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Scale AI wins Pentagon AI contract

Scale AI has secured a multimillion-dollar contract with the US Department of Defense to develop AI tools for military operations. The project, named Thunderforge, is the Pentagon’s flagship AI initiative aimed at enhancing decision-making, simulation, and operational planning. Led by the Defense Innovation Unit, the programme will see collaboration with technology partners such as Microsoft and Anduril, initially focusing on the Indo-Pacific and European Commands before expanding further.

Thunderforge represents a shift towards AI-driven military strategies, promising increased speed and efficiency in modern warfare. The Department of Defense and Scale AI have emphasised the importance of rapid response times, with the technology designed to process vast amounts of information quickly. However, while Scale AI has assured that human oversight will be maintained, the Defence Innovation Unit has not explicitly highlighted this aspect in its communications.

The deal comes as more AI firms reconsider their stance on military applications. Companies like OpenAI, Microsoft, and Google have altered policies that previously restricted AI development for defence purposes. Critics argue that these technologies could be used for harmful applications despite company assurances, raising ethical concerns about the potential for AI in warfare. Some experts warn that firms may have limited control over how their AI is ultimately deployed.

This latest partnership highlights the growing integration of AI into defence strategies, despite previous pushback from tech industry employees. While firms insist their technologies will be used responsibly, concerns remain over the long-term implications of AI-driven warfare and the ability to ensure its ethical use.

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Nvidia shares drop after US tariffs announcement

Nvidia’s shares plummeted nearly 9% on 3 March following an announcement by US President Donald Trump confirming new tariffs on imports from Canada and Mexico, set to take effect on 4 March. The decline contributed to a broader market downturn, with the Dow Jones falling by 800 points and the Nasdaq dropping by over 3%. Nvidia’s market value took a sharp hit, losing around $265 billion and falling to $2.79 trillion, a steep drop from its previous $3 trillion valuation.

Despite reporting strong earnings, with revenue surging 78% year-over-year to $39.33 billion, Nvidia’s stock has lost 13% since 26 February. The 25% tariffs could affect the company’s operations, particularly as some of its systems are manufactured in the US and Mexico. However, CEO Jensen Huang remains optimistic, highlighting Nvidia’s AI advancements and the upcoming Blackwell chips, which he says will drive strong performance in the next quarter.

Nvidia also plans to play a key role in Taiwan Semiconductor’s $100 billion expansion in the US, a project mentioned by Trump. While the company faces short-term market volatility and policy challenges, its long-term strategy remains focused on technological growth and innovation.

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Google warns breakup plans could harm economy and security

Google has urged the Trump administration to reconsider efforts to break up the company as part of ongoing antitrust lawsuits.

The meeting with government officials took place last week, according to a source familiar with the matter. The United States Department of Justice (DOJ) is pursuing two cases against Google, focusing on its dominance in search and advertising technology.

Executives at Google have expressed concerns that proposed remedies, including the potential divestment of the Chrome browser and changes to search engine agreements, could negatively impact the American economy and national security.

The DOJ has not yet commented on the discussions. A trial to determine appropriate remedies is set for April, with a final ruling expected in August.

President Trump’s administration is expected to take a softer approach to antitrust enforcement compared to his predecessor.

Industry experts believe this could lead to adjustments in the DOJ’s stance on breaking up Google, potentially reshaping the legal battle over its market power.

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EU set to implement Entry/Exit System for border control

The European Union has reached an agreement to finally implement the long-awaited Entry/Exit System (EES), which will modernise border checks for short-stay travellers.

After several delays due to technical issues and a lack of readiness, the system is now set to begin operations in autumn, though a specific launch date has yet to be determined.

Member states will have the option to introduce the system all at once or in phases over a six-month transition period, with the full implementation to be completed by the end of the transition.

The EES, which was first proposed in 2016, aims to replace traditional passport stamping by collecting biometric data from non-EU visitors, including photos and fingerprints.

This data will be recorded each time visitors enter or exit the Schengen Area. The system is designed to improve border control, help authorities identify overstayers, and prevent identity fraud.

While Cyprus and Ireland will not participate in the new system, all other EU member states and four Schengen-associated countries will be involved.

Poland, which currently holds the EU Council’s rotating presidency, will lead negotiations with the European Parliament to finalise the law.

Tomasz Siemoniak, Poland’s Minister for Internal Affairs, indicated that a final agreement should be reached smoothly, with October set as the target for full implementation.

The EES is expected to provide authorities with new tools to enhance security and better manage borders within the Schengen Area.

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South Korea launches $34 billion fund for strategic industries

South Korea has announced the creation of a $34 billion policy fund to support companies in key industries such as semiconductors, automotive, and advanced technologies, in response to growing global competition and protectionist policies.

The state-run Korea Development Bank will manage the fund by providing low-interest loans and other financial support over the next five years to businesses involved in national strategic industries.

The government stressed that maintaining competitiveness in these strategic sectors has become crucial to the country’s economic security, particularly amid the uncertainties caused by the new US administration.

South Korea has identified 12 industries, including semiconductors, AI, and biopharmaceuticals, as critical for its future economic stability and will offer targeted financial support to strengthen these sectors.

In addition to the fund, South Korea also unveiled new policies to attract skilled global talent in cutting-edge fields. These measures include offering top-tier visas and permanent residency to professionals with experience at major international firms, aiming to enhance the country’s workforce in strategic industries.

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CoinDCX to manage seized crypto assets for India’s enforcement directorate

India’s Enforcement Directorate (ED) has chosen CoinDCX to manage and store seized digital assets as part of a crackdown on cryptocurrency-related financial crimes.

The partnership follows high-profile fraud cases like GainBitcoin and BitConnect, which have raised concerns over investor protection. CoinDCX will offer secure custody services to safeguard these assets, implementing advanced security protocols to ensure their integrity.

In a recent case, the ED seized digital assets worth approximately $198 million linked to the BitConnect scam, which defrauded investors worldwide.

Earlier, the Central Bureau of Investigation (CBI) had seized $2.88 million in the GainBitcoin scam, uncovering evidence of financial misappropriation and cross-border transactions. These actions highlight the increasing efforts by authorities to tackle large-scale cryptocurrency fraud.

As cryptocurrency adoption rises in India, regulatory bodies are focusing on stronger enforcement to protect investors from fraudulent schemes.

The collaboration with CoinDCX is part of a broader strategy to ensure transparency in the handling of seized funds and to maintain the integrity of ongoing investigations.

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Trump pushes for end to $52 billion semiconductor subsidy

Donald Trump has called for the repeal of the CHIPS and Science Act, a key piece of legislation passed in 2022 to support semiconductor manufacturing in the US.

Trump criticised the law during a speech to Congress, describing it as a waste of hundreds of billions of dollars and suggesting the funds should instead be used to reduce national debt. His remarks mark his most forceful criticism of the act to date.

The CHIPS Act, signed by President Joe Biden, allocated $39 billion in subsidies for US semiconductor production and related industries, along with $75 billion in government-backed loans.

The initiative was part of a broader strategy to reduce reliance on foreign-made chips and address national security concerns.

Trump argued that rather than offering financial incentives, the government could avoid imposing tariffs to encourage semiconductor companies to build factories in the US.

However, the program has garnered support from officials, including Commerce Secretary Gina Raimondo, who played a key role in securing investments from leading global semiconductor firms like Samsung, Intel, and TSMC.

New York Governor Kathy Hochul defended the CHIPS Act, emphasising its role in bringing significant investment and job creation to the state, including Micron’s $100 billion investment in Central New York.

Trump’s comments have raised concerns about the future of these grants and the potential impact on such developments.

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Aylo Holdings faces legal pressure over privacy concerns

Canada’s privacy commissioner has launched legal action against Aylo Holdings, the Montreal-based operator of Pornhub and other adult websites, for failing to ensure consent from individuals featured in uploaded content.

Commissioner Philippe Dufresne said Aylo had not adequately addressed concerns raised in an earlier investigation, which found the company allowed intimate images to be shared without the direct permission of those depicted.

A Federal Court order is being sought to enforce compliance with privacy laws in Canada. Aylo Holdings has denied violating privacy laws and expressed disappointment at the legal action.

The company claims it has been in ongoing discussions with regulators and has implemented significant measures to prevent non-consensual content from being shared. These include mandatory uploader verification, proof of consent for all participants, stricter moderation, and banning content downloads.

The case stems from a complaint by a woman whose ex-boyfriend uploaded intimate images of her without her consent.

Although Aylo says the incident occurred in 2015 and policies have since improved, the privacy commissioner insists that stronger enforcement is needed. The legal battle could have significant implications for content moderation policies in the adult entertainment industry.

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China moves to promote RISC-V chip use nationwide

China is set to release new guidance aimed at promoting the use of open-source RISC-V chips nationwide, a move that signals the country’s growing efforts to reduce its reliance on Western technology. The policy, which could be unveiled as early as this month, is being developed by several government bodies, including the Cyberspace Administration of China and the Ministry of Industry and Information Technology. The final release date remains uncertain as discussions continue.

RISC-V, an open-source chip design technology, has gained popularity in China, particularly among state entities and research institutes, due to its lower cost and geopolitical neutrality. It is seen as a viable alternative to more established, proprietary chip architectures, such as those from Intel and AMD, and is gaining traction in various industries, including AI and mobile technology. This shift has raised concerns in the United States, where lawmakers are wary that China may be leveraging RISC-V’s open-source nature to boost its semiconductor sector.

The growing adoption of RISC-V has sparked a positive movement in the Chinese stock market, with shares of local chip design firms such as VeriSilicon and ASR Microelectronics experiencing significant gains. Industry leaders point out that RISC-V’s potential to reduce costs for smaller companies looking to implement AI, particularly with the rise of technologies like DeepSeek, could further drive its adoption.

As tensions between the US and China over technology intensify, the development of China’s semiconductor industry using RISC-V may become a critical aspect of its strategy to become less dependent on foreign chipmakers, while also advancing its own technological ambitions.

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Eutelsat shares surge on prospects of replacing Starlink

Eutelsat shares surged by over 60% on Tuesday, continuing a remarkable rise that saw them increase by 68% the day before. This spike came after geopolitical tensions raised the possibility of OneWeb satellites, owned by the French satellite operator, replacing Elon Musk’s Starlink service in Ukraine. Since Friday, Eutelsat’s stock has nearly tripled in value following a public dispute between Ukrainian President Volodymyr Zelensky and former US President Donald Trump, which has cast doubt on the future of Starlink in the country.

Analysts suggest that the surge in Eutelsat’s stock is driven by the potential for OneWeb to secure the Ukrainian military’s satellite contract, with OneWeb being seen as a viable alternative to Starlink. The situation gained further momentum after a White House official revealed that Trump would pause military aid to Ukraine, potentially allowing Europe to increase its support. On Tuesday, the European Commission unveiled an ambitious 800 billion euro defense plan, further strengthening Europe’s role in the region.

Eutelsat has recently committed to increasing its satellite capacity for Ukraine, highlighting its growing importance for European defence. The French satellite operator has faced challenges, including concerns over rising debt and strong competition from US companies like SpaceX’s Starlink. Despite these hurdles, recent developments have rekindled investor confidence, with shares rising sharply after hitting all-time lows in February due to ongoing financial difficulties.

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