Big technology firms, including Microsoft and Meta, are significantly increasing their investments in AI data centres to meet soaring demand, but Wall Street is looking for quicker returns on these expenditures. Both companies reported rising capital expenses due to their AI initiatives, with Alphabet also indicating that its costs would remain elevated. Amazon is expected to follow suit in its upcoming earnings report.
This surge in capital spending could impact profit margins, causing concern among investors. Shares of major tech companies, including Meta and Microsoft, fell by around 4% in premarket trading, despite reporting better-than-expected profits for the July-September quarter. Analysts warn that while the race to build AI capacity is intensifying, it will take time for these investments to yield returns.
Microsoft’s capital expenditures for a single quarter now surpass its total annual spending from prior years. The company noted a 5.3% increase in spending, amounting to $20 billion, while also predicting further increases related to AI. However, they warned of potential slowdowns in growth for their Azure cloud business due to data centre capacity constraints. Similarly, Meta anticipates a “significant acceleration” in AI infrastructure costs next year.
The tech industry is experiencing bottlenecks, particularly as chipmakers like Nvidia struggle to keep up with the demand for AI chips. Advanced Micro Devices has also reported that AI chip demand is outpacing supply, limiting growth potential. Despite these challenges, both Microsoft and Meta maintain that it is still early in the AI cycle and emphasise the long-term benefits of their investments, echoing earlier experiences during the development of cloud technology.
The Cybersecurity and Infrastructure Security Agency (CISA) has announced its first International Strategic Plan for 2025-2026, underscoring a robust commitment to securing US critical infrastructure (CI) through global partnerships. Building on its previous 2023-2025 Strategic Plan, this new approach aligns with the National Security Memorandum on Critical Infrastructure Security and Resilience, highlighting the essential role of international cooperation in protecting interconnected cyber and physical systems.
To achieve its mission, CISA has outlined three primary goals for international engagement:
Bolster the Resilience of Foreign Infrastructure on Which the US Depends: Collaborating with foreign partners, CISA aims to fortify international infrastructure, mitigating risks that could disrupt critical US operations.
Strengthen Integrated Cyber Defense: By sharing expertise, resources, and best practices, CISA and its allies can build a unified defence, equipping nations to address emerging threats to critical infrastructure better.
Unify Agency Coordination of International Activities: The agency’s “One CISA” approach seeks to streamline efforts and maximise the impact of global partnerships, reducing redundancy and fostering cohesive international collaboration.
Ericsson has signed a 5G deal with Spain’s largest telecom operator, MasOrange, to enhance its network using Open Radio Access Network (ORAN) technologies. This marks Ericsson’s first such agreement in Europe following a significant $14 billion, five-year deal with AT&T in the United States last year. ORAN technology is designed to reduce costs by employing cloud-based software and equipment from multiple suppliers rather than relying on a single provider.
Jenny Lindqvist, Ericsson’s senior vice president, noted that this partnership aligns with industry trends and is crucial for scaling Open RAN technology. She emphasised that Europe is still in the early stages of 5G deployment compared to other regions. MasOrange, formed from the merger of the Spanish unit of France’s Orange and local competitor MasMovil, serves over 30 million mobile customers.
While Ericsson did not disclose the specifics of the deal with MasOrange, a source indicated it would involve around 10,000 sites. The agreement aims to meet the growing demand for 5G services across urban and rural areas, as well as large venues like stadiums.
Linux creator Linus Torvalds has expressed support for removing several Russian maintainers from the Linux kernel project. This decision, announced by prominent developer Greg Kroah-Hartman, has sparked debate within the Linux community. The removals affect 11 Russian developers, largely due to compliance with new sanctions, though specific details of the removals still need to be fully clarified.
Responding to the concerns, Torvalds stated, “If you haven’t heard of Russian sanctions yet, you should try reading the news sometime,” emphasising that the changes will not be reversed.
The Linux kernel, the operating system’s core, is managed by maintainers who oversee code submissions and updates. Kroah-Hartman noted that those removed may return if they provide documentation proving independence from sanctioned entities, especially organisations associated with the Russian government.
This action has stirred reactions among developers, with some accusing the decision-makers of acting contrary to Linux’s open-source principles. Others warned that the decision could lead to future uncertainties about the participation of maintainers in sanctioned regions.
Responding to criticism, Torvalds dismissed the objections as originating from “Russian troll factories” and reaffirmed his stance, citing his opposition to Russian aggression. The move follows broader trends in the tech industry, where major US companies, like Docker Hub and GitHub, have imposed restrictions on Russian users, reflecting the impact of international sanctions on open-source software projects.
Chinese hackers infiltrated Verizon’s phone systems to target devices used by individuals connected to Kamala Harris’s campaign, according to a source. Reports also indicated attempts to breach phones linked to Donald Trump and JD Vance, although Reuters could not confirm this.
Investigators are working to establish whether any communications from Trump or Vance were compromised. While the Trump campaign did not verify the targeting, it acknowledged the issue and criticised Harris, claiming her leadership emboldened cyberattacks from China and Iran.
The Chinese embassy in Washington denied involvement, asserting that China does not interfere in US elections and opposes cyberattacks in any form. The Harris campaign did not provide an immediate response to requests for comment.
The FBI and the US Cybersecurity and Infrastructure Security Agency are currently investigating the incident. Verizon confirmed it was aware of a sophisticated cyberattack aimed at US telecommunications and said it is cooperating with law enforcement.
Taiwan Semiconductor Manufacturing Company (TSMC) has halted chip shipments to a client after discovering its components were found in a Huawei product. This action came about two weeks ago, triggering a detailed investigation to assess the situation’s full scope. A Taiwanese trade official, speaking anonymously, confirmed the development due to its sensitive nature.
The incident has raised alarms due to potential violations of US export controls. TSMC notified both US and Taiwanese authorities, categorising the discovery as a significant internal warning. While the client involved remains undisclosed, TSMC is cooperating with officials but has refrained from commenting further.
The controversy follows a report by TechInsights, which disassembled a Huawei device and found TSMC chips. Such findings suggest the chips may have bypassed US restrictions designed to limit China’s access to advanced technology, particularly to curb military advancements. Taiwan, mindful of growing regional tensions, enforces strict export rules in alignment with the US.
Huawei has long been a focal point of US efforts to control the flow of advanced technology to Chinese entities. Despite these restrictions, Chinese companies have sought workarounds, including using cloud platforms like Amazon’s to gain access to advanced US chips. Taiwan continues to monitor such risks closely, aiming to uphold compliance with international export regulations.
Nvidia’s CEO Jensen Huang announced that a design flaw impacting the company’s Blackwell AI chips has been resolved with assistance from TSMC, its long-term Taiwanese manufacturing partner. The production glitch had delayed chip shipments, initially set for the second quarter, affecting clients such as Google, Microsoft, and Meta.
Huang acknowledged Nvidia was solely responsible for the flaw, which had reduced production yields. He dismissed reports of tensions with TSMC, crediting the manufacturer for helping restore manufacturing efficiency. The chips, which involve the integration of seven different components, are now expected to ship in the fourth quarter.
Blackwell chips, Nvidia’s latest innovation, feature two silicon squares fused into a single unit, delivering speeds 30 times faster than previous models. They are designed for advanced tasks, including AI-driven responses from chatbots. Shares in Nvidia fell by 2% in early trading following news of the delay.
Huang made the announcement during a visit to Denmark, where he introduced Gefion, a new supercomputer featuring 1,528 GPUs. Built in partnership with the Novo Nordisk Foundation and Denmark’s Export and Investment Fund, Gefion is expected to enhance high-performance computing in the region.
The Australian Competition and Consumer Commission (ACCC) is enhancing its cybersecurity capabilities throughout FY25 as part of a broader strategy to improve compliance and maturity in line with the Australian Cyber Security Centre’s Essential Eight framework. The initiative addresses the ACCC’s expanding regulatory role within Australia’s cybersecurity landscape, particularly with the launch of the national anti-scam centre and digital ID, set to take effect on 1 December.
The ACCC will be responsible for accrediting digital ID services, approving participants in the government’s digital ID service, and enforcing compliance regulations, resulting in a heightened workload and increased resource demand. To tackle these challenges, the ACCC aims to elevate its cybersecurity maturity to level two of the Essential Eight framework, prioritising risk management and improvement initiatives.
To strengthen its cybersecurity posture, the uplift will be supported by leveraging various Microsoft technologies, including Active Directory, Group Policy, Defender, Sentinel, and Intune. Recognising the importance of robust defences against cyber threats, the ACCC is committed to allocating the necessary resources to support its enhanced cybersecurity efforts. By elevating its maturity level and effectively managing emerging risks, the ACCC seeks to ensure the resilience of its operations and safeguard consumer interests in an increasingly complex cyber landscape.
The Danish government has relaunched the National Cyber Security Council (NCSC) with an expanded mandate to strengthen digital security across critical sectors while advancing AI capabilities. That effort is part of a larger initiative that includes the country’s €100 million National Strategy for Digitalisation (NSD), which supports AI development through regulatory sandboxes and guidelines aligned with the EU’s AI Act.
The NCSC will promote public-private partnerships, enhance data sharing between government, businesses, and academia, and protect critical infrastructure from rising cyber threats. In tandem, the government’s Artificial Intelligence Guideline (AIG) project helps companies and public authorities adopt AI securely, offering a framework to test and integrate AI technologies within a regulatory safe zone. These combined efforts boost digital transformation while ensuring strong cybersecurity and legal compliance.
The NCSC’s new mission addresses growing cybersecurity challenges, particularly in light of geopolitical instability, such as Russia’s invasion of Ukraine. The council aims to foster collaboration between national security agencies and small and medium-sized enterprises (SMEs) by assembling experts from key sectors, including businesses, universities, and municipalities.
The Danish government’s investment in AI development is also supported by regulatory sandboxes that allow companies to innovate safely within the EU legal frameworks like GDPR and the AI Act. The broader NSD also targets improvements in digital education, workforce skills, and business transformation, ensuring that a solid security and regulatory oversight foundation underpins Denmark’s push for innovation.
Nexus and Utimaco have joined forces to enhance security for mobile identities, IoT devices, and critical infrastructure. The strategic partnership reflects a commitment to addressing escalating cybersecurity threats, especially as organisations increasingly adopt mobile-first environments and connected devices.
At the core of this collaboration are integrated security solutions that combine Nexus’ Public Key Infrastructure (PKI) platform with Utimaco’s Hardware Security Module (HSM) and encryption technologies. Specifically, these capabilities enable organisations to issue PKI-based mobile identities for secure access and authentication without traditional passwords while simultaneously allowing manufacturers to assign trusted identities to IoT devices during production.
Furthermore, the solutions support compliance with regulations such as VS-NfD and the EU Cyber Resilience Act (CRA), ensuring that sensitive information is protected and mitigating risks associated with counterfeit products and unauthorised access. A practical application of these integrated solutions is already evident in a major European telecommunications provider, which has successfully secured the provisioning and communication of its IoT devices, significantly reducing risks and maintaining regulatory compliance.
That partnership represents a proactive approach to cybersecurity, providing organisations with the tools needed to navigate the complexities of digital identity management and the secure deployment of connected devices. By leveraging each other’s expertise, Nexus and Utimaco aim to deliver robust solutions that enhance user convenience and strengthen overall security measures. As security threats evolve, the collaboration prioritises user flexibility and strong protection, paving the way for a more secure digital landscape.
