French prosecutors have escalated concerns about deepfakes linked to Elon Musk’s platform X, alerting US authorities to suspicions that manipulated content may have been used to influence the company’s valuation.
According to the Paris prosecutor’s office, the controversy surrounding sexually explicit deepfakes generated by Grok, X’s AI tool, may have been deliberately amplified to artificially boost the value of X and its associated AI entity ahead of a planned stock market listing in June 2026.
Authorities in France confirmed they had contacted the US Department of Justice and legal representatives at the Securities and Exchange Commission to share findings related to the deepfakes investigation and potential financial implications.
The case builds on an ongoing French probe into X, which initially focused on alleged algorithmic interference in domestic politics. Investigations have since expanded to include the spread of Holocaust denial content and the dissemination of sexualised deepfakes through Grok.
French regulators have taken additional steps, including summoning Musk for a voluntary interview and conducting searches at X’s local offices, actions he has described as politically motivated. Parallel investigations have also been launched in the UK and across the European Union into the use of AI tools to generate harmful deepfakes involving women and minors.
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A proposal to restrict minors’ online activity is gaining momentum in Ecuador, where lawmakers are considering a social media ban for children under 15 as part of a broader response to rising organised crime.
Under discussion in the National Assembly, the initiative introduced by Assembly member Katherine Pacheco Machuca would amend the Code of Childhood and Adolescence to block access to platforms enabling public interaction, content sharing, and messaging. The proposal defines social networks broadly, covering services that allow users to create accounts, connect with others, and exchange content.
Unlike similar debates elsewhere, the justification for the social media ban is rooted less in mental health or privacy concerns and more in security. Ecuador has experienced a sharp deterioration in public safety, with rising homicide rates, expanding criminal networks, and increasing pressure on state institutions.
Recent findings from Ecuador’s Organised Crime Observatory indicate that around 27% of minors approached by criminal groups report initial contact through social media platforms. Surveys conducted by ChildFund Ecuador further suggest that vulnerable adolescents are increasingly exposed to recruitment tactics that combine economic incentives with normalised portrayals of violence.
In that context, the proposed social media ban is framed as a preventative measure against criminal recruitment rather than solely a child protection tool. The initiative forms part of a wider regulatory shift, including new cybersecurity legislation and draft laws targeting recruitment practices conducted through digital channels.
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Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.
Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.
Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.
These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.
AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.
At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.
In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.
Elon Musk unveiled his ambitious Terafab project in Austin, describing it as the ‘most epic chip-building exercise in history.’ The initiative, led by Tesla, xAI, and SpaceX, aims to produce 1 trillion watts of compute power annually, much of it intended for space applications.
The project will start with a state-of-the-art semiconductor manufacturing facility in Austin, supporting AI development, humanoid robotics, and space data centres. Musk highlighted current supply chain limitations, stating that building Terafab is essential to secure the chips his companies need.
Musk also shared his vision for a future shaped by ‘amazing abundance.’ Plans include launching satellites from the lunar surface and enabling civilian space travel to destinations such as Saturn, blending cutting-edge technology with long-term space ambitions.
Terafab represents a bold attempt to merge AI, robotics, and space exploration, positioning Musk’s companies at the forefront of next-generation technology and extraterrestrial innovation.
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Emmanuel Macron has called for stronger enforcement of the EU digital rules, urging Ursula von der Leyen to act against risks linked to foreign interference in elections. The request comes amid growing concern over attempts to influence democratic processes across Europe.
In a letter addressed to the Commission, Macron stressed the importance of safeguarding electoral integrity in a challenging geopolitical environment.
He wrote:
‘In a geopolitical context marked by a multiplication of hostile stances against the European model and its democratic values, it is crucial that the Union… ensure the integrity of civic discourse and electoral processes’.
The proposal focuses on stricter enforcement instead of new legislation, particularly regarding the Digital Services Act. European authorities are encouraged to ensure that online platforms properly assess and mitigate systemic risks, including the spread of manipulated content and coordinated disinformation.
Attention is also directed toward algorithmic amplification, AI-generated content labelling and the removal of fake accounts.
As multiple elections approach across the EU, policymakers are considering how to apply existing regulatory tools more effectively to protect democratic systems.
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A shift toward consolidation is underway, with OpenAI planning to merge its ChatGPT app, Codex platform and browser into a single desktop ‘superapp’ designed to simplify the user experience.
OpenAI said the move aims to streamline its product ecosystem after a period of rapid expansion that resulted in multiple standalone tools. The company is now prioritising a more unified approach, particularly as it intensifies competition with rivals such as Anthropic in enterprise and developer markets.
The planned superapp will focus heavily on ‘agentic’ AI capabilities, enabling systems to operate autonomously across tasks such as writing software, analysing data and managing workflows. The goal is to create a central platform where AI can act as a collaborative assistant across the full productivity stack.
Internal leadership changes are also supporting the transition. Chief of Applications Fidji Simo will oversee the initiative, working alongside President Greg Brockman, as the company restructures teams to align around a single core product. Executives have emphasised the need to reduce fragmentation and improve product quality.
The shift comes as OpenAI faces increasing pressure from competitors that have gained traction with enterprise customers. Anthropic, in particular, has seen success with its developer-focused offerings, prompting OpenAI to refocus on business users and revenue growth.
Over the coming months, the company plans to expand Codex with broader productivity features before integrating ChatGPT and its browser into the unified platform. While the mobile ChatGPT app will remain separate, the broader strategy signals a move toward a more cohesive and scalable AI ecosystem.
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The UK Government has abandoned its previous preference for an AI copyright opt-out model, signalling a shift in policy following strong opposition from creative industries.
Ministers now acknowledge that there is no clear consensus on how AI developers should access copyrighted material.
Liz Kendall confirmed that extensive consultation exposed significant disagreement, prompting the government to step back from its earlier position that would have allowed the use of copyrighted content unless creators opted out.
A joint report from the Department for Science, Innovation and Technology and the Department for Culture, Media and Sport states that further evidence is required before any legislative change.
Policymakers in the UK will assess how copyright frameworks influence AI development, while also examining international regulation, licensing models and ongoing legal disputes.
Government strategy now centres on balancing innovation with fair compensation.
No timeline has been set for reform, reflecting the complexity of aligning economic growth with intellectual property protection.
The debate unfolds alongside broader ambitions outlined by Rachel Reeves, who has identified AI as a central driver of future economic expansion, with the UK aiming to lead adoption across the G7.
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Plans to accelerate technological leadership have been outlined by the HM Treasury and the Department for Science, Innovation and Technology, with a £2.5 billion investment targeting AI and quantum computing.
Ambition has been reinforced by Rachel Reeves, who positioned AI as a central driver of economic growth, alongside closer European ties and regional development. Strategy aims to secure the fastest adoption of AI across the G7 while supporting domestic innovation ecosystems.
Significant funding in the UK will be directed towards a Sovereign AI initiative, quantum infrastructure and research capacity. Plans include procurement of large-scale quantum systems and targeted investment in startups, helping companies scale while strengthening national capabilities in advanced technologies.
Expectations surrounding quantum computing are framed as transformative, with potential to reshape industries from healthcare to energy. Combined investment reflects a broader effort to align innovation policy with long-term economic growth and global competitiveness.
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The Pentagon is accelerating efforts to replace Anthropic after the company was designated a supply-chain risk, marking a sharp shift in US defence AI strategy. The move follows a breakdown in talks over safeguards governing military use of AI, particularly around surveillance and autonomous weapons.
Cameron Stanley, the Pentagon’s chief digital and AI officer, said engineering work is underway to deploy alternative large language models in government-controlled environments. He indicated that while transitioning from Anthropic’s tools could take more than a month, new systems are expected to be operational soon.
The decision threatens a $200 million contract and could exclude Anthropic from future defence partnerships. The US administration has set a six-month timeline for federal agencies to shift away from the company, signalling a broader push to diversify AI suppliers and reduce dependency risks.
Rival providers are already stepping in. OpenAI and xAI have been approved for classified work, while Google is introducing Gemini AI tools across the Pentagon workforce, initially on unclassified networks before expanding into sensitive environments.
Anthropic has challenged the designation in court, arguing it violates constitutional protections and could harm its business. Despite the legal dispute, defence officials have made clear they are moving forward with an ‘AI-first’ strategy to accelerate the adoption of advanced models across military operations.
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Debate over potential updates to the GDPR is intensifying, as Marina Kaljurand advocates a focused ‘fitness check’ rather than sweeping legislative changes in an omnibus package.
Concerns raised in the European Parliament highlight risks associated with altering foundational elements of the regulation, particularly its definitions to personal data. Preserving these core principles is seen as essential to maintaining the integrity of the EU’s data protection framework.
Ongoing discussions reflect broader policy tensions within the EU, where efforts to reduce regulatory complexity must be balanced against the need to uphold strong privacy safeguards. Proposals for simplification are therefore facing scrutiny from lawmakers prioritising stability and legal clarity.
Future developments are likely to shape how the EU adapts its data protection rules to evolving digital markets, while ensuring that existing protections remain effective in a rapidly changing technological environment.
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