The United States and China have reached a tentative ‘framework’ deal on the future of TikTok’s American operations, US Treasury Secretary Scott Bessent confirmed during trade talks in Madrid. The agreement, which still requires the approval of Presidents Donald Trump and Xi Jinping, is aimed at resolving a looming deadline that could see the video-sharing app banned in the US unless its Chinese owner ByteDance sells its American division.
US officials say the framework addresses national security concerns by paving the way for US ownership of TikTok’s operations, while China insists any final deal must not undermine its companies’ interests. The Biden administration has long argued that the app’s access to US user data poses significant risks, while ByteDance maintains its American arm operates independently and respects user privacy.
The law mandating a sale or ban, upheld by the Supreme Court earlier this year, is due to take effect on 17 September. Although the framework marks progress, key details remain unresolved, particularly over whether TikTok’s recommendation algorithm and user data will be fully transferred, stored, and protected in the US.
Experts warn that unless strict safeguards are included, the deal may solve ownership issues without closing potential ‘backdoors’ for Beijing. Concerns also remain over how much influence China retains, with negotiators linking TikTok’s fate to wider tariff discussions between the two powers.
If fully implemented, the agreement could represent a breakthrough in both trade relations and tech governance. But with ByteDance among China’s most powerful AI firms, the stakes go far beyond social media, touching on questions of global competition, national security, and digital sovereignty.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
US electricity prices are rising as the energy demands of data centres surge, driven by the rapid growth of AI technologies. The average retail price per kilowatt-hour increased by 6.5% between May 2024 and May 2025, with some states experiencing significantly sharper increases.
Maine saw the sharpest rise in electricity prices at 36.3%, with Connecticut and Utah following closely behind. Utilities are passing on infrastructure costs, including new transmission lines, to consumers. In Northern Virginia, residents could face monthly bill increases of up to $37 by 2040.
Analysts warn that the shift to generative AI will lead to a 160% surge in energy use at data centres by 2030. Water use is also rising sharply, as Google reported its facilities consumed around 6 billion gallons in 2024 alone, amid intensifying global AI competition.
Tech giants are turning to alternative energy to keep pace. Google has announced plans to power data centres with small nuclear reactors through a partnership with Kairos Power, while Microsoft and Amazon are ramping up nuclear investments to secure long-term supply.
President Donald Trump has pledged more than $92 billion in AI and energy infrastructure investments, underlining Washington’s push to ensure the US remains competitive in the AI race despite mounting strain on the grid and water resources.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
The US Justice Department has filed a lawsuit against Uber, accusing the ride-hailing giant of discriminating against passengers with disabilities.
The DOJ alleges that Uber drivers frequently deny service to people using wheelchairs or travelling with service animals, and sometimes impose unfair cancellation fees. Prosecutors say such practices cause economic and emotional harm and breach the Americans with Disabilities Act.
Uber denies the allegations, insisting it enforces a zero-tolerance policy for confirmed denials. The company says it deactivates drivers who breach accessibility rules and highlights reminders it issues to drivers about their legal obligations.
Uber has faced similar claims in the past. It reached a settlement with the DOJ in 2022, paying millions to more than 65,000 disabled riders. The new lawsuit, filed in the US California’s Northern District, follows a DOJ investigation launched last year.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Meta has plans to spend at least $600 billion on US data centres and AI infrastructure by 2028. The forecast, reported by The Information, was shared by CEO Mark Zuckerberg during a dinner with President Donald Trump and other technology leaders.
Capital expenditure is set to rise sharply over the next three years. Meta projects spending of $66–72 billion in 2025, nearly 70% higher than 2024, with another significant increase expected in 2026.
The company said the surge in investment will be driven primarily by the need to expand AI computing power.
Zuckerberg confirmed that Meta aims to deploy more than one million GPUs to train its next generation of AI models.
The company is also investing heavily in talent and infrastructure as it builds a dedicated team focused on developing artificial super intelligence, a concept referring to AI systems with capabilities beyond those of humans.
The spending commitment highlights how major US technology companies are racing to secure computing capacity for AI. Meta is pledging ‘hundreds of billions of dollars’ towards expanding its data centre footprint in the years ahead.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
Shares in Amsterdam-based Nebius surged more than 50% in US premarket trading after the company announced a $19.4 billion deal with Microsoft. The agreement will provide cloud computing power for AI workloads and is set to run until 2031.
Under the pact’s terms, Nebius will generate $17.4 billion in revenue over the next six years, with Microsoft also retaining the option to purchase additional computing capacity.
Investors responded strongly, with Nebius shares climbing 60% in extended trading on Monday and continuing their rise on Tuesday. Rival AI infrastructure company CoreWeave also benefited, gaining more than 6% premarket.
Nebius, spun out from Russian internet firm Yandex in 2023, specialises in supplying GPUs for training AI models. The deal underscores the high demand for computing power as companies race to develop increasingly advanced AI systems.
Industry leader Nvidia recently reported soaring earnings and forecast that AI infrastructure spending could reach $4 trillion by 2030.
The boom in AI infrastructure comes amid mounting questions over whether valuations are sustainable. OpenAI has reportedly reached a $500 billion valuation, while rival Anthropic recently raised $13 billion at a $183 billion valuation.
Some analysts, including OpenAI chief executive Sam Altman, have warned that the AI sector may already show signs of a bubble.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
According to people familiar with the plans, Chinese startup DeepSeek is developing an AI model with enhanced agent features to compete with US firms such as OpenAI.
The Hangzhou-based company intends for the system to perform multi-step tasks with limited input and adapt from its previous actions.
Founder Liang Wenfeng has urged his team to prepare the release before the end of 2025. The project follows DeepSeek’s earlier success with R1, a reasoning-focused model launched in January that attracted attention for its low development costs.
Since then, DeepSeek has delivered only incremental updates while rivals in China and the US have accelerated new product launches.
The shift towards AI agents reflects a broader industry move to develop tools capable of managing complex real-world tasks, from research to coding, with less reliance on users. OpenAI, Anthropic, Microsoft, and Manus AI have already introduced similar projects.
Most systems still require significant oversight, highlighting the challenges of building fully autonomous agents.
The United States has revoked Taiwan Semiconductor Manufacturing Company’s licence to ship advanced technology from America to China. The decision follows similar restrictions on South Korean firms Samsung and SK Hynix, increasing uncertainty for chipmakers operating Chinese facilities.
TSMC confirmed that Washington has notified that its authorisation will expire by the end of the year. The company said it would discuss the matter with the US government and stressed its commitment to keeping operations in China running without disruption.
The curbs are part of broader US measures to limit China’s access to advanced semiconductors. While they could complicate shipments and force suppliers to seek individual approvals, analysts suggest the direct impact on TSMC will be limited, as its sole Chinese plant in Nanjing makes older-generation chips that contribute only a small share of revenue.
Chinese customers may increasingly turn to domestic chipmakers, even if their technology lags. Such a shift could spur innovation in less performance-critical areas, while global suppliers grapple with higher costs and regulatory hurdles.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Amazon has introduced Lens Live, an AI-powered feature that lets shoppers identify and buy products by pointing their phone camera at real-world items.
The tool builds on Amazon Lens by adding a live, real-time element to product discovery.
Lens Live is integrated with Amazon’s AI assistant Rufus, which provides AI-generated product summaries, suggested questions and insights to help users make informed decisions.
It is powered by Amazon SageMaker and AWS-managed OpenSearch, enabling machine learning at scale.
The feature has launched on the Amazon Shopping app for iOS, initially available to tens of millions of US shoppers, with no word yet on an international rollout.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Donald Trump’s AI Action Plan, released in July 2025, places domestic semiconductor manufacturing at the heart of US efforts to dominate global AI. The plan supports deregulation, domestic production and export of full-stack technology, positioning chips as critical to national power.
Lawmakers and tech leaders have previously flagged tracking chips post-sale as viable, with companies like Google already using such methods. Trump’s plan suggests adopting location tracking and enhanced end-use monitoring to ensure chips avoid blacklisted destinations.
Trump has pressed for more private sector investment in US fabs, reportedly using tariff threats to extract pledges from chipmakers like TSMC. The cost of building and running chip plants in the US remains significantly higher than in Asia, raising questions about sustainability.
America’s success in AI and semiconductors will likely depend on how well it balances domestic goals with global collaboration. Overregulation risks slowing innovation, while unilateral restrictions may alienate allies and reduce long-term influence.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Bluesky, a decentralised social media platform, has ceased operations in Mississippi due to a new state law requiring strict age verification.
The company said compliance would require tracking users, identifying children, and collecting sensitive personal information. For a small team like Bluesky’s, the burden of such infrastructure, alongside privacy concerns, made continued service unfeasible.
The law mandates age checks not just for explicit content, but for access to general social media. Bluesky highlighted that even the UK Online Safety Act does not require platforms to track which users are children.
US Mississippi law has sparked debate over whether efforts to protect minors are inadvertently undermining online privacy and free speech. Bluesky warned that such legislation may stifle innovation and entrench dominance by larger tech firms.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
