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Perplexity AI teams up with PayPal for fintech expansion

PayPal has partnered with Perplexity AI to provide PayPal and Venmo users in the US and select international markets with a free 12-month Perplexity Pro subscription and early access to the AI-powered Comet browser.

The $200 subscription allows unlimited queries, file uploads and advanced search features, while Comet offers natural language browsing to simplify complex tasks.

Industry analysts see the initiative as a way for PayPal to strengthen its position in fintech by integrating AI into everyday digital payments.

By linking accounts, users gain access to AI tools and cash back incentives and subscription management features, signalling a push toward what some describe as agentic commerce, where AI assistants guide financial and shopping decisions.

The deal also benefits Perplexity AI, a rising search and browser market challenger. Exposure to millions of PayPal customers could accelerate the adoption of its technology and provide valuable data for refining models.

Analysts suggest the partnership reflects a broader trend of payment platforms evolving into service hubs that combine transactions with AI-driven experiences.

While enthusiasm is high among early users, concerns remain about data privacy and regulatory scrutiny over AI integration in finance.

Market reaction has been positive, with PayPal shares edging upward following the announcement. Observers believe such alliances will shape the next phase of digital commerce, where payments, browsing, and AI capabilities converge.

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Hollywood’s Warner Bros. Discovery challenge an AI firm over copyright claims

Warner Bros. Discovery has filed a lawsuit against AI company Midjourney, accusing it of large-scale infringement of its intellectual property. The move follows similar actions by Disney and Universal, signalling growing pressure from major studios on AI image and video generators.

The filing includes examples of Midjourney-produced images featuring DC Comics, Looney Tunes and Rick and Morty characters. Warner Bros. Discovery argues that such output undermines its business model, which relies heavily on licensed images and merchandise.

The studio also claims Midjourney profits from copyright-protected works through its subscription services and the ‘Midjourney TV’ platform.

A central question in the case is whether AI-generated material reproducing copyrighted characters constitutes infringement under US law. The courts have not decided on this issue, making the outcome uncertain.

Warner Bros. Discovery is also challenging how Midjourney trains its models, pointing to past statements from company executives suggesting vast quantities of material were indiscriminately collected to build its systems.

With three major Hollywood studios now pursuing lawsuits, the outcome of these cases could establish a precedent for how courts treat AI-generated content.

Warner Bros. Discovery seeks damages that could reach $150,000 per infringed work, or Midjourney’s profits linked to the alleged violations.

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Atlassian bets on AI browsers with $610m deal

The proprietary software firm Atlassian is entering the AI browser market with a $610 million deal to acquire The Browser Company of New York, creator of Arc and Dia. The move signals an attempt to turn browsers into intelligent assistants instead of leaving them as passive tools.

Traditional browsers are blank slates, forcing users to juggle tabs and applications without context. Arc and Dia promise a different approach by connecting tasks, offering in-line AI support, and adapting to user behaviour. Atlassian believes these features could transform productivity for knowledge workers.

Analysts note, however, that AI browsers are still experimental. While they offer potential to integrate workflows and reduce distractions, rivals like Chrome, Edge and Safari already dominate with established ecosystems and security features. Convincing users to change habits may prove difficult.

Industry observers suggest Atlassian’s move is more a long-term bet on natural language and agentic browsing than an immediate market shift. For now, AI browsers remain promising but unproven alternatives to conventional tools.

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Google outage disrupts services across Türkiye and southeast europe

Google services experienced a widespread outage in Türkiye on Thursday morning, leaving core functions such as search and YouTube inaccessible.

Users reported search queries failing to return results, frozen pages, and an inability to connect to Google servers. Social media posts suggested the disruption extended beyond Türkiye, affecting users in Bulgaria, Greece, Georgia, Croatia, Serbia, Romania, Armenia, the Netherlands, and Germany.

The Turkish state-run Anadolu Agency confirmed outages across parts of Southeastern Europe. Turkish Deputy Minister of Transport and Infrastructure, Omer Fatih Sayan, said the issue impacted Android and related services in Türkiye and the wider European region.

He added that the National Cyber Incident Response Centre had requested a technical report from Google and is monitoring the situation closely.

As of 10:57 a.m. local time, 4 September 2025, access to Google services in Türkiye had been restored. Google has yet to issue an official statement regarding the cause of the disruption.

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IBM Cloud replaces free support with AI tools

The cloud computing services offered by IBM will end free human support under its Basic Support tier in January 2026, opting for an AI-driven self-service model instead.

Users will lose the option to open or escalate technical cases through the portal or APIs. However, they can still report service issues via the Cloud Console and raise billing or account cases through the Support Portal.

IBM will direct customers to its Watsonx-powered AI Assistant, upgraded earlier in the year, while introducing a ‘Report an Issue’ tool to improve routing. The company plans to expand its support library to provide more detailed self-help resources.

Starting at $200 per month, paid support will remain available for organisations needing faster response times and direct technical assistance.

The company describes the change as an alignment with industry norms. AWS, Google Cloud and Microsoft Azure already provide free tiers that rely on community forums, online resources and billing support.

However, IBM Cloud holds only 2–4 percent of the market, according to Synergy Research Group, which some analysts suggest makes cost reductions in support more likely. Tencent, another provider, previously withdrew support for basic users because they were not profitable.

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Latvia launches open AI framework for Europe

Language technology company Tilde has released an open AI framework designed for all European languages.

The model, named ‘TildeOpen’, was developed with the support of the European Commission and trained on the Lumi supercomputer in Finland.

According to Tilde’s head Artūrs Vasiļevskis, the project addresses a key gap in US-based AI systems, which often underperform for smaller European languages such as Latvian. By focusing on European linguistic diversity, the framework aims to provide better accessibility across the continent.

Vasiļevskis also suggested that Latvia has the potential to become an exporter of AI solutions. However, he acknowledged that development is at an early stage and that current applications remain relatively simple. The framework and user guidelines are freely accessible online.

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China and India adopt contrasting approaches to AI governance

As AI becomes central to business strategy, questions of corporate governance and regulation are gaining prominence. The study by Akshaya Kamalnath and Lin Lin examines how China and India are addressing these issues through law, policy, and corporate practice.

The paper focuses on three questions: how regulations are shaping AI and data protection in corporate governance, how companies are embedding technological expertise into governance structures, and how institutional differences influence each country’s response.

Findings suggest a degree of convergence in governance practices. Both countries have seen companies create chief technology officer roles, establish committees to manage technological risks, and disclose information about their use of AI.

In China, these measures are largely guided by central and provincial authorities, while in India, they reflect market-driven demand.

China’s approach is characterised by a state-led model that combines laws, regulations, and soft-law tools such as guidelines and strategic plans. The system is designed to encourage innovation while addressing risks in an adaptive manner.

India, by contrast, has fewer binding regulations and relies on a more flexible, principles-based model shaped by judicial interpretation and self-regulation.

Broader themes also emerge. In China, state-owned enterprises are using AI to support environmental, social, and governance (ESG) goals, while India has framed its AI strategy under the principle of ‘AI for All’ with a focus on the role of public sector organisations.

Together, these approaches underline how national traditions and developmental priorities are shaping AI governance in two of the world’s largest economies.

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SCO Tianjin Summit underscores economic cooperation and security dialogue

The Shanghai Cooperation Organisation (SCO) summit in Tianjin closed with leaders adopting the Tianjin Declaration, highlighting member states’ commitment to multilateralism, sovereignty, and shared security.

The discussions emphasised economic resilience, financial cooperation, and collective responses to security challenges.

Proposals included exploring joint financial mechanisms, such as common bonds and payment systems, to shield member economies from external disruptions.

Leaders also underlined the importance of strengthening cooperation in trade and investment, with China pledging additional funding and infrastructure support across the bloc. Observers noted that these measures reflect growing interest in alternative global finance and economic governance approaches.

Security issues are prominently featured, with agreements to enhance counter-terrorism initiatives and expand existing structures such as the Regional Anti-Terrorist Structure. Delegates also called for greater collaboration against cross-border crime, drug trafficking, and emerging security risks.

At the same time, they stressed the need for political solutions to ongoing regional conflicts, including those in Ukraine, Gaza, and Afghanistan.

With its expanding membership and combined economic weight, the SCO continues to position itself as a platform for cooperation beyond traditional regional security concerns.

While challenges remain, including diverging interests among key members, the Tianjin summit indicated the bloc’s growing role in discussions on multipolar governance and collective stability.

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Key AI researchers depart Apple for rivals Meta and OpenAI

Apple is confronting a significant exodus of AI talent, with key researchers departing for rival firms instead of advancing projects in-house.

The company lost its lead robotics researcher, Jian Zhang, to Meta’s Robotics Studio, alongside several core Foundation Models team members responsible for the Apple Intelligence platform. The brain drain has triggered internal concerns about Apple’s strategic direction and declining staff morale.

Instead of relying entirely on its own systems, Apple is reportedly considering a shift towards using external AI models. The departures include experts like Ruoming Pang, who accepted a multi-year package from Meta reportedly worth $200 million.

Other AI researchers are set to join leading firms like OpenAI and Anthropic, highlighting a fierce industry-wide battle for specialised expertise.

At the centre of the talent war is Meta CEO Mark Zuckerberg, offering lucrative packages worth up to $100 million to secure leading researchers for Meta’s ambitious AI and robotics initiatives.

The aggressive recruitment strategy is strengthening Meta’s capabilities while simultaneously weakening the internal development efforts of competitors like Apple.

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Researchers develop an AI system to modify the brain’s mental imagery with words

A new AI system named DreamConnect can now translate a person’s brain activity into images and then edit those mental pictures using natural language commands.

Instead of merely reconstructing thoughts from fMRI scans, the breakthrough technology allows users to reshape their imagined scenes actively. For instance, an individual visualising a horse can instruct the system to transform it into a unicorn, with the AI accurately modifying the relevant features.

The system employs a dual-stream framework that interprets brain signals into rough visuals and then refines them based on text instructions.

Developed by an international team of researchers, DreamConnect represents a fundamental shift from passive brain decoding to interactive visual brainstorming.

It marks a significant advance at the frontier of human-AI interaction, moving beyond simple reconstruction to active collaboration.

Potential applications are wide-ranging, from accelerating creative design to offering new tools for therapeutic communication.

However, the researchers caution that such powerful technology necessitates robust ethical safeguards to prevent misuse and protect the privacy of an individual’s most personal data, their thoughts.

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