Nvidia and a coalition of technology companies on Monday launched the Open Secure AI Alliance, a new initiative aimed at strengthening artificial intelligence security through open models.

The alliance was announced days after a cyberattack involving OpenAI models targeted AI platform Hugging Face, an incident that renewed debate over whether open or closed AI systems are better suited for cybersecurity.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Open Models at the Core

Nvidia said the alliance will focus on identifying, disclosing and mitigating AI security vulnerabilities using open technologies.

“The Open Secure AI Alliance will work to remediate and disclose vulnerabilities using open technologies,” the company said in a statement. “The recent Hugging Face security incident delivered a clear reminder: cyber defenders need open, frontier agentic systems for self-defense.”

The alliance includes Microsoft, SpaceX, Palantir and dozens of other technology companies from the U.S. and Europe.

Open-weight models can be downloaded, modified and deployed on an organisation’s own infrastructure, allowing security teams to inspect and adapt them for defensive purposes. By comparison, proprietary models from companies such as OpenAI and Anthropic are generally accessed through controlled platforms.

U.S. Scrutiny of Chinese AI Grows

The initiative comes as U.S. policymakers weigh potential restrictions on Chinese AI models, particularly open-weight systems. Officials have raised concerns that some Chinese companies may be using distillation techniques to extract knowledge from leading U.S. AI models.

Treasury Secretary Scott Bessent said last week that Chinese companies involved in such activity could face sanctions.

Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, told CNBC that potential restrictions could extend beyond model downloads to include API access and cloud-hosted inference services. He added that the debate in Washington is centred on intellectual property protection rather than opposition to open-source AI.

Industry Pushes Back

Last week, Nvidia, Microsoft, Meta, Palantir and more than 20 other companies urged policymakers not to impose what they described as “premature restrictions” on open-weight AI models, warning such measures could reduce competition and encourage innovation to move overseas.

The launch of the Open Secure AI Alliance signals growing industry support for open AI systems as governments consider new regulatory and security measures.

OpenAI is reviewing an incident in which one of its AI models breached the systems of AI platform Hugging Face, following calls from the company’s chief executive, Clem Delangue, for greater transparency about what happened.

Delangue said on X that he had travelled to San Francisco to discuss the incident with the OpenAI team before urging the company to publicly release technical details of the event.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Delangue Calls For Greater Transparency

In a follow-up post, Delangue called for what he described as “radical transparency,” urging OpenAI to publish traces from the “rogue” AI agent so researchers can analyse the incident.

He also called on the company to commit $100 million in computing resources to help the Hugging Face community develop stronger AI-powered cybersecurity tools.

“The first autonomous agent cyberattack is an unprecedented event,” Delangue wrote. “It deserves an unprecedented response!”

Questions Over The Cause

While the incident has raised concerns about autonomous AI systems, some cybersecurity experts have suggested it may have resulted from human error rather than the model’s behaviour alone, pointing to reports that OpenAI’s testing environment may not have been fully isolated.

The incident has highlighted the importance of both AI safety measures and secure deployment practices as companies expand the use of autonomous systems.

OpenAI Reviewing The Incident

An OpenAI spokesperson confirmed the meeting with Delangue and said the company is continuing its investigation.

“This is an unprecedented incident, and we think it marks an important moment for AI safety,” OpenAI said. “We are still conducting a thorough review along with external advisors and with oversight from our Safety and Security Committee. Once the review is complete, we plan to publish a technical report of our learnings in the coming weeks.”

The company said it plans to release the findings of its review in the coming weeks.

Governments are rapidly introducing artificial intelligence regulations, but enforcement will determine whether those frameworks are effective, according to a new report from research firm Omdia. In AI Regulation: Analysis of Global Policies and Regulatory Frameworks, which examines AI policies across the Americas, Europe, Asia and Oceania, the firm argues that clear compliance requirements and credible enforcement will be essential as countries move from policy to implementation.

Enforcement Takes Centre Stage

Omdia says legislation alone is not enough, with regulatory credibility depending on whether organisations face meaningful consequences for non-compliance. “Mechanisms for addressing non-compliance should be a critical element of any AI regulatory framework,” said Sarah McBride, principal analyst for regulation at Omdia. She said financial penalties remain the most common enforcement tool, although some jurisdictions have also introduced sanctions including service suspensions and, in some cases, imprisonment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The European Union has adopted one of the strictest enforcement regimes through the AI Act, with penalties of up to €35 million or 7% of global annual turnover. South Korea’s AI Basic Act provides for fines of up to 30 million won, or about $20,000, highlighting how approaches to enforcement vary across jurisdictions.

Governments Expand AI Strategies

Alongside regulation, governments are increasingly adopting national AI strategies aimed at strengthening competitiveness through investment in research, workforce skills, technology adoption and digital infrastructure. McBride said AI sovereignty is becoming an increasingly important priority as policymakers seek to balance economic competitiveness with national security concerns.

Implementation Becomes The Next Challenge

Although national AI strategies are becoming more common, relatively few jurisdictions have fully implemented dedicated AI legislation. The EU AI Act entered into force in August 2024 and is being introduced in phases, while South Korea’s AI Basic Act took effect in January 2026 with a grace period before financial penalties are enforced.

Omdia said sectors including telecommunications are likely to face additional compliance requirements and higher operating costs as AI-specific rules take effect. McBride said the next priority for regulators should be practical implementation, supported by effective enforcement and clear guidance that businesses can follow.

The Cyprus Association of Tourist Enterprises (STEK) has expressed concern over Wednesday’s electricity outages, saying the disruptions affected hotel operations and risked damaging the visitor experience during the peak tourism season.

Hotels Affected By Power Outages

In a statement, STEK said the interruptions created operational difficulties for hotels at a time when Cyprus is seeking to strengthen its position in international tourism markets.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The association said reliable electricity supply is essential for maintaining service standards and supporting the country’s competitiveness as a tourism destination.

Pressure On The Tourism Sector

STEK said the outages came during a challenging tourism season, with businesses already working to manage the impact of geopolitical developments in the wider region.

“Under these conditions, the last thing Cypriot tourism needs is additional internal problems that harm the image and credibility of the destination,” the association said.

The organisation also noted that electricity has become one of the highest operating costs for hotels, with energy expenses rising significantly in recent years.

Call To Strengthen Energy Infrastructure

STEK urged the government and relevant authorities to accelerate measures aimed at improving Cyprus’ energy security and ensuring sufficient electricity supply for critical infrastructure.

The association said reliable energy infrastructure is important for protecting the country’s competitiveness and international reputation.

Global recorded-music retail sales are projected to reach $48.3 billion in 2026, marking a 12th consecutive year of growth, according to forecasts from research firm Omdia.

Streaming Remains The Main Growth Driver

Omdia expects the market to surpass $50 billion in 2027 before reaching $56.8 billion by 2030.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The forecast covers consumer spending on physical and digital music formats and services, as well as trade revenue from advertising, performance rights and synchronisation.

Subscription services, including Spotify, Apple Music and YouTube Music, are expected to remain the industry’s main source of growth. Subscription retail sales are projected to increase 7.2% to $30.5 billion in 2026 from $28.4 billion a year earlier and exceed $37 billion by 2030.

Physical Sales Continue To Grow

Advertising revenue is forecast to outpace physical music sales over the next five years, with compound annual growth rates of 4.3% and 3.4%, respectively.

Despite slower growth, physical formats are expected to remain the second-largest source of recorded-music revenue. Sales are projected to reach $8.3 billion by 2030, while combined audio and video advertising revenue is forecast to rise to $6.2 billion.

China Climbs The Global Rankings

China is expected to become the world’s second-largest recorded-music market by 2029 after overtaking the UK in 2028 and Japan a year later.

By 2030, the country is projected to account for 8.7% of global recorded-music retail revenue, up from 5.8% in 2025. The United States is expected to remain the largest market, although its share of global sales is forecast to decline from 40.3% to 38.4% over the same period.

Outlook

Simon Dyson, senior principal analyst at Omdia, said the forecasts point to continued momentum for the industry, with global retail sales expected to reach new record highs over the next five years.

He added that China becoming the world’s second-largest music market would mark a significant milestone, reflecting its growing contribution to the global music industry.

A commercial-scale sand battery in southern Finland is demonstrating how thermal energy storage could help address one of renewable energy’s biggest challenges: balancing intermittent electricity generation.

Located in the town of Pornainen, the facility stores clean electricity as heat in 2,000 metric tons of crushed soapstone, delivering up to 100 megawatt-hours of thermal energy. Standing 13 meters tall and 15 meters wide, it is the largest sand battery of its kind in the world. For the town’s roughly 5,000 residents, that provides nearly a month of heating in summer and about a week in winter.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Commissioned by district heating company Loviisan Lämpö and developed by Polar Night Energy, the system began operating last year as part of efforts to introduce more flexible heat production and reduce emissions. According to the company, greenhouse gas emissions from Pornainen’s district heating network have fallen by almost 70%, while wood-chip consumption has declined by about 60%. A conventional wood-chip plant remains available to provide backup and meet peak demand.

How The Technology Works

Sand batteries store surplus electricity generated during periods of strong wind or solar production by converting it into heat. The energy is retained in heavily insulated crushed soapstone for days or weeks before being released through heat exchangers to warm water circulating in the district heating network.

Polar Night Energy Chief Executive Tommi Eronen said the shift from conventional power plants to renewable energy would require significantly more storage capacity.

“We’re changing from a world where big power plants were doing the energy production to where solar and wind are producing the energy, then we need a massive amount of storage.”

He said sand-based storage could complement renewable energy without relying on rare earth materials used in many conventional battery technologies.

Scaling Electrothermal Storage

The Pornainen installation is around 10 times larger than an earlier sand battery launched in Finland in 2022, reflecting the company’s ambition to expand electrothermal storage.

Interest is also growing beyond Finland. Polar Night Energy said it has received enquiries from potential customers on every continent, particularly from communities seeking alternatives to fossil fuel-based heating.

Jan Rosenow, professor of energy and climate policy at the University of Oxford, said electrothermal storage could play a broader role because it relies on widely available materials and can store heat for much longer than conventional batteries.

“You don’t need rare earths, critical raw materials and the beauty is you can also charge up the battery when the electricity is cheap and discharge whenever you need the heat.”

Supporting District Heating

Unlike conventional batteries, sand batteries are designed to store heat rather than electricity, making them particularly suitable for district heating systems.

Loviisan Lämpö Chief Executive Mikko Paajanen said the battery allows the company to separate electricity purchases from heat production by buying power when prices are low and storing the energy for later use. One charge can provide heating for about one week during winter or up to one month during summer.

Paajanen said the company expects the sand battery to supply 55% to 60% of Pornainen’s district heating during the first months of the year, compared with about 30% in 2025.

Finland’s Climate Minister Sari Multala described the project as “very inspiring” and said the technology could support more advanced energy applications in the future.

The European Commission has published guidance to help artificial intelligence providers and deployers comply with the transparency requirements of the EU AI Act before the rules take effect on August 2, 2026.

Guidance Clarifies Transparency Rules

New guidance explains when providers and deployers must inform users that they are interacting with AI systems or viewing AI-generated or manipulated content. It also clarifies which organisations are subject to the transparency obligations set out in the AI Act.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Provider And Deployer Obligations

Providers must ensure users are informed when they are communicating with AI systems and apply machine-readable markings to AI-generated or manipulated content so it can be detected.

Deployers must disclose the use of deepfakes, AI-generated content on matters of public interest that has not undergone human review or editorial control, as well as AI systems used for emotion recognition or biometric categorisation.

Examples And Exemptions

According to the Commission, the guidance includes practical examples, explains key concepts and outlines exemptions to help organisations determine how the rules apply. Coverage extends to interactive AI systems such as chatbots, along with synthetic text and other AI-generated content.

Requirements for deepfakes and AI-generated content relating to matters of public interest are also clarified, while exemptions apply to certain AI-assisted editing functions, including spelling and grammar corrections.

Demonstrating Compliance

According to the Commission, organisations can demonstrate compliance with the AI Act by following a recognised code of practice, providing a practical method for meeting the transparency requirements.

The guidance complements the Code of Practice on Transparency of AI-generated Content, developed by independent experts with contributions from hundreds of stakeholders. Both the Commission and the AI Board said the voluntary code provides an appropriate way for providers and deployers to demonstrate compliance with the AI Act.

Next Steps

Additional guidance, the AI Act Service Desk and other support tools are being developed to help organisations prepare for the new rules.

Most provisions of the AI Act will apply from August 2, 2026, including enforcement powers for the Commission and national market surveillance authorities. AI systems placed on the market before that date must comply with marking and detection requirements from December 2, 2026.

Transport, Communications and Works Minister Alexis Vafeadis is set to meet mayors from the greater Limassol area on Thursday to discuss a €493 million pipeline of road and transport projects aimed at easing traffic congestion across the city.

Meeting To Focus On Traffic Priorities

The meeting, to be held at the Cultural Centre of Agios Athanasios, will focus on identifying projects that should be prioritised to improve traffic flow across the Limassol district. According to government sources, the proposals are divided into short-term measures that can be implemented more quickly and longer-term infrastructure projects that require additional planning and investment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

€493 Million Programme

The proposed programme includes road and urban planning projects with a combined estimated value of €493 million. Among the largest are the €80 million Limassol–Saittas Motorway (Phase A2), the €60 million Ypsonas–Polemidia section of the Northern Bypass, the €37 million Northern Bypass section linking Agia Fyla, Mesa Geitonia and Agios Athanasios, the €30 million widening of Agios Athanasios Avenue, including sections of Kolonakiou and G. Digeni avenues, and the €24 million Second Parallel Road connecting Germasogeia and Agios Athanasios via Vythkion Avenue.

Short-Term Measures Under Way

Several projects are already under way or approaching the tender stage, including the roundabout at the junction of Agios Athanasios and Anikodomiseos, the new motorway exit serving Limassol Port and improvements to the AHK exit. The ministry also plans targeted interventions at key junctions, additional roundabouts and the rollout of a €3 million Urban Traffic Control (UTC) system across 50 signalised intersections.

Longer-Term Infrastructure Plans

The programme also includes additional sections of the Northern Bypass, the North Parallel Road between Ypsonas and Polemidia, the Third Parallel Road, the upgrade of the A1 motorway to six lanes between Parekklisia and the Germasogeia roundabout, the construction of a third-level connection between G. Kranidiotis Avenue (B8) and N.D. Pattichis Avenue, and Phase B of the Germasogeia–Akrunta–Dierona–Arakapas road. Several of these projects remain at the planning or study stage.

Municipalities Invited To Submit Proposals

During the meeting, Mr. Vafeadis is expected to invite municipalities to submit additional proposals as part of a broader transport strategy for the Limassol district. The discussions are expected to help determine which projects will move forward first as the government finalises the next phase of the city’s infrastructure programme.

Construction output in the euro area and the European Union increased modestly in May 2026, with growth in specialized construction activities offsetting weaker building construction and civil engineering, according to Eurostat.

Monthly Growth Remains Positive

Seasonally adjusted construction production rose 0.4% in the euro area and 0.3% across the EU compared with April, following gains of 0.1% and 0.5%, respectively, a month earlier.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Annual Output Continues To Rise

Compared with May 2025, construction output increased 1.2% in the euro area and 1.8% across the EU, although performance varied across different parts of the sector.

Building construction declined 0.7% in the euro area and 0.4% across the EU from the previous month, while civil engineering fell 0.5% and 1.3%, respectively. Specialized construction activities, however, increased 1.4% in both regions, supporting overall growth.

Member State Results Varied

Among member states reporting monthly data, Austria recorded the largest increase in construction output at 3.3%, followed by the Netherlands at 2.0% and France at 1.3%. Hungary posted the steepest decline, with output falling 6.4%, ahead of Spain at 2.8% and Slovenia at 1.9%.

Annual Trends Remained Mixed

Compared with a year earlier, building construction fell 6.6% in the euro area and 5.2% across the EU. Civil engineering, meanwhile, rose 3.5% and 2.3%, respectively, while specialized construction activities increased 2.9% in the euro area and 3.3% across the EU.

Slovenia recorded the strongest annual growth in construction output at 19.2%, followed by Slovakia at 10.0% and Finland at 9.4%. Spain posted the largest decline at 10.0%, ahead of Hungary at 6.7% and France at 0.7%.

The International Monetary Fund has warned that tokenised finance could make the global financial system more efficient and resilient or introduce new vulnerabilities, depending on how regulators respond.

More Than A Technological Upgrade

Tokenisation is often presented as a faster and cheaper way to move money and assets. The IMF argues its impact could be far broader. By moving financial assets and liabilities onto shared digital ledgers, tokenisation could reshape market structures, redistribute risk and require regulators to rethink how financial systems are supervised.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

In traditional markets, execution, clearing and settlement take place sequentially through multiple intermediaries. Tokenised systems can combine those functions into a single software-driven process, allowing transactions to be executed, transferred and settled almost simultaneously.

While that could improve efficiency, it would also shift where risk is concentrated. Instead of remaining primarily with banks, brokers and investment funds, risk could increasingly move to the digital platforms and infrastructure providers operating tokenised markets.

Speed Brings Efficiency And Exposure

Faster settlement, lower transaction costs and programmable assets are among tokenisation’s key advantages. However, the IMF warns that the same features could remove safeguards built into the current financial system.

Delays in settlement, reconciliation and liquidity management create costs, but they also give financial institutions time to detect errors, absorb shocks and respond during periods of market stress. Tokenised finance compresses those timelines.

As a result, liquidity pressures could emerge immediately, collateral calls could be triggered automatically, and disruptions could spread more quickly than firms or regulators can respond. Markets may become more efficient, but also more continuous, more automated and potentially less resilient during periods of stress.

The Battle Over Settlement Assets

One of the IMF’s main concerns is the future of settlement assets, the money used to complete financial transactions. While central bank money remains the safest settlement asset, tokenisation introduces several digital alternatives.

Tokenised bank deposits would largely fit within existing regulatory frameworks and could improve liquidity management through programmable, simultaneous settlement. However, continuous settlement would leave banks with less time to respond to unexpected disruptions, increasing the need for real-time liquidity support.

Stablecoins offer programmability and global reach, but their reliability depends on the quality of their reserves and the resilience of their issuers. Even fully backed stablecoins have come under pressure during periods of market stress.

Tokenised central bank reserves would eliminate credit risk from the settlement asset itself, but would also require central banks to operate or oversee new programmable infrastructure, expanding their role beyond traditional payment systems.

Banks Will Not Disappear, But Their Role Will Change

The IMF expects tokenisation to reshape rather than replace banks. Tokenised deposits could combine payments, settlement and treasury operations on shared ledgers, while tokenised lending could automate interest calculations, collateral management and risk controls through smart contracts.

In capital markets, tokenised securities could integrate issuance, trading, settlement, custody and compliance into a single workflow, reducing counterparty risk and speeding up processing. However, automated margin calls and redemption mechanisms could amplify stress during periods of market disruption.

Concentration Creates A New Systemic Risk

Shared permissioned ledgers could reduce fragmentation by consolidating activity on fewer platforms, making operational resilience, cybersecurity and governance increasingly important.

If digital infrastructure becomes central to market activity, operational failures could become systemic risks. The IMF also stresses that interoperability between platforms will be critical to prevent liquidity from becoming trapped across separate systems.

Regulation Must Move Into The Code

The IMF says tokenisation will require regulators to oversee not only financial institutions but also the software executing transactions. Smart contracts could become critical market infrastructure, increasing the need for transparency, governance and oversight.

Legal certainty will also be essential. Market participants must know whether tokenised records represent legal ownership, when settlement becomes final and which jurisdiction applies to cross-border transactions.

Why Emerging Markets Face A Bigger Trade-Off

For emerging and developing economies, tokenisation could improve cross-border payments, broaden market access and modernise settlement systems.

However, faster-moving tokenised assets could also accelerate capital flight, currency substitution and pressure on monetary sovereignty, particularly if privately issued global stablecoins become widely used for payments. The IMF says domestic regulation should remain the first line of defence, supported by international coordination.

The Policy Choices Will Determine The Outcome

The IMF says tokenisation is neither inherently beneficial nor inherently risky. Its impact will depend on the regulatory, legal and operational frameworks governing it.

According to the fund, the most resilient model combines private-sector innovation with risk-free settlement assets, clear legal frameworks and internationally coordinated oversight.