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AI feud intensifies as OpenAI sues Elon Musk

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire entrepreneur of a sustained campaign of harassment intended to damage the company and regain control over its AI developments.

The legal filing comes in response to Musk’s lawsuit earlier this year, in which he claimed OpenAI had strayed from its founding mission of developing AI for the benefit of humanity.

In its countersuit, OpenAI urged a federal court to block Musk from taking further ‘unlawful and unfair actions’ and hold him accountable for the alleged damage already inflicted.

The company cited press attacks, legal pressure, and social media posts to Musk’s 200 million followers as tactics aimed at undermining its operations and reputation.

It also described Musk’s demands for corporate records and attempted acquisition efforts as part of a broader scheme to derail OpenAI’s progress.

The legal conflict highlights the growing rivalry between OpenAI and xAI, the AI firm Musk launched in 2023.

OpenAI maintains that Musk’s actions are motivated by self-interest and a desire to slow down a competing organisation. A jury trial has been scheduled for spring 2026 to resolve the escalating dispute.

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Former Facebook executive says Meta misled over China

Former Facebook executive Sarah Wynn-Williams has accused Meta of compromising US national security to grow its business in China.

Testifying before the Senate Judiciary Committee, Wynn-Williams alleged that company executives misled employees, lawmakers, and the public about their dealings with the Chinese Communist Party.

Wynn-Williams claimed Meta aimed to gain favour in Beijing while secretly pursuing an $18 billion venture there.

In her remarks, Wynn-Williams said Meta removed the Facebook account of Chinese dissident Guo Wengui under pressure from Beijing. While the company maintains the removal was due to violations of its policies, she framed it as part of a broader pattern of submission to Chinese demands.

She also accused Meta of ignoring security warnings linked to the proposed Pacific Light Cable Network, a project that could have allowed China access to United States user data. According to her, the plans were only halted after lawmakers intervened.

Meta has denied the claims, calling her testimony false and out of touch with reality. A spokesperson noted that the company does not operate in China and that Mark Zuckerberg’s interest in the market had long been public.

The allegations arrive days before Meta’s major antitrust trial, which could result in the breakup of its ownership of Instagram and WhatsApp.

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New York bill explores blockchain for election record security

A new bill in New York aims to explore the potential of blockchain technology in securing voter records and election results. The bill directs the state Board of Elections to conduct a study on how blockchain could enhance election security.

The proposed legislation mandates the creation of a report within a year, assessing blockchain’s ability to protect election data.

Study will include insights from experts in blockchain, cybersecurity, voter fraud, and election record-keeping. Their expertise will help evaluate the feasibility of integrating blockchain into New York’s voting processes.

The bill is part of a broader trend to apply blockchain technology to elections. Earlier this year, Tennessee’s Williamson County used the Bitcoin network to secure the results of a local Republican Party election.

Blockchain advocates argue that the technology could improve election transparency and public trust. They believe it would ensure that votes are immutable and verifiable.

Experts caution that the system’s reliability depends on the quality of the data entered. Blockchain guarantees the integrity of stored data but cannot validate the accuracy of the original input.

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SEC approves options trading on spot Ethereum ETFs

The US Securities and Exchange Commission (SEC) has officially approved options trading on spot Ethereum exchange-traded funds (ETFs).

The approval covers several spot Ethereum ETFs, including BlackRock’s iShares Ethereum Trust, Bitwise Ethereum ETF, Grayscale’s Ethereum Trust, and the Ethereum Mini Trust.

Options trading allows investors to speculate on the future price of Ethereum without owning the asset directly. The new development enables traders to employ strategies like covered calls or buffered exposure, adding depth to the Ethereum market.

The move follows the SEC’s green light for spot Ethereum ETFs last year, which have seen significant net inflows of $2.34 billion.

Ethereum’s market has faced challenges recently, with a 45% drop in value during the first quarter of 2025. Despite this, the introduction of options trading on Ethereum ETFs could provide fresh momentum for the asset. The approval is expected by October.

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ECB official pushes for digital euro to counter US stablecoins

The ECB has renewed its push for a digital euro to counter the growing dominance of US dollar-backed stablecoins in Europe. Piero Cipollone, an ECB executive board member, has raised concerns over the growing popularity of these stablecoins.

He argues that a central bank digital currency (CBDC) would protect the eurozone’s monetary sovereignty. Cipollone argued that a digital euro would prevent foreign currency stablecoins from becoming widely used in the euro area.

He warns that Europe’s reliance on foreign payment systems undermines its financial sovereignty. Concerns have arisen over the US’s push for dollar-backed stablecoins.

ECB called for a public-private partnership to create a digital euro, preserving European monetary independence under EU law.

Despite these efforts, the digital euro faces opposition, particularly over concerns around data privacy and consumer adoption. ECB acknowledges that digital payments are becoming increasingly prevalent, especially for online transactions.

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Microsoft pauses $1 billion data centre project in Ohio

Microsoft has announced it is ‘slowing or pausing’ some data centre construction projects, including a $1 billion plan in Ohio, amid shifting demand for AI infrastructure.

The company confirmed it would halt early-stage development on rural land in Licking County, near Columbus, and will repurpose two of the sites for farmland.

The decision follows Microsoft’s rapid scaling of infrastructure to meet the soaring demand for AI and cloud services, which has since softened. The company acknowledged that such large projects require continuous adaptation to align with customer needs.

While Microsoft did not specify other paused projects, it revealed the suspension of later stages of a Wisconsin data centre expansion.

The slowdown also coincides with changes in Microsoft’s partnership with OpenAI, with the two companies revising their agreement to allow OpenAI to build its own AI infrastructure. This move reflects broader trends in AI computing needs, which are expensive and energy-intensive.

Despite the pause in Ohio, Microsoft plans to invest over $80 billion in AI infrastructure this fiscal year, continuing its global expansion, though it will now strategically pace its growth to align with evolving business priorities.

Local officials in Licking County expressed their disappointment, as the area had been a hub for significant tech investments, including those from Google and Meta.

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Ukraine proposes a 23% tax on crypto income

Ukraine’s securities regulator has outlined a new framework to tax crypto income at a combined rate of up to 23%. The proposal excludes crypto-to-crypto transactions and stablecoins. The aim is to offer lawmakers a basis for creating informed and balanced regulation.

Under the suggested model, crypto income would face an 18% tax and a 5% military levy. It would apply only when crypto is converted to fiat or used for goods and services.

Stablecoins backed by foreign currencies may be exempt or taxed at a reduced rate of 5% or 9%. Ukraine’s approach aligns with the tax policies of countries such as France, Austria, and Singapore.

The framework also addresses mining, staking, hard forks, and airdrops. Mining is considered a business activity, though a tax-free threshold is under consideration.

Staking could be taxed only when converted to fiat, while hard forks and airdrops may be taxed at receipt or conversion. Exemptions are being considered for crypto donations, family transfers, and long-term holders, though they may not apply to non-custodial wallets.

A draft bill to legalise cryptocurrencies has been under review since late 2023 and is expected to be finalised this year.

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IBM pushes towards quantum advantage in two years with breakthrough code

IBM’s Quantum CTO, Oliver Dial, predicts that quantum advantage, where quantum computers outperform classical ones on specific tasks, could be achieved within two years.

The milestone is seen as possible due to advances in error mitigation techniques, which enable quantum computers to provide reliable results despite their inherent noise. While full fault-tolerant quantum systems are still years away, IBM’s focus on error mitigation could bring real-world results soon.

A key part of IBM’s progress is the introduction of the ‘Gross code,’ a quantum error correction method that drastically reduces the number of physical qubits needed per logical qubit, making the engineering of quantum systems much more feasible.

Dial described this development as a game changer, improving both efficiency and practicality, making quantum systems easier to build and test. The Gross code reduces the need for large, cumbersome arrays of qubits, streamlining the path toward more powerful quantum computers.

Looking ahead, IBM’s roadmap outlines ambitious goals, including building a fully error-corrected system with 200 logical qubits by 2029. Dial stressed the importance of flexibility in the roadmap, acknowledging that the path to these goals could shift but would still lead to the achievement of quantum milestones.

The company’s commitment to these advancements reflects the dedication of the quantum team, many of whom have been working on the project for over a decade.

Despite the excitement and the challenges that remain, IBM’s vision for the future of quantum computing is clear: building the world’s first useful quantum computers.

The company’s ongoing work in quantum computing continues to capture imaginations, with significant steps being taken towards making these systems a reality in the near future.

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Google unveils new AI agent toolkit

This week at Google Cloud Next in Las Vegas, Google revealed its latest push into ‘agentic AI’. A software designed to act independently, perform tasks, and communicate with other digital systems.

Central to this effort is the Agent Development Kit (ADK), an open-source toolkit said to let developers build AI agents in under 100 lines of code.

Instead of requiring complex systems, the ADK includes pre-built connectors and a so-called ‘agent garden’ to streamline integration with data platforms like BigQuery and AlloyDB.

Google also introduced a new Agent2Agent (A2A) protocol, aimed at enabling cooperation between agents from different vendors. With over 50 partners, including Accenture, SAP and Salesforce, already involved, the company hopes to establish a shared standard for AI interaction.

Powering these tools is Google’s latest AI chip, Ironwood, a seventh-generation TPU promising tenfold performance gains over earlier models. These chips, designed for use with advanced models like Gemini 2.5, reflect Google’s ambition to dominate AI infrastructure.

Despite the buzz, analysts caution that the hype around AI agents may outpace their actual utility. While vendors like Microsoft, Salesforce and Workday push agentic AI to boost revenue, in some cases even replacing staff, experts argue that current models still fall short of real human-like intelligence.

Instead of widespread adoption, businesses are expected to focus more on managing costs and complexity, especially as economic uncertainty grows. Without strong oversight, these tools risk becoming costly, unpredictable, and difficult to scale.

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Paul Atkins confirmed as SEC chair amid major crypto policy shift

Paul Atkins has been officially confirmed as chairman of the Securities and Exchange Commission (SEC) following a 52–44 vote in the Senate. His appointment marks a significant leadership change at the regulator, mainly as reforms to digital asset rules are underway.

Atkins brings extensive experience to the post, having previously served as an SEC commissioner from 2002 to 2008. Since then, he has worked as a regulatory adviser to financial and crypto firms. He has also co-chaired the Token Alliance and consistently advocated for blockchain innovation.

Ethics filings revealed that he and his wife held millions in crypto-related assets. However, he has pledged to divest from all such holdings upon assuming office.

The appointment has not been without criticism. Senator Elizabeth Warren opposed the appointment, citing his industry ties and role in the 2008 financial crisis.

Many within the digital asset sector expect a shift in the SEC’s approach. They anticipate greater emphasis on regulatory clarity, fewer legal actions against crypto companies, and broader support for blockchain development.

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