Daily Digest on AI and Emerging Technologies (30 May 2025)

Governance, Legislation, and Geostrategies

AI Governance Needs Federalism, Not a Federally Imposed Moratorium

(David S. Rubenstein – Just Security – 29 May 2025) On May 22, the U.S. House of Representatives passed a budget proposal including  a ten-year moratorium on state and local regulation of AI. The proposal aims to nullify dozens of existing state AI laws and block states from enacting new ones. Congress should reject the proposed “AI preemption moratorium.” It is bad policy and is likely unconstitutional under the Tenth Amendment. Proponents of the moratorium point to the fragmented patchwork of state AI laws as justification, claiming that preempting state regulation will spur innovation and help the United States outpace China. But this argument rests on a false dichotomy between regulation and innovation. Regulation can drive innovation by establishing clear rules, building public trust, and encouraging adoption. If the United States wants to lead in AI, it must do so by upholding its democratic values and building systems people trust—not by sidelining the institutions best positioned to govern responsibly. Congress has yet to meaningfully regulate AI in the private sector and is unlikely to do so in the near future. Meanwhile, states across the country have stepped into the vacuum—enacting laws aimed at promoting transparency, accountability, and consumer protection across critical domains including education, employment, housing, healthcare, and more. These efforts reflect not only public demand but the practical need to tailor governance to specific risks and contexts. There are no ready-made blueprints for regulating a general-purpose technology like AI. That is why state-level experimentation—rooted in democratic legitimacy and policy flexibility—remains essential. The moratorium would halt this progress at precisely the moment when we need it most. – https://www.justsecurity.org/113728/ai-governance-federalism-moratorium/

Chinese tech firms thrive amid US curbs

(Digwatch – 29 May 2025) Nvidia CEO Jensen Huang has raised concerns that US export restrictions are accelerating the growth of Chinese AI firms, making them more competitive. In a recent interview, Huang highlighted that companies like Huawei — long blacklisted by the US — have become ‘formidable’ rivals. The restrictions have hit Nvidia hard, with the company projecting an $8 billion revenue loss this quarter due to the limited access to the Chinese market, historically its largest for chips. The Biden administration’s AI diffusion rule, aimed at controlling the spread of advanced AI technologies, had already drawn criticism from Huang before being partially rolled back by the Trump administration in May. – https://dig.watch/updates/chinese-tech-firms-thrive-amid-us-curbs

PREVAIL to offer advanced Edge AI chip design tools across Europe

(DigWatch – 29 May 2025) The European Union’s PREVAIL project is preparing to open its Edge AI services to external users in June 2025. Coordinated by Europe’s top research and technology organisations, the initiative offers a shared, multi-hub infrastructure designed to speed up the development and commercialisation of next-generation Edge AI technologies. Through its platform, European designers will gain access to advanced chip prototyping capabilities and full design support using standard commercial tools. – https://dig.watch/updates/prevail-to-offer-advanced-edge-ai-chip-design-tools-across-europe

Pakistan unveils national Bitcoin reserve

(DigWatch – 29 May 2025) Pakistan is moving ahead with plans to establish a national Bitcoin reserve as part of a broader digital asset strategy. Bilal Bin Saqib, head of the Pakistan Crypto Council, announced the move at the Bitcoin 2025 conference in Las Vegas. He emphasised that the government’s intention is long term and not driven by market speculation. He stated that once acquired, the Bitcoin would never be sold. – https://dig.watch/updates/pakistan-unveils-national-bitcoin-reserve

El Salvador removes Bitcoin mandate

(DigWatch – 29 May 2025) El Salvador has officially amended its Bitcoin law, making acceptance of the cryptocurrency voluntary rather than mandatory. The move reverses a key element of the 2021 law that made Bitcoin legal tender alongside the US dollar. – https://dig.watch/updates/el-salvador-removes-bitcoin-mandate

Oregon becomes second state to ban sale of precise geolocation data

(Suzanne Smalley – The Record – 28 May 2025) The Oregon state legislature on Tuesday passed a law banning the sale of precise geolocation data, making it the second state in the country to have greenlit such legislation. Maryland passed a similar bill last year that will take effect in October. Both bills also ban the sale of data belonging to children — Maryland for children under 18, and Oregon for children under 16. Although there is a federal Children’s Online Privacy Protection Act, the two state bills go further than it because the federal law only bans the sale of data for children under age 13, according to Matt Schwartz, a policy analyst at Consumer Reports. – https://therecord.media/oregon-passes-geolocation-kids-data-bill

The AI Skills Coalition: Democratizing AI education

(ITU – 26 May 2025) As artificial intelligence (AI) continues reshaping our world, the need for accessible AI education has never been more urgent. The AI Skills Coalition recently held its first public meeting and introduced its newly formed Steering Committee during an open online AI for Good event. The AI Skills Coalition, launched by the International Telecommunication Union (ITU) in March, has brought together governments, companies, experts and advocates to make learning opportunities on AI available to everyone, everywhere. The global training initiative aims to equip at least 10,000 individuals around the world with essential AI skills by the end of 2025. – https://www.itu.int/hub/2025/05/the-ai-skills-coalition-democratizing-ai-education/

Security

Are We Ready for a ‘DeepSeek for Bioweapons’?

(Steven Adler – Lawfare – 29 May 2025) The announcement of a powerful new artificial intelligence (AI) model is a leading indicator that many similar AI models are close behind. The January 2025 release from the Chinese company DeepSeek is an example of the small gap between when an AI ability is first demonstrated and when others can match it: Only four months earlier, OpenAI had previewed their then-leading o1 “reasoning model,” which used a new approach for getting the model to think harder. Within months, the much smaller DeepSeek had roughly matched OpenAI’s results, and in doing so indicated that Chinese AI companies may not be far behind those in the U.S. In that case, matching o1’s abilities posed little specific risk, even though DeepSeek took a different approach to safety than did the leading Western companies (for instance, DeepSeek’s model is freely downloadable by anyone, and so has fewer protections against misuse). The replicated abilities were general reasoning skills, not something outright dangerous. In contrast, the abilities feared by the leading AI companies tend to be more specific, like helping people to cause harm with bioweapons. – https://www.lawfaremedia.org/article/are-we-ready-for-a–deepseek-for-bioweapons

Post-Quantum Cryptography Coalition Unveils PQC Migration Roadmap

(Quantum Insider – 29 May 2025) The Post-Quantum Cryptography Coalition has released a migration roadmap to help organizations prepare for security threats posed by quantum computing. The roadmap outlines practical steps for identifying vulnerabilities, planning quantum-safe transitions, and continuously evaluating cryptographic defenses. Built on NIST standards and member insights, the guide supports CIOs and CISOs in tailoring migration strategies to their specific risk profiles and operational needs. – https://thequantuminsider.com/2025/05/29/post-quantum-cryptography-coalition-unveils-pqc-migration-roadmap/

Luxembourg marks crypto companies as high risk for money laundering

(DigWatch – 29 May 2025) Luxembourg has classified virtual asset service providers (VASPs) as high-risk for money laundering in its 2025 National Risk Assessment. The report highlights concerns about the crypto industry’s exposure to financial crime, citing factors such as transaction volumes, client reach, and international operations. – https://dig.watch/updates/luxembourg-marks-crypto-companies-as-high-risk-for-money-laundering

Google warns of Vietnam-based hackers using bogus AI video generators to spread malware

(Jonathan Greig – The Record – 28 May 2025) Fake AI-powered video generators are being used to spread infostealers and other types of malware, Google researchers have found. A group of cybercriminals created a network of fraudulent websites masquerading as cutting-edge AI tools and then bought ads on social media platforms to promote the sites, the researchers said. Experts from the tech giant’s Mandiant unit published a report backing previous assessments by Facebook and security firm Morphisec that identified a campaign designed to weaponize interest in AI tools that can generate videos based on user prompts. – https://therecord.media/malvertising-vietnam-hackers-fake-ai-video-generators

Frontiers

Measured in Seconds, Built for Centuries: How Public Science Shaped Quantum And How We Carry It Forward

(Quantum Insider – 29 May 2025) The atomic clock embodied quantum principles long before “qubit” was a household term, laying quiet groundwork for the second quantum revolution. In the mid-1990s, NIST’s ion trap work for clocks unintentionally mirrored the architecture needed for quantum logic gates, catalyzing the first demonstration of entangled qubit control. Proposed funding reductions to public science threaten the continuity, mentorship, and institutional memory that have made long-range progress like this possible. This July, the Quantum for Good: Industry Leadership, Innovation, and Real-World Impact workshop at AI for Good will gather global voices to explore what it takes both to build quantum technologies and sustain the ecosystem around them. – https://thequantuminsider.com/2025/05/29/measured-in-seconds-built-for-centuries-how-public-science-shaped-quantum-and-how-we-carry-it-forward/

QuEra Installs First Quantum Computer Outside Its Lab

(Quantum Insider – 29 May 2025) QuEra Computing has deployed its first quantum computer outside its labs at Japan’s AIST in Tsukuba, marking a milestone in Japan’s national quantum strategy and supporting the new G-QuAT quantum-AI research center. The gate-based neutral-atom system is co-located with the ABCI-Q supercomputer, forming a hybrid quantum-classical platform aimed at advancing applications in drug discovery, logistics, and climate modeling. The installation reflects growing global demand for QuEra’s architecture, following major contracts and a $230 million funding round backed by Google, SoftBank Vision Fund 2, and Valor Equity Partners. – https://thequantuminsider.com/2025/05/29/quera-installs-first-quantum-computer-outside-its-lab/

What’s Quantum Biology? A Research Pioneer Shares His Vision for Quantum Technology’s Next Frontier

(Quantum Insider – 29 May 2025) Researchers at Howard University’s Quantum Biology Lab “use techniques from quantum optics, quantum information, theoretical physics, spectroscopy, structural/molecular biology and high-performance computing to solve an array of problems relevant to quantum effects in living processes.”. Physicist Philip Kurian, founder of the Quantum Biology Lab at Howard University, leads interdisciplinary research exploring how quantum effects may operate in biological systems and influence both medicine and future machine design. Among the lab’s successes, the team has found experimental evidence that biological systems may naturally exhibit quantum effects, which could inform the design of future quantum machines. – https://thequantuminsider.com/2025/05/29/whats-quantum-biology-a-research-pioneer-shares-his-vision-for-quantum-technologys-next-frontier/

VanEck Introduces Quantum ETF to Capitalize on Tech’s Early Surge

(Quantum Insider – 29 May 2025) A new ETF from VanEck — labeled Europe’s first quantum ETF — offers diversified exposure to the emerging quantum computing sector, which some see as the next major leap in computational technology. The fund includes 30 companies across hardware, software and patent leadership, amid rising global investment and growing expectations for long-term economic impact. Despite optimism, VanEck warns of high risk due to market concentration, limited commercial maturity, and the early-stage nature of most quantum firms. – https://thequantuminsider.com/2025/05/29/vaneck-introduces-quantum-etf-to-capitalize-on-techs-early-surge/

$10 billion bet: Honor joins China’s humanoid robot race to rival tech giants

(Interesting Engineering – 29 May 2025) Chinese smartphone maker Honor has joined the country’s heated race to develop robots. The company had announced its plans to invest US$ 10 billion over the next five years to evolve from a smartphone manufacturer into an “ecosystem company” centered on AI-powered devices. Recently, Honor applied its AI algorithm to train a humanoid robot developed by Chinese start-up Unitree Robotics, enabling it to reach a running speed of 4 meters per second — a new record for robots. As part of its AI strategy, the Shenzhen-based firm, a spin-off from telecommunications giant Huawei Technologies, aims to develop its robots and collaborate with partners to explore opportunities in robotics. – https://interestingengineering.com/innovation/honor-joins-chinas-robot-race

Humanoids, medical robots help futuristic Taiwan hospital staff with patient care

(Interesting Engineering – 29 May 2025) A cloud and AI solutions provider has partnered with MacKay Memorial Hospital in Taipei City to launch three AI-driven multi-modal medical robots. Taiwan-based Ubitus’ AI robots include a navigation-assisting autonomous mobile robot (AMR), a dual-arm humanoid for autonomous transport, and a quadruped for hazardous area monitoring using NVIDIA’s advanced perception and mobility technologies. The announcement was made during NVIDIA GTC Taiwan 2025, where Ubitus showcased how NVIDIA’s advanced technologies power a new era of healthcare automation. “We are honored to partner with MacKay Memorial Hospital to pioneer multi-modal medical robot collaboration powered by NVIDIA’s comprehensive healthcare AI technologies, assisting MacKay in becoming the first smart hospital in Taiwan to adopt NVIDIA B200,” said Wesley Kuo, CEO of Ubitus, in a statement. – https://interestingengineering.com/innovation/ai-robots-launched-to-enhance-patient-care

Telegram partners with Musk’s xAI

(DigWatch – 29 May 2025) Elon Musk’s AI company, xAI, is partnering with Telegram to bring its AI assistant, Grok, to the messaging platform’s more than one billion users. Telegram founder Pavel Durov announced that Grok will be integrated into Telegram’s apps and distributed directly through the service. – https://dig.watch/updates/telegram-partners-with-musks-xai

New AI food waste project aims to deliver 1.5 million meals

(DigWatch – 29 May 2025) A major new initiative backed by Innovate UK is bringing together leading businesses and organisations to develop an AI-powered food redistribution platform designed to reduce edible food waste and support communities facing food insecurity. The project is supported by a £1.9 million grant from the BridgeAI programme and is match-funded by participating partners. – https://dig.watch/updates/new-ai-food-waste-project-aims-to-deliver-1-5-million-meals

Copilot for Gaming now in testing on Xbox app for iOS and Android

(DigWatch – 29 May 2025) Microsoft has begun rolling out the beta version of its new AI-powered tool, Copilot for Gaming, designed to enhance the gaming experience through personalised assistance. Available now in the Xbox app for iOS and Android, the feature lets users ask game-related questions and receive tailored responses based on their gaming history, achievements, and account data. – https://dig.watch/updates/copilot-for-gaming-now-in-testing-on-xbox-app-for-ios-and-android

Defense, Intelligence and Warfare

China to build robot thruster to shield space station from Elon Musk’s satellite swarm

(Interesting Engineering – 29 May 2025) The militarization of space continues to gain momentum. One of the world’s leading space powers, China, is developing a new robotic defense system for its Tiangong space station. The space system will utilize autonomous vehicles capable of intercepting and latching onto suspicious spacecraft. Once in their grasp, these bots would thrust away from the orbital station, removing the danger. The new development was announced by Sun Zhibin of the National Space Science Centre in Beijing during a talk at Nanjing University of Science and Technology on Tuesday, a report from the South China Morning Post (SCMP) reveals. – https://interestingengineering.com/space/china-to-deploy-space-defense-bots

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