UK considers regulatory action after Grok’s deepfake images on X

UK Prime Minister Keir Starmer is consulting Canada and Australia on a coordinated response to concerns surrounding social media platform X, after its AI assistant Grok was used to generate sexualised deepfake images of women and children.

The discussions focus on shared regulatory approaches rather than immediate bans.

X acknowledged weaknesses in its AI safeguards and limited image generation to paying users. Lawmakers in several countries have stated that further regulatory scrutiny may be required, while Canada has clarified that no prohibition is currently under consideration, despite concerns over platform responsibility.

In the UK, media regulator Ofcom is examining potential breaches of online safety obligations. Technology secretary Liz Kendall confirmed that enforcement mechanisms remain available if legal requirements are not met.

Australian Prime Minister Anthony Albanese also raised broader concerns about social responsibility in the use of generative AI.

X owner Elon Musk rejected accusations of non-compliance, describing potential restrictions as censorship and suppression of free speech.

European authorities requested the preservation of internal records for possible investigations, while Indonesia and Malaysia have already blocked access to the platform.

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Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

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Instagram responds to claims of user data exposure

Reports published by cybersecurity researchers indicated that data linked to approximately 17.5 million Instagram accounts has been offered for sale on underground forums.

The dataset reportedly includes usernames, contact details and physical address information, raising broader concerns around digital privacy and data aggregation.

A few hours later, Instagram responded by stating that no breach of internal systems occurred. According to the company, some users received password reset emails after an external party abused a feature that has since been addressed.

The platform said affected accounts remained secure, with no unauthorised access recorded.

Security analysts have noted that risks arise when online identifiers are combined with external datasets, rather than originating from a single platform.

Such aggregation can increase exposure to targeted fraud, impersonation and harassment, reinforcing the importance of cautious digital security practices across social media ecosystems.

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OpenAI and SoftBank back a $1 billion AI data centre energy partnership

SoftBank Group and OpenAI announced a strategic partnership with SB Energy, involving a combined investment of $1 billion to support the development of large-scale AI data centres and energy infrastructure in the US.

The agreement forms part of the broader Stargate initiative, which aims to expand domestic AI computing capacity.

As part of the arrangement, OpenAI signed a lease for a 1.2 gigawatt data centre project in Milam County, Texas, with SB Energy selected to develop and operate the facility.

The partners stated that the project is designed to support the rising demand for AI computing while minimising water usage and enhancing local energy supply.

SB Energy also secured an additional $800 million in redeemable preferred equity from Ares, strengthening its financial position for further expansion.

The companies stated that the collaboration is expected to generate construction employment, long-term operational roles and investment in grid modernisation, while establishing a scalable model for future AI-focused data centre developments.

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Meta backs US nuclear projects for AI growth

A series of agreements has been announced by Meta to support nuclear energy projects in the US, aiming to secure up to 6.6 gigawatts of clean and reliable electricity for data centres and AI infrastructure by 2035. The company said the move supports grid stability while reinforcing domestic energy capacity.

The agreements include support for existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, as well as commitments to advanced reactor developers TerraPower and Oklo.

Meta stated that the arrangements are intended to extend the operational life of current plants while accelerating the deployment of next-generation nuclear technologies.

According to Meta, the projects are expected to generate thousands of construction roles and hundreds of long-term operational jobs, while contributing to the firm’s power to regional electricity grids.

The company added that energy costs associated with its data centres are fully covered through corporate agreements, instead of being passed on to US consumers.

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Tether and UN join to boost digital security in Africa

Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.

Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.

The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.

Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.

Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.

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xAI plans $20 billion data centre investment in Mississippi

The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.

xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.

Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.

State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.

Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.

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UK outlines approval process for crypto firms

The UK’s Financial Conduct Authority has confirmed that all regulated crypto firms must obtain authorisation under the Financial Services and Markets Act. Both new market entrants and existing operators will be required to comply.

No automatic transition will be available for firms currently registered under anti-money laundering rules. Companies already authorised for other financial services must apply to extend permissions to cover crypto activities and ensure compliance with upcoming regulations.

Pre-application meetings and information sessions will be offered to help firms understand regulatory expectations and enhance the quality of their applications.

An official application window is expected to open in September 2026 and remain active for at least 28 days. Applications submitted during that period are intended to be assessed before the regime formally begins, with further procedural details to be confirmed by the FCA.

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Why data centres are becoming a flashpoint in US towns

As AI and cloud computing drive unprecedented demand for digital infrastructure, Big Tech’s rapid expansion of data centres is increasingly colliding with resistance at the local level. Across the United States, communities are pushing back against large-scale facilities they say threaten their quality of life, environment, and local character.

Data centres, massive complexes packed with servers and supported by vast energy and water resources, are multiplying quickly as companies race to secure computing power and proximity to electricity grids. But as developers look beyond traditional tech hubs and into suburbs, small towns, and rural areas, they are finding residents far less welcoming than anticipated.

What were once quiet municipal board meetings are now drawing standing-room-only crowds. Residents argue that data centres bring few local jobs while consuming enormous amounts of electricity and water, generating constant noise, and relying on diesel generators that can affect air quality. In farming communities, the loss of open land and agricultural space has become a significant concern, as homeowners worry about declining property values and potential health risks.

Opposition efforts are becoming more organised and widespread. Community groups increasingly share tactics online, learning from similar struggles in other states. Yard signs, door-to-door campaigns, and legal challenges have become common tools for advocacy. According to industry observers, the level of resistance has reached unprecedented heights in infrastructure development.

Tracking groups report that dozens of proposed data centre projects worth tens of billions of dollars have recently been delayed or blocked due to local opposition and regulatory hurdles. In some US states, more than half of proposed developments are now encountering significant pushback, forcing developers to reconsider timelines, locations, or even entire projects.

Electricity costs are a major concern, fueling public anger. In regions already experiencing rising utility bills, residents fear that large data centres will further strain power grids and push prices even higher.

Water use is another flashpoint, particularly in areas that rely on wells and aquifers. Environmental advocates warn that long-term impacts are still poorly understood, leaving communities to shoulder the risks.

The growing resistance is having tangible consequences for the industry. Developers say uncertainty around zoning approvals and public support is reshaping investment strategies. Some companies are choosing to sell sites once they secure access to power, often the most valuable part of a project, rather than risk prolonged local battles that could ultimately derail construction.

Major technology firms, including Microsoft, Google, Amazon, and Meta, have largely avoided public comment on the mounting opposition. However, Microsoft has acknowledged in regulatory filings that community resistance and local moratoriums now represent a material risk to its infrastructure plans.

Industry representatives argue that misinformation has contributed to public fears, claiming that modern data centres are far cleaner and more efficient than critics suggest. In response, trade groups are urging developers to engage with communities earlier, be more transparent, and highlight the economic benefits, such as tax revenue and infrastructure investment. Promises of water conservation, energy efficiency, and community funding have become central to outreach efforts.

In some communities, frustration has been amplified by revelations that plans were discussed quietly among government agencies and utilities long before residents were informed. Once disclosed, these projects have sparked accusations of secrecy, accelerating public distrust and mobilisation.

Despite concessions and promises of further dialogue, many opponents say their fight is far from over. As demand for data centres continues to grow, the clash between global technology ambitions and local community concerns is shaping up to be one of the defining infrastructure battles of the digital age.

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Global AI adoption reaches record levels in 2025

Global adoption of generative AI continued to rise in the second half of 2025, reaching 16.3 percent of the world’s population. Around one in six people now use AI tools for work, learning, and problem-solving, marking rapid progress for a technology still in its early years.

Adoption remains uneven, with the Global North growing nearly twice as fast as the Global South. Countries with early investments in digital infrastructure and AI policies, including the UAE, Singapore, and South Korea, lead the way.

South Korea saw the most significant gain, rising seven spots globally due to government initiatives, improved Korean-language models, and viral consumer trends.

The UAE maintains its lead, benefiting from years of foresight, including early AI strategy, dedicated ministries, and regulatory frameworks that foster trust and widespread usage.

Meanwhile, open-source platforms such as DeepSeek are expanding access in underserved markets, including Africa, China, and Iran, lowering financial and technical barriers for millions of new users.

While AI adoption grows globally, disparities persist. Policymakers and developers face the challenge of ensuring that the next wave of AI users benefits broader communities, narrowing divides rather than deepening them.

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