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M&S still rebuilding after April cyber incident

Marks & Spencer has revealed that the major cyberattack it suffered in April stemmed from a sophisticated impersonation of a third-party user.

The breach began on 17 April and was detected two days later, sparking weeks of disruption and a crisis response effort described as ‘traumatic’ by Chairman Archie Norman.

The retailer estimates the incident will cost it £300 million in operating profit and says it remains in rebuild mode, although customer services are expected to normalise by month-end.

Norman confirmed M&S is working with UK and US authorities, including the National Crime Agency, the National Cyber Security Centre, and the FBI.

While the ransomware group DragonForce has claimed responsibility, Norman declined to comment on whether any ransom was paid. He said such matters were better left to law enforcement and not in the public interest to discuss further.

The company expects to recover some of its losses through insurance, although the process may take up to 18 months. Other UK retailers, including Co-op and Harrods, were also targeted in similar attacks around the same time, reportedly using impersonation tactics to bypass internal security systems.

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Meta offers $200 million to top AI talent as superintelligence race heats up

Meta has reportedly offered over $200 million in compensation to Ruoming Pang, a former senior AI engineer at Apple, as it escalates its bid to dominate the AI arms race.

The offer, which includes long-term stock incentives, far exceeded Apple’s willingness to match and is seen as one of Silicon Valley’s most aggressive poaching efforts.

The move is part of Meta’s broader campaign to build a world-class team under its new Meta Superintelligence Lab (MSL), which is focused on developing artificial general intelligence (AGI).

The division has already attracted prominent names, including ex-GitHub CEO Nat Friedman, AI investor Daniel Gross, and Scale AI co-founder Alexandr Wang, who joined as Chief AI Officer through a $14.3 billion stake deal.

Most compensation offers in the MSL reportedly rival CEO packages at global banks, but they are heavily performance-based and tied to long-term equity vesting.

Meta’s mix of base salary, signing bonuses, and high-value stock options is designed to attract and retain elite AI talent amid a fierce talent war with OpenAI, Google, and Anthropic.

OpenAI CEO Sam Altman recently claimed Meta has dangled bonuses up to $100 million to lure staff away, though he insists many stayed for cultural reasons.

Still, Meta has already hired more than 10 researchers from OpenAI and poached talent from Google DeepMind, including principal researcher Jack Rae.

The AI rivalry could come to a head as Altman and Zuckerberg meet at the Sun Valley conference this week.

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OpenAI to release Chromium-based AI browser competing with Chrome

OpenAI is preparing to launch an AI-powered web browser that could challenge Google Chrome’s dominant market position. The browser is expected to debut in the coming weeks and aims to change how users interact with the web fundamentally.

The new browser will reportedly integrate AI capabilities directly into the browsing experience, allowing for more intelligent and task-driven user interactions. Instead of simply directing users to websites, the browser is designed to keep many interactions within a native ChatGPT-style interface.

If adopted by ChatGPT’s 500 million weekly users, the browser could seriously threaten Google’s ad-driven ecosystem. Chrome is critical in Alphabet’s advertising revenue, accounting for nearly three-quarters of the company’s income by collecting user data and directing traffic to Google Search.

By building its browser, OpenAI would gain more direct access to user behaviour data, improving its AI models and enabling new forms of web engagement. However, this move is part of OpenAI’s broader strategy to integrate its services into users’ personal and professional lives.

The browser will reportedly support AI ‘agents’ capable of performing tasks such as making reservations or filling out web forms automatically. These agents could operate directly within websites, making the browsing experience more seamless and productive.

While OpenAI declined to comment, sources suggest the browser is built on Google’s open-source Chromium codebase—the same foundation behind Chrome, Edge, and Opera. However, this allows OpenAI to maintain compatibility while customising user experience and data control.

Competition in the AI-powered browser space is heating up. Startups like Perplexity and Brave have already launched intelligent browsers, and The Browser Company continues to develop features for AI-driven navigation and summarisation.

Despite Chrome’s 3-billion-strong user base and over two-thirds of the browser market share, OpenAI sees an opportunity to disrupt the space. Apple’s Safari holds second place with just 16% of the global share, leaving room for new challengers.

Last year, OpenAI hired two senior Google engineers from the original Chrome team, fueling speculation that the company was eyeing the browser space. One executive even testified that OpenAI would consider buying Chrome if it were made available through antitrust divestiture.

Instead, OpenAI built its browser from the ground up, allowing greater autonomy over features, data collection, and AI integration. A source told Reuters this approach ensures better alignment with OpenAI’s goal of embedding AI across user experiences.

In addition to hardware acquisitions and agent-based interfaces, the browser represents a crucial link in OpenAI’s strategy to deepen user engagement. The company recently acquired the AI hardware firm io, co-founded by Apple’s former design chief Jony Ive, for $6.5 billion.

The browser could become the gateway for OpenAI’s AI agents like ‘Operator,’ enhancing productivity by turning passive browsing into interactive assistance. Such integration could give OpenAI a competitive edge in the evolving consumer AI landscape.

Meanwhile, Google faces legal challenges over Chrome’s central role in its ad monopoly. A US judge ruled that Google maintains an unlawful hold over online search, prompting the Department of Justice to push for divestiture of key assets, including Chrome.

OpenAI’s entry could spark a broader shift in how consumers, businesses, and advertisers engage with the internet as the browser race intensifies. With built-in AI capabilities and task automation, browsing may become a different experience.

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AI that serves communities, not the other way round

At the WSIS+20 High-Level Event in Geneva, a vivid discussion unfolded around how countries in the Global South can build AI capacity from the ground up, rooted in local realities rather than externally imposed models. Organised by the Diplo and partners, including Kenya’s Permanent Mission to the UN, Microsoft, and IT for Change, the session used the fictional agricultural nation of ‘Landia’ to spotlight the challenges and opportunities of community-centred AI development.

With weak infrastructure, unreliable electricity, and fragmented data ecosystems, Landia embodies the typical constraints many developing nations face as they navigate the AI revolution.

UN Tech Envoy Amandeep Singh Gill presented a forthcoming UN report proposing a five-tiered framework to guide countries from basic AI literacy to full development capacity. He stressed the need for tailored, coordinated international support—backed by a potential global AI fund—to avoid the fragmented aid pitfalls seen in climate and health sectors.

WSIS

Microsoft’s Ashutosh Chadha echoed that AI readiness is not just a tech issue but fundamentally a policy challenge, highlighting the importance of data governance, education systems, and digital infrastructure as foundations for meaningful AI use.

Civil society voices, particularly from IT4Change’s Anita Gurumurthy and Nandini Chami, pushed for ‘regenerative AI’—AI that is indigenous, inclusive, and modular. They advocated for small-scale models that can run on local data and infrastructures, proposing creative use of community media archives and agroecological knowledge.

Speakers stressed that technology should adapt to community needs, not the reverse, and that AI must augment—not displace—traditional practices, especially in agriculture where livelihoods are at stake.

WSIS

Ultimately, the session crystallised around a core principle: AI must be developed with—not for—local communities. Participants called for training unemployed youth to support rural farmers with accessible AI tools, urged governments to invest in basic infrastructure alongside AI capacity, and warned against replicating inequalities through automation.

The session concluded with optimism and a commitment to continue this global-local dialogue beyond Geneva, ensuring AI’s future in the Global South is not only technologically viable, but socially just.

Track all key events from the WSIS+20 High-Level Event 2025 on our dedicated page.

UN leaders chart inclusive digital future at WSIS+20

At the WSIS+20 High-Level Event in Geneva, UN leaders gathered for a pivotal dialogue on shaping an inclusive digital transformation, marking two decades since the World Summit on the Information Society (WSIS). Speakers across the UN system emphasised that technology must serve people, not vice versa.

They highlighted that bridging the digital divide is critical to ensuring that innovations like AI uplift all of humanity, not just those in advanced economies. Without equitable access, the benefits of digital transformation risk reinforcing existing inequalities and leaving millions behind.

The discussion showcased how digital technologies already transform disaster response and climate resilience. The World Meteorological Organization and the UN Office for Disaster Risk Reduction illustrated how AI powers early warning systems and real-time risk analysis, saving lives in vulnerable regions.

Meanwhile, the Food and Agriculture Organization of the UN underscored the need to align technology with basic human needs, reminding the audience that ‘AI is not food,’ and calling for thoughtful, efficient deployment of digital tools to address global hunger and development.

Workforce transformation and leadership in the AI era also featured prominently. Leaders from the International Labour Organization and UNITAR stressed that while AI may replace some roles, it will augment many more, making digital literacy, ethical foresight, and collaborative governance essential skills. Examples from within the UN system itself, such as the digitisation of the Joint Staff Pension Fund through facial recognition and blockchain, demonstrated how innovation can enhance services without sacrificing inclusivity or ethics.

As the session closed, speakers collectively reaffirmed the importance of human rights, international cooperation, and shared digital governance. They stressed that the future of global development hinges on treating digital infrastructure and knowledge as public goods.

With the WSIS framework and Global Digital Compact as guideposts, UN leaders called for sustained, unified efforts to ensure that digital transformation uplifts every community and contributes meaningfully to the Sustainable Development Goals.

Track all key events from the WSIS+20 High-Level Event 2025 on our dedicated page.

EU urges stronger AI oversight after Grok controversy

A recent incident involving Grok, the AI chatbot developed by xAI, has reignited European Union calls for stronger oversight of advanced AI systems.

Comments generated by Grok prompted criticism from policymakers and civil society groups, leading to renewed debate over AI governance and voluntary compliance mechanisms.

The chatbot’s responses, which circulated earlier this week, included highly controversial language and references to historical figures. In response, xAI stated that the content was removed and that technical steps were being taken to prevent similar outputs from appearing in the future.

European policymakers said the incident highlights the importance of responsible AI development. Brando Benifei, an Italian lawmaker who co-led the EU AI Act negotiations, said the event illustrates the systemic risks the new regulation seeks to mitigate.

Christel Schaldemose, a Danish member of the European Parliament and co-lead on the Digital Services Act, echoed those concerns. She emphasised that such incidents underline the need for clear and enforceable obligations for developers of general-purpose AI models.

The European Commission is preparing to release guidance aimed at supporting voluntary compliance with the bloc’s new AI legislation. This code of practice, which has been under development for nine months, is expected to be published this week.

Earlier drafts of the guidance included provisions requiring developers to share information on how they address systemic risks. Reports suggest that some of these provisions may have been weakened or removed in the final version.

A group of five lawmakers expressed concern over what they described as the last-minute removal of key transparency and risk mitigation elements. They argue that strong guidelines are essential for fostering accountability in the deployment of advanced AI models.

The incident also brings renewed attention to the Digital Services Act and its enforcement, as X, the social media platform where Grok operates, is currently under EU investigation for potential violations related to content moderation.

General-purpose AI systems, such as OpenAI’s GPT, Google’s Gemini and xAI’s Grok, will be subject to additional requirements under the EU AI Act beginning 2 August. Obligations include disclosing training data sources, addressing copyright compliance, and mitigating systemic risks.

While these requirements are mandatory, their implementation is expected to be shaped by the Commission’s voluntary code of practice. Industry groups and international stakeholders have voiced concerns over regulatory burdens, while policymakers maintain that safeguards are critical for public trust.

The debate over Grok’s outputs reflects broader challenges in balancing AI innovation with the need for oversight. The EU’s approach, combining binding legislation with voluntary guidance, seeks to offer a measured path forward amid growing public scrutiny of generative AI technologies.

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Perplexity launches AI browser to challenge Google Chrome

Perplexity AI, backed by Nvidia and other major investors, has launched Comet, an AI-driven web browser designed to rival Google Chrome.

The browser uses ‘agentic AI’ that performs tasks, makes decisions, and simplifies workflows in real time, offering users an intelligent alternative to traditional search and navigation.

Comet’s assistant can compare products, summarise articles, book meetings, and handle research queries through a single interface. Initially available to subscribers of Perplexity Max at US$200 per month, Comet will gradually roll out more broadly via invite during the summer.

The launch signals Perplexity’s move into the competitive browser space, where Chrome currently dominates with a 68 per cent global market share.

The company aims to challenge not only Google’s and Microsoft’s browsers but also compete with OpenAI, which recently introduced search to ChatGPT. Unlike many AI tools, Comet stores data locally and does not train on personal information, positioning itself as a privacy-first solution.

Still, Perplexity has faced criticism for using content from major media outlets without permission. In response, it launched a publisher partnership program to address concerns and build collaborative relationships with news organisations like Forbes and Dow Jones.

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X CEO Yaccarino resigns as AI controversy and Musk’s influence grow

Linda Yaccarino has stepped down as CEO of X, ending a turbulent two-year tenure marked by Musk’s controversial leadership and ongoing transformation of the social media company.

Her resignation came just one day after a backlash over offensive posts by Grok, the AI chatbot created by Musk’s xAI, which had been recently integrated into the platform.

Yaccarino, who was previously a top advertising executive at NBCUniversal, was brought on in 2023 to help stabilise the company following Musk’s $44bn acquisition.

In her farewell post, she cited efforts to improve user safety and rebuild advertiser trust, but did not provide a clear reason for her departure.

Analysts suggest growing tensions with Musk’s management style, particularly around AI moderation, may have prompted the move.

Her exit adds to the mounting challenges facing Musk’s empire.

Tesla is suffering from slumping sales and executive departures, while X remains under pressure from heavy debts and legal battles with advertisers.

Yaccarino had spearheaded ambitious initiatives, including payment partnerships with Visa and plans for an X-branded credit or debit card.

Despite these developments, X continues to face scrutiny for its rightward political shift and reliance on controversial AI tools.

Whether the company can fulfil Musk’s vision of becoming an ‘everything app’ without Yaccarino remains to be seen.

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Nvidia nears $4 trillion milestone as AI boom continues

Nvidia has made financial history by nearly reaching a $4 trillion market valuation, a milestone highlighting investor confidence in AI as a powerful economic force.

Shares briefly peaked at $164.42 before closing slightly lower at $162.88, just under the record threshold. The rise underscores Nvidia’s position as the leading supplier of AI chips amid soaring demand from major tech firms.

Led by CEO Jensen Huang, the company now holds a market value larger than the economies of Britain, France, or India.

Nvidia’s growth has helped lift the Nasdaq to new highs, aided in part by improved market sentiment following Donald Trump’s softened stance on tariffs.

However, trade barriers with China continue to pose risks, including export restrictions that cost Nvidia $4.5 billion in the first quarter of 2025.

Despite those challenges, Nvidia secured a major AI infrastructure deal in Saudi Arabia during Trump’s visit in May. Innovations such as the next-generation Blackwell GPUs and ‘real-time digital twins’ have helped maintain investor confidence.

The company’s stock has risen over 21% in 2025, far outpacing the Nasdaq’s 6.7% gain. Nvidia chips are also being used by the US administration as leverage in global tech diplomacy.

While competition from Chinese AI firms like DeepSeek briefly knocked $600 billion off Nvidia’s valuation, Huang views rivalry as essential to progress. With the growing demand for complex reasoning models and AI agents, Nvidia remains at the forefront.

Still, the fast pace of AI adoption raises concerns about job displacement, with firms like Ford and JPMorgan already reporting workforce impacts.

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xAI unveils Grok 4 with top benchmark scores

Elon Musk’s AI company, xAI, has launched its latest flagship model, Grok 4, alongside an ultra-premium $300 monthly plan named SuperGrok Heavy.

Grok 4, which competes with OpenAI’s ChatGPT and Google’s Gemini, can handle complex queries and interpret images. It is now integrated more deeply into the social media platform X, which Musk also owns.

Despite recent controversy, including antisemitic responses generated by Grok’s official X account, xAI focused on showcasing the model’s performance.

Musk claimed Grok 4 is ‘better than PhD level’ in all academic subjects and revealed a high-performing version called Grok 4 Heavy, which uses multiple AI agents to solve problems collaboratively.

The models scored strongly on benchmark exams, including a 25.4% score for Grok 4 on Humanity’s Last Exam, outperforming major rivals. With tools enabled, Grok 4 Heavy reached 44.4%, nearly doubling OpenAI’s and Google’s results.

It also achieved a leading score of 16.2% on the ARC-AGI-2 pattern recognition test, nearly double that of Claude Opus 4.

xAI is targeting developers through its API and enterprise partnerships while teasing upcoming tools: an AI coding model in August, a multi-modal agent in September, and video generation in October.

Yet the road ahead may be rocky, as the company works to overcome trust issues and position Grok as a serious rival in the AI arms race.

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