Deepfakes scandal puts Elon Musk and X under scrutiny in France

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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Social media ban in Ecuador targets youth crime recruitment

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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Europe boosts AI, talent and investment to compete with US and China

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.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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US releases national AI policy framework

The Trump Administration unveiled a national AI framework to boost competitiveness, security, and benefits for Americans. The plan seeks to ensure that AI innovation supports all citizens while maintaining public trust in the technology.

Six key objectives form the foundation of the policy. These include protecting children online, empowering parents with tools to manage digital safety, strengthening communities and small businesses, respecting intellectual property, defending free speech, and fostering innovation.

The framework also prioritises workforce development to prepare Americans for AI-driven job opportunities.

Federal uniformity is considered critical to the plan’s success. The Administration warns that a patchwork of state regulations could stifle innovation and reduce the United States’ ability to lead globally.

Congress is encouraged to collaborate closely to implement the framework nationwide.

The Administration emphasises that the United States must lead the AI race, ensuring the benefits of AI reach all Americans while addressing challenges such as privacy, security, and equitable access to opportunities.

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Terafab initiative from Elon Musk targets AI and space computing

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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Crypto tax reform in Brazil pushed to 2027

Brazil has postponed discussions on its upcoming cryptocurrency tax framework until after the October 2026 presidential elections, signalling a cautious political approach to digital asset regulation.

Finance officials aim to avoid introducing contentious fiscal measures during an election cycle, despite earlier plans to launch a public consultation later this year.

Recent tax reforms have already marked a significant shift in Brazil’s crypto policy. A flat 17.5% tax on capital gains was introduced in June 2025, replacing earlier exemptions for smaller transactions.

Previous rules allowed tax-free monthly sales up to 35,000 Brazilian real, while higher volumes were subject to progressive rates. Banco Central do Brasil classified stablecoin transfers as foreign exchange, making them subject to standard currency tax rules.

Authorities are considering broader crypto taxes, including on assets used for international payments. Alignment with the Crypto-Asset Reporting Framework also remains on the agenda, indicating a move towards tighter oversight and global regulatory coordination.

Strong adoption highlights the policy’s importance, with Brazil leading Latin America and ranking among the world’s top crypto markets. Regional data shows a surge in adoption, strengthening Brazil’s role in the global digital asset market.

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EU lawmakers call for faster enforcement of digital competition rules

Members of the European Parliament are calling for more rapid progress in implementing the bloc’s digital competition framework, with particular focus on the Digital Markets Act.

In a recent resolution, lawmakers urged the European Commission to ensure timely and effective enforcement of the rules designed to regulate large online platforms. The legislation aims to address concerns around market dominance and promote fair competition across the digital economy.

The discussions reflect ongoing concerns that delays in enforcement could undermine the framework’s effectiveness, particularly as major technology companies continue to expand their influence. Platforms such as Google, Apple and Meta are among those expected to comply with the new obligations.

At the same time, policymakers are balancing regulatory oversight with the need to maintain innovation and competitiveness. The debate forms part of a broader effort in the EU to strengthen digital governance and reinforce the region’s position in global technology markets.

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Essex strawberry-picking robot wins national award for industry collaboration

A University of Essex robotics project designed to automate crop harvesting has won the Best Research Project (Industry Collaboration) award at the 2026 UKRI AI & Robotics Research Awards.

The Sustainable smArt Robotic Agriculture (SARA) project was developed in collaboration with industry partners Wilkin and Sons, JEPCO, and GyroPlant, and addresses three interconnected challenges: food security, labour shortages, and sustainability.

Central to the project is the development of low-cost AgriRobotics systems capable of adapting to different crops, tasks, and growing environments, automating repetitive, labour-intensive farm work whilst reducing wastage, carbon footprint, and dependence on increasingly scarce agricultural labour.

The team delivered a live strawberry-harvesting demonstration at the Innovate UK Robotics Industry Showcase in March, an event aligned with UKRI’s announcement of a £52 million competition for Robotics Adoption Hubs.

Building on the project’s success, lead researchers Professor Klaus McDonald-Maier and Dr Vishwanathan Mohan have launched a spinout company, Versatile RobotX, to accelerate the commercialisation of the technology and extend its global impact.

The SARA project previously won the Best Demonstration category at the same awards in 2025.

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Human data demand fuels new global digital economy

A growing number of individuals worldwide are participating in a new digital economy built around supplying data for AI systems.

Through platforms such as Kled AI and Silencio, users upload videos, audio recordings and personal interactions in exchange for payment, contributing to the development of increasingly sophisticated AI models.

Such a trend reflects a broader shift in the AI industry, where demand for high-quality human-generated data is rising as traditional web-based sources become more limited.

Researchers suggest that human data remains essential for improving system performance and modelling behaviour beyond existing datasets. As a result, data marketplaces have emerged as an alternative supply mechanism.

Economic considerations often shape participation. In regions facing limited employment opportunities or currency instability, earning income in global currencies can provide a meaningful financial incentive.

At the same time, similar practices are expanding in higher-income countries, where individuals seek supplementary income streams amid rising living costs.

However, the model introduces complex trade-offs.

Contributors may grant extensive usage rights over their data, sometimes on a long-term or irreversible basis. Experts note that such arrangements can reduce control over how personal information is reused, including in contexts not initially anticipated.

Concerns also extend to issues such as data security, transparency and the potential for misuse in areas including synthetic media and identity replication.

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ChatGPT ads rollout begins for free and Go users in US

OpenAI will begin rolling out ChatGPT ads to Free and Go users in the United States in the coming weeks, marking a significant shift in how the company monetises its flagship AI product.

The ads will be shown to logged-in adult users on lower-tier plans, while paid subscriptions, including Plus, Pro, Business, Enterprise, and Education, will remain ad-free. The rollout in the US positions ChatGPT ads as a tiered feature, separating premium experiences from ad-supported access.

To support the initiative, OpenAI has integrated advertising technology firm Criteo into its pilot programme, enabling ad buying and more targeted placements. Advertisers are reportedly being offered entry commitments ranging from $50,000 to $100,000, reflecting early efforts to build a structured advertising marketplace.

The company has also launched a dedicated advertiser page that presents ChatGPT as a platform for reaching users during active research and decision-making. ChatGPT ads are being framed as part of conversational discovery, with OpenAI advising brands to provide multiple variations of creative content to improve performance.

The rollout comes as OpenAI seeks to diversify revenue amid rising compute costs and intensifying competition. Alongside subscriptions and API services, ChatGPT ads are expected to play an increasingly important role in supporting the platform’s long-term business model.

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