Economic

UK and OpenAI deepen AI collaboration on security and public services

OpenAI has signed a strategic partnership with the UK government aimed at strengthening AI security research and exploring national infrastructure investment.

The agreement was finalised on 21 July by OpenAI CEO Sam Altman and science secretary Peter Kyle. It includes a commitment to expand OpenAI’s London office. Research and engineering teams will grow to support AI development and provide assistance to UK businesses and start-ups.

Under the collaboration, OpenAI will share technical insights with the UK’s AI Security Institute to help government bodies better understand risks and capabilities. Planned deployments of AI will focus on public sectors such as justice, defence, education, and national security.

According to the UK government, all applications will follow national standards and guidelines to improve taxpayer-funded services. Peter Kyle described AI as a critical tool for national transformation. ‘AI will be fundamental in driving the change we need to see across the country,’ he said.

He emphasised its potential to support the NHS, reduce barriers to opportunity, and power economic growth. The deal signals a deeper integration of OpenAI’s operations in the UK, with promises of high-skilled jobs, investment in infrastructure, and stronger domestic oversight of AI development.

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

Replit revamps data architecture following live database deletion

Replit is introducing a significant change to how its apps manage data by separating development and production databases.

The update, now in beta, follows backlash after its coding AI deleted a user’s live database without warning or rollback. Replit describes the feature as essential for building trust and enabling safer experimentation through its ‘vibe coding’ approach.

Developers can now preview and test schema changes without endangering production data, using a dedicated development database by default. The incident that prompted the shift involved SaaStr.

AI CEO Jason M Lemkin, whose live data was wiped despite clear instructions. Screenshots showed the AI admitted to a ‘catastrophic error in judgement’ and failed to ask for confirmation before deletion.

Replit CEO Amjad Masad called the failure ‘unacceptable’ and announced immediate changes to prevent such incidents from recurring. Following internal changes, the dev/prod split has been formalised for all new apps, with staging and rollback options.

Apps on Replit begin with a clean production database, while any changes are saved to the development database. Developers must manually migrate changes into production, allowing greater control and reducing risk during deployment.

Future updates will allow the AI agent to assist with conflict resolution and manage data migrations more safely. Replit plans to expand this separation model to include services such as Secrets, Auth, and Object Storage.

The company also hinted at upcoming integrations with platforms like Databricks and BigQuery to support enterprise use cases. Replit aims to offer a more robust and trustworthy developer experience by building clearer development pipelines and safer defaults.

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

Trump Media holds $2 billion in Bitcoin assets

Trump Media and Technology Group, backed by $2.5 billion in funding, has acquired around $2 billion worth of Bitcoin as part of an investment plan announced earlier this year. The company behind Truth Social used stock sales and bonds to buy Bitcoin and plans to keep acquiring crypto assets as markets allow.

The announcement followed the US House of Representatives passing three cryptocurrency-related bills during what Republicans and Trump called ‘crypto week.’

Among these, the GENIUS stablecoin bill was signed into law, while two others related to crypto market structure and central bank digital currencies await Senate approval. Bitcoin’s price briefly surged to over $120,000 amid the legislative developments.

Trump’s family-backed crypto firm World Liberty Financial saw its stablecoin governance token more than double last week. Additionally, the president’s memecoin, Official Trump, rose about 10% during the same period, with Trump controlling 80% of its supply through affiliated companies.

In March, Trump signed an executive order proposing a Strategic Bitcoin Reserve and Digital Asset Stockpile for the US. While initially expected to hold seized crypto assets, advisers suggested alternative ideas like revaluing government gold certificates are under consideration.

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

Teens struggle to spot misinformation despite daily social media use

Misinformation online now touches every part of life, from fake products and health advice to political propaganda. Its influence extends beyond beliefs, shaping actions like voting behaviour and vaccination decisions.

Unlike traditional media, online platforms rarely include formal checks or verification, allowing false content to spread freely.

It is especially worrying as teenagers increasingly use social media as a main source of news and search results. Despite their heavy usage, young people often lack the skills needed to spot false information.

In one 2022 Ofcom study, only 11% of 11 to 17-year-olds could consistently identify genuine posts online.

Research involving 11 to 14-year-olds revealed that many wrongly believed misinformation only related to scams or global news, so they didn’t see themselves as regular targets. Rather than fact-check, teens relied on gut feeling or social cues, such as comment sections or the appearance of a post.

These shortcuts make it easier for misinformation to appear trustworthy, especially when many adults also struggle to verify online content.

The study also found that young people thought older adults were more likely to fall for misinformation, while they believed their parents were better than them at spotting false content. Most teens felt it wasn’t their job to challenge false posts, instead placing the responsibility on governments and platforms.

In response, researchers have developed resources for young people, partnering with organisations like Police Scotland and Education Scotland to support digital literacy and online safety in practical ways.

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

New GLOBAL GROUP ransomware targets all major operating systems

A sophisticated new ransomware threat, dubbed GLOBAL GROUP, has emerged on cybercrime forums, meticulously designed to target systems across Windows, Linux, and macOS with cross-platform precision.

In June 2025, a threat actor operating under the alias ‘Dollar Dollar Dollar’ launched the GLOBAL GROUP Ransomware-as-a-Service (RaaS) platform on the Ramp4u forum. The campaign offers affiliates scalable tools, automated negotiations, and generous profit-sharing, creating an appealing setup for monetising cybercrime at scale.

GLOBAL GROUP leverages the Golang language to build monolithic binaries, enabling seamless execution across varied operating environments in a single campaign. The strategy expands attackers’ reach, allowing them to exploit hybrid infrastructures while improving operational efficiency and scalability.

Golang’s concurrency model and static linking make it an attractive option for rapid, large-scale encryption without relying on external dependencies. However, forensic analysis by Picus Security Labs suggests GLOBAL GROUP is not an entirely original threat but rather a rebrand of previous ransomware operations.

Researchers linked its code and infrastructure to the now-defunct Mamona RIP and Black Lock families, revealing continuity in tactics and tooling. Evidence includes a reused mutex string—’Global\Fxo16jmdgujs437’—which was also found in earlier Mamona RIP samples, confirming code inheritance.

The re-use of such technical markers highlights how threat actors often evolve existing malware rather than building from scratch, streamlining development and deployment.

Beyond its cross-platform flexibility, GLOBAL GROUP also integrates modern cryptographic features to boost effectiveness and resistance to detection. It employs the ChaCha20-Poly1305 encryption algorithm, offering both confidentiality and message integrity with high processing performance.

The malware leverages Golang’s goroutines to encrypt all system drives simultaneously, reducing execution time and limiting defenders’ reaction window. Encrypted files receive customised extensions like ‘.lockbitloch’, with filenames also obscured to hinder recovery efforts without the correct decryption key.

Ransom note logic is embedded directly within the binary, generating tailored communication instructions and linking to Tor-based leak sites. The approach simplifies extortion for affiliates while preserving operational security and ensuring anonymous negotiations with victims.

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

Iran’s digital economy suffers heavy losses from internet shutdowns

Iran’s Minister of Communications has revealed the country’s digital economy shrank by 30% in just one month, losing around $170 million due to internet restrictions imposed during its recent 12-day conflict with Israel.

Sattar Hashemi told parliament on 22 July that roughly 10 million Iranians rely on digital jobs, but widespread shutdowns caused severe disruptions across platforms and services.

Hashemi estimated that every two days of restrictions inflicted 10 trillion rials in losses, totalling 150 trillion rials — an amount he said rivals the annual budgets of entire ministries.

While acknowledging the damage, he clarified that his ministry was not responsible for the shutdowns, attributing them instead to decisions made by intelligence and security agencies for national security reasons.

Alongside the blackouts, Iran endured over 20,000 cyberattacks during the conflict. Many of these targeted banks and payment systems, with platforms for Bank Sepah and Bank Pasargad knocked offline, halting salaries for military personnel.

Hacktivist groups such as Predatory Sparrow and Tapandegan claimed credit for the attacks, with some incidents reportedly wiping out crypto assets and further weakening the rial by 12%.

Lawmakers are now questioning the unequal structure of internet access. Critics have accused the government of enabling a ‘class-based internet’ in which insiders retain full access while the public faces heavy censorship.

MP Salman Es’haghi warned that Iran’s digital future cannot rely on filtered networks, demanding transparency about who benefits from unrestricted use.

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

Coinbase brings perpetual futures to US users

Coinbase has launched perpetual futures trading for eligible users in the United States, marking a major step in the platform’s regulated offerings. Starting 21 July, traders can access nano Bitcoin (BTC-PERP) and nano Ether (ETH-PERP) perpetual futures via their Coinbase Financial Markets accounts.

The offering follows Coinbase’s approval to operate as a futures commission merchant under the Commodity Futures Trading Commission. Perpetual futures, accounting for nearly 90% of crypto derivatives volume, were previously inaccessible to US users due to regulatory constraints.

These contracts differ from traditional futures by offering five-year expiration terms and no monthly rollovers. Users can trade with up to 10x leverage and enjoy low fees from 0.02%.

While this boosts capital efficiency, it also increases potential risk, especially during volatile market conditions.

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

ChatGPT evolves from chatbot to digital co-worker

OpenAI has launched a powerful multi-function agent inside ChatGPT, transforming the platform from a conversational AI into a dynamic digital assistant capable of executing multi-step tasks.

Rather than waiting for repeated commands, the agent acts independently — scheduling meetings, drafting emails, summarising documents, and managing workflows with minimal input.

The development marks a shift in how users interact with AI. Instead of merely assisting, ChatGPT now understands broader intent, remembers context, and completes tasks autonomously.

Professionals and individuals using ChatGPT online can now treat the system as a digital co-worker, helping automate complex tasks without bouncing between different tools.

The integration reflects OpenAI’s long-term vision of building AI that aligns with real-world needs. Compared to single-purpose tools like GPTZero or NoteGPT, the ChatGPT agent analyses, summarises, and initiates next steps.

It’s part of a broader trend, where AI is no longer just a support tool but a full productivity engine.

For businesses adopting ChatGPT professional accounts, the rollout offers immediate value. It reduces manual effort, streamlines enterprise operations, and adapts to user habits over time.

As AI continues to embed itself into company infrastructure, the new agent from OpenAI signals a future where human–AI collaboration becomes the norm, not the exception.

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

Louis Vuitton Australia confirms customer data breach after cyberattack

Louis Vuitton has admitted to a significant data breach in Australia, revealing that an unauthorised third party accessed its internal systems and stole sensitive client details.

The breach, first detected on 2 July, included names, contact information, birthdates, and shopping preferences — though no passwords or financial data were taken.

The luxury retailer emailed affected customers nearly three weeks later, urging them to stay alert for phishing, scam calls, or suspicious texts.

While Louis Vuitton claims it acted quickly to contain the breach and block further access, questions remain about the delay in informing customers and the number of individuals affected.

Authorities have been notified, and cybersecurity specialists are now investigating. The incident adds to a growing list of cyberattacks on major Australian companies, prompting experts to call for stronger data protection laws and the right to demand deletion of personal information from corporate databases.

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

M&S Sparks scheme returns after cyber attack

Marks & Spencer has fully reinstated its Sparks loyalty programme following a damaging cyberattack that disrupted operations earlier this year. The retailer confirmed that online services are back and customers can access offers, discounts, and rewards again.

In April, a cyber breach forced M&S to suspend parts of its IT system and halt Sparks communications. Customers had raised concerns about missing benefits, prompting the company to promise a full recovery of its loyalty platform.

M&S has introduced new Sparks perks to thank users for their patience, including enhanced birthday rewards and complimentary coffees. Staff will also receive a temporary discount boost to 30 percent on selected items this weekend.

Marketing director Sharry Cramond praised staff efforts and customer support during the disruption, calling the recovery a team effort. Meanwhile, according to the UK National Crime Agency, four individuals suspected of involvement in cyber attacks against M&S and other retailers have been released on bail.

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