Big Tech accused of undue influence over EU AI Code

The European Commission is facing growing criticism after a joint investigation revealed that Big Tech companies had disproportionate influence over the drafting of the EU’s Code of Practice on General Purpose AI.

The report, published by Corporate Europe Observatory and LobbyControl, claims firms such as Google, Microsoft, Meta, Amazon, and OpenAI were granted privileged access to shaping the voluntary code, which aims to help companies comply with the upcoming AI Act.

While 13 Commission-appointed experts led the process and over 1,000 participants were involved in feedback workshops, civil society groups and smaller stakeholders were largely side-lined.

Their input was often limited to reacting through emojis on an online platform instead of engaging in meaningful dialogue, the report found.

The US government also waded into the debate, sending a letter to the Commission opposing the Code. The Trump administration argued the EU’s digital regulations would stifle innovation.

Critics meanwhile say the EU’s current approach opens the door to Big Tech lobbying, potentially weakening the Code’s effectiveness just as it nears finalisation.

Although the Code was due in early May, it is now expected by June or July, just before new rules on general-purpose AI tools come into force in August.

The Commission has yet to confirm the revised timeline.

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

Trump eases auto tariffs amid industry concerns

President Donald Trump has signed executive orders easing his controversial 25% tariffs on automobiles and parts, aiming to relieve pressure on carmakers struggling with rising costs.

The move follows warnings from manufacturers and analysts that the tariffs could inflate prices, harm domestic production and slow the industry’s recovery. Trump framed the measure as a temporary bridge, allowing automakers time to shift more manufacturing into the US instead of facing harsh penalties.

The changes include a short-term rebate system tied to the proportion of foreign parts used in vehicles assembled domestically. Automakers have been told they’ll have two years of reduced levies, giving them time to reconfigure supply chains and invest in new US-based facilities.

Officials claim announcements on job creation and plant expansion are expected soon, with companies like Stellantis, Ford, and GM praising the policy shift as a step toward competitiveness rather than an immediate fix.

However, some experts warn that the industry needs stability instead of unpredictable policy swings. They argue that relocating production takes years and billions in investment, not mere months.

With vehicle prices already high and supply chains stretched, economists question whether the tariff adjustments can offset the broader economic risks posed by Trump’s wider trade strategy.

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

4chan returns after major cyberattack

After suffering what it called a ‘catastrophic’ cyberattack earlier this month, controversial image board 4chan has returned online, admitting its systems were breached through outdated software.

The attacker, reportedly using a UK-based IP address, gained entry by uploading a malicious PDF, allowing access to 4chan’s database and administrative dashboard. The intruder exfiltrated source code and sensitive data before vandalising the site, which led to its temporary shutdown on 14 April.

Although 4chan avoided directly naming the software vulnerability, it indirectly confirmed suspicions that a severely outdated backend—possibly an old version of PHP—was at fault. The site confessed that slow progress in updating its infrastructure resulted from a chronic lack of funds and technical support.

It blamed years of financial instability on advertisers, payment processors, and providers pulling away under external pressure, leaving it dependent on second-hand hardware and a stretched, largely volunteer development team.

Despite purchasing new servers in mid-2024, the transition was slow and incomplete, meaning key services still ran on legacy equipment when the breach occurred. Following the attack, 4chan replaced the compromised server and implemented necessary software updates.

PDF uploads have been suspended, and the Flash board permanently closed due to the difficulty in preventing similar exploits through .swf files.

Now relying on volunteer tech workers to support its recovery efforts, the site insists it won’t be shut down. ‘4chan is back,’ it declared, claiming no other site could replace its unique community, despite long-standing criticism over its content and lax moderation.

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

Tech giants circle as Chrome faces possible break-up

Alphabet, Google’s parent company, may soon be forced to split into separate entities, with its Chrome browser emerging as a particularly attractive target.

With Chrome controlling over 65% of the global browser market, interest is mounting from AI-driven firms and legacy tech companies alike, all eager to take control of a platform that reaches billions of users.

OpenAI, known for ChatGPT, sees Chrome as a natural fit for its expanding AI ecosystem, especially with search features increasingly integrated into its chatbot.

Rival AI search firm Perplexity is also eyeing Chrome instead of building from scratch, viewing it as a shortcut to mainstream adoption and a rich source of user data and engagement.

Yahoo, backed by Apollo Global Management, is reportedly considering a $50 billion bid, even while developing its own browser internally.

Despite legal uncertainties and the threat of drawn-out regulatory battles, the opportunity to own Chrome could radically shift influence in the tech sector, especially while Google faces mounting antitrust scrutiny.

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

Apple to shift US iPhone assembly to India by 2025

Apple is preparing to assemble all iPhones sold inside the US in India by next year, aiming to produce over 60 million units annually in the country by 2026.

The move comes in response to mounting geopolitical tensions and renewed tariff threats under former President Donald Trump’s trade agenda, which once imposed duties as high as 145% on Chinese imports.

The decision marks a major shift in Apple’s supply chain strategy, which has long depended on China. By doubling production in India, Apple hopes to reduce its exposure to trade-related risks instead of relying on short-term tariff exemptions.

Foxconn’s plant in Tamil Nadu and Tata Electronics are leading the effort, with support from India’s government through manufacturing incentives and subsidies.

While Apple remains dependent on Chinese suppliers for many components, shifting final assembly to India reflects growing urgency. Trump-era tariffs triggered a $700 billion market loss for the company in early 2024, prompting Apple to act swiftly instead of waiting for further shocks.

Around 20% of all iPhones are now made in India, a figure expected to rise sharply in the coming years.

Although challenges remain, such as the complexity of relocating the broader supply chain, analysts believe the shift is crucial for Apple’s long-term growth.

With US production capacity lacking the scale and workforce needed, India presents a more viable solution to ensure continued momentum and price stability in Apple’s most important market.

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

TikTok moves into Japanese E-commerce

Chinese social media giant TikTok is preparing to launch its online shopping service in Japan within the coming months, according to a report by the Nikkei newspaper.

The company plans to begin recruiting sellers soon for TikTok Shop, its e-commerce arm that has already made waves in other regions through livestream-based sales of a wide range of products, from footwear to cosmetics.

The move is part of TikTok’s broader strategy to grow internationally, especially while its future in the US remains uncertain. The platform recently expanded into France, Germany and Italy, pushing further into the European market instead of relying solely on existing user bases.

TikTok Shop is known for offering attractive discounts and allowing users to earn commissions by promoting items in live broadcasts.

In contrast, TikTok’s operations in the US continue to face political and regulatory hurdles. A law passed in 2024 requires ByteDance, TikTok’s China-based parent company, to sell off its US assets by January 19.

Although President Donald Trump indicated a deal might still happen, he also suggested any agreement could be delayed due to shifting dynamics in US-China trade relations.

Despite not immediately responding to media requests for comment, TikTok seems determined to strengthen its foothold in international markets.

By entering Japan’s e-commerce space, the company signals it intends to expand through business innovation and regional diversification instead of waiting for political clarity in the United States.

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

UN prepares for possible shifts in US financial contributions

The United Nations faces renewed financial uncertainty as Donald Trump’s administration reviews all US support for international organisations. Trump has already slashed voluntary funding across multiple UN agencies and withdrawn from bodies like the World Health Organization and the Human Rights Council.

A leaked White House memo even suggests that cuts to assessed contributions—mandatory payments that keep core UN operations running—are on the table, sparking fears of a major financial crisis. While a complete US withdrawal from the UN is seen as unlikely, experts warn that the US could cripple the organisation by indefinitely halting payments, creating a gaping hole in its budget.

In 2023, the US contributed around $13 billion to the UN, covering about a quarter of its budget. The potential for missed payments raises concerns not just about immediate financial collapse, but about the future of multilateralism itself, drawing parallels to the League of Nations’ demise in the early 20th century.

The situation is complicated by internal divisions within the Republican Party, with some favouring a transactional approach to UN reform while others push a hardline, anti-multilateralist agenda. With peacekeeping budget negotiations looming and no US ambassador to the UN yet appointed, uncertainty dominates.

Meanwhile, UN Secretary-General António Guterres has launched the UN80 initiative, aiming to streamline operations and reassure sceptical donors, but it remains unclear if these reforms will be enough to placate Washington.

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

WHO battles funding shortfall with new restructure plan

Just weeks before the World Health Assembly, the World Health Organization (WHO) unveiled a major restructuring plan in response to severe financial challenges. WHO Director-General Tedros Adhanom Ghebreyesus announced the streamlining of the agency’s Geneva headquarters, reducing its divisions from ten to four and departments from sixty to thirty-four.

With funding slashed by donor cuts, including the United States’ withdrawal that alone cost WHO $1.2 billion, the agency faces a staggering $600 million deficit this year and anticipates a 45% shortfall in its upcoming $4.2 billion budget. The internal response to the restructuring has been tense.

Staff members expressed frustration at the top-down decision-making process and criticised past spending on what they saw as unnecessary management layers. Although no specific job cut numbers were provided, Tedros confirmed that executive management would bear the initial brunt of the downsizing.

A consulting group, funded by the Bill and Melinda Gates Foundation, has been advising on the changes behind closed doors, further fueling concerns about transparency. Outside experts view the overhaul as a return to a more focused, ‘normative’ WHO, echoing the approach under former Director-General Margaret Chan.

Yet key questions remain unanswered, such as whether costly country offices will be closed or WHO’s activities will shift back to its original mission of setting international health standards. European Union representatives and other member states have also voiced scepticism, demanding a detailed roadmap to sustainability before approving the new budget.

As the World Health Assembly approaches, debates are intensifying. While some see the crisis as a rare opportunity to realign the WHO with its foundational goals, political sensitivities around funding, office closures, and expanding member contributions suggest that achieving consensus will be anything but easy.

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

Alibaba launches Qwen3 AI model

As the AI race intensifies in China, Alibaba has unveiled Qwen3, the latest version of its open-source large language model, aiming to compete with top-tier rivals like DeepSeek.

The company claims Qwen3 significantly improves reasoning, instruction following, tool use, and multilingual abilities compared to earlier versions.

Trained on 36 trillion tokens—double that of Qwen2.5—Qwen3 is available for free download on platforms like Hugging Face, GitHub, and Modelscope, instead of being limited to Alibaba’s own channels.

The model also powers Alibaba’s AI assistant, Quark, and will soon be accessible via API through its Model Studio platform.

Alibaba says the Qwen model family has already been downloaded over 300 million times, with developers creating more than 100,000 derivatives based on it.

With Qwen3, the company hopes to cement its place among the world’s AI leaders instead of trailing behind American and Chinese rivals.

Although the US still leads the AI field—according to Stanford’s AI Index 2025, it produced 40 major models last year versus China’s 15— Chinese firms like DeepSeek, Butterfly Effect, and now Alibaba are pushing to close the quality gap.

The global competition, it seems, is far from settled.

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

IBM commits $150 billion to US tech

IBM has announced a major investment plan worth $150 billion over the next five years to solidify its role as a global leader in advanced computing and quantum technologies.

The move also aims to support US economic growth by expanding local innovation and manufacturing, instead of relying heavily on overseas operations.

Over $30 billion of the funding will be directed towards research and development, helping IBM advance in areas such as mainframe and quantum computer production.

According to CEO Arvind Krishna, this commitment ensures that IBM remains the core hub of the world’s most sophisticated computing and AI capabilities. The company already operates the largest fleet of quantum computing systems and intends to continue building them in the US.

The announcement comes amid a wider shift among major tech firms investing heavily in US-based infrastructure.

Companies like Nvidia and Apple have each pledged massive sums—Nvidia alone is preparing to invest up to $500 billion—in response to President Donald Trump’s call for greater domestic manufacturing through policies like reciprocal tariffs.

By focusing investment at home instead of abroad, IBM joins a growing list of tech leaders aligning with government efforts to revitalise American industry while maintaining their global competitiveness in AI and next-generation computing.

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