The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.
The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.
Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.
Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.
Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
Reports published by cybersecurity researchers indicated that data linked to approximately 17.5 million Instagram accounts has been offered for sale on underground forums.
The dataset reportedly includes usernames, contact details and physical address information, raising broader concerns around digital privacy and data aggregation.
A few hours later, Instagram responded by stating that no breach of internal systems occurred. According to the company, some users received password reset emails after an external party abused a feature that has since been addressed.
The platform said affected accounts remained secure, with no unauthorised access recorded.
Security analysts have noted that risks arise when online identifiers are combined with external datasets, rather than originating from a single platform.
Such aggregation can increase exposure to targeted fraud, impersonation and harassment, reinforcing the importance of cautious digital security practices across social media ecosystems.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
SoftBank Group and OpenAI announced a strategic partnership with SB Energy, involving a combined investment of $1 billion to support the development of large-scale AI data centres and energy infrastructure in the US.
The agreement forms part of the broader Stargate initiative, which aims to expand domestic AI computing capacity.
As part of the arrangement, OpenAI signed a lease for a 1.2 gigawatt data centre project in Milam County, Texas, with SB Energy selected to develop and operate the facility.
The partners stated that the project is designed to support the rising demand for AI computing while minimising water usage and enhancing local energy supply.
SB Energy also secured an additional $800 million in redeemable preferred equity from Ares, strengthening its financial position for further expansion.
The companies stated that the collaboration is expected to generate construction employment, long-term operational roles and investment in grid modernisation, while establishing a scalable model for future AI-focused data centre developments.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
A series of agreements has been announced by Meta to support nuclear energy projects in the US, aiming to secure up to 6.6 gigawatts of clean and reliable electricity for data centres and AI infrastructure by 2035. The company said the move supports grid stability while reinforcing domestic energy capacity.
The agreements include support for existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, as well as commitments to advanced reactor developers TerraPower and Oklo.
Meta stated that the arrangements are intended to extend the operational life of current plants while accelerating the deployment of next-generation nuclear technologies.
According to Meta, the projects are expected to generate thousands of construction roles and hundreds of long-term operational jobs, while contributing to the firm’s power to regional electricity grids.
The company added that energy costs associated with its data centres are fully covered through corporate agreements, instead of being passed on to US consumers.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.
Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.
The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.
Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.
Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.
xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.
Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.
State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.
Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The UK’s Financial Conduct Authority has confirmed that all regulated crypto firms must obtain authorisation under the Financial Services and Markets Act. Both new market entrants and existing operators will be required to comply.
No automatic transition will be available for firms currently registered under anti-money laundering rules. Companies already authorised for other financial services must apply to extend permissions to cover crypto activities and ensure compliance with upcoming regulations.
Pre-application meetings and information sessions will be offered to help firms understand regulatory expectations and enhance the quality of their applications.
An official application window is expected to open in September 2026 and remain active for at least 28 days. Applications submitted during that period are intended to be assessed before the regime formally begins, with further procedural details to be confirmed by the FCA.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Supermarket chain Wegmans Food Markets is facing scrutiny over its use of facial recognition technology. The issue emerged after New York City stores displayed signs warning that biometric data could be collected for security purposes.
New York law requires businesses to disclose biometric data collection, but the wording of the notices alarmed privacy advocates. Wegmans later said it only uses facial recognition, not voice or eye scans, and only in a small number of higher-risk stores.
According to the US company, the system identifies individuals who have been previously flagged for misconduct, such as theft or threatening behaviour. Wegmans says facial recognition is just one investigative tool and that all actions are subject to human review.
Critics argue the signage suggests broader surveillance than the company admits. Wegmans has not explained why the notices mention eyes and voice if that data is not collected, or when the wording might be revised.
Lawmakers in Connecticut have now proposed a ban on retail facial recognition. Supporters say grocery shopping is essential and that biometric monitoring weakens meaningful customer consent.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
BBC Children’s and Education has launched Solve The Story, a new series tackling online misinformation among teenagers. The six-part programme is designed for classroom use across UK schools.
The British series follows research showing teachers lack resources to teach critical thinking effectively. Surveys found teenagers struggle with online content volume, while one in three teachers find media literacy difficult to deliver.
Solve The Story uses mystery-style storytelling to help pupils question sources, spot deepfakes and challenge viral claims. Each episode includes practical classroom guides supporting teachers and lesson planning.
BBC figures say two thirds of teenagers worry about fake news causing confusion and stress. Educators argue AI-driven misinformation makes structured media literacy support increasingly urgent.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The European Commission has ordered X to retain all internal documents and data on its AI chatbot Grok until the end of 2026. The order falls under the Digital Services Act after concerns Grok’s ‘spicy’ mode enabled sexualised deepfakes of minors.
The move continues EU oversight, recalling a January 2025 order to preserve X’s recommender system documents amid claims it amplified far-right content during German elections. EU regulators emphasised that platforms must manage the content generated by their AI responsibly.
Earlier this week, X submitted responses to the Commission regarding Grok’s outputs following concerns over Holocaust denial content. While the deepfake scandal has prompted calls for further action, the Commission has not launched a formal investigation into Grok.
Regulators reiterated that it remains X’s responsibility to ensure the chatbot’s outputs meet European standards, and retention of all internal records is crucial for ongoing monitoring and accountability.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
