Artificial intelligence

Alphabet stock dips as AI tools begin to dent Google search volumes

Alphabet shares fell sharply on Wednesday following courtroom testimony that Google searches on Apple’s Safari browser declined in April—reportedly for the first time ever.

Apple’s senior executive Eddy Cue said the drop came as users increasingly turned to AI tools like ChatGPT and Perplexity instead of traditional search engines.

The market reaction was swift, with Alphabet losing ground before partially recovering after Google clarified that overall search volumes remain on the rise.

Several analysts argued the sell-off may have been exaggerated, noting Apple’s incentive to downplay Google’s dominance as the companies face antitrust scrutiny. In 2022, Google reportedly paid Apple $20 billion to remain Safari’s default search provider.

Still, some analysts warn of a longer-term shift. Tech veteran Gene Munster called it the ‘beginning of the decline’, arguing that the way people find information is undergoing a fundamental change. Unlike search results pages, AI assistants provide direct answers—undermining Google’s ad-driven revenue model.

While Alphabet still owns a broad portfolio including YouTube, Android, Google Cloud and autonomous driving company Waymo, its core business is facing structural headwinds.

Investors are already adjusting expectations. Alphabet’s price-to-earnings ratio has dropped to 18, down from a 10-year average of 28, reflecting growing concerns around disruption.

Some see an opportunity; others, a reckoning. Whether this moment marks a short-term dip or a longer-term revaluation will depend on how Google adapts to the AI-driven shift in how people search for—and monetise—information.

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UK artists urge PM to shield creative work from AI exploitation

More than 400 prominent British artists, including Dua Lipa, Elton John, and Sir Ian McKellen, have signed a letter urging Prime Minister Keir Starmer to update UK copyright laws to protect their work from being used without consent in training AI systems. The signatories argue that current laws leave their creative output vulnerable to exploitation by tech companies, which could ultimately undermine the UK’s status as a global cultural leader.

The artists are backing a proposed amendment to the Data (Use and Access) Bill by Baroness Beeban Kidron, requiring AI developers to disclose when and how they use copyrighted materials. They believe this transparency could pave the way for licensing agreements that respect the rights of creators while allowing responsible AI development.

Nobel laureate Kazuo Ishiguro and music legends like Paul McCartney and Kate Bush have joined the call, warning that creators risk ‘giving away’ their life’s work to powerful tech firms. While the government insists it is consulting all parties to ensure a balanced outcome that supports both the creative sector and AI innovation, not everyone supports the amendment.

Critics, like Julia Willemyns of the Centre for British Progress, argue that stricter copyright rules could stifle technological growth, offshore development, and damage the UK economy.

Why does it matter?

The debate reflects growing global tension between protecting intellectual property and enabling AI progress. With a key vote approaching in the House of Lords, artists are pressing for urgent action to secure a fair and sustainable path forward that upholds innovation and artistic integrity.

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Cybercriminals trick users with fake AI apps

Cybercriminals are tricking users into downloading a dangerous new malware called Noodlophile by disguising it as AI software. Rather than using typical phishing tactics, attackers create convincing fake platforms that appear to offer AI-powered tools for editing videos or images.

These are promoted through realistic-looking Facebook groups and viral social media posts, some of which have received over 62,000 views.

Users are lured with promises of AI-generated content and are directed to bogus sites, one of which pretends to be CapCut AI, offering video editing features. Once users upload prompts and attempt to download the content, they unknowingly receive a malicious ZIP file.

Inside, it is a disguised program that kicks off a chain of infections, eventually installing the Noodlophile malware. However, this software can steal browser credentials, crypto wallet details, and other sensitive data.

The malware is linked to a Vietnamese developer who identifies themselves as a ‘passionate Malware Developer’ on GitHub. Vietnam has a known history of cybercrime activity targeting social media platforms like Facebook.

In some cases, the Noodlophile Stealer has been bundled with remote access tools like XWorm, which allow attackers to maintain long-term control over victims’ systems.

This isn’t the first time attackers have used public interest in AI for malicious purposes. Meta removed over 1,000 dangerous links in 2023 that exploited ChatGPT’s popularity to spread malware.

Meanwhile, cybersecurity experts at CYFIRMA have reported another threat: a new, simple yet effective malware called PupkinStealer, which secretly sends stolen information to hackers using Telegram bots.

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Scale AI expands into Saudi Arabia and UAE

Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a $500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a $13.8 billion valuation last year after a $1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about $870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump’s upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf’s access to cutting-edge technology.

Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech matters.

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Microsoft and OpenAI rework billion dollar deal

OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology.

According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm.

The software giant has invested over US$13 billion in OpenAI and is reportedly prepared to reduce its stake in exchange for extended access to AI developments beyond the current 2030 agreement.

The revisions also include changes to a broader agreement first established in 2019 when Microsoft committed US$1 billion to the partnership.

The restructuring reflects OpenAI’s shift in strategy as it prepares for potential independence from its largest investor. Recent reports suggest the company plans to share a smaller portion of its future revenue with Microsoft, instead of maintaining current terms.

Microsoft has declined to comment on the ongoing negotiations, and OpenAI has yet to respond.

The talks follow Microsoft’s separate US$500 billion joint venture with Oracle and SoftBank to build AI data centres in the US, further signalling the strategic value of securing long-term access to cutting-edge models.

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Honor phones get early access to Google’s AI video tool

Google’s latest AI image-to-video tool has made its debut on new Honor smartphones, ahead of its wider rollout to Gemini users.

The feature, powered by Google’s Veo 2 model, allows users to transform still images into short five-second videos directly from the Gallery app on Honor’s upcoming 400 and 400 Pro devices, launching on 22 May. The technology offers quick generation, usually taking just a minute or two per video.

Designed with simplicity in mind, the tool does not allow text prompts, leaving the AI to interpret each image as it sees fit. Results can be mixed: straightforward subjects such as pets or portraits often yield smooth, lifelike motion, but the tool struggles with complex visuals.

Some results have been amusing or surreal — a pigeon flying out of Van Gogh’s eye, for instance — suggesting that the AI’s creative choices still lack refinement.

Owners of the Honor 400 series will be able to try the feature for free for two months, with a limit of ten videos per day. After the trial, a Google subscription will likely be required, though pricing and terms have not yet been announced.

While video generation is already available to Google’s Gemini Advanced subscribers using text input, image-based generation remains limited to selected users under Google Cloud’s enterprise offerings, where it’s priced at 50 cents per second.

With this early release, Honor users gain rare first-hand access to an experimental AI feature that remains out of reach for most.

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Microsoft expands cloud push across Europe

Microsoft has unveiled a new set of commitments aimed at strengthening its digital presence across Europe, pledging to expand cloud and AI infrastructure while supporting the region’s economic competitiveness.

Announced by Microsoft President Brad Smith in Brussels, the ‘European Digital Commitments’ include a promise to increase European data centre capacity by 40% within two years, bringing the total to over 200 across 16 countries.

Smith explained that Microsoft’s goal is to provide technology that helps individuals and organisations succeed, rather than simply expanding its reach. He highlighted AI as essential to modern economies, describing it as a driving force behind what he called the ‘AI economy.’

Alongside job creation, Microsoft hopes its presence will spark wider economic benefits for customers and partners throughout the continent.

To ease concerns around data security, particularly in light of US–EU geopolitical tensions, Microsoft has added clauses in agreements with European institutions allowing it to legally resist any external order to halt operations in Europe.

If such efforts failed, Microsoft has arranged for European partners to access its code stored securely in Switzerland, instead of allowing disruptions to affect vital digital services.

Although Microsoft’s investments stand to benefit Europe, they also underscore the company’s deep dependence on the region, with over a quarter of its business based there.

Smith insisted that Microsoft’s global success would not have been possible without its European footprint, and called for continued cooperation across the Atlantic—even in the face of potential tariff disputes or political strains.

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Quantum AI interest surges in data science and cybersecurity

Quantum AI is no longer a distant concept for many businesses, with over 60 percent actively investing in or exploring the technology, according to new research from SAS.

The report highlights that the most common area of application is in data analytics and machine learning, accounting for 48 percent of use cases. Research and development follows at 41 percent, while cybersecurity ranks third at 35 percent.

The emerging field of quantum AI combines current AI with the immense processing power of quantum computing. This fusion promises breakthroughs in algorithm development, complex model training, and solving data problems that today’s systems struggle with.

Industries are also examining its potential in supply chain and logistics (31 percent), finance and risk management (26 percent), and even marketing (20 percent).

Despite growing interest, several barriers still hinder adoption. These include high costs (38 percent), a lack of understanding (35 percent), uncertainty around practical use cases (31 percent), a shortage of skilled workers (31 percent), and limited regulatory guidance (26 percent).

SAS Principal Quantum Architect Bill Wisotsky acknowledged the surrounding hype but stressed that research underway today is crucial groundwork.

Key sectors poised to benefit include life sciences, financial services, and manufacturing, particularly in areas such as drug discovery, risk analysis, and process optimisation.

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Google unveils AI tool to boost African businesses

Google has announced the beta launch of AI Max for Search Campaigns, a new tool aimed at helping local businesses, including those across Africa, reach more customers through smarter advertising.

The feature, which builds on Google’s Gemini AI models, enhances how businesses appear in search results, even when users type unexpected or highly specific queries.

As African economies continue to embrace digital transformation, AI Max offers vital support to small and medium-sized enterprises. The tool intelligently matches search terms, customises ad text in real time, and expands URL targeting to guide users to the most relevant content.

Designed to reduce the burden on entrepreneurs managing multiple responsibilities, the tool is seen as a cost-effective way to attract higher-intent customers with minimal effort.

This initiative complements Google’s ongoing support for African businesses, including training schemes like Hustle Academy. With AI Max, entrepreneurs now have access to technology that not only adapts to their needs but also improves their visibility in an increasingly competitive digital market.

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Reddit cracks down after AI bot experiment exposed

Reddit is accelerating plans to verify the humanity of its users following revelations that AI bots infiltrated a popular debate forum to influence opinions. These bots crafted persuasive, personalised comments based on users’ post histories, without disclosing their non-human identity.

Researchers from the University of Zurich conducted an unauthorised four-month experiment on the r/changemyview subreddit, deploying AI agents posing as trauma survivors, political figures, and other sensitive personas.

The incident sparked outrage across the platform. Reddit’s Chief Legal Officer condemned the experiment as a violation of both legal and ethical standards, while CEO Steve Huffman stressed that the platform’s strength lies in genuine human exchange.

All accounts linked to the study have been banned, and Reddit has filed formal complaints with the university. To restore trust, Reddit will introduce third-party verification tools that confirm users are human, without collecting personal data.

While protecting anonymity remains a priority, the platform acknowledges it must evolve to meet new threats posed by increasingly sophisticated AI impersonators.

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