacts over 400 million weekly ChatGPT users, including those on Free, Plus, Pro, Teams, and many API plans. However, Enterprise and Zero Data Retention users remain unaffected.

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

EU launches global digital strategy

The European Union has launched a sweeping international digital strategy to bolster its global tech leadership and secure a human-centric digital transformation. With the digital and AI revolution reshaping economies and societies worldwide, the EU is positioning itself as a reliable partner in building resilient, open, and secure digital ecosystems.

The strategy prioritises collaboration with international partners to scale digital infrastructure, strengthen cybersecurity, and support emerging technologies like AI, quantum computing, and semiconductors while promoting democratic values and human rights in digital governance. The EU will deepen and expand its global network of Digital Partnerships and Dialogues to remain competitive and secure in a fast-changing geopolitical landscape.

These collaborations focus on research, industrial innovation, regulatory cooperation, and secure supply chains, while engaging countries across Africa, Latin America, Asia, and the EU’s own neighbourhood. The strategy also leverages trade instruments and investment frameworks such as the Global Gateway to support secure 5G and 6G networks, submarine cables, and digital public infrastructure, helping partner countries improve connectivity, resilience, and sustainability.

To enhance global digital governance, the EU is pushing for international standards that uphold privacy, security, and openness, and opposing efforts to fragment the internet. It supports inclusive multilateralism, working through institutions like the UN, G7, and OECD to shape rules for the digital age.

With initiatives ranging from AI safety cooperation and e-signature mutual recognition to safeguarding children online and combating disinformation, the EU aims to set the benchmark for ethical and secure digital transformation. At the heart of this vision is the EU Tech Business Offer—a modular, cross-border platform combining technology, capacity-building, and financing.

Through Team Europe and partnerships with industry, the EU seeks to bridge the digital divide, export trusted digital solutions, and foster an interconnected world aligned with European democratic principles. The strategy underscores that in today’s interconnected world, the EU’s prosperity and security hinge on shaping a digital future that is competitive, inclusive, and values-driven.

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

M&S CEO targeted by hackers in abusive ransom email

Marks & Spencer has been directly targeted by a ransomware group calling itself DragonForce, which sent a vulgar and abusive ransom email to CEO Stuart Machin using a compromised employee email address.

The message, laced with offensive language and racist terms, demanded that Machin engage via a darknet portal to negotiate payment. It also claimed that the hackers had encrypted the company’s servers and stolen customer data, a claim M&S eventually acknowledged weeks later.

The email, dated 23 April, appears to have been sent from the account of an Indian IT worker employed by Tata Consultancy Services (TCS), a long-standing M&S tech partner.

TCS has denied involvement and stated that its systems were not the source of the breach. M&S has remained silent publicly, neither confirming the full scope of the attack nor disclosing whether a ransom was paid.

The cyber attack has caused major disruption, costing M&S an estimated £300 million and halting online orders for over six weeks.

DragonForce has also claimed responsibility for a simultaneous attack on the Co-op, which left some shelves empty for days. While nothing has yet appeared on DragonForce’s leak site, the group claims it will publish stolen information soon.

Investigators believe DragonForce operates as a ransomware-as-a-service collective, offering tools and platforms to cybercriminals in exchange for a 20% share of any ransom.

Some experts suspect the real perpetrators may be young hackers from the West, linked to a loosely organised online community called Scattered Spider. The UK’s National Crime Agency has confirmed it is focusing on the group as part of its inquiry into the recent retail hacks.

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

Gemini 2.5 Pro tops AI coding tests, surpasses ChatGPT and Claude

Google has released an updated version of its Gemini 2.5 Pro model, addressing issues found in earlier updates.

Unlike the I/O Edition, which focuses mostly on coding, the new version improves performance more broadly and is expected to become a stable release in both the Gemini app and web interface.

The company claims the updated model performs significantly better in code generation, topping the Aider Polyglot test with a score of 82.2 percent—surpassing offerings from OpenAI, Anthropic and DeepSeek.

Beyond coding, the model aims to close previous performance gaps introduced with the March 25th update, especially in creativity and response formatting.

Developers can now fine-tune the model’s ‘thinking budget’, while users should notice a more transparent output structure. These changes and consistent improvement in leaderboard ratings on LMArena and WebDevArena suggest that Google is extending its lead in the AI race.

Google continues to rely on blind testing to judge how people feel about its models, and the new Gemini Pro seems to resonate well. In fact, it now answers even quirky test questions with more clarity and confidence—something that had been lacking in earlier versions.

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