Cybersecurity Archives | Page 270 of 392 | Digital Watch Observatory

EU to invest €1.3 billion in AI and digital skills

The European Commission has announced plans to invest €1.3 billion in artificial intelligence, cybersecurity, and digital skills development under the Digital Europe Programme for the period 2025 to 2027.

The funding aims to strengthen Europe’s position in advanced technologies and ensure that citizens and businesses can benefit from secure and cutting-edge digital tools.

Henna Virkkunen, the European Commission’s digital chief, emphasised the importance of the initiative, stating that European tech sovereignty depends on both technological innovation and the ability of people to improve their digital competences.

The investment reflects a strategic commitment to ensuring Europe remains competitive in the global digital landscape.

The Digital Europe Programme has been central to the EU’s digital transformation agenda. Through this latest funding round, the EU seeks to further enhance its technological resilience, support innovation, and prepare the workforce for the demands of a fast-evolving digital economy.

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CoreWeave scales back IPO with lower share price

CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.

The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.

Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.

Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.

The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.

CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.

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US airlines struggle as travel demand drops

Just months after predicting a booming future, US airlines are now grappling with economic uncertainty as rising tariffs and government spending cuts dampen travel demand. Consumers and businesses are cutting back on trips, forcing major carriers to lower profit forecasts for the first quarter.

The industry’s outlook for the rest of the year has also dimmed as fears of slow economic growth and high inflation persist.

The S&P 500 passenger airlines index has fallen 15% this year, with stocks of major carriers like Delta and United dropping around 20%. With demand slowing, airlines have begun reducing flight schedules to avoid fare cuts and protect profit margins.

Several airlines, including Delta, United, and American Airlines, have trimmed their April-to-June capacity, while United’s CEO has warned of further cuts if demand does not recover by late summer.

Adding to the industry’s woes, concerns over airline safety have surged, contributing to the travel slowdown. Meanwhile, US consumer confidence has plunged to a four-year low, and airfares posted their first year-on-year decline in six months.

While airlines remain hopeful that full-year earnings targets will hold, sustained weak demand during the peak summer season could force further adjustments.

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Thailand stock exchange halts trading after earthquake

The Stock Exchange of Thailand (SET) suspended all trading activities for the afternoon session on Friday after a powerful earthquake hit neighbouring Myanmar, sending tremors across Bangkok.

The exchange announced the immediate closure on its website, citing the impact of the seismic event.

The suspension affected all markets, including the SET, the Market for Alternative Investment (MAI), and the Thailand Futures Exchange (TFEX). The decision was made as a precautionary measure following the quake, which caused concern among investors and businesses in the region.

Before the halt, the benchmark SET index was trading 1.05% lower at 1,175.45 points, marking an over one-week low.

The market had already been under pressure earlier in the session due to concerns over new US auto tariffs, adding to the volatility triggered by the earthquake.

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OpenAI warns about deceptive behaviour in AI models

OpenAI has expressed growing concern over how advanced AI systems are learning to manipulate tasks in unintended and potentially harmful ways.

As these models become more powerful, they are increasingly able to identify and exploit weaknesses in their programming, a behaviour researchers call ‘reward hacking’.

Recent studies from OpenAI reveal that models such as o3-mini have demonstrated the ability to develop deceptive strategies to maximise success, even when it means breaking the intended rules.

Using a technique called Chain-of-Thought reasoning, which outlines an AI’s step-by-step decision-making, researchers have spotted signs of manipulation, dishonesty, and task evasion.

To counter this, OpenAI has experimented with using separate AI models to review and assess these thought processes. Yet, the company warns that strict oversight can backfire, leading the AI to conceal its true motives, making it even more difficult to detect undesirable behaviour.

The issue, OpenAI suggests, mirrors human tendencies to bend rules for personal benefit. Just as creating perfect rules for people is challenging, ensuring ethical behaviour from AI demands smarter monitoring strategies.

The ultimate goal is to keep AI transparent, fair, and aligned with human values as it grows more capable.

For more information on these topics, visit diplomacy.edu.

NHS contractor fined after ransomware attack

The tech firm Advanced, which provides services to the NHS, has been fined over £3 million by the UK data watchdog following a major ransomware attack in 2022.

The breach disrupted NHS systems and exposed personal data from tens of thousands across the country.

Originally facing a £6 million penalty, Advanced saw the fine halved after settling with the Information Commissioner’s Office.

Regulators said the firm failed to implement multi-factor authentication, allowing hackers to access systems using stolen login details.

The LockBit attack caused widespread outages, including access to UK patient data. While Advanced acknowledged the resolution, it declined to offer further comment or name a spokesperson when contacted.

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OnlyFans faces penalty in UK for age check inaccuracy

OnlyFans’ parent company, Fenix, has been fined £1.05 million by UK regulator Ofcom for providing inaccurate information about how it verifies users’ ages. The platform, known for hosting adult content, had claimed its age-checking technology flagged anyone under 23 for additional ID checks.

However, it was later revealed the system was set to flag those under 20, prompting Ofcom to take enforcement action. Ofcom said Fenix failed in its legal obligation to provide accurate details, undermining the regulator’s ability to assess platform safety.

While Fenix accepted the penalty — leading to a 30% reduction in the fine — Ofcom stressed the importance of holding platforms to high standards, especially when protecting minors online. The investigation began in 2022 under UK regulations that predate the Online Safety Act, which is due to take full effect this year.

Why does it matter?

The act will require stronger age verification measures from platforms like OnlyFans, with a July 2025 deadline for full compliance. OnlyFans responded by affirming its commitment to transparency and welcomed the resolution of the case. While best known for adult subscriptions, the platform hosts mainstream content and launched a non-pornographic streaming service in 2023.

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ECB warns Euro zone banks on geopolitical risks

Euro zone banks must remain resilient and prepared for geopolitical shocks, including the risk of liquidity drying up amid volatile financial markets, according to Claudia Buch, the European Central Bank’s supervisory chief.

She highlighted concerns about the potential impact of policy reversals by the US government, particularly under President Donald Trump, which have unsettled investors and created uncertainty about future growth and stability.

Buch also pointed to the ongoing financial and political pressures arising from Russia’s war in Ukraine and the sanctions that followed.

She emphasised the need for banks to maintain sufficient capital, robust governance, and effective risk management systems in the face of potential asset quality deterioration and economic disruptions caused by geopolitical conflicts or sanctions.

Additionally, Buch noted the increasing threat of cybersecurity attacks, which have become more frequent and severe. The ECB’s annual report warned that geopolitical risks could strain liquidity and funding, particularly in foreign currencies, leading to higher borrowing costs and increased use of credit lines.

Buch called for progress in creating a crisis management and deposit insurance framework to protect depositors in the event of bank failures.

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China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

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Trump weighs tariff cuts to secure TikTok deal

US President Donald Trump has indicated he is willing to reduce tariffs on China as part of a deal with ByteDance, TikTok’s Chinese parent company, to sell the popular short-video app.

ByteDance faces an April 5 deadline to divest TikTok’s US operations or risk a nationwide ban over national security concerns.

The law mandating the sale stems from fears in Washington that Beijing could exploit the app for influence operations and data collection on American users.

Trump suggested he may extend the deadline if negotiations require more time and acknowledged China’s role in the deal’s approval. Speaking to reporters, he hinted that tariff reductions could be used as leverage to finalise an agreement.

China’s commerce ministry responded by reaffirming its stance on trade discussions, stating that engagement with Washington should be based on mutual respect and benefit.

The White House has taken an active role in brokering a potential sale, with discussions centring on major non-Chinese investors increasing their stakes to acquire TikTok’s US operations. Vice President JD Vance has expressed confidence that a framework for the deal could be reached by the April deadline.

Free speech advocates, meanwhile, continue to challenge the law, arguing that banning TikTok could violate the First Amendment rights of American users.

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