Anthropic uncovers a major AI-led cyberattack

The US R&D firm, Anthropic, has revealed details of the first known cyber espionage operation largely executed by an autonomous AI system.

Suspicious activity detected in September 2025 led to an investigation that uncovered an attack framework, which used Claude Code as an automated agent to infiltrate about thirty high-value organisations across technology, finance, chemicals and government.

The attackers relied on recent advances in model intelligence, agency and tool access.

By breaking tasks into small prompts and presenting Claude as a defensive security assistant instead of an offensive tool, they bypassed safeguards and pushed the model to analyse systems, identify weaknesses, write exploit code and harvest credentials.

The AI completed most of the work with only a few moments of human direction, operating at a scale and speed that human hackers would struggle to match.

Anthropic responded by banning accounts, informing affected entities and working with authorities as evidence was gathered. The company argues that the case shows how easily sophisticated operations can now be carried out by less-resourced actors who use agentic AI instead of traditional human teams.

Errors such as hallucinated credentials remain a limitation, yet the attack marks a clear escalation in capability and ambition.

The firm maintains that the same model abilities exploited by the attackers are needed for cyber defence. Greater automation in threat detection, vulnerability analysis and incident response is seen as vital.

Safeguards, stronger monitoring and wider information sharing are presented as essential steps for an environment where adversaries are increasingly empowered by autonomous AI.

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Digital ID arrives for Apple users

Apple has introduced Digital ID, a new feature that lets users create an identification card in Apple Wallet using information from a US passport.

The feature launches in beta at Transportation Security Administration checkpoints across more than two hundred and fifty airports for domestic travel, instead of relying solely on physical documentation.

It offers an alternative for users who lack a Real ID-compliant card while not replacing a physical passport for international journeys.

Users set up a Digital ID by scanning the passport’s photo page, reading the chip on the back of the document, and completing facial movements for verification.

Once added, the ID can be presented with an iPhone or Apple Watch by holding the device near an identity reader and confirming the request with Face ID or Touch ID. New verification options for in-person checks at selected businesses, apps and online platforms are planned.

The company highlights privacy protection by storing passport data only on the user’s device, instead of Apple’s servers. Digital ID information is encrypted and cannot be viewed by Apple, and biometric authentication ensures that only the owner can present the identity.

Only the required information is shared during each transaction, and the user must approve it before it is released.

The launch expands Apple Wallet’s existing support for driver’s licences and state IDs, which are already available in twelve states and Puerto Rico. Recent months have added Montana, North Dakota and West Virginia, and Japan adopted the feature with the My Number Card.

Apple expects Digital ID to broaden secure personal identification across more services over time.

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Baidu launches new AI chips amid China’s self-sufficiency push

In a strategic move aligned with national technology ambitions, Baidu announced two newly developed AI chips, the M100 and the M300, at its annual developer and client event.

The M100, designed by Baidu’s chip subsidiary Kunlunxin Technology, targets inference efficiency for large models using mixture-of-experts techniques, while the M300 is engineered for training very large multimodal models comprising trillions of parameters.

The M100 is slated for release in early 2026 and the M300 in 2027, according to Baidu, which claims they will deliver ‘powerful, low-cost and controllable AI computing power’ to support China’s drive for technological self-sufficiency.

Baidu also revealed plans for clustered architectures such as the Tianchi256 stack in the first half of 2026 and the Tianchi512 in the second half of 2026, intended to boost inference capacity through large-scale interconnects of chips.

This announcement illustrates how China’s tech ecosystem is accelerating efforts to reduce dependence on foreign silicon, particularly amid export controls and geopolitical tensions. Domestically-designed AI processors from Baidu and other firms such as Huawei Technologies, Cambricon Technologies and Biren Technology are increasingly positioned to substitute for western hardware platforms.

From a policy and digital diplomacy perspective, the development raises questions about the global semiconductor supply chain, standards of compute sovereignty and how AI-hardware competition may reshape power dynamics.

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Romania pilots EU Digital Identity Wallet for payments

In a milestone for the European digital identity ecosystem, Banca Transilvania and payments-tech firm BPC have completed the first pilot in Romania using the EU Digital Identity Wallet (EUDIW) for a real-money transaction.

The initiative lets a cardholder authenticate a purchase using the wallet rather than a conventional one-time password or card reader.

The pilot forms part of a large-scale testbed led by the European Commission under the eIDAS 2 Regulation, which requires all EU banks to accept the wallet for strong customer authentication and KYC (know-your-customer) purposes by 2027.

Banca Transilvania’s Deputy CEO Retail Banking, Oana Ilaş, described the project as a historic step toward a unified European digital identities framework that enhances interoperability, inclusivity and banking access.

From a digital governance and payments policy perspective, this pilot is significant. It shows how national banking systems are beginning to integrate digital-ID wallets into card and account-based flows, potentially reducing reliance on legacy authentication mechanisms (such as SMS OTP or hardware tokens) that are vulnerable to fraud.

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New York Times lawsuit prompts OpenAI to strengthen privacy protections

OpenAI says a New York Times demand to hand over 20 million private ChatGPT conversations threatens user privacy and breaks with established security norms. The request forms part of the Times’ lawsuit over alleged misuse of its content.

The company argues the demand would expose highly personal chats from people with no link to the case. It previously resisted broader requests, including one seeking more than a billion conversations, and says the latest move raises similar concerns about proportionality.

OpenAI says it offered privacy-preserving alternatives, such as targeted searches and high-level usage data, but these were rejected. It adds that chats covered by the order are being de-identified and stored in a secure, legally restricted environment.

The dispute arises as OpenAI accelerates its security roadmap, which includes plans for client-side encryption and automated systems that detect serious safety risks without requiring broad human access. These measures aim to ensure private conversations remain inaccessible to external parties.

OpenAI maintains that strong privacy protections are essential as AI tools handle increasingly sensitive tasks. It says it will challenge any attempt to make private conversations public and will continue to update users as the legal process unfolds.

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Hidden freeze controls uncovered across major blockchains

Bybit’s Lazarus Security Lab says 16 major blockchains embed fund-freezing mechanisms. An additional 19 could adopt them with modest protocol changes, according to the study. The review covered 166 networks using an AI-assisted scan plus manual validation.

Whilst using AI, researchers describe three models: hardcoded blacklists, configuration-based freezes, and on-chain system contracts. Examples cited include BNB Chain, Aptos, Sui, VeChain and HECO in different roles. Analysts argue that emergency tools can curb exploits yet concentrate control.

Case studies show freezes after high-profile attacks and losses. Sui validators moved to restore about 162 million dollars post-Cetus hack, while BNB Chain halted movement after a 570 million bridge exploit. VeChain blocked 6.6 million in 2019.

New blockchain debates centre on transparency, governance and user rights when freezes occur. Critics warn about centralisation risks and opaque validator decisions, while exchanges urge disclosure of intervention powers.

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European Commission launches Culture Compass to strengthen the EU identity

The European Commission unveiled the Culture Compass for Europe, a framework designed to place culture at the heart of the EU policies.

An initiative that aims to foster the identity ot the EU, celebrate diversity, and support excellence across the continent’s cultural and creative sectors.

The Compass addresses the challenges facing cultural industries, including restrictions on artistic expression, precarious working conditions for artists, unequal access to culture, and the transformative impact of AI.

It provides guidance along four key directions: upholding European values and cultural rights, empowering artists and professionals, enhancing competitiveness and social cohesion, and strengthening international cultural partnerships.

Several initiatives will support the Compass, including the EU Artists Charter for fair working conditions, a European Prize for Performing Arts, a Youth Cultural Ambassadors Network, a cultural data hub, and an AI strategy for the cultural sector.

The Commission will track progress through a new report on the State of Culture in the EU and seeks a Joint Declaration with the European Parliament and Council to reinforce political commitment.

Commission officials emphasised that the Culture Compass connects culture to Europe’s future, placing artists and creativity at the centre of policy and ensuring the sector contributes to social, economic, and international engagement.

Culture is portrayed not as a side story, but as the story of the EU itself.

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UAE executes first government payment using Digital Dirham

The United Arab Emirates has completed its first government financial transaction using the Digital Dirham, marking a significant milestone in its transition towards a fully digital economy.

The Ministry of Finance and Dubai Finance carried out the transaction in collaboration with the Central Bank of the UAE, confirming the country’s leadership in advancing next-generation financial technologies.

Part of the Central Bank’s Financial Infrastructure Transformation Programme, the pilot phase of the Digital Dirham aims to accelerate digital payment adoption and strengthen the UAE’s position as a global financial hub.

Senior officials, including Sheikh Mansour bin Zayed Al Nahyan and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, described the initiative as a strategic step toward improving transparency, efficiency, and integration across government financial systems.

The first pilot transaction was executed through the government payments platform mBridge, which facilitates instant settlements using central bank digital currencies.

A transaction was completed in under two minutes, demonstrating the system’s technical efficiency and reliability. The mBridge platform, fully integrated with the Digital Dirham initiative, enables secure, intermediary-free settlements, reducing costs while improving accuracy and transparency.

Officials emphasised that the Digital Dirham will serve as a cornerstone for a sustainable digital economy, reinforcing national financial stability and global competitiveness.

The initiative reflects the UAE’s commitment to adopting cutting-edge technologies that promote integration and innovation across the public and private sectors.

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EU regulators, UK and eSafety lead the global push to protect children in the digital world

Children today spend a significant amount of their time online, from learning and playing to communicating.

To protect them in an increasingly digital world, Australia’s eSafety Commissioner, the European Commission’s DG CNECT, and the UK’s Ofcom have joined forces to strengthen global cooperation on child online safety.

The partnership aims to ensure that online platforms take greater responsibility for protecting and empowering children, recognising their rights under the UN Convention on the Rights of the Child.

The three regulators will continue to enforce their online safety laws to ensure platforms properly assess and mitigate risks to children. They will promote privacy-preserving age verification technologies and collaborate with civil society and academics to ensure that regulations reflect real-world challenges.

By supporting digital literacy and critical thinking, they aim to provide children and families with safer and more confident online experiences.

To advance the work, a new trilateral technical group will be established to deepen collaboration on age assurance. It will study the interoperability and reliability of such systems, explore the latest technologies, and strengthen the evidence base for regulatory action.

Through closer cooperation, the regulators hope to create a more secure and empowering digital environment for young people worldwide.

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Αnthropic pledges $50 billion to expand the US AI infrastructure

The US AI safety and research company, Anthropic, has announced a $50 billion investment to expand AI computing infrastructure inside the country, partnering with Fluidstack to build data centres in Texas and New York, with additional sites planned.

These facilities are designed to optimise efficiency for Anthropic’s workloads, supporting frontier research and development in AI.

The project is expected to generate approximately 800 permanent jobs and 2,400 construction positions as sites come online throughout 2026.

An investment that aligns with the Trump administration’s AI Action Plan, aiming to maintain the US leadership in AI while strengthening domestic technology infrastructure and competitiveness.

Dario Amodei, CEO and co-founder of Anthropic, highlighted the importance of such an infrastructure in developing AI systems capable of accelerating scientific discovery and solving complex problems.

The company serves over 300,000 business customers, with a sevenfold growth in large accounts over the past year, demonstrating strong market demand for its Claude AI platform.

Fluidstack was selected as Anthropic’s partner for its agility in rapidly deploying high-capacity infrastructure. The collaboration aims to provide cost-effective and capital-efficient solutions to meet the growing demand, ensuring that research and development can continue to be at the forefront of AI innovation.

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