DW Newsletter # 198 – DeepSeek, a new contender in the AI arena

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Dear readers,

When DeepSeek first emerged in late 2023, it seemed like another ambitious startup in the crowded AI landscape. Founded by Chinese hedge fund manager Liang Wenfeng, DeepSeek began with modest attention, releasing AI models that showed promise but were overshadowed by industry giants like OpenAI, Meta, and Google. However, in December 2024, the company catapulted into the global spotlight with the launch of DeepSeek R1, an AI model that shook the foundations of the tech world. This development was not just a technological marvel but a geopolitical wake-up call.

DeepSeek R1 stunned the industry with its ability to rival the capabilities of market leaders, achieving near-parity with models like GPT-4 and Gemini. What set it apart, however, was its shockingly low cost. While US companies like Meta and OpenAI pour billions into AI research and infrastructure, DeepSeek reportedly developed its model for just $5.6 million, leveraging less advanced chips that bypassed US export restrictions. The revelation underscored a significant shift in the AI arms race: resourcefulness could rival raw financial power. The app quickly became the most downloaded on Apple’s App Store, disrupting markets and causing US tech stocks to shed nearly $1 trillion in value within days.

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The conversation shifted to national security as the US government scrambled to respond. DeepSeek’s emergence directly challenged US dominance in AI and called into question the effectiveness of export restrictions imposed by the Biden administration. Returning for his second term, President Donald Trump convened a high-stakes meeting with Nvidia CEO Jensen Huang to discuss tightening chip export policies. Nvidia, whose shares dropped 17% after DeepSeek’s success, found itself at the centre of the geopolitical battle, with its cutting-edge AI chips both coveted and restricted.

The Trump administration is now contemplating additional measures to curb China’s access to advanced technology, including halting Nvidia’s H20 chip exports, initially designed to comply with export controls. Lawmakers from both parties are urging a thorough review of US export policies in light of DeepSeek’s achievements. Reports have even suggested that DeepSeek may have illegally obtained US-restricted chips, prompting investigations by the Commerce Department.

For its part, DeepSeek has embraced the controversy. Liang Wenfeng has framed the company’s success as a triumph of innovation over-dependence on Western technology. However, questions about the company’s transparency linger. Critics argue that DeepSeek’s low-cost claims omit the broader expenses of research and development, while concerns about its alignment with the Chinese government’s strategic goals have fueled scepticism in the West. The fact that DeepSeek’s earlier models censored politically sensitive content only deepens fears about its role in state-led narratives.

DeepSeek’s rise has challenged assumptions about the cost and accessibility of cutting-edge technology, prompting both excitement and unease. While the US tightens its policies and grapples with its response, DeepSeek’s trajectory is proof that the race for AI dominance is no longer confined to Silicon Valley; it’s now a high-stakes game of global power and influence.

Related news:

deepseek nvidia

US President Donald Trump and Nvidia CEO Jensen Huang discussed the challenges posed by China’s advancements in AI, particularly focusing on the impact of Chinese AI company DeepSeek.

Stay updated on DeepSeek developments!

In other news..

DeepSeek sparks AI investment surge in China

Chinese investors are flocking to AI-related stocks, betting that the success of home-grown startup DeepSeek will propel China to the forefront of the AI race amid the escalating Sino-US technology conflict.

Security concerns lead to Australian ban on DeepSeek

Concern over potential security threats has prompted Australia to ban Chinese AI startup DeepSeek from all government devices, joining a growing list of nations restricting its use.

Visit dig.watch now for the latest updates and other topics!

Marko and the Digital Watch team


Highlights from the week of 31-07 February 2025

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An LLM project to enhance multilingual AI accessibility.

cryptocurrency in the us

Lawmakers aim to clarify cryptocurrency regulations as the industry continues to expand.

deepseek

Domestic technological innovation amid global competition.

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The trade war is raging on through retaliatory measures targeting major businesses.

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Global collaboration on sustainable and inclusive AI development amid geopolitical tensions.

salesforce jobs layoffs ai

Affected employees can apply for other roles, though the company has not specified which divisions will see the biggest cuts.

trump tiktok ban sale bytedance

The app’s future in the US remains uncertain.

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Hidden text unveiled with AI and X-ray tech.

eu sets rules for e commerce

These changes could have significant financial and operational implications for the e-commerce companies involved.

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A recent investigation has revealed that dozens of WhatsApp users across the globe were targeted by advanced spyware designed to infiltrate their devices without any action on their part.

deepseek

The app sparks national pride and curiosity in the country.


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Imagine 100,000 people standing in utmost silence for 15 minutes, with their phone flashlights pointed at the sky. They pay tribute to the 15 innocent people who died under the rubble of the collapsed, newly reconstructed eave of the railway station in the city of Novi Sad, Serbia. 100,000 students and supporting citizens, standing still and united in palpable silence, in Belgrade, the capital of Serbia. Those present witnessed a moment that sent a chill up their spine.

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In this digitally porous media world, information spreads faster than ever, empowering creativity but also unleashing avalanches of misinformation and deepfakes that blur reality. High-profile clashes, from Novak Djokovic boycotting…

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Part 2 examines the UN’s funding paradox: 128 nations contributing 2.2% of the budget can outvote major donors. Can China replace US leadership? Is Security Council reform urgent? Explore power shifts, moral authority, and the future of multilateralism.

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DeepSeek’s open-source approach promotes accountability and allows developing countries to leverage AI solutions, potentially levelling the playing field. The shift towards open-source models may also encourage smaller players to create tailored AI systems, fostering a collaborative environment rather than a competitive race. Consequently, trade and technological diffusion can significantly enhance global economic growth and innovation.

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What if we could overcome overconsumption? Could Wikipedia’s approach of respect and collaboration offer a solution? Aldo Matteucci writes.

Digital Watch newsletter – Issue 96 – February 2025

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Snapshot: The developments that made waves

AI governance

Several prominent tech leaders, including Alphabet CEO Sundar Pichai and Apple CEO Tim Cook, attended US President-elect Donald Trump’s inauguration on Monday, according to sources familiar with the event’s planning. Their presence marked a significant moment as top executives from the tech industry, including Elon Musk, Jeff Bezos, and Mark Zuckerberg,  attended the celebration.

Technologies

DeepSeek, a Chinese AI company, is rapidly transforming the global AI landscape. The models’ standout feature is their open-source nature, which allows developers worldwide to access, modify, and build upon them.

Halliday, a wearables startup, has launched a pair of smart glasses at CES 2025 that project a tiny digital screen directly into the wearer’s eye. 

Meta’s new Ray-Ban smart glasses, featuring a Live AI assistant, promise a futuristic way to interact with the world.

Microsoft is setting its sights on a transformative leap in AI, announcing plans to allocate roughly $80 billion in fiscal 2025 for data centre expansion to support AI model training and cloud-based applications.

OpenAI CEO Sam Altman has stated that the company believes it knows how to build AGI and is now turning its focus towards developing superintelligence.

AI is revolutionising the legal field, offering solutions to improve fairness and reduce costs in the justice system.

Infrastructure

Apple’s iPhone devices are now eligible to test SpaceX’s Starlink’s direct-to-cell service, which offers satellite-based coverage, according to T-Mobile. 

Leonardo CEO Roberto Cingolani has spoken with Airbus to strengthen European collaboration in the satellite industry. The talks with Airbus and Thales aim to create alliances to better compete globally with major players like the USA and China.

Cybersecurity

US officials are evaluating the potential national security risks posed by the Chinese AI app DeepSeek. White House Press Secretary Karoline Leavitt confirmed the National Security Council is leading the review, highlighting concerns about American AI dominance.

The International Civil Aviation Organization (ICAO) is investigating a potential cybersecurity breach following claims that a hacker accessed thousands of its documents. The United Nations agency, which sets global aviation standards, confirmed it is reviewing reports of an incident allegedly linked to a known cybercriminal group.

The White House has unveiled a new label, the Cyber Trust Mark, for internet-connected devices like smart thermostats, baby monitors, and app-controlled lights.

Digital rights

The CEO of Japanese IT giant NTT DATA called for global standards in AI regulation to mitigate the risks posed by the rapidly advancing technology, speaking at the World Economic Forum in Davos.

The Italian Data Protection Authority (IDPA) has commenced an investigation into DeepSeek, an AI firm, raising concerns about privacy and the handling of personal data.

Microsoft and OpenAI are investigating whether a group linked to Chinese AI startup DeepSeek accessed OpenAI data without authorisation.

TikTok is under heightened scrutiny following newly unsealed allegations from a Utah lawsuit claiming the platform knowingly allowed harmful activities, including child exploitation and sexual misconduct, to persist on its livestreaming feature, TikTok Live.

Legal

Donald Trump approved a 75-day delay in banning TikTok in the USA in an executive order signed on Monday, 20 January 2025.

Google has appealed to the EU’s top court to overturn a record 4.3-billion-euro antitrust fine imposed seven years ago, arguing that the penalty punished the company for its innovation.

The US Securities and Exchange Commission has formed a task force to establish clearer regulations for cryptocurrencies.

The European Commission has intensified its investigation into X, formerly known as Twitter, focusing on the platform’s algorithm changes and content moderation practices.

US President Donald Trump signed an executive order on Monday aimed at safeguarding free speech and ending online censorship.

Telegram, the popular messaging app, has fulfilled 900 requests from US authorities for personal information about its users in 2024, with a significant rise in inquiries following the arrest of CEO Pavel Durov in France.

Oklahoma State Senator Dusty Deevers has introduced the Bitcoin Freedom Act, paving the way for residents and businesses to opt for Bitcoin as a means of payment.

Internet economy

Poland has expanded its Bitcoin ATM network to 219 machines, surpassing El Salvador to become the fifth-largest network globally, just behind the USA, Canada, Australia, and Spain. 

The launch of the TRUMP meme coin has drawn massive attention, reaching a $72 billion market cap in just two days.

Eurozone banks should embrace a digital euro to counter US President Donald Trump’s new push to promote dollar-backed stablecoins globally, European Central Bank (ECB) board member Piero Cipollone stated on Friday.

The launch of DeepSeek’s cost-efficient AI model has sent shockwaves through Australian tech markets, with shares in AI-related companies experiencing steep declines.

President Donald Trump has dismissed criticism from Elon Musk regarding a $500 billion AI project with the Stargate venture, announced earlier this week.

Global technology stocks experienced a sharp decline on Tuesday, with a second day of losses triggered by the emergence of a low-cost Chinese AI model – DeepSeek.

US President Donald Trump has revealed that Microsoft is in discussions to acquire TikTok, expressing his desire for a bidding war over the popular app.

Donald Trump’s newly launched meme coin, $TRUMP, has seen explosive growth, reaching a market cap of approximately $9 billion after peaking at over $15 billion.

Melania Trump has unveiled her cryptocurrency, $MELANIA, just ahead of her husband Donald Trump’s inauguration as the US president.

Bitcoin has achieved a new all-time high, reaching $109,300 and nearing the $110,000 milestone.

Donald Trump has expressed openness to Elon Musk acquiring TikTok, should the Tesla CEO choose to pursue the purchase.

Development

Ericsson and Bahrain Telecommunications Company (Batelco) have partnered to expand and modernise Batelco’s mobile broadband network in Bahrain, enhancing 4G and 5G capabilities, coverage, and capacity.

Sociocultural

British universities are increasingly distancing themselves from Elon Musk’s X platform, citing its role in spreading misinformation and inciting racial unrest.

The TikTok ban in Albania follows a tragic incident in November where a 14-year-old boy was fatally stabbed, reportedly after an online clash with a peer. Prime Minister Edi Rama said the decision, announced on 21 December, was to protect young people, but critics argue it threatens free speech and commerce ahead of the May elections.



Will TikTok find a US saviour or face the ultimate ban?

In December 2024, the landscape for TikTok in the USA was fraught with uncertainty as the clock ticked down to a pivotal deadline set by the ‘Protecting Americans from Foreign Adversary Controlled Applications Act’, signed into law by President Joe Biden earlier that year. The legislation mandated that ByteDance, TikTok’s Chinese parent company, must divest its US operations or face a ban by 19 January 2025. The tension was palpable as the Supreme Court was poised to rule on TikTok’s last-ditch effort to challenge the law on free speech grounds.

On 19 January 2025, the Supreme Court upheld the divest-or-ban law, signalling a potential end to TikTok’s presence in the USA unless a sale could be swiftly executed or an extension granted. This ruling came just as Donald Trump was inaugurated for his second term. Trump, who had initially been a vocal critic of TikTok during his first term, citing national security risks, now took a surprisingly different stance. In a pretty expected turn, Trump endorsed a stay of execution for TikTok, signalling his intent to ‘resolve the dispute through political means’ and proposing a financial structure where the USA could have a 50% ownership in the app under any deal.

Trump’s reversal was influenced by several factors. First, his campaign effectively leveraged TikTok to connect with younger voters, leading to a ‘warm spot’ for the app. Second, his relationships with tech moguls like Elon Musk, who had become an ally, and Larry Ellison of Oracle played a significant role. Trump openly expressed support for Musk or Ellison to acquire TikTok, suggesting a strategic move to keep the app under American oversight while potentially benefiting from its economic value.

Earlier in 2020, Microsoft expressed interest in buying TikTok, but negotiations fell through. With the new developments, there was speculation about Microsoft re-entering the fray, though no formal offer was reported in this period. Microsoft’s involvement could offer a stable, well-established tech giant’s oversight, potentially alleviating security concerns.

Trump’s endorsement of Musk sparked significant media buzz. Musk, who already owned X (formerly Twitter), was seen as a potential buyer due to his interest in expanding his digital empire and his relationship with Trump. However, Musk’s public statements remained non-committal, leaving room for speculation about his intentions. 

Another Trump ally, Ellison, had been linked to previous attempts to secure TikTok’s US operations. Trump’s preference for Ellison was clear, suggesting a scenario in which Oracle could manage the data aspects of TikTok, addressing national security issues. Reports circulated about various other potential buyers, including YouTube star MrBeast teaming up with tech entrepreneur Jesse Tinsley and billionaires like Kevin O’Leary and Frank McCourt showing interest. These offers ranged from all-cash bids to partnerships aimed at integrating TikTok into broader tech ecosystems, yet none had been officially confirmed or acted upon by ByteDance or the US government.

As of late January 2025, following Trump’s executive order, TikTok was given a 75-day reprieve from the ban enforcement, providing a window for negotiations or divestiture. Trump’s move has placed TikTok in legal limbo, with the app still unavailable for download in US app stores but accessible for current users. The legal complexities involve not only the sale but also how data privacy and security can be guaranteed under new ownership or partnership structures. 

The ongoing dispute has broader implications for international tech policy, data sovereignty, and US-China relations. The narrative around TikTok has shifted from a security threat to a battleground for economic and political influence, with Trump’s involvement adding layers of unpredictability to the outcome. Whether TikTok will find a new American home or face a ban remains uncertain, with the next steps critically depending on negotiations, legal interpretations, and the evolving geopolitical landscape.

The TikTok play depicts the intricate relationship between technology, politics, and international relations, where a social media platform becomes a symbol of much larger dialogues about control, security, and freedom in the digital age.



Donald Trump’s crypto revolution: from Bitcoin critic to blockchain leader

These days, the entire crypto world seems to be pinning its hopes on one man, Donald Trump, as his inauguration marks a new chapter for blockchain innovation, a stark departure from his earlier scepticism. Not so long ago, Donald Trump was one of cryptocurrency’s most vocal critics. In 2019, he took to X (formerly Twitter) to denounce Bitcoin and other digital assets, branding them as ‘not money’ and ‘based on thin air’. To Trump, cryptocurrencies represented instability, risk, and a lack of regulation, starkly contrasting the economic stability he valued. His disdain extended to Central Bank Digital Currencies (CBDCs), which he criticised as potential tools for governmental overreach. At the time, his views resonated with sceptics who feared crypto’s disruptive potential. 

Fast forward to recent months, Trump’s stance on cryptocurrency has undergone a radical transformation. Once a vocal detractor, he has emerged as a prominent figure in the crypto world. The turning point came when he posted on X again, but this time with a strikingly different tone: ‘Bitcoin mining may be our last line of defence against a CBDC. We want all the remaining Bitcoin to be made in the USA!’ The statement marked a complete reversal, signalling a shift in opinion and a strategic embrace of Bitcoin to bolster US dominance. For someone who once dismissed crypto, it marked the dawn of a bold new chapter—where everything changes from this moment forward.

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Trump’s journey into crypto reached its climax on his inauguration day as the 47th president of the USA. Hours before taking the oath of office, Bitcoin soared to an all-time high of $109,036, a historic moment for the market. The crypto community was optimistic because of the record-breaking price and because Trump’s presidency heralded a new era of blockchain innovation. Speculation mounted that his administration would establish a strategic Bitcoin reserve within its first 100 days. For many, this signalled a shift from crypto being a fringe movement to becoming a cornerstone of US economic policy.

Adding fuel to the excitement, Trump unveiled his cryptocurrency: the $TRUMP meme coin, launched on the Solana blockchain. With its eye-catching name and ambitious goals, the token quickly amassed a market cap of $9 billion. Although developers insisted it was not a serious investment vehicle, critics within the crypto community labelled it a potential ‘rug pull’. Yet, the buzz was undeniable. The launch cemented Trump’s position as an active participant in the crypto world, showcasing his ability to blend digital innovation with his signature showmanship.

The Trump family’s involvement in cryptocurrency did not end there. Melania Trump also debuted in the space, launching her token, $MELANIA, on the Solana blockchain. Her token debuted with a market cap of $1.7 billion, complementing her husband’s initiatives and highlighting their shared vision for a robust digital economy. Together, the Trumps have become a formidable force in the crypto sphere, driving enthusiasm and innovation alike.

Trump’s evolution from crypto sceptic to advocate reflects a broader shift in the perception of digital currencies. His support has propelled Bitcoin into the mainstream, energised the market, and ignited a focus on US blockchain innovation. As the crypto community awaits his promised national Bitcoin reserve strategy, confidence remains high in his ability to deliver. Trump’s transformation is the story of a visionary businessman who recognised the potential of digital assets. From volatility to validation, the rise of Bitcoin adoption reflects the faith of those like Donald, who see its power to reshape the future.



IGF 2024 and the future of AI, digital divides, and internet governance

The Digital Watch Observatory dig.watch had a very busy week last December, as the Internet Governance Forum (IGF) 2024 was at the centre of Diplo’s attention and that of the entire digital governance realm, addressing the most pressing digital issues of our time: the rapid evolution of AI, the digital divide, and the delicate balance of governance framework processes revolutionising the world. On 15 – 19 December, Diplo was closely involved in IGF 2024, this time in Riyadh, Saudi Arabia, reporting and contributing its knowledge to shape a human-centred digital future.

The forum brought together experts, policymakers, and stakeholders from around the globe, and discussions highlighted three dominant themes: AI governance, bridging the digital divide, and enhancing cybersecurity, underscoring the need for inclusive solutions and forward-thinking strategies.

AI governance

AI took centre stage, as expected, with debates on governance, ethics, and its societal impact. Discussions explored a multifaceted approach, combining international regulatory frameworks, voluntary industry commitments, and bottom-up governance models sensitive to local contexts. The Council of Europe’s Framework Convention on AI and the G7 Hiroshima AI Process were spotlighted as global initiatives striving to balance innovation and the protection of human rights.

The potential of AI to deepen inequalities was another focal point, with calls to address AI divides between developed and developing nations. Discussions stressed the importance of building local AI ecosystems, promoting capacity development in the Global South, and ensuring equitable access to AI infrastructure. As concerns about AI transparency and accountability grew, frameworks like the ethical principles of the Digital Cooperation Organization (DCO)  offered pathways to mitigate AI’s societal risks.

Diplo’s contribution to IGF 2024

Dr Jovan Kurbalija, Director of Diplo, approached the IGF in Riyadh with a historical perspective on AI’s roots in the Islamic Golden Age. He underscored the contribution of the Islamic mathematicians and the Islamic culture, which is at the foundation of the digital world.

In the ‘Intelligent machines and society: An open-ended conversation’ session led by Diplo experts, attendees had the opportunity to explore AI’s profound philosophical, ethical, and practical implications, focusing on its impact on human identity, agency, and communication. Kurbalija introduced the concept of the ‘right to human imperfection’, urging the preservation of human flaws and agency amid AI-driven optimisation. 

Another leading expert and Director of Knowledge at Diplo, Sorina Teleanu, warned against the anthropomorphisation of AI and highlighted the risks surrounding brain data processing and questions of AI personhood, particularly with the emergence of artificial general intelligence (AGI).

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Diplo ‘Unpacking the Global Digital Compact’

Sorina’s recent publication, Unpacking the Global Digital Compact: Actors, Issues and Processes, presented at the IGF, provides a detailed account of the GDC negotiations over an 18-month process, tracking and analysing changes across different versions of GDC drafts. The publication presents a unique interplay between zooming in on specific provisions, sometimes on the edge of linguistic pedantry, and zooming out to provide a broader perspective on digital governance and cooperation. The publication also places the GDC in the broader context of global digital governance and cooperation mechanisms. It offers a set of questions to reflect on as stakeholders explore the interplay between the processes, implementation, and follow-up of the GDC, WSIS, and Agenda 2030.

The panel also addressed AI governance, with Kurbalija advocating for decentralised development to prevent power centralisation, while Henri-Jean Pollet from ISPA Belgium stressed open-source models to ensure reliability. The evolving human-AI dynamic was discussed, including changes in communication and the need for AI ethics education, as raised by Mohammad Abdul Haque Anu. Kurbalija underscored Diplo’s focus on AI tools that augment human knowledge without replacing decision-making, ending the session with a call for continued exploration of the role of AI in shaping the future of humanity.

Digital divides: meaningful connectivity and inclusion

The persistent digital divide remained a complex challenge, with one-third of the global population still offline. IGF discussions moved beyond simple access, championing the concept of ‘meaningful connectivity’, which ensures a safe, productive, and enriching online experience. Targeted investments in rural infrastructure, unlicensed spectrum use, and satellite technology like low Earth orbit (LEO) satellites were proposed as solutions to connect underserved communities.

Gender disparities also took the spotlight. Statistics revealed stark inequalities, with women representing just 10% of executive roles in tech. Speakers called for mentorship programmes, cultural sensitivity, and capacity development to increase women’s participation in digital spaces. Examples like India’s Unified Payments Interface and Brazil’s PIX system showcased how the digital public infrastructure (DPI) can bridge economic gaps, provided they include robust consumer protections and digital literacy programmes.

Cybersecurity: resilience in a complex landscape

Cybersecurity sessions underscored the growing sophistication of cyber threats and the need for resilient digital infrastructure. Discussions called for universal cybersecurity standards flexible enough to adapt to diverse local contexts, while AI was recognised as both a solution and a risk for cybersecurity. AI enhances threat detection and automates responses, yet its vulnerabilities—like adversarial attacks and data poisoning—pose significant challenges.

Developing countries’ struggles to build cyber resilience were a recurring concern. Panellists emphasised capacity development, existing framework implementation, and tailored strategies. Cyber diplomacy emerged as a crucial tool, particularly in regions like Africa and the Middle East, where greater participation in global negotiations is needed to shape cyber norms and ensure equitable protections.

Content governance and environmental sustainability

The complexities of content moderation in diverse cultural contexts raised critical questions. While AI offers potential solutions for content moderation, its ethical implications and biases remain unresolved. Disinformation was another urgent issue, with experts advocating for digital literacy, fact-checking initiatives, and multistakeholder collaborations to preserve democratic integrity.

Sustainability intertwined with digital policy discussions, as the environmental impact of AI, e-waste, and data infrastructure came into focus. The digital sector’s 4% contribution to global emissions sparked calls for sustainable IT procurement, circular economy strategies, and greener AI standards. Harnessing AI to achieve sustainable development goals (SDGs) was also discussed, with its potential to accelerate progress through real-time data analysis and climate prediction.

Looking ahead: local realities and global cooperation

IGF expertise offered some advice for the future with discussions that stressed the importance of multistakeholder cooperation in translating global frameworks like the WSIS+20 and the Global Digital Compact into actionable local policies. In Riyadh, IGF 2024 reinforced that tackling digital challenges—from AI ethics to digital divides—requires a nuanced, multifaceted, holistic, and inclusive approach. The forum served as a sounding board for innovative ideas and a call to action: to build an equitable, sustainable, secure digital future for all.See you in Norway for IGF 2025!



DeepSeek: Speeding up the planet or levelling with ChatGPT?

Although the company’s name somewhat overlaps with Google DeepMind, which was launched earlier, the new player in the market has sparked a leap in attention and public interest, becoming one of the biggest AI surprises on the planet upon its launch.

DeepSeek, a company headquartered in China, enjoys significant popularity primarily because its most sought-after features keep pace with giants like OpenAI and Google, as well as due to notable stock market changes that are far from negligible.

In the following points, we will explore these factors and what the future holds for this young company, particularly in the context of the dynamics between China and the USA.

How did it start? Origins of DeepSeek

DeepSeek is an AI company from China based in Hangzhou, Zhejiang, founded by entrepreneur and businessman Liang Wenfeng. The company develops open-source LLMs and is owned by a Chinese hedge fund, High-Flyer.

It all started back in 2015 when Liang Wenfeng co-founded High-Flyer. At first, it was a startup, but in 2019, it grew into a hedge fund focused on developing and using AI trading algorithms. For the first two years, they used AI only for trading.

In 2023, High-Flyer founded a startup called DeepSeek, and Liang Wenfeng was appointed CEO. Two years later, on 10 January 2025, DeepSeek announced the release of its first free-to-use chatbot app. The app surpassed its main competitor, ChatGPT, as the most downloaded free app in the USA in just 17 days, causing an unprecedented stir on the market.

Unprecedented impact on the market

Few missed the launch of the DeepSeek model, which is why the stock market felt the impact, as did some of the biggest giants.

For instance, the value of Nvidia shares dropped by as much as 18%. Similar declines were experienced by giants like OpenAI, Google, and other AI companies focused on small and medium-sized enterprises.

On top of that, there is justified concern among investors, who could quickly shift focus and redirect their investments. However, this could lead to an even more significant drop in the shares of the largest companies.

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Open-source approach

DeepSeek embraces an open-source philosophy, making its AI algorithms, models, and training details freely accessible to the public. The company has stated that it is committed to transparency and fosters collaboration among developers and researchers worldwide. They also advocate for a more inclusive and innovative AI ecosystem.

Their strategy has the potential to reshape the AI landscape, as it empowers individuals and organisations to contribute to the evolution of AI technology. DeepSeek’s initiative highlights the importance of open collaboration in driving progress and solving complex challenges in the tech industry.

With the growing demand for ethical and transparent AI development, DeepSeek’s open-source model sets a precedent for the industry. The company paves the way for a future where AI breakthroughs are driven by collective effort rather than proprietary control.

Cheaper AI model that shook the market

By being cheaper than the competition, DeepSeek has opened the door to the AI market for many other companies that do not have as much financial power. As Dr Jovan Kurbalija, Executive Director of Diplo, says in his blog post titled ‘How David outwits Goliath in the age of AI?‘, ‘the age of David challenging Goliath has arrived in AI’.

For individuals, this means monthly costs are reduced by 30% to 50%, which can be, and often is, the biggest incentive for users looking to save.

Privileges once enjoyed by those with greater financial resources are now available to those who are looking to advance their small and medium-sized businesses.

Cyber threats and challenges faced by DeepSeek

Shortly after its launch, DeepSeek faced a significant setback when it was revealed that an error had exposed sensitive information to the public.

This raised alarms for many, especially as the immense popularity led to the AI Assistant being removed from the AppStore more times than OpenAI’s offering, and a large amount of data became accessible.

Experts have expressed concerns that others may have accessed the leaked data. The company has not yet commented on the incident, while the system’s vulnerability provides a foundation for hacking groups to exploit.

DeepSeek for the top spot, ChatGPT defends the throne

The AI race is heating up as DeepSeek challenges industry leader ChatGPT, aiming to claim the top spot in AI. With its open-source approach, DeepSeek is rapidly gaining attention by publicly making its models and training methods available, fostering innovation and collaboration across the AI community.

The race was further spiced up by DeepSeek’s claim that it built an AI model on par with OpenAI’s ChatGPT for under $6 million (£4.8 million). In comparison, Microsoft, OpenAI’s main partner, plans to invest around $80 billion in AI infrastructure this year.

As DeepSeek pushes forward with its transparent and accessible model, the battle for AI supremacy intensifies. Whether openness will outmatch ChatGPT’s established presence remains to be seen, but one thing is sure—the AI landscape is evolving faster than ever.

Why is DeepSeek gaining popularity in 2025?

DeepSeek has emerged as a major player in AI by embracing an open-source philosophy, making its models and training data freely available to developers. This transparency has fueled rapid innovation, allowing researchers and businesses to build upon its technology and contribute to advancements in AI.

Unlike closed systems controlled by major tech giants, DeepSeek’s approach promotes accessibility and collaboration, attracting a growing community of AI enthusiasts. Its cost-effective development, reportedly achieving results comparable to top-tier models with significantly lower investment, has also drawn attention.

As demand for more open and adaptable AI solutions grows, DeepSeek’s commitment to shared knowledge positions it as a strong contender in the industry. Whether this strategy will redefine the AI landscape remains to be seen, but its growing influence in 2025 is undeniable.

DeepSeek in the future: Development, features, and strategies

Now that it has experienced ‘overnight success’, the Chinese company aims to push DeepSeek to the top and position it among the most powerful AI firms in the world.

Users can definitely expect many advanced features that will fuel a fierce battle with giants like DeepMind and ChatGPT.

Strategically, DeepSeek will attempt to break into the American market and offer more financially accessible solutions, forcing the key players to make significant cuts.

DeepSeek is undoubtedly a real hit in the market, but it remains to be seen whether the price is the only measure of its success.

Whether it will make a leap in its own technology and completely outpace the competition or remain shoulder to shoulder with the giants—or even falter—will be revealed in the near future.

One thing is certain: the Chinese company has seriously shaken up the market, which will need considerable time to recover.



Can quantum computing break the cryptocurrency’s code?

The digital revolution has brought in remarkable innovations, and quantum computing is emerging as one of its brightest stars. As this technology begins to showcase its immense potential, questions are being raised about its impact on blockchain and cryptocurrency. With its ability to tackle problems thought to be unsolvable, quantum computing is redefining the limits of computational power.

At the same time, its rapid advancements leave many wondering whether it will bolster the crypto ecosystem or undermine its security and decentralised nature. Can this computing breakthrough empower crypto, or does it pose a threat to its very foundations? Let’s dive deeper. 

What is quantum computing? 

Quantum computing represents a groundbreaking leap in technology. Unlike classical computers that process data in binary (0s and 1s), quantum computers use qubits, capable of existing in multiple states simultaneously due to quantum phenomena such as superposition and entanglement.

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For example, Google’s new chip, Willow, is claimed to solve a problem in just five minutes—a task that would take the world’s fastest supercomputers approximately ten septillion years—highlighting the extraordinary power of quantum computing and fuelling further debate about its implications. 

These advancements enable quantum machines to handle problems with countless variables, benefiting fields such as electric vehicles, climate research, and logistics optimisation. While quantum computing promises faster, more efficient processing, its intersection with blockchain technology adds a layer of complexity, so the story takes an interesting twist. 

How does quantum computing relate to blockchain?

Blockchain technology relies on cryptographic protocols to secure transactions and ensure decentralisation. Cryptocurrencies like Bitcoin and Ethereum use elliptic curve cryptography (ECC) to safeguard wallets and transactions through mathematical puzzles that classical computers cannot solve quickly. 

Quantum computers pose a significant challenge to these cryptographic foundations. Their advanced processing power could potentially expose private keys or alter transaction records, threatening the trustless environment that blockchain depends upon.

Opportunities: Can crypto benefit from quantum computing? 

While the risks are concerning, quantum computing offers several opportunities to revolutionise blockchain: 

  • Faster transactions: Quantum algorithms could significantly accelerate transaction validation, addressing scalability challenges. 
  • Enhanced security: Developers can leverage quantum principles to create stronger, quantum-secure algorithms. 
  • Smarter decentralisation: Quantum-powered computations could enhance the functionality of smart contracts and decentralised apps (DApps). 

By embracing quantum advancements, the blockchain industry could evolve to become more robust and scalable— hopefully great news for the crypto community, which is optimistic about the potential for progress. 

How does quantum computing threaten cryptocurrency? 

Despite its potential benefits, quantum computing poses significant risks to the cryptocurrency ecosystem, depending on how it is used and who controls it: 

  1. Breaking public key cryptography

Quantum computers equipped with Shor’s algorithm can decrypt ECC and RSA encryption. Tasks that would take classical computers millennia could be accomplished by a quantum computer in mere hours. This capability threatens to expose private keys, allowing hackers to access wallets and steal funds. 

  1. Mining oligopoly 

The mining process, vital for cryptocurrency creation and transaction validation, depends on computational difficulty. Quantum computers could dominate mining activities, disrupting the decentralisation and fairness fundamental to blockchain systems.

  1. Dormant wallet risks

Wallets with exposed public keys, particularly older ones, are at heightened risk. A quantum attack could compromise these funds before users can adopt protective measures.

With projections suggesting that quantum computers capable of breaking current encryption standards could emerge within 10–20 years—or perhaps even sooner—the urgency to address these threats is intensifying.

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Solutions: Quantum-resistant tokens and cryptography

Where there is a challenge, there is a solution. The crypto industry is proactively addressing quantum threats with quantum-resistant tokens and post-quantum cryptography. Lattice-based cryptography, for example, creates puzzles too complex for quantum computers, with projects like CRYSTALS-Kyber leading the charge. Hash-based methods, such as QRL’s XMSS, ensure data integrity, while code-based cryptography, like the McEliece system, uses noisy signals to protect messages. Multivariate polynomial cryptography also adds robust defences through complex equations. 

As we can see, promising solutions are already actively working to uphold blockchain principles. These innovations are crucial not only for securing crypto assets but also for maintaining the integrity of blockchain networks. Quantum-resistant measures ensure that transaction records remain immutable, safeguarding the trust and transparency that decentralised systems are built upon.

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The quantum future for crypto 

Quantum computing holds tremendous promise for humanity, but it also brings challenges, particularly for blockchain and cryptocurrency. As its capabilities grow, the risks to existing cryptographic protocols become more apparent. However, the crypto community has shown remarkable resilience, with quantum-resistant technologies already being developed to secure the ecosystem. This cycle of threats and solutions is a perpetual motion—each technological advancement introduces new vulnerabilities, met with equally innovative defences. It is the inevitable price to pay for embracing the modern decentralised finance era and the transformative potential it brings. 

The future of crypto does not have to be at odds with quantum advancements. With proactive innovation, collaboration, and the implementation of quantum-safe solutions, blockchain can survive and thrive in the quantum era. So, is quantum computing a threat to cryptocurrency? The answer lies in our ability to adapt. After all, with great power comes great responsibility—and opportunity.



The global regulatory landscape of crypto: Between innovation and control

Blockchain technology and cryptocurrencies are reshaping modern economies through their decentralised and secure nature. Blockchain, a digital ledger, ensures transactions are immutable and transparent by distributing data across networks, preventing single-point control or tampering. Initially developed for Bitcoin in 2009, blockchain now underpins various applications, including smart contracts, supply chain management, and voting systems, eliminating intermediaries and enhancing security. Cryptocurrencies, like Bitcoin and Ethereum, operate on these networks, allowing secure, decentralised exchanges without relying on traditional banks or central authorities.

Despite their transformative potential, cryptocurrencies face challenges such as price volatility, regulatory uncertainties, and scalability issues. They are susceptible to misuse for money laundering or tax evasion due to their pseudonymous nature. Consequently, governments worldwide are advancing regulation to protect consumers, prevent illicit activities, and stabilise markets. Regulatory frameworks like Know Your Customer (KYC) and Anti-Money Laundering (AML) aim to curb these risks, with nations adopting diverse stances—from crypto-friendly hubs like Switzerland and Singapore to restrictive policies in China and India.

In the USA, cryptocurrency regulation has advanced gradually. Legislative efforts aim to define crypto assets as securities or commodities, creating clarity for businesses and investors. Under Donald Trump’s administration, a pro-crypto stance emerged, focusing on deregulation and innovation, alongside plans to develop a Bitcoin reserve and revitalise mining. Meanwhile, Russia has introduced stringent rules for crypto transactions in foreign trade, aiming for transparency and integration while imposing detailed compliance requirements.

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In Europe, the Markets in Crypto-Assets Act (MiCA) establishes a unified regulatory framework for crypto assets across the EU. It addresses governance, consumer protection, and anti-manipulation measures, with provisions for stablecoins and licensing requirements for service providers. MiCA reflects a global trend toward standardised regulation to foster trust and innovation in digital assets.

Globally, nations are adopting varied approaches to regulate cryptocurrencies. Japan is easing regulations for non-exchange intermediaries, Brazil is rolling out comprehensive crypto laws to attract investors, and Kenya is developing frameworks to foster innovation while ensuring security and transparency. These efforts underscore the growing recognition of cryptocurrency’s role in financial inclusion and economic development.

As cryptocurrencies gain prominence, international collaboration remains critical. Organisations like the Financial Stability Board and the World Economic Forum stress the need for unified regulatory standards to address cross-border risks and ensure innovation aligns with consumer protection. The ongoing evolution of regulatory frameworks highlights the delicate balance between fostering innovation and mitigating risks, paving the way for a stable and secure global financial ecosystem in the digital age.


DW Newsletter # 197 – Tech titans and Trump: the power play shaping US digital future

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Dear readers,

Donald Trump’s return to the presidency has ushered in a new era of complex alliances between his administration and the tech world. Once an outspoken critic of major tech companies, Trump now finds himself supported by the leaders he previously condemned. Executives from Amazon, Meta, Alphabet, Tesla, and others have contributed heavily to his second inaugural fund, seeking favour in a political landscape where their stakes are higher than ever. Such an intricate web of mutual benefit has created an environment where political ambitions and corporate interests are deeply intertwined.

Most notably, Elon Musk, CEO of Tesla, SpaceX, and X (formerly Twitter), has emerged as one of Trump’s most influential backers. Musk’s $277 million contribution to Trump’s campaign and political committees has secured him direct access to the president and a leadership role atop the newly formed Department of Government Efficiency. Musk’s ambitions extend from expanding federal support for Starlink to reducing regulations for Tesla’s self-driving cars. Perhaps most importantly, Musk hopes Trump will champion his lifelong dream of sending astronauts to Mars, a vision that aligns with the administration’s rhetoric on US innovation and global leadership.

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Jeff Bezos, the founder of Amazon and another recent Trump backer, has recalibrated his approach to Trump. Despite previous hostilities, including Tramp’s sharp criticisms of the Washington Post, Bezos has made strategic moves to mend relations. Amazon’s $1 million donation to Trump’s inauguration and the production of a Melania Trump documentary highlight Bezos’s efforts to secure a softer regulatory environment for Amazon. With antitrust challenges and labour disputes threatening the company’s operations, Bezos’s strategy underscores the importance of aligning with political power to protect Amazon’s interests in cloud services, e-commerce, and space exploration.

Mark Zuckerberg, CEO of Meta, has also aligned his platform’s policies with those of the Trump administration. Meta contributed $1 million to Trump’s inaugural fund, and Zuckerberg significantly changed his platform’s stance on misinformation, ending fact-checking initiatives that Trump had long criticised. These moves have brought Zuckerberg closer to Trump as Meta faces antitrust litigation over its ownership of Instagram and WhatsApp. A more lenient regulatory approach could prove pivotal for Meta’s future as Zuckerberg continues to court political favour.

The case of TikTok presents another layer to this evolving narrative. After being targeted for a ban under Trump’s first term due to national security concerns, TikTok has experienced a dramatic shift in its relationship with the administration. Trump’s newfound appreciation for the platform’s ability to disseminate pro-Trump content has led to a reprieve, with an executive order delaying its ban. TikTok’s CEO, Shou Zi Chew, is now working to secure the platform’s long-term presence in the USA, potentially through a joint venture with US investors. The merger of the two streams would ensure TikTok’s survival and cement its role in the US digital ecosystem.

As the Trump administration takes shape, the interplay between politics and technology has reached enviable levels. Tech leaders leverage their contributions and influence to secure regulatory leniency, government contracts, and policy endorsements. In return, Trump gains significant financial backing and digital support from some of the world’s most powerful companies. While the immediate benefits of these alliances are evident, the long-term implications for innovation, regulation, and public trust remain uncertain. Such an intersection of technology and politics is poised to shape the future of both industries, reflecting the growing importance of strategic partnerships in navigating today’s complex political and economic landscape.

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DW Newsletter # 196 – Donald Trump’s crypto revolution: from Bitcoin critic to blockchain leader

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Dear readers,

These days, the entire crypto world seems to be pinning its hopes on one man, Donald Trump, as his inauguration marks a new chapter for blockchain innovation, a stark departure from his earlier scepticism. Not so long ago, Donald Trump was one of cryptocurrency’s most vocal critics. In 2019, he took to X (formerly Twitter) to denounce Bitcoin and other digital assets, branding them as ‘not money’ and ‘based on thin air’. To Trump, cryptocurrencies represented instability, risk, and a lack of regulation, starkly contrasting the economic stability he valued. His disdain extended to Central Bank Digital Currencies (CBDCs), which he criticised as potential tools for governmental overreach. At the time, his views resonated with sceptics who feared crypto’s disruptive potential. 

Fast forward to recent months, Trump’s stance on cryptocurrency has undergone a radical transformation. Once a vocal detractor, he has emerged as a prominent figure in the crypto world. The turning point came when he posted on X again, but this time with a strikingly different tone: ‘Bitcoin mining may be our last line of defence against a CBDC. We want all the remaining Bitcoin to be made in the USA!’ The statement marked a complete reversal, signalling a shift in opinion and a strategic embrace of Bitcoin to bolster US dominance. For someone who once dismissed crypto, it marked the dawn of a bold new chapter—where everything changes from this moment forward.

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Trump’s journey into crypto reached its climax on his inauguration day as the 47th president of the US. Hours before taking the oath of office, Bitcoin soared to an all-time high of $109,036, a historic moment for the market. The crypto community was optimistic because of the record-breaking price and because Trump’s presidency heralded a new era of blockchain innovation. Speculation mounted that his administration would establish a strategic Bitcoin reserve within its first 100 days. For many, this signalled a shift from crypto being a fringe movement to becoming a cornerstone of US economic policy.

Adding fuel to the excitement, Trump unveiled his cryptocurrency: the $TRUMP meme coin, launched on the Solana blockchain. With its eye-catching name and ambitious goals, the token quickly amassed a market cap of $9 billion. Although developers insisted it was not a serious investment vehicle, critics within the crypto community labelled it a potential ‘rug pull’. Yet, the buzz was undeniable. The launch cemented Trump’s position as an active participant in the crypto world, showcasing his ability to blend digital innovation with his signature showmanship.

The Trump family’s involvement in cryptocurrency did not end there. Melania Trump also debuted in the space, launching her token, $MELANIA, on the Solana blockchain. Her token debuted with a market cap of $1.7 billion, complementing her husband’s initiatives and highlighting their shared vision for a robust digital economy. Together, the Trumps have become a formidable force in the crypto sphere, driving enthusiasm and innovation alike.

Trump’s evolution from crypto sceptic to advocate reflects a broader shift in the perception of digital currencies. His support has propelled Bitcoin into the mainstream, energised the market, and ignited a focus on US blockchain innovation. As the crypto community awaits his promised national Bitcoin reserve strategy, confidence remains high in his ability to deliver. Trump’s transformation is the story of a visionary businessman who recognised the potential of digital assets. From volatility to validation, the rise of Bitcoin adoption reflects the faith of those like Donald, who see its power to reshape the future.

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The token commands a market valuation of $1.7 billion and follows the release of Donald Trump’s $TRUMP cryptocurrency, valued at $12 billion.

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Highlights from the week of 17-24 January 2025

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She highlighted the potential for Trump Coin to be exploited by hostile entities to secretly channel funds to Trump, raising significant corruption and financial misconduct risks.

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DW Newsletter # 195 – Will TikTok get banned or divested in the USA?

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Dear readers,

TikTok is facing a pivotal moment in its turbulent journey this January. With the US Supreme Court leaning toward upholding a law requiring its owner ByteDance to sell TikTok’s US assets by 19 January 2025, the app stands on the brink of a nationwide ban. ByteDance, backed by the Chinese government, has fiercely resisted divestment, citing constitutional protections under the First Amendment. Adding to the complexity is Beijing’s ‘golden share’ in ByteDance; this control, paired with export regulations on software algorithms like TikTok’s recommendation engine, underscores China’s role in the negotiations and complicates the app’s future.

Amid these disputes, reports of Elon Musk, owner of X (formerly Twitter), have emerged as a potential buyer for TikTok’s US operations. Musk’s ties to US and Chinese markets via Tesla’s Shanghai production hub position him as a unique figure in this debate. If Musk were to acquire TikTok, it could bolster X’s advertising reach and data capabilities, aligning with his broader ambitions in AI and technology. However, such a sale would involve overcoming numerous hurdles, including ByteDance’s valuation of TikTok at US$40–50 billion and securing regulatory approvals from both Washington and Beijing. On the other hand, ByteDance, backed by Beijing, is resisting the sale, arguing that the conditioning violates free speech and poses significant logistical hurdles.

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TikTok has attempted to safeguard its US user base of 170 million by planning to allow users to download their data in case the ban takes effect. It has also reassured its 7,000 US employees that their jobs and benefits are secure, even if operations are halted. While new downloads would be prohibited under the ban, existing users could retain access temporarily, although the platform’s functionality would degrade over time.

The looming deadline has sparked a surge in alternative platforms, such as RedNote (known in China as Xiaohongshu), which has seen a significant influx of US users in anticipation of TikTok’s potential exit. These developments underscore the broader implications of TikTok’s struggles, including the reshaping of the social media landscape and the role of government intervention in regulating digital platforms.

What’s next?

The fate of TikTok in the US hangs in the balance as President-elect Donald Trump considers an executive order to delay the enforcement of the ‘ban or divest’ law by up to 90 days. The potential extension, supported by figures from both political sides, including Senate Majority Leader Chuck Schumer and Trump’s incoming national security adviser Mike Waltz, aims to provide ByteDance, TikTok’s Chinese owner, additional time to divest its US operations and avoid a nationwide ban. With over 170 million American users and substantial ad revenue at risk, lawmakers are increasingly wary of the disruption a ban could cause, signalling bipartisan support to keep the app operational while addressing national security concerns. TikTok CEO Shou Zi Chew’s attendance at Trump’s inauguration further hints at a shift in relations between the platform and the new administration. Meanwhile, the uncertainty has already driven US users to explore alternatives like RedNote as the clock ticks down to the Sunday deadline.

Thus, TikTok’s journey has become a defining chapter in the intersection of technology, politics, and global economics, serving as a case study for the challenges of navigating success in a hyper-connected world fraught with geopolitical tensions.

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Highlights from the week of 10-17 January 2025

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The EU is considering expanding its investigation into Elon Musk’s X over potential content rule violations.

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The regulation’s success will depend on consistent enforcement across the EU and balancing oversight with growth, amidst a global trend towards more comprehensive crypto regulation.


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Bytedance, TikTok’s parent company, will divest its US operations by 19 January 2025 or face a ban in the country.

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DW Newsletter # 194 – The rise of OpenAI and Sam Altman’s role in the AI and AGI revolution

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Dear readers,

In November 2022, OpenAI launched ChatGPT, a product redefining AI and catapulting its CEO, Sam Altman, into global prominence. The once-quiet startup suddenly became a sensation, drawing over 100 million visitors within two months. Altman, a long-time advocate of artificial general intelligence (AGI), saw his vision materialise despite early scepticism and the challenges in establishing OpenAI. Today, OpenAI stands at the forefront of the AI industry, shaping the future of technology and society.

Altman’s journey with OpenAI began with bold ambitions to build AGI—a concept dismissed as fringe in 2014. By assembling a team of young, unconventional thinkers, OpenAI distinguished itself from other Silicon Valley ventures. Over the years, the company evolved from a nonprofit to a for-profit hybrid, adapting to secure resources for its ambitious goals. The launch of ChatGPT marked a turning point, rapidly scaling OpenAI’s user base and solidifying its status as a leader in AI innovation. Altman’s decisive leadership and relentless focus on scaling and improving its technology have positioned OpenAI as a trailblazer in the global AI race.

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However, in late 2023, OpenAI’s board abruptly dismissed Altman as CEO, only to reinstate him days after internal pushback and public outcry. The episode underscored the challenges of managing a mission-driven company operating at the cutting edge of technology. Despite the turmoil, Altman emerged stronger, steering OpenAI through regulatory challenges and rapid growth while grappling with the societal implications of AGI.

The intersections of technology and politics became increasingly evident, with Altman playing a strategic role in fostering AI’s development under the Trump administration. Despite ideological differences, Altman donated to Trump’s inaugural fund, emphasising the importance of bipartisan cooperation in navigating the profound societal shifts AI will bring. Despite his often unpredictable behaviour, Altman also expressed optimism that Elon Musk would not misuse his growing political influence to undermine competitors like OpenAI.

Altman’s focus remains on ensuring the US leads in AI development, advocating for a streamlined regulatory framework to enable the construction of critical infrastructure such as data centres and power plants. OpenAI’s success, Altman argues, hinges not only on technological breakthroughs but also on policy and leadership that enable the country to maintain its edge in the AI race. As the Trump administration takes the reins, the stakes for balancing innovation, ethics, and governance have never been higher.

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Highlights from the week of 03-10 January 2025

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The latest update in smart glasses comes from Halliday which project a miniature screen directly into your eye, offering real-time translations and notifications without disrupting conversations.

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A Reuters survey found that several universities have reduced or ended their presence on X, following a decline in engagement.

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Internal documents suggest TikTok was aware of these dangers, revealing instances of minors being groomed for explicit acts and criminal activities like money laundering occurring on the platform.

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This surge in investment follows OpenAI’s 2022 launch of ChatGPT, driving demand for specialised data centres due to the intense computing power required for AI technologies.

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CEO Sam Altman admitted ChatGPT Pro’s pricing was not based on extensive research and was a personal decision.

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Creators reliant on the app are bracing for potential disruptions, diversifying to platforms like Instagram and YouTube, yet many are taking a cautious approach until a decision is reached.

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A hacker alleges they have stolen sensitive ICAO data, including personal information of individuals linked to the agency.

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The new cybersecurity label will help consumers evaluate device security.

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The momentum coincides with the transition to President-elect Donald Trump’s administration, which is anticipated to create a more crypto-friendly regulatory environment.

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A report from 404 Media revealed that while only 14 requests were met from January to September, the number surged after October, affecting over 2,000 users.

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Over $8 billion in market value was lost as quantum stocks dropped following a warning from Nvidia’s CEO.


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As Trump takes office, the tech world anticipates a blend of continuity and change in policy. While historically, the US has favoured a private-sector-driven tech landscape, Trump is expected to maintain this approach, resisting international regulations that could hinder US companies.

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In 2024, Diplo Academy advanced its online courses with AI integration, introducing innovative teaching methodologies and practical tools to equip diplomats with skills for navigating the evolving challenges of the AI era.

DW Newsletter # 193 – The decline of literacy in the digital age

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Dear readers,

In the late 1980s, cultural critic Neil Postman warned of society sliding into ‘stupidity’ not by book burnings but by distraction. His prophecy feels unnervingly relevant today as evidence mounts of a global literacy decline. Recent findings from the Organisation for Economic Co-operation and Development (OECD) highlight a troubling trend: literacy skills stagnate or decline among 160,000 adults surveyed across 31 countries, even among university graduates. In the US, 30% of adults read at the level of a 10-year-old, a statistic that underpins growing concerns about a ‘post-literate’ world.

Technological change plays a pivotal role. Social media and digital platforms increasingly encourage the consumption of fragmented, simplified content over in-depth, analytical reading. According to Andreas Schleicher of the OECD, these habits hinder critical literacy skills, such as distinguishing fact from opinion and navigating complex ideas. Instead, we gravitate toward echo chambers, where our existing views are affirmed rather than challenged, with significant implications for public debate and democratic discourse.

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Historical comparisons with oral cultures offer striking parallels. Writer Caleb Crain observed that oral societies prioritise clichés, stereotypes, and conflict as memorable tools for communication. As our digital habits mirror these traits, the depth and nuance of literate cultures risk erosion. This shift does not just impact individual capabilities—it shapes the fabric of our politics, media, and social cohesion.

Yet, decline is not inevitable. Finland’s robust education system demonstrates how societal norms and policies can sustain high literacy rates even in the digital age. Similarly, England’s targeted school reforms have significantly improved literacy among young people over the past decade. These examples suggest that interventions, from education policy to promoting diverse and critical reading habits, can counteract the pull of post-literacy.

The rise of AI offers both risks and opportunities. AI tools like ChatGPT can enhance workplace productivity, helping lower-skilled workers perform at higher levels. However, as economist David Autor points out, such tools can only amplify existing skills—they cannot replace foundational literacy. Without strong literacy skills, individuals risk becoming passive consumers of AI-generated content, dependent on machines rather than empowered by them.

The question now is whether society can recognise the urgency of this literacy crisis. Reversing the trend requires policy changes and a cultural reawakening of the value of reading, critical thinking, and diverse perspectives. In a world dominated by screens and soundbites, literacy is not just a skill but the cornerstone of democracy and human agency.

Related news:

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Despite claims of mixed results from school phone restrictions.

In other news..

China accused of hacking US Treasury systems

Hackers from China are accused of breaching US Treasury systems, gaining access to sensitive documents and workstations.

Legal world embraces AI for access to justice

Tools powered by AI are helping legal advisors assist vulnerable clients, cutting through complex disputes efficiently while addressing concerns about accuracy and the importance of human oversight in decision-making.

Diplo and dig.watch wish you a prosperous and joyful 2025!

Marko and the Digital Watch team


Highlights from the week of 27-03 January 2025

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Critics fear the ban reflects a broader governmental strategy to control dissent amid ongoing political unrest in Albania.

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The administration of US President-elect Donald Trump will ultimately decide on implementing the new restrictions.

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Within this political framework, legal experts express differing views on whether Musk’s relations with Trump might affect investigation outcomes, although the integrity and momentum of current cases could maintain regulatory…

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By nurturing deeper ties with China and other non-Western nations, Russia aims to secure a competitive edge in this vital technological field, adapting to the rapidly evolving geopolitical landscape of…

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New cybersecurity rules could cost $9 billion in their first year of implementation.

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Despite claims of mixed results from school phone restrictions.

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As the digital age evolves, so do the threats targeting its youngest users. Scammers are increasingly preying on teens, exploiting their trust and online habits.

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AT&T and Verizon confirm breaches by hackers, sparking cybersecurity concerns.

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Since becoming the first nation to recognise Bitcoin as legal tender in September 2021, El Salvador has positioned itself as the sixth-largest Bitcoin holder globally.

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A presidential request to delay TikTok ban amidst potential policy shift.

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Schools are adopting AI-powered assistive technologies to improve accessibility, balancing benefits like enhanced learning support with concerns about ethical use and over-reliance.


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The OEWG held its ninth substantive session in December 2024, where states continued to discuss threats, norms, international law, CBMs, capacity building and the mechanism that will follow the OEWG…

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How do the Stoic ideas of Marcus Aurelius and Gandhi’s non-violence intersect? Both seek inner peace, yet their philosophies operate on vastly different scales: individual vs societal. Aldo Matteucci examines.

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Explore the chilling rise of AI in nuclear decision-making. Can algorithms be trusted with the fate of humanity? Discover the benefits, risks, and ethical dilemma

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The AI apprenticeship addresses the gap between AI advancement and its adoption, highlighting the need for practical skills amidst widespread misconceptions and fears surrounding AI.

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To assess if your job is at risk from AI, consider your reliance on computers, your job’s procedural nature, and the degree of text interaction involved. If you answer ‘yes’ to these, it’s wise to upskill for the AI shift.

Upcoming

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2025 Forecast: AI and Digital Developments 🗓️ 8 January 2025 ⏰ 13:00–14:00 (UTC) | 14:00–15:00 (CET) 📍 Online Webinar

DW Newsletter # 192 -The dark side of TikTok

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Dear readers,

In this digital age, where children spend time on social media platforms continuously, the story of TikTok’s impact on youth has taken a dark turn in Albania. On Saturday, 21 December, the Albanian government announced a drastic measure: a one-year nationwide ban on TikTok, caused by the tragic death of a 14-year-old boy. The incident, involving a fatal stabbing linked to online arguments between two boys, has once again placed TikTok under interrogator’s legal and regulatory spotlight, not for its viral dance challenges but for its potential to endanger children’s rights and human safety.

The event unfolded in November, when the dispute, initially being fuelled on the platform by the two boys and other minors via videos inciting violence and aggression, spilt over into reality, ultimately ending with the loss of a young life. 

Prime Minister Edi Rama, addressing the nation, highlighted the incident as the worst example of how social media can transform from a cyberspace of entertainment to a tragedy. He described TikTok as a platform that holds children ‘hostage’ to its addictive algorithms, potentially fuelling aggression and violence among youth.

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The narrative above reflects a broader societal concern about the intersection of technology and human behaviour, particularly in vulnerable developmental stages of childhood. The bad is that this is not an isolated incident or reaction. Across Europe, nations like France and Germany have already placed restrictions on social media use among children, concerned about such lethal consequences, children’s safety, privacy, exposure to inappropriate content, and mental health.

Albania’s decision to enact a complete ban on TikTok for a year is another sign of a growing global trend where governments struggle with the implications of digital platforms on youth. Australia, for instance, has gone further by legislating a complete ban on social media for users under 16, signalling a strong stance on protecting minors from the possible negative effects of these platforms.

The Albanian ban, while extreme, certainly underscores another landmark in digital governance. It is not just about the immediate reaction to a tragic event but part of a broader strategy to enhance school safety, as PM Rama mentioned after consultations with parents and teachers. The approach suggests a shift from reactive to proactive measures in digital policymaking. However, TikTok’s response adds another layer to this narrative. The company sought clarification from the Albanian government, asserting no direct evidence linking the tragic incident to their platform, hinting at the complexities of attributing blame in the digital space where content can easily cross platforms.

TikTok has launched Symphony Creative Studios globally, helping advertisers create customised, high-quality content through advanced AI tools.

The Albanian scenario is a microcosm of a worldwide debate on digital rights, responsibility, and cyberspace governance. The ban shows the delicate balance between freedom of expression, technological innovation, and safeguarding human rights, particularly children’s. It raises questions about how far governments should go in regulating internet spaces, especially as platforms struggle with content moderation and the unintended consequences of their algorithms.

In a broader context, the ban reflects a global awakening to the potential harms of social media, particularly platforms like TikTok, which have been criticised for everything from promoting harmful content to exacerbating mental health issues among young users. 

While the immediate impact of the Albanian ban is to curb one avenue of potential harm, the long-term implications might include a push for more robust digital literacy, better parental controls, and perhaps even a rethinking of how social media companies operate to prevent such tragedies in the future.

Related news:

tiktok

The future of the social media giant in the US gets Trump’s backing.

In other news..

US export controls on China face key challenges

Secretary of Commerce Gina Raimondo recently underscored the importance of technological innovation over solely blocking China’s advancements, suggesting that maintaining a competitive edge is essential.

German parties outline technology policies ahead of election

As Germany prepares for national elections on February 23, political parties are outlining their tech policy priorities, including digitalisation, AI, and platform regulation.

Diplo and dig.watch wish you a prosperous and joyful 2025!

Marko and the Digital Watch team


Highlights from the week of 20-27 December 2024

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The new internet decree sparks debate over censorship and digital freedoms.

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A landmark antitrust case could lead to Chrome’s sale or stricter regulations for Google’s business practices.

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Analog chip and semiconductor materials companies led China’s 2024 M&A surge, driving industry innovation and expansion.

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The treaty will open for signature in Vietnam in 2025 and will come into effect 90 days after at least 40 member states ratify it.

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A new AI breakthrough has taken whisky tasting to the next level, identifying aromas with greater precision than human experts, paving the way for innovations in food and drink analysis.

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Google Maps continues aiding law enforcement globally, with Spanish police utilising the platform during a missing person case that led to arrests and the discovery of human remains.

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The incoming administration focuses on crypto policy and digital assets.

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The US and Australia are working to counter China’s dominance amid global supply chain concerns..

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The WalkON Suit F1 brings mobility to paraplegics.

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Although the IMF deal imposes restrictions on government-led Bitcoin activities, the country remains committed to its cryptocurrency strategy.

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YouTube faces disruption claims as Russia and Google clash.


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Countries worldwide are navigating the complexities of AI regulation with distinct approaches, reflecting a shared global intent to leverage AI’s potential while ensuring societal values are protected.

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Quantum computing is increasingly integrated into sectors like finance, pharmaceuticals, and communication networks.

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What is parallel diplomacy, and how can it resolve conflicts where traditional methods fail? Discover Jean-Yves Ollivier’s role in Africa’s peaceful conflict solutions.

IGF 2024: Highlights by DiploAI and experts

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Dear readers,

Since 2015, we’ve been bringing you comprehensive coverage of the Internet Governance Forum (IGF). This year, we’ve raised the bar. Our IGF 2024 reportig offers the most comprehensive overview yet—pairing expert insights with cutting-edge AI tools to help you navigate the discussions shaping the digital future.

Explore everything through our interactive webpage, featuring an AI assistant powered by DiploAI, detailed session reports, visual summaries, and dynamic knowledge graphs. Whether you’re looking for quick insights or deep dives, our coverage has you covered.


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Our AI assistant has been trained on all the transcripts from IGF 2024, allowing it to answer any questions you have about the forum’s discussions.


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Our team of experts, supported by DiploAI, provided daily updates that captured the key points of each day’s discussions.

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Additionally, we created visual summaries featuring expert insights and answers to questions about digital policy.


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In our Daily 4 from the IGF, we raised several thought-provoking questions designed to spark discussion and reflection on key issues. Now, we’re bringing you the answers. While they may not offer definitive solutions, they provide valuable insights and perspectives that invite further exploration. These responses aim to deepen understanding, inspire dialogue, and serve as a foundation for future conversations and actions in the digital policy space.


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Beyond daily updates, our team has revisited the discussions and, with the support of AI, summarised all five days of discussions thematically. This additional layer of analysis offers you a zoomed-out perspective of the conversations. Additionally, highlighted key recommendations for future actions and steps that emerged during the discussions.


Our event statistics feature gives you insight into numbers that matter… 


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…and our session reports provide you with nuanced AI analysis of each session. Each report includes a session summary, detailed sections on speakers involved, as well as areas where they agree and differ. Our knowledge graphs offer a visual representation of the connections between topics and participants. Additionally, we outline follow-up questions to guide further discussion.


Visual summary

You can also navigate the complex web of discussions with our interactive visual summary of the event. This dynamic tool allows you to visually navigate the connections between key themes and participants, making it easier to understand how different issues and conversations are interlinked throughout the event. Whether you’re looking for specific speakers, topics of interest, or overarching trends, our visual summary provides a clear and engaging way to uncover insights from the forum.


Copy of UNGA79: AI-powered insights and human-curated analysis

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UNGA79: AI-powered insights and human-curated analysis

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This year marks Diplo’s 8th consecutive year reporting from the UN General Assembly (UNGA), and we’re excited to share our most comprehensive coverage yet. Combining human expertise and AI-driven tools, we’re offering our readers unparalleled access to insights, analysis, and real-time information on every session and speaker at UNGA79.

On our dedicated 79th Session of the UN General Assembly (UNGA 79) webpage, you will find a comprehensive overview of the General Debate.

You can access the UNGA79 knowledge through two main channels: interact with an AI assistant or navigate a structured data organisation. 


The AI assistant

The AI assistant, powered by DiploAI models, is designed to offer you a deeper understanding of the General Debate. You’ll be able to explore a trove of information through a dynamic, conversation-based interface.

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Expert analysis

Our team of experts produced daily updates focused on AI and digital issues—topics that are increasingly central to global governance.

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Beyond daily updates, our team has gone back and thoroughly reviewed all the materials from the event, carefully extracting and synthesising highlights on AI and digital issues. This additional layer of analysis zeroes in on the most significant developments in AI and technology policy, offering you an overview of what is shaping the conversation.


Session reports, knowledge graphs, event statistics and more

You can also get more structured access to the General Debate knowledge via delivering session reports that go beyond simple summaries. Our reports provide a nuanced AI analysis of each session, each report includes detailed sections on speakers involved, and our knowledge graphs offer a visual representation of the connections between topics and participants. Additionally, we outline follow-up questions to guide further discussion.

You can also navigate the complex web of discussions, topics, and speakers with our interactive knowledge graph of the event. Finally, our event statistics feature gives you insight into numbers that matter.

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