The US administration has approved the export of Nvidia’s H200 AI chips to China, reversing years of tight US restrictions on advanced AI hardware. The Nvidia H200 chips represent the company’s second-most-powerful chip series and were previously barred from sale due to national security concerns.
The US president announced the move last month, linking approval to a 25 per cent fee payable to the US government. The administration said the policy balances economic competitiveness with security interests, while critics warned it could strengthen China’s military and surveillance capabilities.
Under the new rules, Nvidia H200 chips may be shipped to China only after third-party testing verifies their performance. Chinese buyers are limited to 50 per cent of the volume sold to US customers and must provide assurances that the chips will not be used for military purposes.
Nvidia welcomed the decision, saying it would support US jobs and global competitiveness. However, analysts questioned whether the safeguards can be effectively enforced, noting that Chinese firms have previously accessed restricted technologies through intermediaries.
Chinese companies have reportedly ordered more than two million Nvidia H200 chips, far exceeding the chipmaker’s current inventory. The scale of demand has intensified debate over whether the policy will limit China’s AI ambitions or accelerate its access to advanced computing power.
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The US Department of Defence plans to integrate Elon Musk’s AI tool Grok into Pentagon networks later in January, according to Defence Secretary Pete Hegseth.
The system is expected to operate across both classified and unclassified military environments as part of a broader push to expand AI capabilities.
Hegseth also outlined an AI acceleration strategy designed to increase experimentation, reduce administrative barriers and prioritise investment across defence technology.
An approach that aims to enhance access to data across federated IT systems, aligning with official views that military AI performance relies on data availability and interoperability.
The move follows earlier decisions by the Pentagon to adopt Google’s Gemini for an internal AI platform and to award large contracts to Anthropic, OpenAI, Google and xAI for agentic AI development.
Officials describe these efforts as part of a long-term strategy to strengthen US military competitiveness in AI.
Grok’s integration comes amid ongoing controversy, including criticism over generated imagery and previous incidents involving extremist and offensive content. Several governments and regulators have already taken action against the tool, adding scrutiny to its expanded role within defence systems.
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The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.
The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.
Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.
Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.
Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.
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Illicit crypto activity surged in 2025 as nation states and professional criminal networks expanded on-chain operations. Government-linked actors used infrastructure built for organised cybercrime, increasing risks for regulators and security teams.
Data shows that illicit crypto addresses received at least $154 billion during the year, representing a 162% increase compared to 2024. Sanctioned entities drove much of the growth, with stablecoins making up 84% of illicit transactions due to their liquidity and ease of cross-border transfer.
North Korea remained the most aggressive state actor, with hackers stealing around $2 billion, including the record-breaking Bybit breach. Russia’s ruble-backed A7A5 token saw over $93 billion in sanction-evasion transactions, while Iran-linked networks continued using crypto for illicit trade and financing.
Chinese money laundering networks also emerged as a central force, offering full-service criminal infrastructure to fraud groups, hackers, and sanctioned entities. Links between crypto and physical crime grew, with trafficking and coercion increasingly tied to digital asset transfers.
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Korean Air has disclosed a data breach affecting about 30,000 employees. Stolen records were taken from systems operated by a former subsidiary.
The breach occurred at catering supplier KC&D, sold off in 2020. Hackers, who had previously attacked the Washington Post accessed employee names and their bank account details, while customer data remained unaffected.
Investigators linked the incident to exploits in Oracle E-Business Suite. Cybercriminals abused zero day flaws during a wider global hacking campaign.
The attack against Korean Air has been claimed by the Cl0p ransomware group. Aviation firms worldwide have reported similar breaches connected to the same campaign.
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Aflac, a health and life insurer in the US, revealed that a cyberattack discovered in June affected over 22.6 million individuals. Personal and claims information, including social security numbers, may have been accessed.
The investigation found the attack likely originated from the Scattered Spider cybercrime group. Authorities were notified, and third-party cybersecurity experts were engaged to contain the incident.
Systems remained operational, and no ransomware was detected, with containment achieved within hours. Notifications have begun, and the insurer continues to monitor for potential fraudulent use of data.
Class-action lawsuits have been filed in response to the incident, which also affected employees, agents, and other related individuals. Erie and Philadelphia Insurance previously reported network issues linked to similar threats.
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European governments are intensifying their efforts to safeguard satellites from cyberattacks as space becomes an increasingly vital front in modern security and hybrid warfare. Once seen mainly as technical infrastructure, satellites are now treated as strategic assets, carrying critical communications, navigation, and intelligence data that are attractive targets for espionage and disruption.
Concerns intensified after a 2022 cyberattack on the Viasat satellite network coincided with Russia’s invasion of Ukraine, exposing how vulnerable space systems can be during geopolitical crises. Since then, the EU institutions have warned of rising cyber and electronic interference against satellites and ground stations, while several European countries have flagged growing surveillance activities linked to Russia and China.
To reduce risks, Europe is investing in new infrastructure and technologies. One example is a planned satellite ground station in Greenland, backed by the European Space Agency, designed to reduce dependence on the highly sensitive Arctic hub in Svalbard. That location currently handles most European satellite data traffic but relies on a single undersea internet cable, making it a critical point of failure.
At the same time, the EU is advancing with IRIS², a secure satellite communication system designed to provide encrypted connectivity and reduce reliance on foreign providers, such as Starlink. Although the project promises stronger security and European autonomy, it is not expected to be operational for several years.
Experts warn that technology alone is not enough. European governments are still clarifying who is responsible for defending space systems, while the cybersecurity industry struggles to adapt tools designed for Earth-based networks to the unique challenges of space. Better coordination, clearer mandates, and specialised security approaches will be essential as space becomes more contested.
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Authorities in France are responding to a significant cyber incident after a pro-Russian hacker group, Noname057, claimed responsibility for a distributed denial-of-service attack on the national postal service, La Poste.
The attack began on 22 December and forced core computer systems offline, delaying parcel deliveries during the busy Christmas period instead of allowing normal operations to continue.
According to reports, standard letter delivery was not affected. However, postal staff lost the ability to track parcels, and customers experienced disruptions when using online payment services connected to La Banque Postale.
Recovery work was still underway several days later, underscoring the increasing reliance of critical services on uninterrupted digital infrastructure.
Noname057 has previously been linked to cyberattacks across Europe, mainly targeting Ukraine and countries seen as supportive of Kyiv instead of neutral states.
Europol led a significant operation against the group earlier in the year, with the US Department of Justice also involved, highlighting growing international coordination against cross-border cybercrime.
The incident has renewed concerns about the vulnerability of essential logistics networks and public-facing services to coordinated cyber disruption. European authorities continue to assess long-term resilience measures to protect citizens and core services from future attacks.
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The US tech giant NVIDIA has largely remained shut out of China’s market for advanced AI chips, as US export controls have restricted sales due to national security concerns.
High-performance processors such as the H100 and H200 were barred, forcing NVIDIA to develop downgraded alternatives tailored for Chinese customers instead of flagship products.
A shift in policy emerged after President Donald Trump announced that H200 chip sales to China could proceed following a licensing review and a proposed 25% fee. The decision reopened a limited pathway for exporting advanced US AI hardware, subject to regulatory approval in both Washington and Beijing.
If authorised, the H200 shipments would represent the most powerful US-made AI chips permitted in China since restrictions were introduced. The move could help NVIDIA monetise existing H200 inventory while easing pressure on its China business as it transitions towards newer Blackwell chips.
Strategically, the decision may slow China’s push for AI chip self-sufficiency, as domestic alternatives still lag behind NVIDIA’s technology.
At the same time, the policy highlights a transactional approach to export controls, raising uncertainty over long-term US efforts to contain China’s technological rise.
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Google Cloud’s 2026 AI Agent Trends Report shows AI agents are moving from experimental tools to central business systems. Employees are shifting from routine execution to oversight and strategic decision-making.
The report highlights agents managing end-to-end workflows across teams, thereby improving efficiency and streamlining complex processes. Personalised customer service is becoming faster and more accurate thanks to these systems.
Security operations are seeing benefits as AI agents handle alerts, investigations and fraud detection more effectively. Human analysts can now focus on higher-value tasks while routine work is automated.
Companies are investing in continuous training to build an AI-ready workforce. The report emphasises that people, not just technology, will determine the success of AI adoption.
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