OpenAI considers antitrust action against Microsoft over AI hosting control

OpenAI reportedly tries to reduce Microsoft’s exclusive control over hosting its AI models, signalling growing friction between the two companies.

According to the Wall Street Journal, OpenAI leadership has considered filing an antitrust complaint against Microsoft, alleging anti-competitive behaviour in their ongoing collaboration. The move could trigger federal regulatory scrutiny.

The tension comes amid ongoing talks over OpenAI’s corporate restructuring. A report by The Information suggests that OpenAI is negotiating to grant Microsoft a 33% stake in its reorganized for-profit unit. In exchange, Microsoft would give up rights to future profits.

OpenAI also wants to revise its existing contract with Microsoft, particularly clauses that grant exclusive Azure hosting rights. The company reportedly aims to exclude its planned $3 billion acquisition of AI startup Windsurf from the agreement, which otherwise gives Microsoft access to OpenAI’s intellectual property.

This developing rift could reshape one of the most influential alliances in AI. Microsoft has invested heavily in OpenAI since 2019 and integrates its models into Microsoft 365 Copilot and Azure services. However, both firms are diversifying.

OpenAI is turning to Google Cloud and Oracle for additional computing power, while Microsoft has begun integrating alternative AI models into its products.

Industry experts warn that regulatory scrutiny or contract changes could impact enterprise customers relying on tightly integrated AI solutions, particularly in sectors like healthcare and finance. Companies may face service disruptions, higher costs, or compatibility challenges if major players shift strategy or infrastructure.

Analysts suggest that the era of single-model reliance may be ending. As innovation from rivals like DeepSeek accelerates, enterprises and cloud providers are moving toward multi-model support, aiming for modular, scalable, and use-case-specific AI deployments.

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Workplace deepfake abuse: What employers must know

Deepfake technology—AI-generated videos, images, and audio—has entered the workplace in alarming ways.

Once difficult to produce, deepfakes are now widely accessible and are being used to harass, impersonate, or intimidate employees. These synthetic media attacks can cause deep psychological harm, damage reputations, and expose employers to serious legal risks.

While US federal law hasn’t yet caught up, new legislation like the Take It Down Act and Florida’s Brooke’s Law require platforms to remove non-consensual deepfake content within 48 hours.

Meanwhile, employers could face claims under existing workplace laws if they fail to act on deepfake harassment. Inaction may lead to lawsuits for creating a hostile environment or for negligent oversight.

Most workplace policies still don’t mention synthetic media and something like this creates blind spots, especially during investigations, where fake images or audio could wrongly influence decisions.

Employers need to shift how they assess evidence and protect both accused and accuser fairly. It’s time to update handbooks, train staff, and build clear response plans that include digital impersonation and deepfake abuse.

By treating deepfakes as a modern form of harassment instead of just a tech issue, organisations can respond faster, protect staff, and maintain trust. Proactive training, updated policies, and legal awareness will be crucial to workplace safety in the age of AI.

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EU strikes deal to streamline cross-border GDPR enforcement

The EU Council and European Parliament have reached a political agreement to strengthen cross-border enforcement of the General Data Protection Regulation (GDPR). The new regulation, once adopted, will simplify and speed up how national data protection authorities cooperate on cases involving data processing across EU borders.

That move seeks to protect citizens’ rights better and make enforcement more efficient. Key improvements include harmonising the criteria for assessing complaints, regardless of where in the EU they’re filed, and ensuring both complainants and companies under investigation are given the right to be heard throughout the process. The regulation introduces deadlines to avoid drawn-out investigations — 15 months for complex cases (with a possible 12-month extension) and 12 months for simpler ones.

The agreement also creates an ‘early resolution’ option to settle straightforward complaints without triggering lengthy cross-border procedures. It adds a simplified cooperation track for less contentious cases and encourages authorities to share key case information early to build consensus more quickly among EU partners.

The deal now awaits formal approval from both institutions. Once passed, the new rules will enter into force, marking a significant evolution in how the GDPR is enforced across Europe.

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Cyberattack on Nova Scotia Power exposes sensitive data of 280,000 customers

Canada’s top cyber-defence official has spoken out following the ransomware attack that compromised the personal data of 280,000 Nova Scotia Power customers.

The breach, which occurred on 19 March but went undetected until 25 April, affected over half of the utility’s customer base. Stolen data included names, addresses, birthdates, driver’s licences, social insurance numbers, and banking details.

Rajiv Gupta, head of the Canadian Centre for Cyber Security, confirmed that Nova Scotia Power had contacted the agency following the incident.

While he refrained from discussing operational details or attributing blame, he highlighted the rising frequency of ransomware attacks against critical infrastructure across Canada.

He explained how criminal groups use double extortion tactics — stealing data and locking systems — to pressure organisations into paying ransoms, often without guaranteeing system restoration or data confidentiality.

Although the utility declined to pay the ransom, the fallout has led to a wave of scrutiny. Gupta warned that interconnectivity and integrating legacy systems with internet-facing platforms have increased vulnerability.

He urged utilities and other infrastructure operators to build defences based on worst-case scenarios and to adopt recommended cyber hygiene practices and the Centre’s ransomware playbook.

In response to the breach, the Nova Scotia Energy Board has approved a $1.8 million investment in cybersecurity upgrades.

The Canadian cyber agency, although lacking regulatory authority, continues to provide support and share lessons from such incidents with other organisations to raise national resilience.

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Taiwan tightens rules on chip shipments to China

Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the US in tightening restrictions on advanced semiconductor transfers.

The decision follows reports that TSMC, the world’s largest contract chipmaker, was unknowingly misled into supplying chiplets used in Huawei’s Ascend 910B AI accelerator. The US Commerce Department had reportedly considered a fine of over $1 billion against TSMC for that incident.

Taiwan’s new rules aim to prevent further breaches by requiring export permits for any transactions with Huawei or SMIC.

The distinction between chips and chiplets is key to the case. Traditional chips are built as single-die monoliths using the same process node, while chiplets are modular and can combine various specialised components, such as CPU or AI cores.

Huawei allegedly used shell companies to acquire chiplets from TSMC, bypassing existing US restrictions. If TSMC had known the true customer, it likely would have withheld the order. Taiwan’s new export controls are designed to ensure stricter oversight of future transactions and prevent repeat deceptions.

The broader geopolitical stakes are clear. Taiwan views the transfer of advanced chips to China as a national security threat, given Beijing’s ambitions to reunify with Taiwan and the potential militarisation of high-end semiconductors.

With Huawei claiming its processors are nearly on par with Western chips—though analysts argue they lag two to three generations behind—the export ban could further isolate China’s chipmakers.

Speculation persists that Taiwan’s move was partly influenced by negotiations with the US to avoid the proposed fine on TSMC, bringing both countries into closer alignment on chip sanctions.

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Denmark moves to replace Microsoft software as part of digital sovereignty strategy

Prior to the Danish government’s formal decision, the cities of Copenhagen and Aarhus had already announced plans to reduce reliance on Microsoft software and cloud services. The national government has now followed suit.

Caroline Stage, Denmark’s Minister of Digitalisation, confirmed that the government will begin transitioning from Microsoft Office to the open-source alternative, LibreOffice. The decision aligns with broader European Union efforts to enhance digital sovereignty—a concept referring to the ability of states to maintain control over their digital infrastructure, data, and technologies.

EU member states have increasingly prioritised digital sovereignty in response to a range of concerns, including security, economic resilience, regulatory control, and the geopolitical implications of dependency on non-European technology providers.

Among the considerations are questions about data governance, operational autonomy, and the risks associated with potential service disruptions in times of political tension. For example, reports following US sanctions against the International Criminal Court (ICC) suggest that Microsoft temporarily restricted access to email services for the ICC’s Chief Prosecutor, Karim Khan, highlighting the potential vulnerabilities linked to foreign service providers.

Denmark’s move is part of a wider trend within the EU aimed at diversifying digital service providers and strengthening domestic or European alternatives. LibreOffice is developed by The Document Foundation (TDF), an independent, non-profit organisation based in Germany.

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UK National Cyber Security Centre calls for strategic cybersecurity policy agenda

The United Kingdom’s National Cyber Security Centre (NCSC), part of GCHQ, has called for the adoption of a long-term, strategic policy agenda to address increasing cybersecurity risks. That appeal follows prolonged delays in the introduction of updated cybersecurity legislation by the UK government.

In a blog post, co-authored by Ollie Whitehouse, NCSC’s Chief Technology Officer, and Paul W., the Principal Technical Director, the agency underscored the need for more political engagement in shaping the country’s cybersecurity landscape. Although the NCSC does not possess policymaking powers, its latest message highlights its growing concern over the UK’s limited progress in implementing comprehensive cybersecurity reforms.

Whitehouse has previously argued that the current technology market fails to incentivise the development and maintenance of secure digital products. He asserts that while the technical community knows how to build secure systems, commercial pressures and market conditions often favour speed, cost-cutting, and short-term gains over security. That, he notes, is a structural issue that cannot be resolved through voluntary best practices alone and likely requires legislative and regulatory measures.

The UK government has yet to introduce the long-anticipated Cyber Security and Resilience Bill to Parliament. Initially described by its predecessor as a step toward modernising the country’s cyber legislation, the bill remains unpublished. Another delayed effort is a consultation led by the Home Office on ransomware response policy, which was postponed due to the snap election and is still awaiting an official government response.

The agency’s call mirrors similar debates in the United States, where former Cybersecurity and Infrastructure Security Agency (CISA) Director Jen Easterly advocated for holding software vendors accountable for product security. The Biden administration’s national cybersecurity strategy introduced early steps toward vendor liability, a concept that has gained traction among experts like Whitehouse.

However, the current US administration under President Trump has since rolled back some of these requirements, most notably through a recent executive order eliminating obligations for government contractors to attest to their products’ security.

By contrast, the European Union has advanced several legislative initiatives aimed at strengthening digital security, including the Cyber Resilience Act. Yet, these efforts face challenges of their own, such as reconciling economic priorities with cybersecurity requirements and adapting EU-wide standards to national legal systems.

In its blog post, the NCSC reiterated that the financial and societal burden of cybersecurity failures is currently borne by consumers, governments, insurers, and other downstream actors. The agency argues that addressing these issues requires a reassessment of underlying market dynamics—particularly those that do not reward secure development practices or long-term resilience.

While the NCSC lacks the authority to enforce regulations, its increasingly direct communications reflect a broader shift within parts of the UK’s cybersecurity community toward advocating for more comprehensive policy intervention.

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Meta sues AI firm over fake nude images created without consent

Meta has filed a lawsuit against Joy Timeline HK Ltd in Hong Kong, accusing the firm of using its platforms to promote a generative AI app called CrushAI.

The app allows users to digitally strip clothes from images of people, often without consent. Meta said the company repeatedly attempted to bypass ad review systems to push harmful content, advertising phrases like ‘see anyone naked’ on Facebook and Instagram.

The lawsuit follows Meta’s broader investigation into ‘nudity’ apps, which are increasingly being used to create sexualised deepfakes. Despite bans on nonconsensual explicit content, the company said such apps evade detection by disguising ads or rotating domain names after bans.

According to research by Cornell Tech, over 8,000 ads linked to CrushAI appeared on Meta platforms in recent months. Meta responded by updating its detection systems with a broader range of flagged terms and emojis.

While many of the manipulated images target celebrities, concerns are growing about the use of such technology to exploit minors. In one case in Florida, two teenagers used similar AI tools to create sexualised images of classmates.

The issue has sparked legal action in the US, where the Take It Down Act, signed into law earlier this year, criminalises the publication of nonconsensual deepfake imagery and simplifies removal processes for victims.

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Trump highlights crypto plans at Coinbase summit

US President Donald Trump sent a prerecorded message to Coinbase’s State of Crypto Summit, reaffirming his commitment to advancing crypto regulation in the US.

The administration is working with Congress to pass the GENIUS Act supporting dollar-backed stablecoins and clear market frameworks.

Congress is preparing to vote on the GENIUS Act in the Senate, while the House is moving forward with the CLARITY Act. The latter seeks to clarify the regulatory roles of the SEC and the Commodity Futures Trading Commission concerning digital assets.

Both bills form part of a broader effort to create a clear legal environment for the crypto industry.

Some Democrats oppose Trump’s crypto ties, especially the family-backed stablecoin from World Liberty Financial. Despite tensions, Trump continues promoting his crypto agenda through conferences and videos.

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Meta and TikTok contest the EU’s compliance charges

Meta and TikTok have taken their fight against an the EU supervisory fee to Europe’s second-highest court, arguing that the charges are disproportionate and based on flawed calculations.

The fee, introduced under the Digital Services Act (DSA), requires major online platforms to pay 0.05% of their annual global net income to cover the European Commission’s oversight costs.

Meta questioned the Commission’s methodology, claiming the levy was based on the entire group’s revenue instead of the specific EU-based subsidiary.

The company’s lawyer told judges it still lacked clarity on how the fee was calculated, describing the process as opaque and inconsistent with the spirit of the law.

TikTok also criticised the charge, alleging inaccurate and discriminatory data inflated its payment.

Its legal team argued that user numbers were double-counted when people switched between devices. The Commission had wrongly calculated fees based on group profits rather than platform-specific earnings.

The Commission defended its approach, saying group resources should bear the cost when consolidated accounts are used. A ruling is expected from the General Court sometime next year.

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