US investigates UK over alleged backdoor demand for Apple data

United States officials are reviewing whether the UK breached a bilateral agreement by reportedly pressuring Apple to create a ‘backdoor’ for government access to encrypted iCloud backups.

Apple recently withdrew an encrypted storage feature for UK users following reports that it had refused to comply with such demands, which could have affected users worldwide. The Washington Post reported that Apple rejected the UK government’s request.

The US director of national intelligence, Tulsi Gabbard, confirmed in a letter to lawmakers that a legal review is underway to determine if the UK violated the CLOUD Act.

Under the agreement, neither the US nor the United Kingdom can demand data access for citizens or residents of the other country. Initial legal assessments suggest the UK’s reported demands may have overstepped its authority under the agreement.

Apple has long defended its encryption policies, arguing that creating a backdoor for government access would weaken security and leave user data vulnerable to hackers. Cybersecurity experts warn that any such backdoor, once created, would inevitably be exploited.

The tech giant has clashed with regulators over encryption before, notably in 2016 when it resisted US government efforts to unlock a terrorism suspect’s iPhone.

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Zhipu AI secures over 1 billion yuan in new funding

Chinese AI startup Zhipu AI has raised over 1 billion yuan ($137.22 million) in new funding, following a previous 3 billion yuan investment in December. The latest funding round comes amid growing competition in China’s AI sector, particularly with rival DeepSeek’s large language models, which claim to rival Western models at a lower cost.

Investors in the new round include the state-backed Hangzhou City Investment Group Industrial Fund and Shangcheng Capital. Zhipu AI plans to use the funds to enhance its GLM language model and expand its AI ecosystem, with a focus on businesses in Zhejiang province and the Yangtze River Delta region.

Founded in 2019, Zhipu AI has completed 16 funding rounds and is considered one of China’s leading AI startups. The company aims to release a range of new AI models, including foundation and multimodal models, as part of its open-source strategy. The funding comes as competitors like DeepSeek continue to disrupt the AI landscape with open-source models that challenge established platforms.

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Wayve expands with new testing hub in Germany

British startup Wayve has announced plans to open a new testing and development hub in Germany, deploying a fleet of test vehicles in the Stuttgart region. The self-driving technology firm aims to enhance features like lane change assistance at the new facility, which will focus on improving its “Embodied AI” system that learns from human behaviour.

Wayve, which operates in the UK and the US, is expanding into Germany as part of its strategy to enter the European market, particularly Germany, the continent’s largest automotive hub. The company received a boost earlier this year, with Uber investing in August and SoftBank leading a $1 billion funding round in May, supported by Nvidia.

Despite the significant investments in autonomous vehicle technology, self-driving systems still face challenges in predicting and assessing risks as accurately as human drivers. Wayve’s technology is already integrated into six vehicle platforms, including electric models like the Jaguar I-PACE and Ford Mustang Mach-E, as part of advanced driver assistance systems (ADAS).

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Philippine army investigates cyberattack on its networks

The Philippine Army has acknowledged a cyberattack after a local hacking group claimed responsibility for breaching its systems and accessing sensitive documents.

Army spokesperson Col. Louie Dema-ala confirmed the event, describing it as an “illegal access attempt” that was quickly contained. While the group behind the attack has been identified, no damage or data theft has been reported at this time.

Earlier this week, the Philippine digital security advocacy group Deep Web Konek reported that the hacker group Exodus Security claimed to have compromised 10,000 records of active and retired service members. The leaked information allegedly includes personal and military data, such as names, ranks, addresses, medical records, financial information, and criminal histories. However, the authenticity and exact scope of the data have yet to be independently verified.

Philippine authorities have also reported recent attempts by foreign actors to access intelligence data. Minister for Information and Communications Ivan Uy stated that foreign state-sponsored hackers had attempted but failed to infiltrate government systems.

In January, authorities arrested a Chinese national and two Filipino citizens accused of surveilling critical infrastructure, including military sites.

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Cyber threats in 2024 shift to AI-driven attacks and cloud exploits, says CrowdStrike

A new report from CrowdStrike, the US-based cybersecurity company, examines the evolution of cyber threats in 2024, identifying shifts toward malware-free intrusions, artificial intelligence-assisted social engineering, and cloud-related vulnerabilities.

The researchers highlight an increase in cyber activity attributed to state-linked actors, a rise in identity-based attacks, and the growing role of generative AI in cyber operations. According to the report, 79% of cyber intrusions in 2024 did not involve traditional malware, compared to 40% in 2019. Attackers increasingly relied on remote management and monitoring tools to evade security measures. The average breakout time—the time taken for an attacker to move laterally within a compromised network—decreased to 48 minutes, with some intrusions occurring in under one minute.

The report also highlights an increased reliance on exploiting vulnerabilities, particularly for initial access. More than 52% of vulnerabilities observed in 2024 were related to gaining an initial foothold in a system, underscoring the importance of securing entry points. Attackers increasingly leveraged chained vulnerability exploits—where multiple flaws are exploited in succession—to enhance their chances of success.

Cloud security incidents also saw an increase, with valid account abuse accounting for 35% of cloud-related intrusions. Attackers focused on services such as Microsoft 365 and SharePoint, as well as enterprise APIs, to gain unauthorized access and extract data. The report emphasizes that more than half of observed vulnerabilities in 2024 were related to initial access, with an increase in attacks using chained vulnerability exploits.

Generative AI played a growing role in cyber operations, including phishing, deepfake-based social engineering, and automated disinformation campaigns. The report cites activity from groups leveraging AI-powered tactics, such as the use of fake job interviews to infiltrate technology firms.

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TikTok to invest $8.8 billion in Thailand data centres

TikTok, the popular video-sharing app owned by ByteDance, has unveiled plans to invest $8.8 billion in building data centres in Thailand over the next five years. The announcement was made by Helena Lersch, TikTok’s Vice President of Public Policy, during an event held in Bangkok on Friday. This investment marks a significant move as the company continues to expand its operations in the region.

The specific details of the investment remain unclear, particularly whether it includes a $3.8 billion agreement that was announced by Thailand’s investment board last month. The government’s investment board had previously detailed a deal aimed at boosting digital infrastructure in the country, but TikTok did not provide further clarification on the connection between the two.

This move highlights TikTok’s growing commitment to the Thai market and its broader strategy of increasing local data storage capabilities. As part of its ongoing efforts to expand its global presence, the company is investing in infrastructure to better serve its user base and meet regulatory requirements in key markets.

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Data centers launch into space on SpaceX rocket

Lonestar and Phison have successfully launched the first-ever lunar data centre infrastructure aboard a SpaceX Falcon 9 rocket. The mission, set to land on the moon on March 4, is a joint venture to send Phison’s Pascari solid-state drives (SSDs), packed with data from various clients, to the lunar surface. The companies plan to expand this infrastructure, with ambitions to scale up to a petabyte of storage in the coming years.

The idea of building a data centre on the moon originated in 2018, driven by the need for secure, off-Earth storage to safeguard against climate disasters and cyber-attacks. Lonestar’s CEO, Chris Stott, noted that data has become as valuable as oil, if not more precious. The SSDs were rigorously tested for space readiness, ensuring their durability for long-term use without the possibility of on-site repairs.

This mission is just the beginning, as Lonestar and Phison aim to revolutionise data storage with nearly limitless capacity and energy efficiency in space. As AI-driven demand for data storage continues to rise, this lunar project could set the stage for future space-based infrastructure, promising a new era in data management.

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Taiwan sets rules for TSMC’s overseas ventures

Taiwan’s Economy Minister Kuo Jyh-huei announced on Thursday that Taiwan Semiconductor Manufacturing Co. (TSMC) would require government approval for any overseas joint ventures, although there are no restrictions on manufacturing advanced chips abroad, except for China. This comes amid reports that TSMC is in talks to acquire a stake in Intel, a move that could stir tensions with the US, where former President Trump has expressed concerns about Taiwan taking away American semiconductor business.

Kuo reassured reporters in Taipei that Taiwan’s semiconductor industry, particularly TSMC, remains vital to the nation’s economy, describing it as the ‘sacred mountain protecting the country.’ He also clarified that while the Taiwanese government would not interfere with TSMC’s business decisions, any large overseas investments or joint ventures must be approved by Taiwan’s economy ministry, with no changes to the rules surrounding advanced chip production outside of China.

TSMC is already investing $65 billion in new factories in Arizona, where it plans to manufacture the most advanced 2-nanometre chips, though this will not occur for a few years. The government is also preparing to engage in discussions with the Trump administration over potential tariffs on Taiwanese imports, aiming to secure the best conditions for local companies in light of the ongoing trade tensions.

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China expands DeepSeek AI to household gadgets

China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.

DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.

The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.

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China accuses Taiwan of selling semiconductor industry to the US

China accused Taiwan on Wednesday of attempting to hand over its semiconductor industry to the United States, claiming that the island’s government was using the industry to gain political support from Washington. The accusation comes amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, may be negotiating a stake in Intel. However, neither TSMC nor Intel has confirmed the talks and Taiwan’s government says it has not received such investment proposals from TSMC.

China’s Taiwan Affairs Office spokesperson, Zhu Fenglian, suggested without providing evidence that Taiwan’s ruling Democratic Progressive Party (DPP) was using TSMC to seek foreign support for independence, accusing the island of ‘selling out’ its companies to the US. Taiwan, however, rejected these claims, with Taiwan’s Mainland Affairs Council affirming the importance of TSMC to the island’s economy and stressing its commitment to maintaining a leading role in semiconductor technology.

The US has been critical of Taiwan’s semiconductor industry, with former President Donald Trump calling for more manufacturing to return to the United States. Despite China’s claims, Taiwan maintains that it is responsible for its foreign investment decisions. The island continues to rely on the US for military support, though the US does not formally recognise Taiwan’s government.

TSMC, which supplies major companies like Apple and Nvidia, did not comment on the reports. Taiwan’s government, however, vowed to support the company amid rising tensions surrounding its semiconductor industry.

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