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Child safety campaigner hails early impact of Online Safety Act

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The crossbench peer who played a key role in shaping new landmark UK rules to protect children online has defended the legislation and its age-verification requirements, saying its success should “give us confidence” to go further.

“No one a year ago believed that you could redesign the digital world so it didn’t splurge self-harm, suicide and pornography at a particular demographic,” said Baroness Beeban Kidron, a longtime child-safety campaigner in the House of Lords. “Guess what? We can.”

In her first interview since regulators began enforcing elements of the Online Safety Act that require websites to verify users’ ages before they can access adult content, Kidron said tech companies had “an abysmal record of child safety” and “wilfully ignored it for at least two or three decades”.

“The only changes they’ve made are because we’ve forced them through regulation and legislation,” she told the Financial Times. “We wouldn’t be having this detailed battle [over online safety] if we had something [from the tech industry] that was fit for purpose.”

Amendments made to the act by the former filmmaker before parliament passed it into law in 2023 have helped build one of the world’s most ambitious regimes to boost child protection on the internet.

Kidron said the responses to last month’s introduction of age controls for many sites should not detract from progress the law was making. Those ranged from surging use of virtual private networks that disguise a user’s location to complaints from free speech evangelists in Silicon Valley and the rightwing populist Reform UK party.

“This is not a moment for everyone to throw their toys out of the pram and walk backwards,” she said.

But Kidron urged regulator Ofcom to take privacy more seriously as it enforced age verification, warning the issue would “become a culture war if not done properly”.

The watchdog had become “too close to the tech sector” and “should have been tougher about privacy” when it proposed systems that platforms could use to ensure that users are over 18 when accessing adult content, she added.

Ofcom has recommended a range of tools to verify users’ ages, including bank or credit card checks, scanning photo IDs, links to phone numbers and email addresses, and analysing facial features via photo or video.

Meta, Google-owned YouTube and TikTok are among companies testing out data-driven systems that infer a user’s age by tracking their usage, rather than confirming their identity directly.

Many websites have launched age-verification systems over the past few weeks, either developed by themselves or by third-party providers, and many people accessing a wide range of social media apps, pornographic sites, games and music services from the UK since late July will have been asked to prove their age in order to gain full access.

Despite tech companies’ assurances that they would safeguard or delete images of users’ faces or identity documents, critics say the system is vulnerable to hackers exposing a mountain of personal data — often from sensitive sites that users may not wish to be publicly associated with.

Kidron said many of the complaints over age checks could have been avoided if Ofcom had been stricter in its requirements for how the providers of verification services handle personal data.

“They say vaguely it should be privacy-preserving but they don’t really deal with that properly,” she said. “The government can be tough about privacy and the tech companies can choose it . . . this equation that age assurance must be a data grab is just not true.”

UK traffic to some of the most popular adult sites fell by almost half in the first two weeks following Ofcom’s enforcement of the new law, at the same time as VPN usage increased many times over.

“Do not assume that every VPN that has been downloaded is a child trying to get around [age controls],” Kidron said. “Many of them are adults trying to preserve their freedom . . . to access that [material] in private.”

Even if children were using VPNs, that would count as an improvement over the previous status quo where it had become “normal to offer pornography in the playground”, she said. Before the new rules there was no “hurdle” to do so, with many children encountering explicit material on social media without looking for it, she added.

“It’s really an important part of childhood to transgress,” Kidron said. “[Using a VPN] is like a child climbing out the window at night when you’ve grounded them . . . They know what they’re doing.”

Kidron was also critical of the dispute between Reform leader Nigel Farage, who has called for the Online Safety Act to be repealed, and technology secretary Peter Kyle, who accused opponents of the law of siding with the notorious late paedophile Jimmy Savile.

“This pathetic fight for the headlines that’s been going on for the last couple of weeks doesn’t start in the right place,” she said. “Everybody seems to have got a little bit lost in the trees and forgotten about the wood.”



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FTAV’s further reading

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AI and jobs; Oklahoma and towers; India and retailers; AI and cybercrime; Norway and elections



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Trump Intel deal designed to block sale of chipmaking unit, CFO says

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The Trump administration’s investment in Intel was structured to deter the chipmaker from selling its manufacturing unit, its chief financial officer said on Thursday, locking it into a lossmaking business it has faced pressure to offload.

The US government last week agreed to take a 10 per cent stake in Intel by converting $8.9bn of federal grants under the 2022 Chips Act into equity, the latest unorthodox intervention by President Donald Trump in corporate America.

The agreement also contains a five-year warrant that allows the government to take an additional 5 per cent of Intel at $20 a share if it ceases to own 51 per cent of its foundry business — which aims to make chips for third-party clients.

“I don’t think there’s a high likelihood that we would take our stake below the 50 per cent, so ultimately I would expect [the warrant] to expire,” CFO David Zinsner told a Deutsche Bank conference on Thursday.

“I think from the government’s perspective, they were aligned with that: they didn’t want to see us take the business and spin it off or sell it to somebody.”

Intel has faced pressure to carve off its foundry business as it haemorrhages cash. It lost $13bn last year as it struggled to compete with rival TSMC and attract outside customers.

Zinsner’s comments highlight how the deal with the Trump administration ties the company’s hands.

Analysts including Citi, as well as former Intel board members, have called for a sale — and Intel has seen takeover interest from the likes of Qualcomm.

Intel’s board ousted chief executive Pat Gelsinger, the architect of its ambitious foundry strategy, in December, which intensified expectations that it could ultimately abandon the business.

White House press secretary Karoline Leavitt told reporters on Thursday the deal was being finalised. “The Intel deal is still being ironed out by the Department of Commerce. The T’s are still being crossed, the I’s are still being dotted.”

Intel received $5.7bn of the government investment on Wednesday, Zinsner said. The remaining $3.2bn of the investment is still dependent on Intel hitting milestones agreed under a Department of Defense scheme and has not yet been paid.

He said the warrants could be viewed as “a little bit of friction to keep us from moving in a direction that I think ultimately the government would prefer we not move to”.

He said the direct government stake could also incentivise potential customers to view Intel on a “different level”.

So far, the likes of Nvidia, Apple and Qualcomm have not placed orders with Intel, which has struggled to convince them it has reliable manufacturing processes that could lure them away from TSMC.

As Intel’s new chief executive Lip-Bu Tan seeks to shore up the company’s finances, the government deal also “eliminated the need to access capital markets”, Zinsner explained.

Given the uncertainty over whether Intel would hit the construction milestones required to receive the Chips Act manufacturing grants, converting the government funds to equity “effectively guaranteed that we’d get the cash”.

“This was a great quarter for us in terms of cash raise,” Zinsner added. Intel had also recently sold $1bn of its shares in Mobileye, and was “within a couple of weeks” of closing a deal to sell 51 per cent of its stake in its specialist chips unit Altera to private equity firm Silver Lake, he noted.

SoftBank also made a $2bn investment in Intel last week. Zinsner pushed back against the idea that it had been co-ordinated with the government, as SoftBank chief executive Masayoshi Son pursues an ever-closer relationship with Trump.

“It was coincidence that it fell all in the same week,” Zinsner said.



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Nuclear fusion developer raises almost $900mn in new funding

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One of the most advanced nuclear fusion developers has raised about $900mn from backers including Nvidia and Morgan Stanley, as it races to complete a demonstration plant in the US and commercialise the nascent energy technology.   

Commonwealth Fusion Systems plans to use the money to complete its Sparc fusion demonstration machine and begin work on developing a power plant in Virginia. The group secured a deal in June to supply 200 megawatts of electricity to technology giant Google.

The Google deal was one of only a handful of such commercial agreements in the sector and placed CFS at the forefront of fusion companies trying to perfect the technology and develop a commercially viable machine.

CFS has raised almost $3bn since it was spun out of the Massachusetts Institute of Technology in 2018, drawing investors amid heightened interest in nuclear to meet surging energy demand from artificial intelligence.

“Investors recognise that CFS is making fusion power a reality. They see that we are executing and delivering on our objectives,” said Bob Mumgaard, chief executive and co-founder of CFS. 

New investors in CFS’s latest funding round, which raised $863mn, include NVentures, Nvidia’s venture capital arm, Morgan Stanley’s Counterpoint Global and a consortium of 12 Japanese companies led by Mitsui & Co.

Nuclear fusion seeks to produce clean energy by combining atoms in a manner that releases a significant amount of energy. In contrast, fission — the process used in conventional nuclear power — splits heavy atoms such as uranium into smaller atoms, releasing heat.

CFS is also planning to build the world’s first large-scale fusion power plant in Virginia, which is home to the largest concentration of data centres in the world.

BloombergNEF estimates that US data centre power demand will more than double to 78GW by 2035, from about 35GW last year, and nuclear energy start-ups already have raised more than $3bn in 2025, a 400 per cent increase on 2024 levels.

But experts have warned that addressing the technological challenges to the development of fusion would be expensive, putting into question the viability of the technology.

No group has yet been able to produce more energy from a fusion reaction than the system itself consumes despite decades of experimentation.

“Fusion is radically difficult compared to fission,” said Mark Nelson, managing director of the consultancy Radiant Energy Group, pointing to the incredibly high temperatures and pressures required to combine atoms.

“The hard part is not making fusion reactors. Every step forward towards what may be a dead end economically, looks like something that justifies another billion or a Nobel Prize.



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