Microsoft and OpenAI revisit investment deal

OpenAI chief executive Sam Altman revealed that he had a conversation with Microsoft CEO Satya Nadella on Monday to discuss the future of their partnership.

Speaking on a New York Times podcast, Altman described the dialogue as part of ongoing efforts to align on the evolving nature of their collaboration.

Earlier this month, the Wall Street Journal reported that Microsoft — OpenAI’s primary backer — and the AI firm are in discussions to revise the terms of their investment. Topics under negotiation reportedly include Microsoft’s future equity stake in OpenAI.

According to the Financial Times, Microsoft is weighing whether to pause the talks if the two parties cannot resolve key issues. Neither Microsoft nor OpenAI responded to media requests for comment outside regular business hours.

‘Obviously, in any deep partnership, there are points of tension, and we certainly have those,’ Altman said. ‘But on the whole, it’s been wonderfully good for both companies.’

Altman also commented on his recent discussions with United States President Donald Trump regarding AI. He noted that Trump appeared to grasp the technology’s broader geopolitical and economic significance.

In January, Trump announced Stargate — a proposed private sector initiative to invest up to $500 billion in AI infrastructure — with potential backing from SoftBank, OpenAI, and Oracle.

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

AI tools at work pose hidden dangers

AI tools are increasingly used in workplaces to enhance productivity but come with significant security risks. Workers may unknowingly breach privacy laws like GDPR or HIPAA by sharing sensitive data with AI platforms, risking legal penalties and job loss.

Experts warn of AI hallucinations where chatbots generate false information, highlighting the need for thorough human review. Bias in AI outputs, stemming from flawed training data or system prompts, can lead to discriminatory decisions and potential lawsuits.

Cyber threats like prompt injection and data poisoning can manipulate AI behaviour, while user error and IP infringement pose further challenges. As AI technology evolves, unknown risks remain a concern, making caution essential when integrating AI into business processes.

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

Tech support scammers abuse search tools

Tech support scammers have exploited the websites of major firms such as Apple, Microsoft, and Netflix to trick users into calling them. Using sponsored ads and a technique known as search parameter injection, scammers have manipulated legitimate support pages to display fake helpline numbers.

Victims searching for 24/7 support are directed to genuine websites where misleading search results prominently show fraudulent numbers. According to researchers, the address bar shows the official URL, reducing suspicion and increasing the likelihood that users will call the scammers.

Once connected, the fraudsters pose as legitimate staff and attempt to steal sensitive information, including personal data, payment details or access to victims’ devices. Financial services sites like Bank of America and PayPal have also been targeted, with attackers aiming to drain accounts.

Experts warn that while some scams are easy to spot, others appear highly convincing, especially on sites like Apple’s and Netflix’s. Users are urged to verify contact details through official channels rather than relying on search results or ads.

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

Salt Typhoon exploits critical Cisco flaw to breach Canadian network

Canadian and US authorities have attributed a cyberattack on a Canadian telecommunications provider to state-sponsored actors allegedly linked to China. The attack exploited a critical vulnerability that had been patched 16 months earlier.

According to a statement issued on Monday by Canada’s Communications Security Establishment (CSE), the breach is attributed to a threat group known as Salt Typhoon, believed to be operating on behalf of the Chinese government.

‘The Cyber Centre is aware of malicious cyber activities currently targeting Canadian telecommunications companies,’ the CSE stated, adding that Salt Typhoon was ‘almost certainly’ responsible. The US FBI released a similar advisory.

Salt Typhoon is one of several threat actors associated with the People’s Republic of China (PRC), with a history of conducting cyber operations against telecommunications and infrastructure targets globally.

In late 2023, security researchers disclosed that over 10,000 Cisco devices had been compromised by exploiting CVE-2023-20198—a vulnerability rated 10/10 in severity.

The exploit targeted Cisco devices running iOS XE software with HTTP or HTTPS services enabled. Despite Cisco releasing a patch in October 2023, the vulnerability remained unaddressed in some systems.

In mid-February 2025, three network devices operated by an unnamed Canadian telecom company were compromised, with attackers retrieving configuration files and modifying at least one to create a GRE tunnel—allowing network traffic to be captured.

Cisco has also linked Salt Typhoon to a broader campaign using multiple patched vulnerabilities, including CVE-2018-0171, CVE-2023-20273, and CVE-2024-20399.

The Cyber Centre noted that the compromise could allow unauthorised access to internal network data or serve as a foothold to breach additional targets. Officials also stated that some activity may have been limited to reconnaissance.

While neither agency commented on why the affected devices had not been updated, the prolonged delay in patching such a high-severity flaw highlights ongoing challenges in maintaining basic cyber hygiene.

The authorities in Canada warned that similar espionage operations are likely to continue targeting the telecom sector and associated clients over the next two years.

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

Google launches AI Mode Search in India

Google has launched its advanced AI Mode search experience in India, allowing users to explore information through more natural and complex interactions.

The feature, previously available as an experiment in the US, can now be enabled in English via Search Labs. Users test experimental tools on this platform and share feedback on early Google Search features.

Once activated, AI Mode introduces a new tab in the Search interface and Google app. It offers expanded reasoning capabilities powered by Gemini 2.5, enabling queries through text, voice, or images.

The shift supports deeper exploration by allowing follow-up questions and offering diverse web links, helping users understand topics from multiple viewpoints.

India plays a key role in this rollout due to its widespread visual and voice search use.

According to Hema Budaraju, Vice President of Product Management for Search, more users in India engage with Google Lens each month than anywhere else. AI Mode reflects Google’s broader goal of making information accessible across different formats.

Google also highlighted that over 1.5 billion people globally use AI Overviews monthly. These AI-generated summaries, which appear at the top of search results, have driven a 10% rise in user engagement for specific types of queries in both India and the US.

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

SoftBank plans Arizona tech site; TSMC may join

According to a Bloomberg report, SoftBank Group Corp. founder and CEO Masayoshi Son is reportedly exploring plans to develop a $1 trillion industrial complex in Arizona focused on AI and robotics.

The Tokyo-based technology investment firm’s proposed initiative — Project Crystal Land — aims to re-establish high-tech manufacturing capabilities in the United States.

The complex may include production facilities dedicated to AI-powered industrial robots, Bloomberg cited a source familiar with the matter as saying.

SoftBank reportedly seeks to collaborate with Taiwan Semiconductor Manufacturing Co. (TSMC) on the venture.

However, details regarding the nature of TSMC’s potential involvement or whether the company is considering a formal partnership remain unclear.

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

US Senator proposes crypto ban for top officials

Senator Adam Schiff has proposed a bill to ban top officials and their families from engaging in crypto ventures while in office. The COIN Act seeks to ban top officials from endorsing, creating, or promoting cryptocurrencies, NFTs, and stablecoins.

The proposal follows growing scrutiny of President Donald Trump’s involvement in digital assets. Schiff pointed directly to Trump’s financial gains, which included $58 million from token sales in 2024 and a projected $390 million in 2025.

He argued that such activities raise ‘ethical, legal and constitutional’ concerns, especially concerning public office.

Under the COIN Act, any sale of digital assets over $1,000 must be disclosed. Violators could face penalties equal to their profits and up to five years in prison.

Despite this push, Schiff previously voted for the GENIUS Act, which exempted the president and vice president from stablecoin restrictions—a move some critics see as contradictory.

The bill has gained support from nine Senate Democrats but is unlikely to pass under a Republican-controlled Congress. Democrat-led measures, such as the MEME Act and the Stop TRUMP in Crypto Act, have similarly struggled to gain traction.

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

Traders bet on war with meme coins

Amid rising Middle East tensions, crypto traders rushed into World War-themed meme coins, seeking profits from panic. BunkerCoin, a token linked to a supposed German bunker project, surged nearly 2,000% before losing most of its gains.

Other tokens, like Werld Wur Thwee and Sticks and Stones, followed similar boom-and-bust cycles.

Most of these speculative tokens launched via Pump.fun, a Solana-based platform that has created over 11 million meme coins. According to on-chain analysts, these coins are rarely linked to genuine interests.

Instead, traders follow trending topics, from war to celebrity illnesses, to profit quickly—regardless of ethical implications.

Industry observers argue that the meme coin craze reflects deeper issues. Educational and financial nihilism, particularly among younger generations, pushes many away from traditional finance.

Disillusioned by stagnant wages and high living costs, they turn to meme coins not just for money but for identity and cultural belonging.

Some projects have crossed moral boundaries, mocking cancer diagnoses or promoting hate speech. Yet despite the risks, the appeal of instant gains continues to drive participation.

One expert noted, ‘Meme coins thrive on dopamine, not fundamentals.’

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

Alibaba Cloud launches new AI tools and education partnerships in Europe

Alibaba Cloud has announced a new suite of AI services as part of its expansion across Europe.

Revealed during the Alibaba European Summit in Paris, the company said the new offerings reinforce its long-term commitment to the region by providing AI-driven tools and cloud solutions for fashion, healthcare, and automotive industries.

A key development is a significant upgrade to the Platform for AI (PAI), Alibaba’s AI computing platform hosted in the Frankfurt cloud region. The company stated that the enhancements will increase efficiency and scalability to meet the rising demand for compute-intensive workloads.

The platform’s improvements are powered by Alibaba’s proprietary AI Scheduler, which optimises allocating diverse cloud computing resources.

Alibaba Cloud also aims to support European companies entering Asian markets. The firm cited its strategic partnership with SAP to provide enterprise resource planning (ERP) solutions in China, Southeast Asia, and the Middle East.

In the automotive sector, Alibaba recently extended its partnership with BMW in China to integrate its Qwen AI models into vehicles.

Alibaba Cloud has signed an agreement with France’s Brest Business School to strengthen AI skills and collaboration. The partnership will include academic programmes, training in AI and cloud technologies, and support for digital transformation initiatives.

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

OpenAI and io face lawsuit over branding conflict

OpenAI and hardware startup io, founded by former Apple designer Jony Ive, are now embroiled in a trademark infringement lawsuit filed by iyO, a Google-backed company specialising in custom headphones.

The legal case prompted OpenAI to withdraw promotional material linked to its $6.005 billion acquisition of io, raising questions about the branding of its future AI device.

Court documents reveal that OpenAI and io had previously met with iyO representatives and tested their custom earbud product, although the tests were unsuccessful.

Despite initial contact and discussions about potential collaboration, OpenAI rejected iyO’s proposals to invest, license, or acquire the company for $200 million. The lawsuit, however, does not centre on an earbud or wearable device, according to io’s co-founders.

Io executives clarified in court that their prototype does not resemble iyO’s product and remains unfinished. It is neither wearable nor intended for sale within the following year.

OpenAI CEO Sam Altman described the joint project as an attempt to reimagine hardware interfaces. At the same time, Jony Ive expressed enthusiasm for the device’s early design, which he claims captured his imagination.

Court testimony and emails suggest io explored various technologies, including desktop, mobile, and portable designs. Internal communications also reference possible ergonomic research using 3D ear scan data.

Although the lawsuit has exposed some development details, the main product of the collaboration between OpenAI and io remains undisclosed.

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