Economic

SK Telecom unveils $700B cybersecurity upgrade

SK Telecom has announced a major cybersecurity initiative worth KRW 700 billion, designed to restore trust and enhance information security after a recent incident.

The company’s new programme, called the Accountability and Commitment Program, includes four elements to protect customers and reinforce transparency.

A central part of the initiative is the Information Protection Innovation Plan, which involves a five-year investment to build a world-class cybersecurity system.

The project will follow the US National Institute of Standards and Technology’s Cybersecurity Framework and aims to position SK Telecom as Korea’s leader in information security by 2028.

To further support affected customers, the company is upgrading its Customer Assurance Package and introducing a Customer Appreciation Package to thank users for their patience and loyalty.

A subscription cancellation fee waiver has also been included to reduce friction for those reconsidering their service.

SK Telecom says it will maintain its commitment to customer safety and service reliability, pledging to fully address all concerns and enhance security and service quality across the board.

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

Ooredoo launches local AI cloud service in Qatar

Ooredoo has unveiled a new sovereign AI cloud service powered by NVIDIA Hopper GPUs, hosted locally in Qatar’s data centres. The move supports the country’s broader aim to advance digital transformation and position itself as a regional leader in AI innovation.

The service accelerates AI adoption across key sectors such as energy, finance, logistics, healthcare and smart cities. As an NVIDIA Cloud Partner, Ooredoo now provides customers access to cutting-edge GPU technology and the NVIDIA AI Enterprise platform for developing and scaling AI solutions.

Use cases include real-time financial analysis, supply chain optimisation and chatbot development, all supported by high-performance cloud computing infrastructure operated by Syntys. These capabilities aim to deliver robust local AI services that meet national security and sovereignty requirements.

The initiative aligns with the Qatar Digital Agenda 2030 and the National AI Strategy, which advocate for local hosting, advanced digital infrastructure and responsible AI development. Ooredoo’s CEO, Sheikh Ali Bin Jabor Al-Thani, said the project will drive economic growth and innovation across all levels of society.

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

Lummis unveils crypto tax reform bill

US Senator Cynthia Lummis has proposed a new crypto tax bill to modernise how digital assets are treated under US tax law. The legislation follows her earlier attempt to include it in the recently passed One Big Beautiful Bill Act, which did not succeed.

Now a standalone bill proposes a $300 crypto transaction exemption, ends double taxation for miners and stakers, and ensures crypto is treated like other financial assets. It also aims to expand securities lending rules to include digital assets, ensuring lending does not trigger tax liability.

Lummis, who chairs the Senate digital assets subcommittee, said the bill is designed to align US tax law with real-world digital use. She emphasised the need to remove outdated policies that hinder innovation and invited public feedback on the proposal.

The initiative joins a series of pending digital asset bills in the US Congress, including the CLARITY and GENIUS Acts. Lummis has also backed the Bitcoin Act, which would establish a national BTC reserve following Donald Trump’s return to office.

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

India needs a quantum leap in defence AI, says LatentAI founder

Jags Kandasamy, founder of US-based defence tech company LatentAI, is working with Indian firms to pursue defence contracts, but says India must leapfrog forward in AI-enabled warfare. In an interview with HT, he outlined the challenges and opportunities in the India-US defence tech partnership.

At Aero India, Kandasamy saw an Indian Army prototype using computer vision on automated border weapons. While promising, the system’s heavy computing requirements limit scalability.

LatentAI, which helped the US Navy optimise AI models for underwater vehicles, offers solutions by compressing models to fit limited hardware. ‘Autonomous warfare is the future,’ he said, noting the impact of drones and AI on intelligence, targeting and surveillance.

Kandasamy’s India partner, InferQ, came through introductions by Forge Ventures, which works closely with Indian and United States defence departments. He said that government initiatives like INDUSX and IDEX are helping firms connect across borders, but procedural bottlenecks persist.

‘There’s no mechanism for non-Indian passport holders to get clearance,’ Kandasamy noted. ‘In the US, the process is transparent. Even Indian firms can’t see who makes the decisions.’

He recalled advising a founder who waited two years to get a prototype certified. ‘India can be a great proving ground, but the bureaucracy needs streamlining.’

On China, Kandasamy didn’t mince words: ‘China is a third-year PhD student in defence AI. India is in elementary school.’ He cited examples of China’s proactive investment in emerging tech from 2010, including personal offers to relocate his startups. ‘India needs to leapfrog like it did with telecom.’

Still, Kandasamy praised India’s IDEX programme for uncovering strong homegrown tech talent. ‘There are smart people and ideas, but they need support and scale.’

To improve bilateral cooperation, he suggested reciprocal security clearances and defining interoperability frameworks between US and Russian-origin systems in India. ‘India won’t abandon its Russian hardware. But if we can protect both sides’ secrets while working together, that would be real progress.’

‘India and the US are linchpins of a democratic society,’ he concluded. ‘We have to make this partnership work.’

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

OpenAI rejects Robinhood’s token offering

OpenAI has publicly disavowed Robinhood’s decision to sell so-called ‘OpenAI tokens’, warning that these blockchain-based contracts do not offer real equity in the company.

In a statement posted on X, OpenAI made clear that it had not approved, endorsed, or participated in the initiative and emphasised that any equity transfer requires its direct consent.

Robinhood recently announced plans to offer tokenised access to private firms like OpenAI and SpaceX for investors in the EU. The tokens do not represent actual shares but mimic price movements using blockchain contracts.

Despite OpenAI’s sharp rejection, Robinhood’s stock surged to record highs following the announcement.

A Robinhood spokesperson later claimed the tokens were linked to a special purpose vehicle (SPV) that owns OpenAI shares, though SPVs do not equate to direct ownership either.

The company said the move aims to give everyday investors indirect exposure to high-profile startups through digital contracts.

Robinhood CEO Vlad Tenev defended the strategy on X, saying the token sale was just the beginning of a broader effort to democratise access to private markets.

OpenAI, meanwhile, declined to comment further.

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

Xbox projects cancelled amid Microsoft layoffs

Microsoft has confirmed plans to cut up to 9,000 jobs—roughly 4% of its global workforce—in its latest round of redundancies this year. The company cited the need to adapt to a rapidly evolving market, while pressing ahead with major investments in artificial intelligence.

Although Microsoft did not specify which divisions will be affected, reports suggest its Xbox gaming unit will face significant cuts. According to internal emails, the reboot of Perfect Dark and the game Everwild have been cancelled, and The Initiative, the studio behind Perfect Dark, will shut down.

Additional layoffs are impacting other gaming studios, including Turn 10 and ZeniMax Online Studios. ZeniMax’s long-time director Matt Firor has announced his departure. Meanwhile, Ireland’s Romero Games has also been affected after funding for its project was pulled by a publisher.

The upcoming job cuts will mark Microsoft’s fourth round of layoffs in 2025. Over 800 affected roles are based in Washington state, including in Redmond and Bellevue, key Microsoft hubs. The company is currently investing $80bn in AI infrastructure, including data centres and chips.

Microsoft’s AI push has seen it hire AI pioneer Mustafa Suleyman to lead its Microsoft AI division and deepen ties with OpenAI. However, tensions have reportedly grown in that relationship. Bloomberg noted difficulty in selling Microsoft’s Copilot tool, as many users prefer ChatGPT.

At the same time, AI talent wars are heating up. Meta has reportedly offered huge bonuses to poach researchers, while Amazon’s Andy Jassy said last month that AI would eventually replace certain roles at his company.

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

Bitcoin-backed life insurance now available in Russia

Two major Russian insurers, Renaissance Life and BCS Life Insurance, have introduced investment life insurance policies (ILIPs) tied to Bitcoin. These products give wealthy investors exposure to Bitcoin via BlackRock’s IBIT, without needing to hold the asset directly.

Renaissance Life’s ‘Cryptocapital’ policy has a two-year term, a minimum investment of 1.5 million rubles (about $19,000), and offers full capital protection. If Bitcoin prices surge, investors could earn up to 2.4 million rubles in pre-tax gains.

BCS Life offers a similar policy with a three-year duration and a higher entry threshold of 3 million rubles, adding flexibility through portfolio rebalancing.

Both policies use Bitcoin futures contracts traded on the Moscow Exchange, marking a shift towards regulated, crypto-linked financial products. The offerings target affluent clients seeking Bitcoin exposure with capital protection.

The launch reflects a broader trend of integrating Bitcoin into mainstream financial instruments, especially following Bitcoin’s rise past $100,000 and greater regulatory clarity. Other firms like Meanwhile Insurance have also introduced crypto-based insurance solutions in response to global demand.

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

Spotify hit by AI band hoax controversy

A band called The Velvet Sundown has gone viral on Spotify, gaining over 850,000 monthly listeners, yet almost nothing is known about the people behind it.

With no live performances, interviews, or social media presence for its supposed members, the group has fuelled growing speculation that both it and its music may be AI-generated.

The mystery deepened after Rolling Stone first reported that a spokesperson had admitted the tracks were made using an AI tool called Suno, only to later reveal the spokesperson himself was fake.

The band denies any connection to the individual, stating on Spotify that the account impersonating them on X is also false.

AI detection tools have added to the confusion. Rival platform Deezer flagged the music as ‘100% AI-generated’, although Spotify has remained silent.

While CEO Daniel Ek has said AI music isn’t banned from the platform, he expressed concerns about mimicking real artists.

The case has reignited industry fears over AI’s impact on musicians. Experts warn that public trust in online content is weakening.

Musicians and advocacy groups argue that AI is undercutting creativity by training on human-made songs without permission. As copyright battles continue, pressure is mounting for stronger government regulation.

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

Ripple partners with AMINA Bank to expand in Europe

Ripple has partnered with Swiss-based AMINA Bank, regulated by FINMA, to offer custody and trading of its RLUSD stablecoin, establishing a compliant presence in Europe.

RLUSD has already secured approval from major regulators, including the New York Department of Financial Services and the Dubai Financial Services Authority.

Ripple is integrating the asset into its recently acquired prime brokerage platform, Hidden Road. It is also using RLUSD across the Ripple Payments platform for enterprise cross-border transactions.

AMINA cited Ripple’s transparent structure and regulatory commitment as key factors in the partnership. The bank, formerly SEBA Bank, has been a leader in regulated digital asset services since 2019. Its collaboration with Taurus, a Deutsche Bank-backed firm, further strengthens its position in digital finance.

Ripple is positioning RLUSD as a compliant alternative within Europe’s evolving regulatory landscape under MiCA. The Swiss partnership supports RLUSD’s long-term growth by offering legal clarity, regulated access, and a path toward broader liquidity across the continent.

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

xAI gets Memphis approval to run 15 gas turbines

xAI, Elon Musk’s AI company, has secured permits to operate 15 natural gas turbines at its Memphis data centre, despite facing legal threats over alleged Clean Air Act violations.

The Shelby County Health Department approved the generators, which can produce up to 247 megawatts, provided specific emissions controls are in place.

Environmental lawyers say xAI had already been running as many as 35 generators without permits. The Southern Environmental Law Center (SELC), acting on behalf of the NAACP, has accused the company of serious pollution and is preparing to sue.

Even under the new permit, xAI is allowed to emit substantial pollutants annually, including nearly 10 tons of formaldehyde — a known carcinogen.

Community concerns about the health impact remain strong. A local group pledged $250,000 for an independent air quality study, and although the City of Memphis carried out its own tests, the SELC questioned their validity.

The tests missed ozone levels and were reportedly conducted in favourable wind conditions, with equipment placed too close to buildings.

Officials previously argued that the turbines were exempt from regulation due to their ‘mobile’ status, a claim the SELC refuted as legally flawed. Meanwhile, xAI has recently raised $10 billion, split between debt and equity, highlighting its rapid expansion, even as regulatory scrutiny grows.

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