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DW Weekly #207 – China disagrees with Trump over $54B TikTok deal due to tariffs rise

6 – 14 April 2025

People, Person, Crowd, Face, Head, Audience

Dear readers,

Last week, we saw the TikTok saga unfold as the Chinese government has not agreed to sell the ByteDance daughter company to a US majority TikTok entity, so US President Donald Trump extended the deadline to find a non-Chinese buyer by another 75 days, pushing the cutoff to mid-June after a near-miss on 5 April.

Amid the tariff rise turmoil, President Donald Trump’s administration has granted exemptions from steep tariffs on smartphones, laptops, and other electronics, relieving tech giants like Apple and Dell.

The cryptocurrency landscape was waved by a blockchain analytics firm, which has alleged that the team behind the Melania Meme (MELANIA) cryptocurrency moved $30 million worth of tokens, allegedly taken from community reserves without explanation.

In the ever-evolving world of AI, two leading AI systems, OpenAI’s GPT-4.5 and Meta’s Llama-3.1, have passed a key milestone by outperforming humans in a modern version of the Turing Test.

On the cybersecurity stage, Oracle Health has reportedly suffered a data breach that compromised sensitive patient information stored by US hospitals.

The European Union has firmly ruled out dismantling its strict digital regulations in a bid to secure a trade deal with Donald Trump. Henna Virkkunen, the EU’s top official for digital policy, said the bloc remained fully committed to its digital rulebook instead of relaxing its standards to satisfy US demands.

Meta’s existence is threatened by a colossal antitrust trial which commenced in Washington, with the US Federal Trade Commission (FTC) arguing that the company’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were designed to crush competition with monopoly aims instead of fostering innovation.

Elon Musk’s legal saga with OpenAI intensifies, as OpenAI has filed a countersuit accusing the billionaire entrepreneur of a sustained campaign of harassment intended to damage the company and regain control over its AI developments.

For the main updates and reflections, consult the Radar and Reading Corner below.

DW Team

RADAR

Highlights from the week of 6 – 14 April 2025

Former Facebook executive says Meta misled over China

Wynn-Williams says Meta executives prioritised business growth in China over national security.

Algorithms confront tariffs featured image

Tech stocks rally after Trump halts tariffs

The Nasdaq jumped over 12%, its best day in decades, following a temporary halt on trade tariffs by the Trump administration.

DeepSeek highlights the risk of data misuse

Data stored today could be vulnerable to decryption in the near future.

Meta to block livestreaming for under 16s without parental permission

Instagram users under 16 won’t be able to livestream or view blurred nudity in messages unless approved by a parent, Meta announced.

openAI Sam Altman TED 2025 ChatGPT users

ChatGPT hits 800 million users after viral surge

OpenAI is developing agents that can act autonomously on behalf of users, with safeguards.

Google rolls out AI to improve US power grid connections

Energy connection delays face AI-powered fix through Google’s new initiative.

Google offers steep discounts to US federal agencies

The 71% discount on Google Workspace is part of a cost-cutting initiative under President Trump’s government reform, targeting federal spending efficiency.

Japan’s FSA proposes new framework for regulating crypto assets in Japan

A discussion paper on crypto regulation in Japan highlights issues like market access, insider trading, and classification of assets into funding and non-funding categories.

Microsoft pauses $1 billion data centre project in Ohio

As AI demand shifts, Microsoft has slowed down major data centre projects, including the one in Ohio, and plans to invest $80 billion in AI infrastructure this year.

View all updates

READING CORNER

Navigating the AI maze: How to choose the right AI platform or tool – Diplo

With over 10,000 AI applications available, selecting the right AI tool can be daunting. Diplo advocates starting with a ‘good enough’ tool to avoid paralysis by analysis, tailoring it to specific needs through practical use.

Don’t waste the crisis: How AI can help reinvent International Geneva – Diplo

International Geneva faces significant challenges, including financial constraints, waning multilateralism, and escalating geopolitical tensions. To remain relevant, it must embrace transformative changes, particularly through Artificial Intelligence (AI).

Microsoft at 50 – A journey through code, cloud, and AI

Founded by Bill Gates and Paul Allen in 1975, Microsoft grew from a small startup into the world’s largest software company. Through strategic acquisitions, the company expanded into diverse sectors,…

On the origins of ideas – Diplo

Do ideas have origins? From medieval communes to WWI, Aldo Matteucci shows how political thought, like a river, is shaped by experience, institutions, and historical context — not just theory.

UPCOMING EVENTS

www.diplomacy.edu

GITEX Africa 2025 – Diplo Event

GITEX Africa 2025 Jovan Kurbalija will participate at GITEX Africa (14-16 April 2025 in Marrakech, Morocco).

www.diplomacy.edu

Tech attache briefing: WSIS+20 and AI governance negotiations – Updates and next steps – Diplo Event

Tech attache briefing: WSIS+20 and AI governance negotiations – Updates and next steps. The event is part of a series of regular briefings the Geneva

Internet Platform (GIP) is delivering for diplomats at permanent missions and delegations in Geneva following digital policy issues. It is an invitation-only event.

23 April 2025

Demystifying AI: How to prepare international organisations for AI transformation?

The event will provide a timely discussion on methods, approaches, and solutions for AI transformation of International Organisaitons.

dig.watch

WIPO Conversation 11: AI and IP: Infrastructure for rights holders and innovation

WIPO’s 11th Conversation on IP and AI will take place on April 23-24, 2025, focusing on the role of copyright infrastructure in supporting both rights holders and AI-driven innovation. As…

ChatGPT hits 800 million users after viral surge

ChatGPT’s user base has doubled in recent weeks, with OpenAI CEO Sam Altman estimating up to 800 million people now use the platform weekly.

Speaking at TED 2025, Altman confirmed the surge during an on-stage conversation, acknowledging the figure after being pressed by TED curator Chris Anderson. He suggested the user growth was accelerating rapidly, describing the adoption as covering around 10% of the global population.

The platform’s popularity has soared thanks to viral new features, including a March update that introduced Ghibli mode—an image and video generator inspired by the animation style of Studio Ghibli.

Altman noted that this single feature drew in a million users within an hour of launch. When asked about artist compensation, he said OpenAI may eventually offer automatic payments to creators whose styles are used in prompts, though safeguards remain in place to avoid generating copyrighted material.

Other major updates include the rollout of a memory function that allows ChatGPT to remember user interactions indefinitely, making it a more personalised assistant over time. Altman also spoke about the development of autonomous AI agents capable of acting on users’ behalf, framed with safety guardrails.

While acknowledging fears of AI replacing human jobs, he encouraged a view of AI as a tool to unlock greater capabilities rather than a threat to livelihoods.

For more information on these topics, visit diplomacy.edu.

Mood-based AI search tool tested by Netflix

Netflix is testing a new AI-powered search tool that could transform how users discover content on the platform.

Developed in collaboration with OpenAI, the feature goes beyond traditional search methods by allowing subscribers to use natural language queries based on mood, themes or descriptions rather than just titles or actors.

Currently, the tool is available only to a limited number of users in Australia and New Zealand using iOS devices, with opt-in access required. Netflix plans to expand the test to more regions, including the United States, in the near future.

The move highlights the streaming giant’s growing investment in AI, which it already uses for personalised recommendations.

Despite embracing AI, Netflix has stated it does not intend to replace creatives with technology. The company has publicly acknowledged concerns from the film and television industry, promising that writers, actors, and filmmakers remain central to its content creation strategy.

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

AI feud intensifies as OpenAI sues Elon Musk

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire entrepreneur of a sustained campaign of harassment intended to damage the company and regain control over its AI developments.

The legal filing comes in response to Musk’s lawsuit earlier this year, in which he claimed OpenAI had strayed from its founding mission of developing AI for the benefit of humanity.

In its countersuit, OpenAI urged a federal court to block Musk from taking further ‘unlawful and unfair actions’ and hold him accountable for the alleged damage already inflicted.

The company cited press attacks, legal pressure, and social media posts to Musk’s 200 million followers as tactics aimed at undermining its operations and reputation.

It also described Musk’s demands for corporate records and attempted acquisition efforts as part of a broader scheme to derail OpenAI’s progress.

The legal conflict highlights the growing rivalry between OpenAI and xAI, the AI firm Musk launched in 2023.

OpenAI maintains that Musk’s actions are motivated by self-interest and a desire to slow down a competing organisation. A jury trial has been scheduled for spring 2026 to resolve the escalating dispute.

For more information on these topics, visit diplomacy.edu.

Microsoft pauses $1 billion data centre project in Ohio

Microsoft has announced it is ‘slowing or pausing’ some data centre construction projects, including a $1 billion plan in Ohio, amid shifting demand for AI infrastructure.

The company confirmed it would halt early-stage development on rural land in Licking County, near Columbus, and will repurpose two of the sites for farmland.

The decision follows Microsoft’s rapid scaling of infrastructure to meet the soaring demand for AI and cloud services, which has since softened. The company acknowledged that such large projects require continuous adaptation to align with customer needs.

While Microsoft did not specify other paused projects, it revealed the suspension of later stages of a Wisconsin data centre expansion.

The slowdown also coincides with changes in Microsoft’s partnership with OpenAI, with the two companies revising their agreement to allow OpenAI to build its own AI infrastructure. This move reflects broader trends in AI computing needs, which are expensive and energy-intensive.

Despite the pause in Ohio, Microsoft plans to invest over $80 billion in AI infrastructure this fiscal year, continuing its global expansion, though it will now strategically pace its growth to align with evolving business priorities.

Local officials in Licking County expressed their disappointment, as the area had been a hub for significant tech investments, including those from Google and Meta.

For more information on these topics, visit diplomacy.edu.

Adaptive Security raises millions to fight AI scams

OpenAI has made its first move into the cybersecurity space by co-leading a US$43 million Series A funding round for New York-based startup Adaptive Security.

The round was also backed by venture capital firm Andreessen Horowitz, highlighting growing investor interest in solutions aimed at tackling AI-driven threats.

Adaptive Security specialises in simulating social engineering attacks powered by AI, such as fake phone calls, text messages, and emails. These simulations are designed to train employees and identify weak points within an organisation’s defences.

With over 100 customers already on board, the platform is proving to be a timely solution as generative AI continues to fuel increasingly convincing cyber scams.

The funding will be used to scale up the company’s engineering team and enhance its platform to meet growing demand.

As AI-powered threats evolve, Adaptive Security aims to stay ahead of the curve by helping organisations better prepare their staff to recognise and respond to sophisticated digital deception.

For more information on these topics, visit diplomacy.edu.

New AI firm Deep Cogito launches versatile open models

A new San Francisco-based startup, Deep Cogito, has unveiled its first family of AI models, Cogito 1, which can switch between fast-response and deep-reasoning modes instead of being limited to just one approach.

These hybrid models combine the efficiency of standard AI with the step-by-step problem-solving abilities seen in advanced systems like OpenAI’s o1. While reasoning models excel in fields like maths and physics, they often require more computing power, a trade-off Deep Cogito aims to balance.

The Cogito 1 series, built on Meta’s Llama and Alibaba’s Qwen models instead of starting from scratch, ranges from 3 billion to 70 billion parameters, with larger versions planned.

Early tests suggest the top-tier Cogito 70B outperforms rivals like DeepSeek’s reasoning model and Meta’s Llama 4 Scout in some tasks. The models are available for download or through cloud APIs, offering flexibility for developers.

Founded in June 2024 by ex-Google DeepMind product manager Dhruv Malhotra and former Google engineer Drishan Arora, Deep Cogito is backed by investors like South Park Commons.

The company’s ambitious goal is to develop ‘general superintelligence,’ AI that surpasses human capabilities, rather than merely matching them. For now, the team says they’ve only scratched the surface of their scaling potential.

For more information on these topics, visit diplomacy.edu.

OpenAI negotiates $500m deal for AI startup

OpenAI is reportedly in talks to acquire io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman, in a deal that could exceed $500 million.

Instead of focusing solely on software like ChatGPT and API tools, OpenAI appears to be eyeing consumer devices as a way to diversify its revenue.

io Products is said to be working on AI-powered consumer tech, including a screenless smartphone and smart home gadgets.

The company’s team includes several former Apple designers, such as Tang Tan and Evans Hankey. Instead of traditional screens, these new devices are expected to explore more ambient and context-aware ways of interaction.

Jony Ive, best known for his role in designing iconic Apple products like the iPhone and iMac, left Apple in 2019 to launch his design consultancy, LoveFrom.

His collaboration with Altman on io Products was publicly confirmed last year and has already drawn interest from high-profile backers, including Laurene Powell Jobs. Funding for the startup was projected to reach $1 billion by the end of 2024.

The move echoes Altman’s previous investments in AI hardware, such as Humane Inc., a wearable tech startup that also focused on screenless interaction. Instead of scaling that venture, however, HP acquired some of Humane’s assets for $166 million earlier this year.

OpenAI’s potential acquisition of io Products could mark a significant shift toward physical consumer products in the AI space.

For more information on these topics, visit diplomacy.edu.

Copyright lawsuits against OpenAI and Microsoft combined in AI showdown

Twelve copyright lawsuits filed against OpenAI and Microsoft have been merged into a single case in the Southern District of New York.

The US judicial panel on multidistrict litigation decided to consolidate, despite objections from many plaintiffs who argued their cases were too distinct.

The lawsuits claim that OpenAI and Microsoft used copyrighted books and journalistic works without consent to train AI tools like ChatGPT and Copilot.

The plaintiffs include high-profile authors—Ta-Nehisi Coates, Sarah Silverman, Junot Díaz—and major media outlets such as The New York Times and Daily News.

The panel justified the centralisation by citing shared factual questions and the benefits of unified pretrial proceedings, including streamlined discovery and avoidance of conflicting rulings.

OpenAI has defended its use of publicly available data under the legal doctrine of ‘fair use.’

A spokesperson stated the company welcomed the consolidation and looked forward to proving that its practices are lawful and support innovation. Microsoft has not yet issued a comment on the ruling.

The authors’ attorney, Steven Lieberman, countered that this is about large-scale theft. He emphasised that both Microsoft and OpenAI have, in their view, infringed on millions of protected works.

Some of the same authors are also suing Meta, alleging the company trained its models using books from the shadow library LibGen, which houses over 7.5 million titles.

Simultaneously, Meta faced backlash in the UK, where authors protested outside the company’s London office. The demonstration focused on Meta’s alleged use of pirated literature in its AI training datasets.

The Society of Authors has called the actions illegal and harmful to writers’ livelihoods.

Amazon also entered the copyright discussion this week, confirming its new Kindle ‘Recaps’ feature uses generative AI to summarise book plots.

While Amazon claims accuracy, concerns have emerged online about the reliability of AI-generated summaries.

In the UK, lawmakers are also reconsidering copyright exemptions for AI companies, facing growing pressure from creative industry advocates.

The debate over how AI models access and use copyrighted material is intensifying, and the decisions made in courtrooms and parliaments could radically change the digital publishing landscape.

For more information on these topics, visit diplomacy.edu.

Sam Altman’s AI cricket post fuels India speculation

A seemingly light-hearted social media post by OpenAI CEO Sam Altman has stirred a wave of curiosity and scepticism in India. Altman shared an AI-generated anime image of himself as a cricket player dressed in an Indian jersey, which quickly went viral among Indian users.

While some saw it as a fun gesture, others questioned the timing and motives, speculating whether it was part of a broader strategy to woo Indian audiences. This isn’t the first time Altman has publicly praised India.

In recent weeks, he lauded the country’s rapid adoption of AI technology, calling it ‘amazing to watch’ and even said it was outpacing the rest of the world. His comments marked a shift from a more dismissive stance during a 2023 visit when he doubted India’s potential to compete with OpenAI’s large-scale models.

prompt: sam altman as a cricket player in anime style pic.twitter.com/kgflS6dT6o
— Sam Altman (@sama) April 2, 2025

However, during his return visit in February 2025, he expressed interest in collaborating with Indian authorities on affordable AI solutions. The timing of Altman’s praise coincides with a surge in Indian users on OpenAI’s platforms, now the company’s second-largest market.

Meanwhile, OpenAI faces a legal tussle with several Indian media outlets over their alleged content misuse. Despite this, the potential of India’s booming AI market—projected to hit $8 billion by 2025—makes the country a critical frontier for global tech firms.

Experts argue that Altman’s overtures are more about business than sentiment. With increasing competition from rival AI models like DeepSeek and Gemini, maintaining and growing OpenAI’s Indian user base has become vital. As technology analyst Nikhil Pahwa said, ‘There’s no real love; it’s just business.’

For more information on these topics, visit diplomacy.edu.