Governance, Legislation, and Geostrategies
Microsoft and OpenAI rework billion dollar deal
(Digital Watch Observatory – 12 May 2025) OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology. According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm. – https://dig.watch/updates/microsoft-and-openai-rework-billion-dollar-deal
Microsoft expands cloud push across Europe
(Digital Watch Observatory – 12 May 2025) Microsoft has unveiled a new set of commitments aimed at strengthening its digital presence across Europe, pledging to expand cloud and AI infrastructure while supporting the region’s economic competitiveness. Announced by Microsoft President Brad Smith in Brussels, the ‘European Digital Commitments’ include a promise to increase European data centre capacity by 40% within two years, bringing the total to over 200 across 16 countries. – https://dig.watch/updates/microsoft-expands-cloud-push-across-europe
Scale AI expands into Saudi Arabia and UAE
(Digital Watch Observatory – 12 May 2025) Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion. The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move. Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China. – https://dig.watch/updates/scale-ai-expands-into-saudi-arabia-and-uae
Metaplanet’s Bitcoin stash exceeds $700 million
(Digital Watch Observatory – 12 May 2025) Japanese investment firm Metaplanet now holds 6,796 BTC, worth approximately $707 million, surpassing El Salvador in Bitcoin holdings. On 12 May, the firm added 1,241 BTC, investing $129 million at current prices. – https://dig.watch/updates/metaplanets-bitcoin-stash-exceeds-700-million
Defense, Intelligence, and Warfare
NATO requires an electronic warfare ‘paradigm shift’ to beat Russia, says alliance official
(Tim Martin – Breaking Defense – 12 May 2025) NATO must make drastic changes to its electronic warfare (EW) capabilities if the alliance wants to win a future war against Russia, as reliance on US systems remains in doubt, according to a NATO representative. “I think we as NATO can accomplish this [victory], but it will take a paradigm shift in how we operate within [the] EME [Electromagnetic Environment] and broadly EW capabilities in the maritime environment,” said Bas Nieuwenhuijse, chair of the NATO maritime EW syndicate, during the Association of Old Crows Europe trade show in Rome. – https://breakingdefense.com/2025/05/nato-requires-an-electronic-warfare-paradigm-shift-to-beat-russia-says-alliance-official/
Golden Dome push sets stage for telecom battle over spectrum access
(Lauren C. Williams – Defense One – 12 May 2025) The wildly ambitious Golden Dome missile-defense vision is turning up the heat on a long-running fight between the Pentagon and the telecommunications industry for control of certain radio frequencies. “That area of the spectrum is golden, and we need to protect it to maintain national security. And I use the word golden specifically, because the only way we can achieve Golden Dome” is by using frequencies around 3 gigahertz, Katie Arrington, who is performing the duties of the Pentagon chief information officer, told lawmakers Thursday at a hearing of the House Armed Services’ panel on cyber, information technologies, and innovation. “It is critical for national security.” – https://www.defenseone.com/defense-systems/2025/05/golden-dome-push-sets-stage-telecom-battle-over-spectrum-access/405263/?oref=d1-featured-river-secondary
Pentagon taps 12 more companies for space data transport network demos
(Courtney Albon – Defense News – 12 May 2025) The Defense Innovation Unit said Monday it has selected 12 companies to join its effort to build a secure network of military and commercial communication satellites, which will begin conducting demonstrations later this summer. The Hybrid Space Architecture program, or HSA, brings together a slew of Defense Department organizations — including DIU, Space Systems Command and the Air Force Research Laboratory — to show the value of integrating commercial satellites and communications systems into the military’s architecture to provide more bandwidth, security and flexibility. – https://www.defensenews.com/space/2025/05/12/pentagon-taps-12-more-companies-for-space-data-transport-network-demos/
Security
Cybercriminals trick users with fake AI apps
(Digital Watch Observatory – 12 May 2025) Cybercriminals are tricking users into downloading a dangerous new malware called Noodlophile by disguising it as AI software. Rather than using typical phishing tactics, attackers create convincing fake platforms that appear to offer AI-powered tools for editing videos or images. These are promoted through realistic-looking Facebook groups and viral social media posts, some of which have received over 62,000 views. – https://dig.watch/updates/cybercriminals-trick-users-with-fake-ai-apps
€34 million in crypto seized from eXch for facilitating money laundering
(Digital Watch Observatory – 12 May 2025) German authorities have seized cryptocurrency and server infrastructure worth €34 million ($37.4 million) from the now-defunct eXch crypto exchange. Prosecutors allege the platform operated without proper licences, facilitating money laundering for North Korean hackers involved in the Bybit hack. – https://dig.watch/updates/e34-million-in-crypto-seized-from-exch-for-facilitating-money-laundering
LockBit ransomware hacked, data on affiliates leaked
(Digital Watch Observatory – 12 May 2025) Internal data from the notorious LockBit ransomware group has been leaked following a hack of one of its administration panels. Over 200 conversations between affiliates and victims were also uncovered, revealing aggressive ransom tactics ranging from demands of a few thousand to over $100,000. – https://dig.watch/updates/lockbit-ransomware-hacked-data-on-affiliates-leaked
Frontiers
Singapore turns to robot dogs to guard, guide, and patrol the city of the future
(Interesting Engineering – 12 May 2025) Robot dogs are increasingly used in various roles across one of Asia’s richest economies, Singapore. The quadrupeds’ assignments include guarding bus depots, guiding the visually impaired, patrolling construction sites, and assisting with social services. The number of robotics-related firms tracked nationally has risen to over 300, up from 200 in 2023, indicating rapid growth in the sector, reports a Singapore media outlet. – https://interestingengineering.com/innovation/robot-dogs-gain-ground-in-singapores
Quantum AI interest surges in data science and cybersecurity
(Digital Watch Observatory – 12 May 2025) Quantum AI is no longer a distant concept for many businesses, with over 60 percent actively investing in or exploring the technology, according to new research from SAS. The report highlights that the most common area of application is in data analytics and machine learning, accounting for 48 percent of use cases. Research and development follows at 41 percent, while cybersecurity ranks third at 35 percent. – https://dig.watch/updates/quantum-ai-interest-surges-in-data-science-and-cybersecurity
China claims its FPV drone algorithm can beat best pilots in aerobatic manoeuvres
(Interesting Engineering – 11 May 2025) Chinese researchers have allegedly developed a new algorithm that lets first-person-view (FPV) drones perform autonomous aerobatic manoeuvres better than those by veteran human operators during flight missions. Inspired by sparrowhawks, falcons, and bats, the new artificial intelligence (AI) upgrade can facilitate high-speed, high-risk movements that usually only the most skilled human pilots can execute. – https://interestingengineering.com/innovation/china-new-fpv-drone-algorithm-beat-pilots?utm_source=facebook&utm_medium=article_post&fbclid=IwZXh0bgNhZW0CMTEAAR7IXLi6sLV55v3ffns5RRRrpOytaGbnClpRa5GvArBRbVxFfGZb6Fd22D1Jpw_aem_tl18V32k80I_07klMqhcgg