In his blog, ‘Soft Power at a Crossroads: The Implications of USAID’s Closure,’ Jovan Kurbalija, executive director of Diplo, explores the impact of the Trump administration’s decision to shut down the United States Agency for International Development (USAID). Founded in 1961, USAID was a cornerstone of American soft power, channelling billions in aid to promote global development and humanitarian relief.
Its closure marks a dramatic shift in US foreign policy, raising concerns about the future of American influence abroad. The decision to dismantle USAID came amid accusations of inefficiency and mismanagement, with figures like Elon Musk calling the agency corrupt and bloated.
The administration’s plan to fold USAID’s functions into the State Department aligned with Trump’s ‘America First’ agenda, prioritising national interests over global development efforts. Yet, critics argue that this move undermines decades of diplomatic goodwill and leaves vulnerable populations without critical aid, from landmine clearance in Asia to refugee support in conflict zones.
Kurbalija indicates that the vacuum in the USA ‘soft power’ could be filled by other global actors including China, EU, India, Turkie, and Russia. He also questions the future of soft power itself—will persuasion and public digital diplomacy still matter in a world dominated by hard power and geopolitical competition? As the US steps back from its humanitarian role, the international balance of influence may enter an era of profound change.
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Instagram is considering launching a separate app for its Reels feature, which focuses on short-form videos, according to remarks made by Instagram chief Adam Mosseri this week. The potential move is seen as an effort to capitalise on the uncertain future of TikTok in the US, aiming to offer a similar video-scrolling experience. Meta, the parent company of Instagram, has yet to comment on the report.
This comes just months after Meta introduced a new video-editing app, Edits, in January, which appears to target users of CapCut, a popular video editor owned by TikTok’s parent company, ByteDance. Meta’s previous attempt to launch a standalone video-sharing app, Lasso, in 2018 failed to gain traction and was eventually discontinued.
By exploring a dedicated app for Reels, Instagram hopes to strengthen its position in the competitive short-form video market, where TikTok currently dominates.
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China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.
DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.
The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.
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Baidu is set to launch the next generation of its Ernie AI model, the Ernie 4.5, in mid-March. This upgraded version will feature improved reasoning capabilities and enhanced multimodal functions, allowing it to process and integrate a variety of data formats, including text, images, audio, and video. Baidu also plans to make the Ernie 4.5 series open source from June 30, marking a significant shift in its approach to AI development.
The Chinese tech giant has faced fierce competition in the AI race, particularly from the rising startup DeepSeek, whose models are seen as rivals to leading US systems at a much lower cost. Despite claiming that Ernie’s performance is comparable to OpenAI’s GPT-4, Baidu has struggled to gain widespread adoption of its AI model. The emergence of DeepSeek has further complicated Baidu’s aspirations in the sector, leading the company to reassess its strategy.
Baidu’s CEO, Robin Li, who once advocated for keeping AI models closed-source, has acknowledged the success of DeepSeek and other competitors. He now views the open-source approach as essential for the future of AI development. This shift comes as Baidu continues to compete with other tech giants, including Alibaba, which recently announced its plans to make its video and image-generating AI model, Wan 2.1, open source.
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The European Commission has approved Nokia’s $2.3 billion acquisition of US-based Infinera, confirming the deal raises no competition concerns.
The approval was granted unconditionally, as the combined company will hold only a moderate share of the optical transport equipment market.
Nokia’s takeover of Infinera, announced last June, will make it the second-largest player in optical networking with a 20% market share, trailing Huawei.
Western firms have struggled to compete in China, giving Huawei a dominant position in the sector.
The acquisition is expected to boost Nokia’s ability to sell networking equipment to major tech firms such as Amazon, Alphabet, and Microsoft. These companies are expanding their data centre infrastructure to support the growing demand for AI services.
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Nomagic, a fast-growing Polish startup, has secured $44 million in funding to develop its robotic arms used in logistics operations like picking, packing, and moving. The company plans to use this investment to expand its technology and business, aiming to sell its robots in North America. Nomagic’s technology, which uses AI and automation software, has already gained significant traction in industries like e-commerce and pharmaceuticals, with a 220% growth in annual recurring revenue last year.
The funding round, led by the European Bank for Reconstruction and Development (EBRD), highlights the growing importance of robotics in rebuilding industrial competitiveness in Europe. Nomagic’s approach focuses on software rather than hardware, enabling its robotic arms to perform across various use cases with ease. This strategy sets it apart from other robotics companies and positions it to capitalise on the increasing demand for automation.
Nomagic’s competitors, such as Covariant, are also seeing success in the field, with Amazon hiring Covariant’s founders and licensing its technology. Industry leaders like Nvidia and SoftBank are also investing in robotic technology, underscoring the potential of this growing market. With government backing and increasing private investment, robotics is playing a key role in modernising logistics and manufacturing industries.
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Estonia has launched a new initiative aimed at preparing students and teachers for the age of AI. The ‘AI Leap’ programme will provide access to popular AI chatbots, including an educational version of ChatGPT, to help build digital skills. Starting in September 2025, the programme will involve 20,000 high school students and 3,000 teachers, with plans to expand to vocational schools and an additional 38,000 students and 3,000 teachers in 2026.
Education Minister Kristina Kallas emphasised that Estonia’s economic competitiveness depends on how well the country adapts to AI, ensuring young people are equipped for the future. As part of the initiative, Estonia will also invest in teacher training to support the integration of AI in classrooms.
The programme is a public-private partnership, with negotiations underway with major AI companies, including OpenAI and Anthropic. OpenAI has expressed its pride in collaborating with Estonia to bring ChatGPT Edu to the education system, aiming to better prepare students for the workforce. Estonia’s use of AI in education is seen as a model that other countries may follow as the EU pushes to increase digital skills across Europe by 2030.
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British universities have been urged to reassess their assessment methods after new research revealed a significant rise in students using genAI for their projects. A survey of 1,000 undergraduates found that 88% of students used AI tools like ChatGPT for assessments in 2025, up from 53% last year. Overall, 92% of students now use some form of AI, marking a substantial shift in academic behaviours in just a year.
The report, by the Higher Education Policy Institute and Kortext, highlights how AI is being used for tasks such as summarising articles, explaining concepts, and suggesting research ideas. While AI can enhance the quality of work and save time, some students admitted to directly including AI-generated content in their assignments, raising concerns about academic misconduct.
The research also found that concerns over AI’s potential impact on academic integrity vary across demographics. Women, wealthier students, and those studying STEM subjects were more likely to embrace AI, while others expressed fears about getting caught or receiving biased results. Despite these concerns, students generally feel that universities are addressing the issue of academic integrity, with many believing their institutions have clear policies on AI use.
Experts argue that universities need to adapt quickly to the changing landscape, with some suggesting that AI should be integrated into teaching rather than being seen solely as a threat to academic integrity. As AI tools become an essential part of education, institutions must find a balance between leveraging the technology and maintaining academic standards.
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Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has launched ‘preliminary inquiries’ into WiseTech Global amid a turbulent week for the logistics software company. This comes after a series of executive changes, including the surprise return of founder Richard White as chairman. Four non-executive directors resigned earlier this week, citing differing opinions on White’s previous role as CEO, which led to his reappointment as executive chairman.
Joe Longo, ASIC’s chairman, confirmed the inquiry and stated that decisions on the next steps would be made shortly. However, WiseTech has yet to comment on the situation. The company, founded by billionaire White, has been facing mounting challenges, including media reports of misconduct, governance issues, and a declining share price.
Since October, WiseTech’s stock has dropped by approximately 14%, following news of an internal review concerning White’s actions. However, following his return, shares rose by 2.1%, reaching A$96.5 per share. The company now faces intense scrutiny as it navigates these turbulent times.
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China accused Taiwan on Wednesday of attempting to hand over its semiconductor industry to the United States, claiming that the island’s government was using the industry to gain political support from Washington. The accusation comes amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, may be negotiating a stake in Intel. However, neither TSMC nor Intel has confirmed the talks and Taiwan’s government says it has not received such investment proposals from TSMC.
China’s Taiwan Affairs Office spokesperson, Zhu Fenglian, suggested without providing evidence that Taiwan’s ruling Democratic Progressive Party (DPP) was using TSMC to seek foreign support for independence, accusing the island of ‘selling out’ its companies to the US. Taiwan, however, rejected these claims, with Taiwan’s Mainland Affairs Council affirming the importance of TSMC to the island’s economy and stressing its commitment to maintaining a leading role in semiconductor technology.
The US has been critical of Taiwan’s semiconductor industry, with former President Donald Trump calling for more manufacturing to return to the United States. Despite China’s claims, Taiwan maintains that it is responsible for its foreign investment decisions. The island continues to rely on the US for military support, though the US does not formally recognise Taiwan’s government.
TSMC, which supplies major companies like Apple and Nvidia, did not comment on the reports. Taiwan’s government, however, vowed to support the company amid rising tensions surrounding its semiconductor industry.
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