Musk says AI should replace federal jobs

Elon Musk has suggested that AI should replace many federal government workers, criticising the US administration as bloated and inefficient.

Speaking privately at the Milken Institute Global Conference in Beverly Hills, Musk argued AI could perform government tasks faster and with greater accuracy, ultimately saving taxpayers money.

His remarks coincided with the winding down of his controversial volunteer role leading the Department of Government Efficiency (DOGE), an initiative born under Donald Trump’s presidency.

Musk spent over 100 days embedded in the White House, even setting up a small office in the West Wing. Despite joking about its minimal view and sleeping in the Lincoln Bedroom, he claimed his work had major impacts — including rooting out fraud and slashing federal budgets.

Musk said DOGE was responsible for cutting $160 billion in government spending, although no formal evidence has been released to support that figure.

The programme has sparked intense backlash. Thousands of federal employees were reportedly dismissed or resigned during the DOGE audits, prompting lawsuits and allegations of illegal firings.

Critics say the sweeping cuts have left the US less prepared for emergencies and reduced its global influence, allowing China to expand its reach. Protesters have targeted Tesla in response, leading Trump to defend Musk and condemn the attacks.

Although scaling back his involvement in Washington, Musk isn’t leaving entirely. He will now spend only one or two days a week on government affairs, returning more of his focus to Tesla amid flagging sales and investor pressure.

Despite the chaos, DOGE has inspired new political groups in Congress, blurring the line between satire and policy. Musk himself finds it all surreal, asking, ‘Are we in a simulation here?’

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US lawmakers push for app store age checks

A new bill introduced by US lawmakers could force app stores like Apple’s App Store and Google Play to verify the age of all users, in a move aimed at increasing online safety for minors.

Known as the App Store Accountability Act, the legislation would require age categorisation and parental consent before minors can download apps or make in-app purchases. If passed, the law would apply to platforms with at least five million users and would come into effect one year after approval.

The bill proposes dividing users into age brackets — from ‘young child’ to ‘adult’ — and holding app stores accountable for enforcing access restrictions.

Lawmakers behind the bill, Republican Senator Mike Lee and Representative John James, argue that Big Tech companies must take responsibility for limiting children’s exposure to harmful content. They believe app stores are the right gatekeepers for verifying age and protecting minors online.

Privacy advocates and tech companies have voiced concern about the bill’s implications. Legal experts warn that verifying users’ ages may require sensitive personal data, such as ID documents or facial recognition scans, raising the risk of data misuse.

Apple said such verification would apply to all users, not just children, and criticised the idea as counterproductive to privacy.

The proposal has widened a rift between app store operators and social media platforms. While Meta, X, and Snap back centralised age checks at the app store level, Apple and Google accuse them of shifting the burden of responsibility.

Both tech giants emphasise the importance of shared responsibility and continue to engage with lawmakers on crafting practical and privacy-conscious solutions.

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AI chip restrictions and tariffs weigh on Samsung’s global strategy

Samsung has warned that rising US tariffs could dampen global demand for its electronics, including smartphones and semiconductors.

Despite reporting record quarterly revenue of £41.6 billion and a modest profit rise driven by strong phone and chip sales, the company expressed concerns about the uncertain trade environment.

Executives cited possible risks to sales in the second half of 2025 due to escalating tariff tensions.

While some clients have accelerated orders to avoid incoming levies, Samsung said this may create a sales lull later in the year.

Delayed tariffs affecting countries like South Korea and Vietnam, where Samsung manufactures key components, are expected to take effect in July. US restrictions on AI chip sales to China are also weighing on the company’s outlook.

Samsung refrained from providing financial guidance for the next quarter, citing unpredictable global trade dynamics.

As tariff uncertainty continues, major tech companies like Apple are also reassessing supply chains, with many shifting chip production out of China in anticipation of further disruptions.

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US antitrust trial sees Google defend Chrome and data control

Google has warned that proposed remedies in the ongoing US antitrust case, including a possible sell-off of Chrome, could expose users to data breaches and national security threats. Arguing that Google’s infrastructure is key to protecting Chrome against rising cyberattacks.

Google cited past breaches to emphasise the risks of moving such tools to buyers lacking similar security standards. The Justice Department, however, maintains that breaking up Google’s dominance would encourage fairer competition.

Proposals include banning exclusive deals, sharing user data to support rivals, and enabling Apple or others to shift default search settings. An economic expert testified these remedies could reduce Google’s market share from 88% to 51%, though full impact would take years to materialise.

Judge Amit Mehta raised concerns that dismantling Google’s monopoly might simply replace it with another, such as Microsoft. Google CEO Sundar Pichai is set to testify next, as the case continues through 9 May in the US.

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DW Weekly #210 – Trump’s tech stability, UN funding cuts, and global AI shifts

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25 April – 2 May 2025


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Dear readers,

In the week behind us, we focused on Trump’s first 100 days of digital governance. Dr Jovan Kurbalija, in his blog ‘Tech continuity in President Trump’s first 100 days’, deems that Trump’s approach to technology remained remarkably stable despite political turbulence in trade and environmental policy.

Connected to Trump’s foreign policy is the UN situation. Namely, the UN faces renewed financial uncertainty as Donald Trump’s administration reviews all US support for international organisations.

The US president has instead proposed substantial reductions or even the elimination of federal income taxes once the full impact of import tariffs is realised. In a 27 April post on Truth Social, Trump revealed that the plan would primarily benefit individuals earning less than $200,000 annually. Trump has also signed executive orders easing his controversial 25% tariffs on automobiles and parts to relieve pressure on carmakers struggling with rising costs.

The European Commission faces growing criticism after a joint investigation revealed that Big Tech companies had disproportionate influence over drafting the EU’s Code of Practice on General Purpose AI.

Alphabet, Google’s parent company, may soon be forced to split into separate entities, with its Chrome browser emerging as a desirable target.

The UAE has announced the launch of its AI Academy, aiming to strengthen the country’s position in AI innovation both regionally and globally.

The United Kingdom and the United States are set to strengthen their collaboration in advancing cryptocurrency adoption.

Microsoft has unveiled a set of five digital commitments aimed at supporting Europe’s technological and economic future.

Intel is witnessing strong demand for its older Raptor Lake and Alder Lake processors, as buyers shy away from newer AI-enhanced chips like Meteor and Lunar Lake.

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

DW Team


RADAR

Highlights from the week of 25 – 2 May 2025

the white house

As digital tensions rise globally, President Trump’s early tech agenda signals a strategic gamble that bets on tradition while the rest of the world pushes for transformation.

eu flags in front of european commission 1

The US government opposes the new AI Code, calling it anti-innovation. Critics say Big Tech had too much access.

UNHQ

As the UN braces for possible funding upheavals, the future of global cooperation could hinge on decisions unfolding quietly behind closed doors in Washington.

US tariffs Trump Samsung Apple

Ford, GM, and Stellantis welcome Trump’s tariff rollback as a step forward, though supply chain challenges remain.

US department of justice google chrome antitrust lawsuit

With a 65% market share, Chrome could reshape the tech landscape if sold. OpenAI, Yahoo and others are circling.

sam altman

Following backlash, OpenAI restores GPT-4o’s previous version and vows to avoid disingenuous praise in future.

flags 38754 1280

International cooperation is essential for success, with both countries aiming to set groundbreaking regulatory standards for the crypto industry.

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New data centre growth will double Microsoft’s European capacity between 2023 and 2027.

generate classroom with person raising hand

As global powers invest in shaping the next generation of AI innovators, classrooms emerge as unexpected arenas where technology, diplomacy, and geopolitics converge.

gemini chatgpt meta AI antitrust trial

ChatGPT and Meta AI still lead in total user base.

south korean flag in mans hand on the world map background

The PPP aims to overhaul digital asset laws, allowing non-profits to trade crypto and institutionalising corporate participation by Q2 of this year.


READING CORNER
BLOG From geopolitics to classrooms featured image

The competition between the US and China in AI education is emerging as a vital battleground amidst geopolitical tensions. Both nations prioritise AI education to prepare future generations for a transformative technological landscape.

BLOG Tech continuity in President Trumps first 100 days featured image

During President Trump’s first 100 days, technology policy exhibited continuity rather than disruption, focusing on AI and digital regulation characterised by incremental adjustments. 

meta ai

What happens when one of the world’s biggest tech giants bets its future not on control, but on giving its most powerful AI tools away for free?

post Weapons of Emotional Destruction

What if the internet’s true legacy isn’t connection, but emotional warfare? In 2015, Aldo Matteucci asked whether we’ve unleashed a fire that even Shiva could not contain.

UPCOMING EVENTS
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5 May 2025

May 2025 online courses | Diplo Academy Diplo Academy is excited to announce the start of four online courses on 5 May 2025:

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7 May 2025

 WSIS+20 review: What’s in it for Africa?  An expert-guided dialogue among diplomats | Dedicated exclusively to African Permanent Missions to the UN in Geneva.

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7 May 2025

Swiss Plateforme Tripartite: Meeting on WSIS+20 On 6 May, the Swiss Federal Office of Communications (OFCOM) will host a virtual meeting on the WSIS+20

Trump administration eyes overhaul of Biden-era AI chip export rules

The Trump administration is reviewing a Biden-era rule that restricts global access to US-made advanced AI chips, with discussions underway to eliminate the current tiered system that governs chip exports, according to sources familiar with the matter.

The existing rule, known as the Framework for Artificial Intelligence Diffusion, was introduced by the US Department of Commerce in January and is set to take effect on 15 May.

It divides the world into three groups: trusted allies (like the EU and Taiwan) with unlimited access, Tier 2 countries with chip quotas, and restricted countries such as China, Russia, Iran and North Korea.

Officials are considering replacing this structure with a global licensing regime based on government-to-government agreements—aligning with Donald Trump’s broader trade strategy of negotiating bilateral deals and using US-made chips as leverage.

Other possible changes include tightening export thresholds: under current rules, orders under the equivalent of 1,700 Nvidia H100 chips only require notification, not a licence. The new proposal could reduce that threshold to around 500 chips.

Supporters of the change argue it would increase US bargaining power and simplify enforcement. Critics, however, warn that scrapping the tier system may complicate compliance and drive countries toward Chinese chip alternatives.

Tech firms such as Oracle and Nvidia, along with several US lawmakers, have criticised the current framework, saying it risks harming American competitiveness and pushing international buyers toward cheaper, unregulated Chinese substitutes.

The Commerce Department declined to comment.

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UK refuses to include Online Safety Act in US trade talks

The UK government has ruled out watering down the Online Safety Act as part of any trade negotiations with the US, despite pressure from American tech giants.

Speaking to MPs on the Science, Innovation and Technology Committee, Baroness Jones of Whitchurch, the parliamentary under-secretary for online safety, stated unequivocally that the legislation was ‘not up for negotiation’.

‘There have been clear instructions from the Prime Minister,’ she said. ‘The Online Safety Act is not part of the trade deal discussions. It’s a piece of legislation — it can’t just be negotiated away.’

Reports had suggested that President Donald Trump’s administration might seek to make loosening the UK’s online safety rules a condition of a post-Brexit trade agreement, following lobbying from large US-based technology firms.

However, Baroness Jones said the legislation was well into its implementation phase and that ministers were ‘happy to reassure everybody’ that the government is sticking to it.

The Online Safety Act will require tech platforms that host user-generated content, such as social media firms, to take active steps to protect users — especially children — from harmful and illegal content.

Non-compliant companies may face fines of up to £18 million or 10% of global turnover, whichever is greater. In extreme cases, platforms could be blocked from operating in the UK.

Mark Bunting, a representative of Ofcom, which is overseeing enforcement of the new rules, said the regulator would have taken action had the legislation been in force during last summer’s riots in Southport, which were exacerbated by online misinformation.

His comments contrasted with tech firms including Meta, TikTok and X, which claimed in earlier hearings that little would have changed under the new rules.

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Big Tech accused of undue influence over EU AI Code

The European Commission is facing growing criticism after a joint investigation revealed that Big Tech companies had disproportionate influence over the drafting of the EU’s Code of Practice on General Purpose AI.

The report, published by Corporate Europe Observatory and LobbyControl, claims firms such as Google, Microsoft, Meta, Amazon, and OpenAI were granted privileged access to shaping the voluntary code, which aims to help companies comply with the upcoming AI Act.

While 13 Commission-appointed experts led the process and over 1,000 participants were involved in feedback workshops, civil society groups and smaller stakeholders were largely side-lined.

Their input was often limited to reacting through emojis on an online platform instead of engaging in meaningful dialogue, the report found.

The US government also waded into the debate, sending a letter to the Commission opposing the Code. The Trump administration argued the EU’s digital regulations would stifle innovation.

Critics meanwhile say the EU’s current approach opens the door to Big Tech lobbying, potentially weakening the Code’s effectiveness just as it nears finalisation.

Although the Code was due in early May, it is now expected by June or July, just before new rules on general-purpose AI tools come into force in August.

The Commission has yet to confirm the revised timeline.

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Trump eases auto tariffs amid industry concerns

President Donald Trump has signed executive orders easing his controversial 25% tariffs on automobiles and parts, aiming to relieve pressure on carmakers struggling with rising costs.

The move follows warnings from manufacturers and analysts that the tariffs could inflate prices, harm domestic production and slow the industry’s recovery. Trump framed the measure as a temporary bridge, allowing automakers time to shift more manufacturing into the US instead of facing harsh penalties.

The changes include a short-term rebate system tied to the proportion of foreign parts used in vehicles assembled domestically. Automakers have been told they’ll have two years of reduced levies, giving them time to reconfigure supply chains and invest in new US-based facilities.

Officials claim announcements on job creation and plant expansion are expected soon, with companies like Stellantis, Ford, and GM praising the policy shift as a step toward competitiveness rather than an immediate fix.

However, some experts warn that the industry needs stability instead of unpredictable policy swings. They argue that relocating production takes years and billions in investment, not mere months.

With vehicle prices already high and supply chains stretched, economists question whether the tariff adjustments can offset the broader economic risks posed by Trump’s wider trade strategy.

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IBM commits billions to future US computing

IBM has unveiled a bold plan to invest $150 billion in the United States over the next five years. The move is designed to accelerate technological development while reinforcing IBM’s leading role in computing and AI.

A significant portion, over $30 billion, will support research and development, with a strong emphasis on manufacturing mainframes and quantum computers on American soil.

These efforts build on IBM’s legacy in the US, where it has long played a key role in advancing national infrastructure and innovation.

IBM highlighted the importance of its Poughkeepsie facility, which produces systems powering over 70% of global transaction value.

It also views quantum computing as a leap that could unlock solutions beyond today’s digital capabilities, bolstering economic growth, job creation, and national security.

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