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Odyssey presents immersive AI-powered streaming

Odyssey, a startup founded by self-driving veterans Oliver Cameron and Jeff Hawke, has unveiled an AI model that allows users to interact with streaming video in real time.

The technology generates video frames every 40 milliseconds, enabling users to move through scenes like a 3D video game instead of passively watching. A demo is currently available online, though it is still in its early stages.

The system relies on a new kind of ‘world model’ that predicts future visual states based on previous actions and environments. Odyssey claims its model can maintain spatial consistency, learn motion from video, and sustain coherent video output for five minutes or more.

Unlike models trained solely on internet data, Odyssey captures real-world environments using a custom 360-degree, backpack-mounted camera to build higher-fidelity simulations.

Tech giants and AI startups are exploring world models to power next-generation simulations and interactive media. Yet creative professionals remain wary. A 2024 study commissioned by the Animation Guild predicted significant job disruptions across film and animation.

Game studios like Activision Blizzard have been scrutinised for using AI while cutting staff.

Odyssey, however, insists its goal is collaboration instead of replacement. The company is also developing software to let creators edit scenes using tools like Unreal Engine and Blender.

Backed by $27 million in funding and supported by Pixar co-founder Ed Catmull, Odyssey aims to transform video content across entertainment, education, and advertising through on-demand interactivity.

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Elon Musk’s X tightens control on AI data use

Social media platform X has updated its developer agreement to prohibit the use of its content for training large language models.

The new clause, added under the restrictions section, forbids any attempt to use X’s API or content to fine-tune or train foundational or frontier AI models.

The move follows Elon Musk’s acquisition of X through his AI company xAI, which is developing its own models.

By restricting external access, the company aims to prevent competitors from freely using X’s data while maintaining control over a valuable resource for training AI systems.

X joins a growing list of platforms, including Reddit and The Browser Company, that have introduced terms blocking unauthorised AI training.

The shift reflects a broader industry trend towards limiting open data access amid the rising value of proprietary content in the AI arms race.

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Anthropic debuts AI tools for US national security

Anthropic has launched a new line of AI models, Claude Gov, explicitly tailored for US national security operations. Built with direct input from government clients, top-tier agencies already use the models.

These classified-use models were developed with enhanced safety testing and are optimised for handling sensitive material, including improved handling of classified data, rare language proficiency, and defence-specific document comprehension.

The Claude Gov models reflect Anthropic’s broader move into government partnerships, building on its collaboration with Palantir and AWS.

As competition in defence-focused AI intensifies, rivals including OpenAI, Meta, and Google are also adapting their models for secure environments.

The sector’s growing interest in custom, security-conscious AI tools marks a shift in how leading labs seek stable revenue streams and deeper ties with government agencies.

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Bjorn Ulvaeus says AI is ‘an extension of your mind’

ABBA legend Bjorn Ulvaeus is working on a new musical with the help of AI, describing the technology as ‘an extension of your mind.’ Despite previously criticising AI companies’ unlicensed use of artists’ work, the 80-year-old Swedish songwriter believes AI can be a valuable creative partner.

At London’s inaugural SXSW, Ulvaeus explained how he uses AI tools to explore lyrical ideas and overcome writer’s block. ‘It is like having another songwriter in the room with a huge reference frame,’ he said.

‘You can prompt a lyric and ask where to go from there. It usually comes out with garbage, but sometimes something in it gives you another idea.’

Ulvaeus was among over 10,000 creatives who signed an open letter warning of the risks AI poses to artists’ r i ghts. Still, he maintains that when used with consent and care, AI can support — not replace — human creativity. ‘It must not exclude the human,’ he warned.

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AI in higher education: A mixed blessing for students and institutions

AI rapidly reshapes university life, offering students new tools to boost creativity, structure assignments, and develop ideas more efficiently. At institutions like Oxford Brookes University, students like 22-year-old Sunjaya Phillips have found that AI enhances confidence and productivity when used responsibly, with faculty guidance.

She describes AI as a ‘study buddy’ that transformed her academic experience, especially during creative blocks, where AI-generated prompts saved valuable time. However, the rise of AI in academia also raises important concerns.

A global student survey revealed that while many embrace AI in their studies, a majority fear its long-term implications on employment. Some admit to misusing the technology for dishonest purposes, highlighting the ethical challenges it presents.

Experts like Dr Charlie Simpson from Oxford Brookes caution that relying too heavily on AI to ‘do the thinking’ undermines educational goals and may devalue the learning process.

Despite these concerns, many educators and institutions remain optimistic about AI’s potential—if used wisely. Professor Keiichi Nakata from Henley Business School stresses that AI is not a replacement but a powerful aid, likening its expected workplace relevance to today’s basic IT skills.

He and others argue that responsible AI use could elevate the capabilities of future graduates and reshape degree expectations accordingly. While some students worry about job displacement, others, like Phillips, view AI as a support system rather than a threat.

The consensus among academics is clear: success in the age of AI will depend not on avoiding the technology, but on mastering it with discernment, ethics, and adaptability.

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Broadcom beats estimates but stock dips after-hours

Broadcom reported strong second-quarter earnings and revenue driven by robust AI demand and solid networking performance.

Despite beating expectations and raising its outlook, the stock fell 3.47% in after-hours trading on Thursday — likely due to profit-taking instead of concern about fundamentals. Shares had previously rallied over 75% since April.

Revenue for the quarter ending May 5 reached US$15 billion, up 20% year-on-year. Adjusted earnings per share were US$1.58, exceeding estimates by two cents.

Net income more than doubled to US$4.97 billion. CEO Hock Tan attributed the strength to growing demand for AI infrastructure and contributions from VMware, which Broadcom acquired in late 2023.

Broadcom forecasted Q3 revenue of approximately US$15.8 billion, slightly above analyst expectations. AI-related revenue is set to increase to US$5.1 billion, up from US$4.4 billion in Q2, fuelled by custom AI accelerators and high-speed networking chips used in hyperscale data centres.

Tan said that the trend should continue through fiscal 2026.

Semiconductor solutions brought in US$8.4 billion in Q2, up 17% from last year, while software revenue rose 25% to US$6.6 billion, with VMware as a key contributor.

About 30% of Broadcom’s AI-related revenue now comes from its switching business, reflecting increasing demand for AI chip clusters. Despite the slight dip in share price, analysts continue to view Broadcom as a key player in AI infrastructure.

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DW Weekly #215 – Japan is boosting its cyberdefence, NATO shifts digital priorities, EU’s International Digital Strategy

30 May – 6 June 2025

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Dear readers,

Amid heightened cybersecurity tensions in East Asia, exemplified by China’s recent accusations against Taiwan for alleged cyberattacks and bounty offers targeting Taiwanese hackers, Japan is taking proactive steps to strengthen its cyberdefence capabilities. In May, the Japanese parliament approved a cyberdefence law, empowering authorities to monitor international communications through domestic infrastructure and neutralise overseas servers preemptively if they’re suspected of initiating cyberattacks. To complement these legislative measures, Japan is also formulating a comprehensive new cybersecurity strategy by the end of 2025, which will prioritise advanced encryption, proactive threat detection, and enhanced resilience of critical national infrastructure.

Cybersecurity policy strengthening is frequent these days, not only in Asia but also across the EU, as the UK and NATO bring important shifts in their cyberdefence strategies. The UK Ministry of Defence recently announced the establishment of a new Cyber and Electromagnetic Command aimed at integrating defensive cyber operations with offensive cyber and electronic warfare capabilities. Concurrently, NATO is considering formally incorporating cybersecurity into its defence spending guidelines, potentially including cyber capabilities within the alliance’s new 5% GDP target for defence expenditures.

Related to state security, another notable military development from the past week is the announcement that Chinese scientists have created the world’s first AI-based system capable of distinguishing real nuclear warheads from decoys, marking a significant breakthrough in arms control verification.

Cryptocurrencies continue to reshape Europe’s financial landscape, prompting varying responses from institutions across the continent. While the EU is actively advancing its ambitions for a digital euro, viewing it as a strategic tool to enhance the eurozone’s global currency influence and financial sovereignty, the Bank of Italy has expressed scepticism about current regulatory efforts. Specifically, Italy’s central bank criticised the Markets in Crypto-Assets (MiCA) regulation, pointing out its limited impact on boosting crypto adoption or effectively addressing consumer protection and market stability concerns.

The EU continues its legal battle with tech companies that do not comply with its digital market policies. Namely, the European Commission has imposed a €329 million fine on Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, for participating in what it described as ‘a cartel’ in the online food delivery market.

A content policy correction initiative from France: TikTok has globally banned the hashtag ‘SkinnyTok’ after pressure from the French government, which accused the platform of promoting harmful eating habits among young users.

EU’s International Digital Strategy

On 5 June 2025, the European Commission and the High Representative unveiled a new International Digital Strategy for the EU, aiming to enhance the EU’s global tech competitiveness and security amid a rapidly evolving digital landscape. The strategy emphasises deepening existing Digital Partnerships and Dialogues, establishing new ones, and creating a Digital Partnership Network to foster collaboration on emerging technologies like AI, 5G/6G, semiconductors, and quantum computing, while promoting secure connectivity through initiatives like the Global Gateway. It also introduces an EU Tech Business Offer, a modular approach to combine technology solutions with capacity-building, supporting trusted partners in building secure digital infrastructure, such as submarine cables and AI Factories.

Prioritising cybersecurity, the EU plans to strengthen defences against cyber threats and Foreign Information Manipulation (FIMI) by enhancing resilience and promoting algorithmic transparency on online platforms. The strategy reaffirms the EU’s commitment to shaping global digital governance by advocating for human-centric standards in forums like the UN and G7, ensuring the digital transformation aligns with democratic values and fundamental rights.

Last week in Geneva

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In Geneva, the 113th Session of the International Labour Conference (ILC), convened by the International Labour Organisation (ILO), is currently taking place from 2 to 13 June 2025 at the Palais des Nations and ILO headquarters, where delegates are deliberating on pressing global labour issues.

On 5 June, the Giga Research Lab, in collaboration with Giga and the Geneva Innovation Movement, hosted a high-level event titled Bridging the Digital Divide: Cross-Sector Insights for Scaling School Connectivity. Held on Giga premises, the event welcomed invited guests for an exchange of ideas on expanding digital access in education.

On the same day, the International Telecommunications Union (ITU) held a webinar to launch the fourth edition of the landmark report, Greening Digital Companies: Monitoring Emissions and Climate Commitments 2025.

For the main updates, reflections and events, consult the RADAR, the READING CORNER and the UPCOMING EVENTS section below.

DW Team

RADAR

Highlights from the week of 30 May – 6 June 2025

EU launches global digital strategy

As the global race for digital dominance accelerates, the European Union is stepping forward with a bold strategy that blends technological ambition with a commitment to democratic values and international…

AI copyright clash stalls UK data bill

Peers warn the UK’s creative sector could suffer if AI firms are allowed to use copyrighted content without consent or fair compensation.

Colt, Honeywell and Nokia to trial quantum cryptography in space

Space-based cryptography aims to secure sensitive data from quantum threats.

NVIDIA unveils world’s largest quantum research supercomputer

New centre aims to accelerate real-world use of quantum computing.

enter new era computing with large quantum computer generative ai

Netherlands unveils open-architecture quantum computer

The open-architecture Tuna-5 showcases how academic labs and startups can build a functional quantum machine with interoperable components from the local supply chain.

Czech justice minister quits over bitcoin scandal

Opposition seeks answers in emergency parliament session on 5 June.

Vodafone fined €45 million in Germany over data privacy violations

Vodafone is facing one of the largest privacy-related fines in Germany’s telecom sector, revealing deep concerns over how personal data is handled behind the scenes.

Crypto-friendly legislation advances in California

The lawmakers have approved a bill allowing crypto payments for state services under a pilot programme.

Meta Clinton Clean Energy Center Illinois Constellation nuclear energy AI

Meta inks 20-year nuclear deal to power AI expansion

Meta’s AI infrastructure plans include $65 billion in spending for 2025.

amazon india beverly hills polo club Lifestyle equities trademark lawsuit

Amazon invests $10 billion in AI data centres

However, an expert warned that Amazon’s investment shows how costly AI infrastructure has become, pushing out smaller developers.

nord quantique qubit quantum computers photons multimode encoding

Nord Quantique says fewer qubits needed for fault tolerance

Quantum computers may need fewer qubits, thanks to new photon-based encoding.

View all updates

READING CORNER

Cognitive offloading and the future of the mind in the AI age

The rise of AI is transforming work and education, but raises questions about its impact on critical thinking and cognitive independence.

UPCOMING EVENTS

9 Jun 2025 – 10 Jun 2025

Informal interactive WSIS stakeholder consultation on the review of implementation of the outcomes of the WSIS+20

The consultation, organised by the the President of the General Assembly, aims to gather input from all relevant WSIS stakeholders on the preparatory process for the review of the implementation…

9 Jun 2025 – 12 Jun 2025

ICANN 83

The event will focus on ongoing policy development, community outreach, and collaboration among global stakeholders.

10 Jun 2025, 14:00h – 15:00h

Final Brief on the WSIS+20 High-Level Event 2025

The session aims to foster open dialogue, encourage active stakeholder engagement, and support continued progress toward the WSIS+20 High-Level Event 2025

12 June 2025 – 13 June 2025

Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia – Diplo Event

Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia The Digital Democracy for All (DD4ALL) project is a collaborative initiative

23 Jun 2025 – 27 Jun 2025

Internet Governance Forum 2025

The Government of Norway will host the 20th annual Internet Governance Forum (IGF) in Lillestrøm from 23 to 27 June 2025.

23 June 2025 – 27 June 2025

Diplo/GIP at IGF 2025 – Diplo Event

Diplo/GIP at IGF 2025 The 20th annual meeting of the Internet Governance Forum (IGF) will be hosted by the Government of Norway, in Lillestrøm, from 23 to 27 June.

24 Jun 2025 – 27 Jun 2025

Global Forum on the Ethics of AI 2025

Thailand will host the 3rd UNESCO Global Forum on the Ethics of Artificial Intelligence from 24 to 27 June 2025.

Epic adds AI NPC tools to Fortnite as Vader voice sparks union clash

Epic Games is launching new tools for Fortnite creators that enable them to build AI-powered non-player characters (NPCs), following the debut of an AI-generated Darth Vader that players can talk to in-game.

The feature, which reproduces the iconic voice of James Earl Jones using AI, marks a significant step in interactive gaming—but also comes with its share of challenges and controversy.

According to The Verge, Epic encountered several difficulties in fine-tuning Vader’s voice and responses to feel authentic and fit smoothly into gameplay. ‘The culmination of a very intense effort for a character everybody understands,’ said Saxs Persson, executive vice president of the Fortnite ecosystem.

Persson noted that the team worked carefully to ensure that when Vader joins a player’s team, he behaves as a fearsome and aggressive ally—true to his cinematic persona.

However, the rollout wasn’t entirely smooth. In a live-streamed session, popular Fortnite creator Loserfruit prompted Vader to swear, exposing the system’s content filtering flaws. Epic responded quickly with patches and has since implemented multiple layers of safety checks.

‘We do our best job on day one,’ said Persson, ‘but more importantly, we’re ready to surround the problem and have fixes in place as fast as possible.’

Now, Fortnite creators will have access to the same suite of AI tools and safety systems used to develop Vader. They can control voice tone, dialogue, and NPC behaviour while relying on Epic’s safeguards to avoid inappropriate interactions.

The feature launch comes at a sensitive moment, as actor union SAG-AFTRA has filed a complaint against Epic Games over using AI to recreate Vader’s voice.

The union claims that Llama Productions, an Epic subsidiary, employed the technology without consulting or bargaining with the union, replacing the work of human voice actors.

‘We must protect our right to bargain terms and conditions around uses of voice that replace the work of our members,’ SAG-AFTRA said, emphasising its support for actors and estates in managing the use of digital replicas.

As Epic expands its AI capabilities in gaming, it faces both the technical challenges of responsible deployment and the growing debate around AI’s impact on creative professions.

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AI avatar replaces CEO in Klarna’s update

Klarna CEO Sebastian Siemiatkowski recently used an AI-generated avatar to deliver the company’s quarterly earnings report, marking a bold step in the fintech firm’s ongoing integration of AI.

Though the avatar’s performance revealed minor flaws, such as awkward blinking and voice syncing issues, the presentation showcased Klarna’s broader commitment to using AI across both operations and communications.

The Swedish firm has credited AI-driven efficiencies and a 40% workforce reduction for sustaining profitability and increasing revenue per employee to nearly US$1 million.

These advances build on years of investment in machine learning, which began with personalised checkout systems and now underpin core services like fraud detection and customer support.

By using an AI avatar in a leadership role, Klarna signals its belief in AI not only as a business tool but also as a viable medium for engaging investors. As the company prepares for its IPO, this move underscores its technological focus and willingness to redefine fintech communication norms.

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G42 and Mistral team up to build AI platforms

Abu Dhabi-based tech company G42 has partnered with French startup Mistral AI to co-develop advanced AI platforms and infrastructure across Europe, the Middle East, and the Global South.

The collaboration aims to span the full AI value chain, from model training to sector-specific applications, combining Mistral’s open-weight language models with G42’s infrastructure expertise.

The deal builds on prior AI cooperation agreements endorsed by UAE President Sheikh Mohamed bin Zayed and French President Emmanuel Macron, reinforcing both countries’ shared ambition to lead in AI innovation.

G42 subsidiaries Core42 and Inception will support the initiative by contributing technical development and deployment capabilities.

This partnership is part of a broader UAE strategy to position itself as a global AI hub and diversify its economy beyond oil. With AI expected to add up to $91 billion to the UAE’s economy by 2030, such international alliances reflect a shift in AI power centres toward the Middle East.

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