Crypto reaps political rewards after spending big to boost Trump

America’s biggest crypto companies are riding high. Plus, can the left reclaim techno-optimism?

Hello, and welcome to TechScape. In this week’s edition, the crypto industry’s political investments pay off in spades, the left attempts to reclaim an optimistic view of our shiny technological future, and your memories of Skype.

SpaceX’s Starship explodes in second failure for Elon Musk’s Mars program

Musk tells Republicans he isn’t to blame for mass firings of federal workers

Musk survives as fellow of Royal Society despite anger among scientists

White House to overhaul $42.5bn Biden-era internet plan – probably to Musk’s advantage

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Elon Musk’s Starlink could be used to transmit Australian election voting results

Contract comes to light after questions raised about the increasing role of Musk in Australia’s communications systems

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The Australian Electoral Commission is planning on using Elon Musk’s Starlink services as back up for transmitting voting results information in the upcoming federal election.

In a contract published late last year, the AEC appointed Telstra responsible for the agency’s fixed line and Starlink services until mid-2027, in a deal worth $1.38m. A spokesperson for the AEC confirmed Starlink could be used in the upcoming election for sensitive election data.

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Campaign to bar under-14s from having smartphones signed by 100,000 parents

Surrey was region of UK with most sign-ups for Smartphone Free Childhood’s parent pact, launched last year

An online campaign committing parents to bar their children from owning a smartphone until they are at least 14 has garnered 100,000 signatures in the six months since its launch.

The Smartphone Free Childhood campaign launched a “parent pact” in September in which signatories committed to withhold handsets from their children until at least the end of year 9, and to keep them off social media until they are 16.

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Internet shutdowns at record high in Africa as access ‘weaponised’

More governments seeking to keep millions of people offline amid conflicts, protests and political instability

Digital blackouts reached a record high in 2024 in Africa as more governments sought to keep millions of citizens off the internet than in any other period over the last decade.

A report released by the internet rights group Access Now and #KeepItOn, a coalition of hundreds of civil society organisations worldwide, found there were 21 shutdowns in 15 African countries, surpassing the existing record of 19 shutdowns in 2020 and 2021.

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US rise of cryptocurrency and fall of regulation pose ‘profound risks’ – report

Center for Political Accountability, which advocates for corporate disclosure, warns of fallout from Trump’s efforts

A new report warns of “profound risks” in American politics as cryptocurrency companies increase their political spending and Donald Trump oversees regulatory retreat while promising to create a “crypto strategic reserve”.

The situation “illustrate[s] the profound risks that unchecked corporate political spending presents, particularly within the volatile and often unpredictable cryptocurrency industry”, reads the report, from the Center for Political Accountability (CPA), a non-profit that advocates for corporate political disclosure.

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Taiwan hails ‘historic’ TSMC deal with US, but will it lose the ‘silicon shield’ protecting it from China?

The producer of the world’s most advanced chip technology is investing on US soil but some fear that could reduce the leverage Taiwan holds to ensure its future security

TSMC’s chief executive, CC Wei, smiled broadly as he stood next to Donald Trump in the White House on Monday, announcing what he said was the biggest foreign direct investment on US soil in history. His company – the producer of most of the world’s most advanced semiconductors – would boost its existing $65bn US presence by a whopping $100bn.

For TSMC the deal meant they would avoid massive tariffs Trump had flagged for the global chip industry. For the US it mean tens of thousands of construction jobs, and the eventual development of crucial technology on US soil, far away from the threat of China taking control of it if it one day annexed Taiwan.

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Some British firms ‘stuck in neutral’ over AI, says Microsoft UK boss

Survey of bosses and staff finds that more than half of executives feel their organisation has no official AI plan

Some companies are “stuck in neutral” in their approach to artificial intelligence, according to Microsoft’s UK boss, who said a significant number of private and public sector organisations lack any formal AI strategy.

A Microsoft survey of nearly 1,500 UK senior leaders across public and private sectors, as well as 1,440 employees, found that more than half of executives feel their organisation has no official AI plan. Roughly the same proportion report a growing gap in productivity – a measure of economic efficiency – between employees who use AI and those who do not.

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The LA Times published an op-ed warning of AI’s dangers. It also published its AI tool’s reply

‘Insight’ labeled the argument ‘center-left’ and created a reply insisting AI will make storytelling more democratic

Beneath a recent Los Angeles Times opinion piece about the dangers of artificial intelligence, there is now an AI-generated response about how AI will make storytelling more democratic.

“Some in the film world have met the arrival of generative AI tools with open arms. We and others see it as something deeply troubling on the horizon,” the co-directors of the Archival Producers Alliance, Rachel Antell, Stephanie Jenkins and Jennifer Petrucelli, wrote on 1 March.

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UN human rights chief ‘deeply worried by fundamental shift’ in US

Volker Türk alarmed at growing power of ‘unelected tech oligarchs’ and warns gender equality is being rolled back

The UN human rights chief has warned of a “fundamental shift” in the US and sounded the alarm over the growing power of “unelected tech oligarchs”, in a stinging rebuke of Washington weeks into Donald Trump’s presidency.

Volker Türk said there had been bipartisan support for human rights in the US for decades but said he was “now deeply worried by the fundamental shift in direction that is taking place domestically and internationally”.

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Social media platforms could face $50m fines if Australian children access adult content on their sites

Under proposed new codes submitted to eSafety commissioner, tech companies would have six months to implement new measures

Social media and technology companies would have six months to implement a suite of new measures to restrict Australian children from accessing adult content online, or face fines up to $50m, under proposed new codes developed by the industry.

The draft codes, submitted to the eSafety commissioner last week for approval, would require social media platforms that allow pornography to prevent access to minors, and implement age assurance measures for users.

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Extreme online violence may be linked to rise of ‘0 to 100’ killers, experts say

Criminal justice specialists call for new approach to identify emerging type of murderer with no prior convictions

The rise of “0 to 100” killers who go from watching torture, mutilation and beheading videos in their bedrooms to committing murder suggests there could be a link between extreme violence online and in real life, experts have said.

Criminal justice experts advocated a new approach, inspired by counter-terrorism, to identify an emerging type of murderer with no prior convictions, after cases such as Nicholas Prosper, who killed his mother and siblings and planned a primary school massacre.

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Trump administration retreats in fight against Russian cyber threats

Recent incidents indicate US is no longer characterizing Russia as a cyber security threat, marking a radical departure: ‘Putin is on the inside now’

The Trump administration has publicly and privately signaled that it does not believe Russia represents a cyber threat against US national security or critical infrastructure, marking a radical departure from longstanding intelligence assessments.

The shift in policy could make the US vulnerable to hacking attacks by Russia, experts warned, and appeared to reflect the warming of relations between Donald Trump and Russia’s president, Vladimir Putin.

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North Korea behind $1.5bn hack of crypto exchange ByBit, says FBI

The US agency said it refers to this specific North Korean malicious cyber activity as ‘TraderTraitor’

North Korea was behind the theft of approximately $1.5bn in virtual assets from a cryptocurrency exchange, the FBI has said, in what is being described as the biggest heist in history.

The haul, which reportedly has since lost some of its value, exceeded the previous record sum of $1bn stolen by the dictator Saddam Hussein from Iraq’s central bank before the 2003 war, and underlines the North’s growing expertise in cybercrime.

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Nvidia beats Wall Street expectations in first earnings after DeepSeek’s AI debut

Investors were eyeing the firm for signs of slowing demand after revelation high-end chips not necessary, but found few

Nvidia surpassed investor expectations for the fourth quarter of 2024 with a 78% jump in revenue year over year.

The company reported $39.3bn in revenue, beating analyst projections of $38.25bn. It also reported $0.89 in earnings a share on Wednesday, beating expectations of $0.84.

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Apple to fix iPhone dictation bug that replaces word ‘racist’ with ‘Trump’

Tech company blames ‘phonetic overlap’ for problem where US president’s name appears

Apple has promised to fix a bug in its iPhone automatic dictation tool after some users reported it had suggested to them “Trump” when they said the word “racist”.

The glitch was first highlighted in a viral post on TikTok, when the speech-to-text tool sometimes briefly flashed up the word “Trump” when they said “racist”, and was later repeated by others on social media.

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‘Homegrown’ Swedish battery startup admits importing vital components

Northvolt, which claims to run Europe’s first homegrown gigafactory, admits it depends on Chinese suppliers for cathode active material

The Swedish startup Northvolt has admitted that a vital component of its batteries is imported amid claims that the company, which claims to run Europe’s first homegrown gigafactory, depends on Chinese suppliers.

It comes as a documentary programme to be shown in Sweden on Wednesday by the national broadcaster SVT, exposes the company’s failure to build a truly homegrown battery after its attempts to produce its own cathode active material at its Northvolt Ett factory in Skellefteå, northern Sweden, were unsuccessful.

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Denmark to ban mobile phones in schools and after-school clubs

Government accepts advice of commission that also says children under 13 should not have their own smartphone

Denmark is to ban mobile phones in schools and after-school clubs on the recommendation of a government commission that also found that children under 13 should not have their own smartphone or tablet.

The government said it would change existing legislation to force all folkeskole – comprehensive primary and lower secondary schools – to become phone-free, meaning that almost all children aged between seven and 16-17 will be required by law not to bring their phones into school.

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Ex-US security officials urge funding for science research to keep up with China

Appeal from officials, including two senior figures from Trump’s first term, comes amid reports National Science Foundation’s budget will be slashed

Chuck Hagel, the former US defense secretary, and other former US national security officials, including two senior figures from Donald Trump’s first term, on Tuesday warned that China was outpacing the US in critical technology fields and urged Congress to increase funding for federal scientific research.

The appeal comes a week after the National Science Foundation (NSF), which funds science research, fired 170 people in response to Donald Trump’s order to reduce the federal workforce. An NSF spokesman declined comment on reports that hundreds more layoffs were possible and that the agency’s budget could be slashed by billions.

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UK delays plans to regulate AI as ministers seek to align with Trump administration

Exclusive: Government reluctant to take action that could weaken UK’s attractiveness to AI firms, says Labour source

Ministers have delayed plans to regulate artificial intelligence as the UK government seeks to align itself with Donald Trump’s administration on the technology, the Guardian has learned.

A long-awaited AI bill, which ministers had originally intended to publish before Christmas, is not expected to appear in parliament before the summer, according to three Labour sources briefed on the plans.

Ministers had intended to publish a short bill within months of entering office that would have required companies to hand over large AI models such as ChatGPT for testing by the UK’s AI Security Institute.

The bill was intended to be the government’s answer to concerns that AI models could become so advanced that they pose a risk to humanity, and were different from separate proposals to clarify how AI companies can use copyrighted material.

Trump’s election has led to a rethink, however. A senior Labour source said the bill was “properly in the background” and that there were still “no hard proposals in terms of what the legislation looks like”. “They said let’s try and get it done before Christmas – now it’s summer,” the source added.

Another Labour source briefed on the legislation said an iteration of the bill had been prepared months ago but was now up in the air because of Trump, with ministers reluctant to take action that could weaken the UK’s attractiveness to AI companies.

Trump has torpedoed plans by his predecessor Joe Biden for regulating AI and revoked an executive order on making the technology safe and trustworthy. The future of the US AI Safety Institute, founded by Biden, is uncertain after its director resigned this month. At an AI summit hosted in Paris, JD Vance, the US vice-president, railed against Europe’s planned regulation of the technology.

The UK government chose to side with the US by refusing to sign the Paris declaration endorsed by 66 other countries at the summit. Peter Mandelson, the UK’s ambassador to Washington, has reportedly drafted proposals to make the UK the main hub for US AI investment.

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Don’t gift our work to AI billionaires: Mark Haddon, Michal Rosen and other creatives urge government

More than 2,000 cultural figures challenge Whitehall’s eagerness ‘to ­wrap our lives work in attractive paper for automated competitors’

Original British art and creative skill is in peril thanks to the rise of AI and the government’s plans to loosen ­copyright rules, some of the UK’s leading cultural figures have said.

More than 2,000 people, including leading creative names such as Mark Haddon, Axel Scheffler, Benji Davies and Michael Rosen, have signed a ­letter published in the Observer today calling on the government to keep the legal safeguards that offer artists and writers the prospect of a ­sustainable income.

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