Negotiations over a technology deal between the UK and US have stalled due to stumbling blocks in wider trade negotiations between the two sides. The Technology Prosperity Deal - which was billed as historic when it was unveiled during US President Donald Trump's state visit in September - saw both countries pledge to co-operate in areas such as AI. However, talks on the agreement are now being held up because of US concerns about what it considers to be wider UK trade barriers. A government spokesperson said our special relationship with the US remains strong and the UK is firmly committed to ensuring the Tech Prosperity Deal delivers opportunity for hardworking people in both countries. The New York Times - which first reported the story - said there were broader disagreements between the two sides, including over digital regulations and food safety rules.

DeepSeek is powered by the open source DeepSeek-V3 model, which its researchers claim was trained for around 6m ( 4.2m) - significantly less than the billions spent by rivals. But this claim has been disputed by others in AI. Its emergence comes as the US is restricting the sale of the advanced chip technology that powers AI to China. To continue their work without steady supplies of imported advanced chips, Chinese AI developers have shared their work with each other and experimented with new approaches to the technology. This has resulted in AI models that require far less computing power than before.

To appreciate the perversity of our reliance on US technology giants, you just need to grapple with the fact that one of the likely winners in the global "cyber-outage" – caused by the series of crippling cyber-attacks that hit public and private institutions worldwide a week ago – might be the very company whose software was compromised – Microsoft. The WannaCry ransomware used in the attack wreaked havoc on organisations including FedEx and Telefónica, as well as the NHS, where operations were cancelled, x-rays, test results and patient records became unavailable and phones did not work. In the end the global spread of the attack was halted by an "accidental hero", a 22-year-old IT security blogger from Ilfracombe, Devon. Marcus Hutchins found and inadvertently activated a "kill switch" in the malware by registering a specific domain name hidden within the program. But even before the recent WannaCry ransomware attacks, Microsoft – always seeking to deflate any responsibility for the flaws in its products – had been advocating the establishment of the digital equivalent of Geneva conventions that would protect civilians from cyber-attacks launched by nation states.