Artificial intelligence

Broadcom beats estimates but stock dips after-hours

Broadcom reported strong second-quarter earnings and revenue driven by robust AI demand and solid networking performance.

Despite beating expectations and raising its outlook, the stock fell 3.47% in after-hours trading on Thursday — likely due to profit-taking instead of concern about fundamentals. Shares had previously rallied over 75% since April.

Revenue for the quarter ending May 5 reached US$15 billion, up 20% year-on-year. Adjusted earnings per share were US$1.58, exceeding estimates by two cents.

Net income more than doubled to US$4.97 billion. CEO Hock Tan attributed the strength to growing demand for AI infrastructure and contributions from VMware, which Broadcom acquired in late 2023.

Broadcom forecasted Q3 revenue of approximately US$15.8 billion, slightly above analyst expectations. AI-related revenue is set to increase to US$5.1 billion, up from US$4.4 billion in Q2, fuelled by custom AI accelerators and high-speed networking chips used in hyperscale data centres.

Tan said that the trend should continue through fiscal 2026.

Semiconductor solutions brought in US$8.4 billion in Q2, up 17% from last year, while software revenue rose 25% to US$6.6 billion, with VMware as a key contributor.

About 30% of Broadcom’s AI-related revenue now comes from its switching business, reflecting increasing demand for AI chip clusters. Despite the slight dip in share price, analysts continue to view Broadcom as a key player in AI infrastructure.

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Semiconductor innovation drives AI chip boom

The global AI chip design market is set for explosive growth, with its value projected to rise from USD 73.87 billion in 2024 to USD 468.9 billion by 2032.

This rapid expansion, driven by a 25.98% compound annual growth rate, reflects rising demand for AI in everyday devices, cloud computing, and industrial automation.

Surging adoption of AI-powered technologies across sectors—from smartphones and autonomous vehicles to manufacturing and healthcare—is fuelling the need for advanced, energy-efficient chips.

Companies are investing in smaller, faster processors and real-time edge computing solutions, while governments in countries like the US, China, and South Korea are backing local AI chip development through funding and research initiatives.

North America currently leads the market thanks to tech giants like NVIDIA, Google, and Intel, but Asia-Pacific is growing fastest, particularly as China and South Korea accelerate efforts toward self-reliance in AI hardware.

Industry leaders such as Arm, Intel, and Qualcomm are racing to optimise performance while managing power demands, placing AI chip design at the heart of the next digital transformation wave.

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ChatGPT adds meeting recording and cloud access

OpenAI has launched new features for ChatGPT that allow it to record meetings, transcribe conversations, and pull information directly from cloud platforms like Google Drive and SharePoint.

Instead of relying on typed input alone, users can now speak to ChatGPT, which records audio, creates editable summaries, and helps generate follow-up content such as emails or project outlines.

‘Record’ is currently available to Team users via the macOS app and will soon expand to Enterprise and Edu accounts.

The recording tool automatically deletes the audio after transcription and applies existing workspace data rules, ensuring recordings are not used for training.

Instead of leaving notes scattered across different platforms, users gain a structured and searchable history of conversations, voice notes, or brainstorming sessions, which ChatGPT can recall and apply during future interactions.

At the same time, OpenAI has introduced new connectors for business users that let ChatGPT access files from cloud services like Dropbox, OneDrive, Box, and others.

These connectors allow ChatGPT to search and summarise information from internal documents, rather than depending only on web search or user uploads. The update also includes beta support for Deep Research agents that can work with tools like GitHub and HubSpot.

OpenAI has embraced the Model Context Protocol, an open standard allowing organisations to build their own custom connectors for proprietary tools.

Rather than serving purely as a general-purpose chatbot, ChatGPT is evolving into a workplace assistant capable of tapping into and understanding a company’s complete knowledge base.

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New York Times sues OpenAI over data use

The New York Times has launched legal action against OpenAI, accusing the company of using its news articles without permission to train AI language models.

The NYT has asked the court to make OpenAI keep all ChatGPT user data indefinitely to find evidence for its case.

OpenAI’s Chief Operating Officer, Brad Lightcap, criticised the demand, saying it conflicts with privacy commitments and longstanding industry standards. OpenAI is appealing the order, arguing it represents an excessive overreach that weakens user privacy protections.

Despite the ongoing appeal, OpenAI must comply with the court’s directive until further notice. A limited, audited legal and security team will manage the stored data securely and only use it to meet legal obligations.

The data retention order impacts over 400 million weekly ChatGPT users, including those on Free, Plus, Pro, Teams, and many API plans. However, Enterprise and Zero Data Retention users remain unaffected.

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EU launches global digital strategy

The European Union has launched a sweeping international digital strategy to bolster its global tech leadership and secure a human-centric digital transformation. With the digital and AI revolution reshaping economies and societies worldwide, the EU is positioning itself as a reliable partner in building resilient, open, and secure digital ecosystems.

The strategy prioritises collaboration with international partners to scale digital infrastructure, strengthen cybersecurity, and support emerging technologies like AI, quantum computing, and semiconductors while promoting democratic values and human rights in digital governance. The EU will deepen and expand its global network of Digital Partnerships and Dialogues to remain competitive and secure in a fast-changing geopolitical landscape.

These collaborations focus on research, industrial innovation, regulatory cooperation, and secure supply chains, while engaging countries across Africa, Latin America, Asia, and the EU’s own neighbourhood. The strategy also leverages trade instruments and investment frameworks such as the Global Gateway to support secure 5G and 6G networks, submarine cables, and digital public infrastructure, helping partner countries improve connectivity, resilience, and sustainability.

To enhance global digital governance, the EU is pushing for international standards that uphold privacy, security, and openness, and opposing efforts to fragment the internet. It supports inclusive multilateralism, working through institutions like the UN, G7, and OECD to shape rules for the digital age.

With initiatives ranging from AI safety cooperation and e-signature mutual recognition to safeguarding children online and combating disinformation, the EU aims to set the benchmark for ethical and secure digital transformation. At the heart of this vision is the EU Tech Business Offer—a modular, cross-border platform combining technology, capacity-building, and financing.

Through Team Europe and partnerships with industry, the EU seeks to bridge the digital divide, export trusted digital solutions, and foster an interconnected world aligned with European democratic principles. The strategy underscores that in today’s interconnected world, the EU’s prosperity and security hinge on shaping a digital future that is competitive, inclusive, and values-driven.

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Gemini 2.5 Pro tops AI coding tests, surpasses ChatGPT and Claude

Google has released an updated version of its Gemini 2.5 Pro model, addressing issues found in earlier updates.

Unlike the I/O Edition, which focuses mostly on coding, the new version improves performance more broadly and is expected to become a stable release in both the Gemini app and web interface.

The company claims the updated model performs significantly better in code generation, topping the Aider Polyglot test with a score of 82.2 percent—surpassing offerings from OpenAI, Anthropic and DeepSeek.

Beyond coding, the model aims to close previous performance gaps introduced with the March 25th update, especially in creativity and response formatting.

Developers can now fine-tune the model’s ‘thinking budget’, while users should notice a more transparent output structure. These changes and consistent improvement in leaderboard ratings on LMArena and WebDevArena suggest that Google is extending its lead in the AI race.

Google continues to rely on blind testing to judge how people feel about its models, and the new Gemini Pro seems to resonate well. In fact, it now answers even quirky test questions with more clarity and confidence—something that had been lacking in earlier versions.

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Epic adds AI NPC tools to Fortnite as Vader voice sparks union clash

Epic Games is launching new tools for Fortnite creators that enable them to build AI-powered non-player characters (NPCs), following the debut of an AI-generated Darth Vader that players can talk to in-game.

The feature, which reproduces the iconic voice of James Earl Jones using AI, marks a significant step in interactive gaming—but also comes with its share of challenges and controversy.

According to The Verge, Epic encountered several difficulties in fine-tuning Vader’s voice and responses to feel authentic and fit smoothly into gameplay. ‘The culmination of a very intense effort for a character everybody understands,’ said Saxs Persson, executive vice president of the Fortnite ecosystem.

Persson noted that the team worked carefully to ensure that when Vader joins a player’s team, he behaves as a fearsome and aggressive ally—true to his cinematic persona.

However, the rollout wasn’t entirely smooth. In a live-streamed session, popular Fortnite creator Loserfruit prompted Vader to swear, exposing the system’s content filtering flaws. Epic responded quickly with patches and has since implemented multiple layers of safety checks.

‘We do our best job on day one,’ said Persson, ‘but more importantly, we’re ready to surround the problem and have fixes in place as fast as possible.’

Now, Fortnite creators will have access to the same suite of AI tools and safety systems used to develop Vader. They can control voice tone, dialogue, and NPC behaviour while relying on Epic’s safeguards to avoid inappropriate interactions.

The feature launch comes at a sensitive moment, as actor union SAG-AFTRA has filed a complaint against Epic Games over using AI to recreate Vader’s voice.

The union claims that Llama Productions, an Epic subsidiary, employed the technology without consulting or bargaining with the union, replacing the work of human voice actors.

‘We must protect our right to bargain terms and conditions around uses of voice that replace the work of our members,’ SAG-AFTRA said, emphasising its support for actors and estates in managing the use of digital replicas.

As Epic expands its AI capabilities in gaming, it faces both the technical challenges of responsible deployment and the growing debate around AI’s impact on creative professions.

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AI avatar replaces CEO in Klarna’s update

Klarna CEO Sebastian Siemiatkowski recently used an AI-generated avatar to deliver the company’s quarterly earnings report, marking a bold step in the fintech firm’s ongoing integration of AI.

Though the avatar’s performance revealed minor flaws, such as awkward blinking and voice syncing issues, the presentation showcased Klarna’s broader commitment to using AI across both operations and communications.

The Swedish firm has credited AI-driven efficiencies and a 40% workforce reduction for sustaining profitability and increasing revenue per employee to nearly US$1 million.

These advances build on years of investment in machine learning, which began with personalised checkout systems and now underpin core services like fraud detection and customer support.

By using an AI avatar in a leadership role, Klarna signals its belief in AI not only as a business tool but also as a viable medium for engaging investors. As the company prepares for its IPO, this move underscores its technological focus and willingness to redefine fintech communication norms.

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G42 and Mistral team up to build AI platforms

Abu Dhabi-based tech company G42 has partnered with French startup Mistral AI to co-develop advanced AI platforms and infrastructure across Europe, the Middle East, and the Global South.

The collaboration aims to span the full AI value chain, from model training to sector-specific applications, combining Mistral’s open-weight language models with G42’s infrastructure expertise.

The deal builds on prior AI cooperation agreements endorsed by UAE President Sheikh Mohamed bin Zayed and French President Emmanuel Macron, reinforcing both countries’ shared ambition to lead in AI innovation.

G42 subsidiaries Core42 and Inception will support the initiative by contributing technical development and deployment capabilities.

This partnership is part of a broader UAE strategy to position itself as a global AI hub and diversify its economy beyond oil. With AI expected to add up to $91 billion to the UAE’s economy by 2030, such international alliances reflect a shift in AI power centres toward the Middle East.

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Reddit accuses Anthropic of misusing user content

Reddit has taken legal action against AI startup Anthropic, alleging that the company scraped its platform without permission and used the data to train and commercialise its Claude AI models.

The lawsuit, filed in San Francisco’s Superior Court, accuses Anthropic of breaching contract terms, unjust enrichment, and interfering with Reddit’s operations.

According to Reddit, Anthropic accessed the platform more than 100,000 times despite publicly claiming to have stopped doing so.

The complaint claims Anthropic ignored Reddit’s technical safeguards, such as robots.txt files, and bypassed the platform’s user agreement to extract large volumes of user-generated content.

Reddit argues that Anthropic’s actions undermine its licensing deals with companies like OpenAI and Google, who have agreed to strict content usage and deletion protocols.

The filing asserts that Anthropic intentionally used personal data from Reddit without ever seeking user consent, calling the company’s conduct deceptive. Despite public statements suggesting respect for privacy and web-scraping limitations, Anthropic is portrayed as having disregarded both.

The lawsuit even cites Anthropic’s own 2021 research that acknowledged Reddit content as useful in training AI models.

Reddit is now seeking damages, repayment of profits, and a court order to stop Anthropic from using its data further. The market responded positively, with Reddit’s shares closing nearly 67% higher at $118.21—indicating investor support for the company’s aggressive stance on data protection.

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