Google launches Project Genie allowing users to create interactive AI-generated worlds

Google has launched Project Genie, an experimental prototype that allows users to create and explore interactive AI-generated worlds. The web application, powered by Genie 3, Nano Banana Pro, and Gemini, is rolling out to Google AI Ultra subscribers in the US aged 18 and over.

Genie 3 represents a world model that simulates environmental dynamics and predicts how actions affect them in real time. Unlike static 3D snapshots, the technology generates paths in real time as users move and interact, simulating physics for dynamic environments.

Project Genie centres on three core capabilities: world sketching, exploration, and remixing. Users can prompt with text and images to create environments, define character perspectives, and preview worlds before entering.

As users navigate, the system generates paths in real time based on their actions.

The experimental prototype has known limitations, including generation restrictions to 60 seconds, potential deviations from prompts or real-world physics, and occasional character controllability issues.

Google emphasises responsible development as part of its mission to build AI that benefits humanity, with ongoing improvements planned based on user feedback.

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EU confronts Grok abuse as Brussels tests its digital power

The European Commission has opened a formal investigation into Grok after the tool produced millions of sexualised images of women and children.

A scrutiny that centres on whether X failed to carry out adequate risk assessments before releasing the undressing feature in the European market. The case arrives as ministers, including Sweden’s deputy prime minister, publicly reveal being targeted by the technology.

Brussels is preparing to use its strongest digital laws instead of deferring to US pressure. The Digital Services Act allows the European Commission to fine major platforms or force compliance measures when systemic harms emerge.

Experts argue the Grok investigation represents an important test of European resolve, particularly as the bloc tries to show it can hold powerful companies to account.

Concerns remain about the willingness of the EU to act decisively. Reports suggest the opening of the probe was delayed because of a tariff dispute with Washington, raising questions about whether geopolitical considerations slowed the enforcement response.

Several lawmakers say the delay undermined confidence in the bloc’s commitment to protecting fundamental rights.

The investigation could last months and may have wider implications for content ranking systems already under scrutiny.

Critics say financial penalties may not be enough to change behaviour at X, yet the case is still viewed as a pivotal moment for European digital governance. Observers believe a firm outcome would demonstrate that emerging harms linked to synthetic media cannot be ignored.

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Fake AI assistant steals OpenAI credentials from thousands of Chrome users

A Chrome browser extension posing as an AI assistant has stolen OpenAI credentials from more than 10,000 users. Cybersecurity platform Obsidian identified the malicious software, known as H-Chat Assistant, which secretly harvested API keys and transmitted user data to hacker-controlled servers.

The extension, initially called ChatGPT Extension, appeared to function normally after users provided their OpenAI API keys. Analysts discovered that the theft occurred when users deleted chats or logged out, triggering the transmission of credentials via hardcoded Telegram bot credentials.

At least 459 unique API keys were exfiltrated to a Telegram channel months before they were discovered in January 2025.

Researchers believe the malicious activity began in July 2024 and continued undetected for months. Following disclosure to OpenAI on 13 January, the company revoked compromised API keys, though the extension reportedly remained available in the Chrome Web Store.

Security analysts identified 16 related extensions sharing the identical developer fingerprints, suggesting a coordinated campaign by a single threat actor.

LayerX Security consultant Natalie Zargarov warned that whilst current download numbers remain relatively low, AI-focused browser extensions could rapidly surge in popularity.

The malicious extensions exploit vulnerabilities in web-based authentication processes, creating, as researchers describe, a ‘materially expanded browser attack surface’ through deep integration with authenticated web applications.

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Google faces new UK rules over AI summaries and publisher rights

The UK competition watchdog has proposed new rules that would force Google to give publishers greater control over how their content is used in search and AI tools.

The Competition and Markets Authority (CMA) plans to require opt-outs for AI-generated summaries and model training, marking the first major intervention under Britain’s new digital markets regime.

Publishers argue that generative AI threatens traffic and revenue by answering queries directly instead of sending users to the original sources.

The CMA proposal would also require clearer attribution of publisher content in AI results and stronger transparency around search rankings, including AI Overviews and conversational search features.

Additional measures under consultation include search engine choice screens on Android and Chrome, alongside stricter data portability obligations. The regulator says tailored obligations would give businesses and users more choice while supporting innovation in digital markets.

Google has warned that overly rigid controls could damage the user experience, describing the relationship between AI and search as complex.

The consultation runs until late February, with the outcome expected to shape how AI-powered search operates in the UK.

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Yahoo launches AI-powered search Scout

Yahoo has introduced Scout, a new AI-powered search engine designed to compete with Google AI Mode and Perplexity. The tool transforms traditional search results into direct answers, interpreting natural language queries with the help of Yahoo’s extensive user data and content.

Scout combines the Claude AI model from Anthropic with Bing’s grounding API to ensure information is accurate and drawn from authoritative sources. Users can access personalised insights, whether checking the weather, tracking stock prices, or verifying news stories.

The platform also includes shopping and finance features, offering quick comparisons between products and synthesised financial information refreshed every ten minutes. Currently in beta, Yahoo Scout is available to US users via the Yahoo Search app and website, with plans to expand its personalisation features.

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Canada’s Cyber Centre flags rising ransomware risks for 2025 to 2027

The national cyber authority of Canada has warned that ransomware will remain one of the country’s most serious cyber threats through 2027, as attacks become faster, cheaper and harder to detect.

The Canadian Centre for Cyber Security, part of Communications Security Establishment Canada, says ransomware now operates as a highly interconnected criminal ecosystem driven by financial motives and opportunistic targeting.

According to the outlook, threat actors are increasingly using AI and cryptocurrency while expanding extortion techniques beyond simple data encryption.

Businesses, public institutions and critical infrastructure in Canada remain at risk, with attackers continuously adapting their tactics, techniques and procedures to maximise financial returns.

The Cyber Centre stresses that basic cyber hygiene still provides strong protection. Regular software updates, multi-factor authentication and vigilance against phishing attempts significantly reduce exposure, even as attack methods evolve.

A report that also highlights the importance of cooperation between government bodies, law enforcement, private organisations and the public.

Officials conclude that while ransomware threats will intensify over the next two years, early warnings, shared intelligence and preventive measures can limit damage.

Canada’s cyber authorities say continued investment in partnerships and guidance remains central to building national digital resilience.

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TikTok struggles to stabilise US infrastructure after data centre outage

TikTok says recovery of its US infrastructure is progressing, although technical issues continue to affect parts of the platform after a data centre power outage.

The disruption followed the launch of a new US-based entity backed by American investors, a move aimed at avoiding a nationwide ban.

Users across the country reported problems with searches, video playback, posting content, loading comments and unexpected behaviour in the For You algorithm. TikTok said the outage also affected other apps and warned that slower load times and timeouts may persist, rather than returning to normal performance.

In a statement posted by the TikTok USDS Joint Venture, the company said collaboration with its US data centre partner has restored much of the infrastructure, but posting new content may still trigger errors.

Creators may also see missing views, likes, or earnings due to server timeouts rather than actual data loss.

TikTok has not named the data centre partner involved, while severe winter storms across the US may have contributed to the outage. Despite growing scepticism around the timing of the disruption, the company insists that user data and engagement remain secure.

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Gemini 3 powers new conversational AI features across Google Search

Google has unveiled two major Search upgrades, making Gemini 3 the default model for AI Overviews and enabling smoother conversational AI interactions. The updates improve exploration of complex topics, enabling longer questions and more natural follow-up interactions.

Gemini 3 now powers AI Overviews directly within search results, delivering faster, more precise responses where AI assistance adds value. Users can move seamlessly from summaries into deeper, contextual conversations in AI Mode.

The enhanced experience combines quick snapshots with in-depth exploration, offering prominent links for further discovery. Testing shows that users favour fluid interactions that allow natural back-and-forth exchanges, improving clarity and efficiency across search journeys.

The rollout extends globally on mobile, enabling direct entry into AI Mode from AI Overviews. Google says the updates reflect its broader goal of making Search more intuitive, flexible, and capable of handling increasingly complex information needs.

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India considers social media bans for children under 16

India is emerging as a potential test case for age-based social media restrictions as several states examine Australia-style bans on children’s access to platforms.

Goa and Andhra Pradesh are studying whether to prohibit social media use for those under 16, citing growing concerns over online safety and youth well-being. The debate has also reached the judiciary, with the Madras High Court urging the federal government to consider similar measures.

The proposals carry major implications for global technology companies, given that India’s internet population exceeds one billion users and continues to skew young.

Platforms such as Meta, Google and X rely heavily on India for long-term growth, advertising revenue and user expansion. Industry voices argue parental oversight is more effective than government bans, warning that restrictions could push minors towards unregulated digital spaces.

Australia’s under-16 ban, which entered force in late 2025, has already exposed enforcement difficulties, particularly around age verification and privacy risks. Determining users’ ages accurately remains challenging, while digital identity systems raise concerns about data security and surveillance.

Legal experts note that internet governance falls under India’s federal authority, limiting what individual states can enforce without central approval.

Although the data protection law of India includes safeguards for children, full implementation will extend through 2027, leaving policymakers to balance child protection, platform accountability and unintended consequences.

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Austrian watchdog rules against Microsoft education tracking

Microsoft has been found to have unlawfully placed tracking cookies on a child’s device without valid consent, following a ruling by Austria’s data protection authority.

The case stems from a complaint filed by a privacy group, noyb, concerning Microsoft 365 Education, a platform used by millions of pupils and teachers across Europe.

According to the decision, Microsoft deployed cookies that analysed user behaviour, collected browser data and served advertising purposes, despite being used in an educational context involving minors. The Austrian authority ordered the company to cease the unlawful tracking within four weeks.

Noyb warned the ruling could have broader implications for organisations relying on Microsoft software, particularly schools and public bodies. A data protection lawyer at the group criticised Microsoft’s approach to privacy, arguing that protections appear secondary to marketing considerations.

The ruling follows earlier GDPR findings against Microsoft, including violations of access rights and concerns raised over the European Commission’s own use of Microsoft 365.

Although previous enforcement actions were closed after contractual changes, regulatory scrutiny of Microsoft’s education and public sector products continues.

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