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AMD faces a $1.5 billion loss from US chip curbs

AMD expects to lose around US$1.5 billion in revenue this year because of new US export restrictions on advanced AI chips, which now require a licence to be sold to China.

The US government, under both the Biden and Trump administrations, has tightened curbs on chip exports in an effort to slow China’s progress in developing powerful AI systems, citing national security risks.

China makes up roughly a quarter of AMD’s total revenue, so these measures could reduce AMD’s expected annual earnings by almost 5 per cent.

Despite this setback, AMD posted stronger-than-expected second-quarter revenue guidance, forecasting around US$7.4 billion, likely driven by customers rushing to stockpile chips before the new rules fully take effect.

CEO Lisa Su said the impact from the curbs would be mostly felt during the second and third quarters, yet she still expects revenue from the company’s AI data centre chips to grow by strong double digits in 2024.

AMD’s finance chief Jean Hu clarified the projected US$1.5 billion revenue loss is tied directly to the latest export controls introduced in April.

Although AMD is under pressure, demand for its high-performance chips remains solid, with tech giants like Microsoft and Meta continuing to invest heavily in AI infrastructure.

The company’s data centre division saw sales jump 57 per cent to US$3.7 billion, helping push total revenue up 36 per cent to US$7.44 billion—both figures exceeding analyst expectations. Adjusted earnings stood at 96 cents per share, slightly above estimates.

Rival chipmaker Nvidia has also warned it now requires a licence to export to China and faces an even larger US$5.5 billion hit.

Meanwhile, other tech firms didn’t fare as well—Marvell Technology and Super Micro disappointed investors, with shares falling after they issued weaker outlooks, adding further signs of turbulence in the chip sector.

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Google upgrades Gemini AI model with focus on developers

Google has launched a new version of its flagship AI model called Gemini 2.5 Pro Preview (I/O edition), ahead of its annual developer event.

The updated version promises major improvements in coding, app development, and video understanding, and replaces the existing Gemini 2.5 Pro model without changing the price.

Developers can access it through the Gemini API, Vertex AI, AI Studio, and the Gemini chatbot app for web and mobile.

Rather than sticking with older features, the I/O edition aims to reduce coding errors and improve how the model handles complex tasks like function calling and code transformation.

Google says the update directly responds to developer feedback by making the model more reliable and better at triggering functions accurately.

Gemini 2.5 Pro Preview (I/O edition) currently leads the WebDev Arena Leaderboard, a benchmark for creating functional and visually appealing web apps. It also scores highly in video analysis tasks, with a benchmark result of 84.8% on VideoMME, one of the best performances in the field so far.

Instead of letting competitors like OpenAI and xAI take the spotlight, Google is pushing to strengthen its position in the AI race. The timing of this release, just before the I/O conference, hints at more AI-related announcements to come as the tech giant seeks to keep pace in a rapidly evolving market.

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Pinterest adds new AI tools to visual search

Pinterest is rolling out new AI-powered upgrades to its visual search feature, aiming to make it easier for users to find exactly what they want.

The enhanced tool will allow people to refine fashion searches by adjusting details like colour, fabric or style, including aesthetics such as ‘Y2K.’

Users can also long-press any Pin in the Home Feed to launch a visual search instantly. A new feature will generate descriptive words to help users better understand what draws them to particular Pins, starting with women’s fashion in the US, UK, and Canada.

Powered by advanced visual language models, the tool works much like Google’s multimodal search but automatically suggests words to refine queries. Pinterest believes these updates will improve the platform’s usefulness for searching when words fall short.

In response to concerns about AI-generated content overwhelming the platform, Pinterest will now label such images and allow users to limit how many they see. With these changes, the company hopes to strengthen its reputation as a helpful, AI-enhanced visual shopping destination.

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AI reshapes UK social care but raises concerns

AI tools such as pain-detecting apps, night-time sensors, and even training robots are increasingly shaping social care in the UK.

Care homes now use the Painchek app to scan residents’ faces for pain indicators, while sensors like AllyCares monitor unusual activity, reducing preventable hospital visits.

Meanwhile, Oxford researchers have created a robot that helps train carers by mimicking patients’ reactions to pain. Families often adjust to the technology after seeing improvements in their loved ones’ care, but transparency and human oversight remain essential.

Despite the promise of these innovations, experts urge caution. Dr Caroline Green from the University of Oxford warns that AI must remain a support, not a replacement, and raises concerns about bias, data privacy, and potential overdependence on technology.

With the UK ageing population and staffing shortages straining social care, technology offers valuable assistance.

Specialists stress that investment in skilled human carers is crucial and the government has endorsed the role of AI in care but has yet to establish clear national policies guiding its ethical use

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Google faces DOJ’s request to sell key ad platforms

The US Department of Justice (DOJ) has moved to break up Google’s advertising technology business after a federal judge ruled that the company holds illegal monopolies across two markets.

The DOJ is seeking the sale of Google’s AdX digital advertising marketplace and its DFP platform, which helps publishers manage their ad inventory.

It follows a ruling in April by Federal Judge Leonie Brinkema, who found that Google’s dominance in the online advertising market violated antitrust laws.

AdX and DFP were key acquisitions for Google, particularly the purchase of DoubleClick in 2008 for $3.1 billion. The DOJ argues that Google used monopolistic tactics, such as acquisitions and customer lock-ins, to control the ad tech market and stifle competition.

In response, Google has disputed the DOJ’s move, claiming the proposed sale of its advertising tools exceeds the court’s findings and could harm publishers and advertisers.

The DOJ’s latest filing also comes amid a separate legal action over Google’s Chrome browser, and the company is facing additional scrutiny in the UK for its dominance in the online search market.

The UK’s Competition and Markets Authority (CMA) has found that Google engaged in anti-competitive practices in open-display advertising technology.

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AI adoption soars in the UK but skills gap looms

AI adoption in the UK has grown rapidly, rising by 33% over the past year. According to a new report from AWS, 52% of UK businesses are now using AI technologies, up from 39% in the previous year.

Adoption has become so widespread that a business implements new AI tools or strategies every 60 seconds. The benefits are becoming more obvious too, with 92% of AI adopters reporting revenue increases, compared with 64% in 2024.

However, the report highlights a growing divide in AI readiness. While large enterprises and startups share similar adoption rates of 55% and 59% respectively, startups appear better prepared for technological shifts.

Twice as many startups (31%) have developed comprehensive AI strategies compared with larger companies (15%), suggesting agility and forward planning remain crucial.

Despite the progress, serious challenges remain. Skills shortages are slowing businesses down, with nearly 38% citing a lack of expertise as a major barrier, up from 29% last year.

Almost half report delays in hiring qualified talent, with recruitment taking an average of five and a half months. As AI becomes more integrated, it is expected that 47% of new jobs will require AI literacy in the next three years.

In response, AWS has launched a UK initiative to train 100,000 people in AI skills by 2030. The programme includes partnerships with universities such as Exeter and Manchester.

According to the UK Government’s own projections, improved AI adoption could unlock £45 billion per year in public sector savings and productivity. Still, AWS warns that unless skill gaps are addressed, the country risks developing a two-tier AI economy.

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Microsoft drops passwords in Authenticator app to support passkeys

Microsoft has announced that its Authenticator app will stop supporting the saving of new passwords from 1 June, with autofill features to be removed in July. By August, users will no longer have access to any passwords stored in the app.

The decision marks a shift in Microsoft’s focus from app-based password management to browser-based solutions, particularly via Microsoft Edge.

The company recommends that users move their saved passwords to a dedicated password manager or the Edge browser immediately.

Instead of continuing to develop Authenticator as a full password manager, Microsoft is encouraging users to adopt passkeys—digital credentials that offer stronger security.

Passkeys use cryptographic keys stored locally on devices, making them much harder to steal or guess compared to traditional passwords.

Microsoft insists this change is part of a broader push to phase out outdated password systems in favour of safer, faster authentication methods.

Security experts support this move but caution users to take immediate action to prevent losing access to important logins.

Microsoft itself admits that Authenticator was never a proper password manager in the traditional sense, and that dedicated apps such as 1Password or Apple’s built-in password tools provide better options for storing credentials securely.

Users should ensure they export or migrate their stored information well before the August cutoff.

A change like this also reflects Microsoft’s alignment with industry trends, alongside Apple and Google, to accelerate the adoption of passkeys.

The company argues that with attackers increasingly exploiting weak or reused passwords, replacing them altogether with newer technology is not just advisable—it’s essential.

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M&S halts meal deals amid ongoing cyber attack disruption

Marks & Spencer has temporarily suspended some of its popular meal deal offers as the retailer continues to grapple with the fallout from a serious cyber attack.

Signs in stores, including at major transport hubs such as Victoria Station, explain that availability issues have made it impossible to fulfil certain promotions, and ask customers for patience while the company works through the disruption.

Instead of offering its usual lunchtime combinations and dine-in meal deals priced between £6 and £15, M&S is facing stock shortfalls due to the hack, which is now in its third week.

The attack is reportedly linked to a group of teenage hackers using ransomware tactics, locking computer systems and demanding payment for their release.

The breach has already caused significant operational challenges, with fears internally that the disruption could drag on for weeks. Sources suggest the financial impact could run into tens of millions in lost orders, as systems remain frozen and supply chains struggle to recover.

Meal deal suspensions are the latest sign of the broader strain the retailer is under as it scrambles to restore normal service.

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Gemini now allows up to 10 images per prompt on all platforms

Users of the Gemini app will now find it much easier to upload multiple images thanks to a new quality-of-life update.

Until now, only a single image could be added per prompt, with any new upload forcing the previous one to be removed. That restriction has been lifted, with support for up to 10 images now available across Android, iOS, and the web.

On mobile devices, users can select multiple photos directly through the system gallery or Gemini’s built-in Camera.

After capturing an image, the viewfinder remains accessible, allowing for additional photos to be taken and uploaded without leaving the prompt. Those who do not yet see the feature may need to force stop and restart the app for it to become available.

Web users visiting gemini.google.com will also benefit from this improvement, though uploads are limited to 10 images per session. Attempts to exceed this limit will result in a clear notification explaining that only 10 attachments can be uploaded at once.

The change applies to all current Gemini models, including 2.0 Flash, 2.5 Flash, and 2.5 Pro. In announcing the update, Gemini lead Josh Woodward encouraged users to share feedback, especially about common frustrations and other user experience issues.

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China boosts tourism with AI innovations

China’s tourism industry is undergoing rapid transformation as AI technologies become increasingly integrated into both national platforms and regional services. Instead of relying solely on traditional travel planning, tourists can now receive personalised itinerary suggestions in seconds.

Major platforms such as Trip.com use large AI models to assist users before, during and after their journeys—cutting decision-making time from 9 to 6.6 hours, according to Chairman Liang Jianzhang.

Several provinces and cities, including Guizhou and Shanghai, have launched their own AI tourism agents with distinct local features. Guizhou’s Huang Xiao Xi, a digital assistant in ethnic attire, offers tailored travel plans and food ordering options instantly.

Meanwhile, Shanghai’s Hu Xiao You connects tourists with real-time data about venues, traffic, and public amenities, learning from user feedback to improve recommendations over time.

Instead of overwhelming tourists with raw data, these AI agents streamline access to relevant information for a more efficient travel experience.

The rise of wearable AI guides and immersive tech, such as VR, AR, and 3D projections, has also transformed visits to museums and exhibitions. Visitors can now interact with holographic historical figures or animated ancient artworks, blending culture with innovation.

Rather than replacing traditional tourism, China is revitalising it through technology, aiming for improved digitisation, automation and smarter services that meet local development goals.

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