Economic

Disney backs OpenAI with $1bn investment and licensing pact

The Walt Disney Company has struck a landmark agreement with OpenAI, becoming the first major content licensing partner on Sora, the AI company’s short-form generative video platform.

Under the three-year deal, Sora will generate short videos using more than 200 animated and creature characters from Disney, Pixar, Marvel, and Star Wars. The licence also covers ChatGPT Images, excluding talent likenesses and voices.

Beyond licensing, Disney will become a major OpenAI customer, using its APIs to develop new products and experiences, including for Disney+, while deploying ChatGPT internally across its workforce. Disney will also make a $1 billion equity investment in OpenAI and receive warrants for additional shares.

Both companies frame the partnership as a test case for responsible AI in creative industries. Executives say the agreement is designed to expand storytelling possibilities while protecting creators’ rights, user safety, and intellectual property across platforms.

Subject to final approvals, Sora-generated Disney content is expected to begin rolling out in early 2026. Curated selections may appear on Disney+, marking a new phase in how established entertainment brands engage with generative AI tools.

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

YouTube offers creators payments in PayPal stablecoin

YouTube has introduced a new payment option for US-based creators, allowing them to receive earnings in PayPal’s stablecoin, PYUSD. The move adds another major tech company experimenting with crypto-linked payments, while simplifying the process for content creators.

PayPal manages the conversion and custody of the stablecoin, meaning YouTube does not directly handle any crypto. The feature uses YouTube’s existing payout system and follows PayPal’s broader PYUSD rollout earlier this year.

Stablecoins have gained attention among tech firms following the signing of the GENIUS Act in July 2025, which provides a federal framework for these assets. Stripe and Google are exploring stablecoins for faster settlements, reflecting rising interest in regulated digital payments.

PYUSD, which reached a market capitalisation of nearly $4 billion, is already integrated into several PayPal products, including Venmo and merchant tools. For now, the payout option is limited to US creators, with no timeline announced for expansion to other regions.

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

AI use grows among EU enterprises in 2025

In 2025, one in five EU enterprises with at least ten employees reported using AI technologies, marking a significant rise from 13.5% in 2024. AI adoption has more than doubled since 2021, showing its increasing use in business across the EU.

Nordic countries led the way, with Denmark at 42%, Finland at 37.8%, and Sweden at 35%. In contrast, Romania, Poland, and Bulgaria had the lowest adoption rates, ranging from 5.2% to 8.5%.

Almost all EU member states recorded increases compared with the previous year, with Denmark, Finland, and Lithuania showing the most significant gains.

Enterprises mainly used AI to analyse text, generate multimedia, produce language, and convert speech into machine-readable formats. Analysing written language saw the most significant growth in 2025, followed by content generation, highlighting AI’s expanding role in communication and data processing.

Rising AI adoption is also linked to efficiency gains and innovation across EU businesses. Companies report using AI to streamline operations, support decision-making, and enhance customer engagement, signalling broader economic and technological impacts.

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

Trump signs order blocking individual US states from enforcing AI rules

US President Donald Trump has signed an executive order aimed at preventing individual US states from enforcing their own AI regulations, arguing that AI oversight should be handled at the federal level. Speaking at the White House, Trump said a single national framework would avoid fragmented rules, while his AI adviser, David Sacks, added that the administration would push back against what it views as overly burdensome state laws, except for measures focused on child safety.

The move is welcomed by major technology companies, which have long warned that a patchwork of state-level regulations could slow innovation and weaken the US position in the global AI race, particularly in comparison to China. Industry groups say a unified national approach would provide clarity for companies investing billions of dollars in AI development and help maintain US leadership in the sector.

However, the executive order has sparked strong backlash from several states, most notably California. Governor Gavin Newsom criticised the decision as an attempt to undermine state protections, pointing to California’s own AI law that requires large developers to address potential risks posed by their models.

Other states, including New York and Colorado, have also enacted AI regulations, arguing that state action is necessary in the absence of comprehensive federal safeguards.

Critics warn that blocking state laws could leave consumers exposed if federal rules are weak or slow to emerge, while some legal experts caution that a national framework will only be effective if it offers meaningful protections. Despite these concerns, tech lobby groups have praised the order and expressed readiness to work with the White House and Congress to establish nationwide AI standards.

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

EU supports Germany’s semiconductor expansion

The European Commission has approved €623 million in German support for two first-of-a-kind semiconductor factories in Dresden and Erfurt.

A funding that will help GlobalFoundries expand its site to create new wafer capacity and will assist X-FAB in building an open foundry designed for advanced micro-electromechanical systems.

Both projects aim to increase Europe’s strategic autonomy in chip production, rather than allowing dependence on non-European suppliers to deepen.

The facility planned by GlobalFoundries will adapt technologies developed under the IPCEI Microelectronics and Communication Technologies framework for dual-use needs in aerospace, defence and critical infrastructure.

The manufacturing process will take place entirely within the EU to meet strict security and reliability demands. X-FAB’s project will offer services that European firms, including start-ups and small companies, currently source from abroad.

A new plant that is expected to begin commercial operation by 2029 and will introduce manufacturing capabilities not yet available in Europe.

In return for public support, both companies will pursue innovation programmes, strengthen cross-border cooperation, and apply priority-rated orders during supply shortages, in line with the European Chips Act.

They will also develop training schemes to expand the pool of skilled workers, rather than relying on the limited existing capacity. Each company has committed to seeking recognition for its facilities as Open EU Foundries.

The Commission concluded that the aid packages comply with the EU State aid rules because they encourage essential economic activity, show apparent incentive effects and remain proportionate to funding gaps identified during assessment.

These measures form part of Europe’s broader shift toward a more resilient semiconductor ecosystem and follow earlier decisions supporting similar investments across member states.

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

Reddit challenges Australia’s teen social media ban

The US social media company, Reddit, has launched legal action in Australia as the country enforces the world’s first mandatory minimum age for social media access.

Reddit argues that banning users under 16 prevents younger Australians from taking part in political debate, instead of empowering them to learn how to navigate public discussion.

Lawyers representing the company argue that the rule undermines the implied freedom of political communication and could restrict future voters from understanding the issues that will shape national elections.

Australia’s ban took effect on December 10 and requires major platforms to block underage users or face penalties that can reach nearly 50 million Australian dollars.

Companies are relying on age inference and age estimation technologies to meet the obligation, although many have warned that the policy raises privacy concerns in addition to limiting online expression.

The government maintains that the law is designed to reduce harm for younger users and has confirmed that the list of prohibited platforms may expand as new safety issues emerge.

Reddit’s filing names the Commonwealth of Australia and Communications Minister Anika Wells. The minister’s office says the government intends to defend the law and will prioritise the protection of young Australians, rather than allowing open access to high-risk platforms.

The platform’s challenge follows another case brought by an internet rights group that claims the legislation represents an unfair restriction on free speech.

A separate list identifies services that remain open for younger users, such as Roblox, Pinterest and YouTube Kids. At the same time, platforms including Instagram, TikTok, Snapchat, Reddit and X are blocked for those under sixteen.

The case is expected to shape future digital access rights in Australia, as online communities become increasingly central to political education and civic engagement among emerging voters.

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

US approaches universal 5G as global adoption surges

New data from Omdia and 5G Americas showed rapid global growth in wireless connectivity during the third quarter of 2025, with nearly three billion 5G connections worldwide.

North America remained the most advanced region in terms of adoption, reaching penetration levels that almost match its population.

The US alone recorded 341 million 5G connections, marking one of the highest per capita adoption rates in the world, compared to the global average, which remains far lower.

Analysts noted that strong device availability and sustained investment continue to reinforce the region’s leadership. Enhanced features such as improved uplink performance and integrated sensing are expected to accelerate the shift towards early 5G-Advanced capabilities.

Growth in cellular IoT also remained robust. North America supported more than 270 million connected devices and is forecast to reach nearly half a billion by 2030 as sectors such as manufacturing and utilities expand their use of connected systems.

AI is becoming central to these deployments by managing traffic, automating operations and enabling more innovative industrial applications.

Future adoption is set to intensify as regional 5G connections are projected to surpass 8.6 billion by 2030.

Rising interest in fixed wireless access is driving multi-device usage, offering high-speed connectivity for households and small firms instead of relying solely on fibre networks that remain patchy in many areas.

Globally, the sector has reached more than 78 million connections, with strong annual growth. Analysts believe that expanding infrastructure will support demand for low-latency connectivity, and the addition of satellite-based systems is expected to extend coverage to remote locations.

By mid-November 2025, operators had launched 379 commercial 5G networks worldwide, including seventeen in North America. A similar number of LTE networks operated across the region.

Industry observers said that expanding terrestrial and non-terrestrial networks will form a layered architecture that strengthens resilience, supports emergency response and improves service continuity across land, sea and air.

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

India expands 5G coverage nationwide

The 5G footprint of India has expanded across all states and union territories, with services now reaching 99.9% of districts.

Telecom service providers have installed more than 5 lakh 5G base stations, contributing to a broader network of over 31 lakh sites nationwide. The government has emphasised the importance of reliable coverage in both rural and urban regions.

Efforts to strengthen connectivity in underserved areas continue through BharatNet, new mobile services in Left Wing Extremism (LWE)-affected regions, support for Aspirational Districts and the 4G Saturation Scheme, which aims to bring coverage to every uncovered village.

Streamlined Right of Way rules and faster approval for using street furniture have created an environment where operators can deploy small cells more efficiently, rather than facing long administrative delays.

As 5G coverage expands nationwide, operators are preparing for a future driven by AI workloads rather than traditional network demands. Private and state providers are both expanding infrastructure, often sharing facilities when it is technically and commercially viable.

The government of India has emphasised that coordinated planning will be crucial for managing the increasing digital traffic.

Seven working groups under the Bharat 6G Alliance have outlined progress on India’s next-generation roadmap. The communications minister has emphasised that spectrum policy, device readiness, applications and sustainability need to align so innovation can mature.

Monthly joint reviews will be conducted to ensure that breakthroughs in one domain can lead to practical outcomes in other areas, supporting India’s long-term 6G strategy.

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

EU survey shows strong public backing for digital literacy in schools

A new Eurobarometer survey finds that Europeans want digital skills to hold the same status in schools as reading, mathematics and science.

Citizens view digital competence as essential for learning, future employment and informed participation in public life.

Nine in ten respondents believe that schools should guide pupils on how to handle the harmful effects of digital technologies on their mental health and well-being, rather than treating such issues as secondary concerns.

Most Europeans also support a more structured approach to online information. Eight in ten say digital literacy helps them avoid misinformation, while nearly nine in ten want teachers to be fully prepared to show students how to recognise false content.

A majority continues to favour restrictions on smartphones in schools, yet an even larger share supports the use of digital tools specifically designed for learning.

More than half find that AI brings both opportunities and risks for classrooms, which they believe should be examined in greater depth.

Almost half want the EU to shape standards for the use of educational technologies, including rules on AI and data protection.

The findings will inform the European Commission’s 2030 Roadmap on digital education and skills, scheduled for release next year as part of the Union of Skills initiative.

A survey carried out across all member states reflects a growing expectation that digital education should become a central pillar of Europe’s teaching systems, rather than an optional enhancement.

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

India moves toward mandatory AI royalty regime

India is weighing a sweeping copyright framework that would require AI companies to pay royalties for training on copyrighted works under a mandatory blanket licence branded as the hybrid ‘One Nation, One Licence, One Payment’ model.

A new Copyright Royalties Collective for AI Training, or CRCAT, would collect payments from developers and distribute money to creators. AI firms would have to rely only on lawfully accessed material and file detailed summaries of training datasets, including data types and sources.

The panel is expected to favour flat, revenue-linked percentages on global earnings from commercial AI systems, reviewed roughly every three years and open to legal challenge in court.

Obligations would apply retroactively to AI developers that have already trained profitable models on copyright-protected material, framed by Indian policymakers as a corrective measure for the creative ecosystem.

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