Cybersecurity

Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

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AI race shows diverging paths for China and the US

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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Instagram responds to claims of user data exposure

Reports published by cybersecurity researchers indicated that data linked to approximately 17.5 million Instagram accounts has been offered for sale on underground forums.

The dataset reportedly includes usernames, contact details and physical address information, raising broader concerns around digital privacy and data aggregation.

A few hours later, Instagram responded by stating that no breach of internal systems occurred. According to the company, some users received password reset emails after an external party abused a feature that has since been addressed.

The platform said affected accounts remained secure, with no unauthorised access recorded.

Security analysts have noted that risks arise when online identifiers are combined with external datasets, rather than originating from a single platform.

Such aggregation can increase exposure to targeted fraud, impersonation and harassment, reinforcing the importance of cautious digital security practices across social media ecosystems.

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OpenAI and SoftBank back a $1 billion AI data centre energy partnership

SoftBank Group and OpenAI announced a strategic partnership with SB Energy, involving a combined investment of $1 billion to support the development of large-scale AI data centres and energy infrastructure in the US.

The agreement forms part of the broader Stargate initiative, which aims to expand domestic AI computing capacity.

As part of the arrangement, OpenAI signed a lease for a 1.2 gigawatt data centre project in Milam County, Texas, with SB Energy selected to develop and operate the facility.

The partners stated that the project is designed to support the rising demand for AI computing while minimising water usage and enhancing local energy supply.

SB Energy also secured an additional $800 million in redeemable preferred equity from Ares, strengthening its financial position for further expansion.

The companies stated that the collaboration is expected to generate construction employment, long-term operational roles and investment in grid modernisation, while establishing a scalable model for future AI-focused data centre developments.

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Meta backs US nuclear projects for AI growth

A series of agreements has been announced by Meta to support nuclear energy projects in the US, aiming to secure up to 6.6 gigawatts of clean and reliable electricity for data centres and AI infrastructure by 2035. The company said the move supports grid stability while reinforcing domestic energy capacity.

The agreements include support for existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, as well as commitments to advanced reactor developers TerraPower and Oklo.

Meta stated that the arrangements are intended to extend the operational life of current plants while accelerating the deployment of next-generation nuclear technologies.

According to Meta, the projects are expected to generate thousands of construction roles and hundreds of long-term operational jobs, while contributing to the firm’s power to regional electricity grids.

The company added that energy costs associated with its data centres are fully covered through corporate agreements, instead of being passed on to US consumers.

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Tether and UN join to boost digital security in Africa

Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.

Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.

The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.

Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.

Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.

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xAI plans $20 billion data centre investment in Mississippi

The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.

xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.

Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.

State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.

Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.

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Robotics industry sets out key trends for 2026

The global market for industrial robot installations has reached a record value of $16.7bn in 2025. The International Federation of Robotics expects further growth through technological change and labour pressures.

AI-driven autonomy is becoming central to robotics development, enabling machines to learn tasks and operate independently. Agentic AI combines analytical and generative models to improve decision-making in complex environments.

Robots are also becoming more versatile as IT and operational systems converge across factories and logistics. Humanoid robots are moving beyond prototypes, with reliability and efficiency now critical for industrial adoption.

Safety, cybersecurity and workforce acceptance remain key challenges for the sector. Industry leaders see robots as allies addressing labour shortages while governments expand skills and retraining programmes.

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EU instructs X to keep all Grok chatbot records

The European Commission has ordered X to retain all internal documents and data on its AI chatbot Grok until the end of 2026. The order falls under the Digital Services Act after concerns Grok’s ‘spicy’ mode enabled sexualised deepfakes of minors.

The move continues EU oversight, recalling a January 2025 order to preserve X’s recommender system documents amid claims it amplified far-right content during German elections. EU regulators emphasised that platforms must manage the content generated by their AI responsibly.

Earlier this week, X submitted responses to the Commission regarding Grok’s outputs following concerns over Holocaust denial content. While the deepfake scandal has prompted calls for further action, the Commission has not launched a formal investigation into Grok.

Regulators reiterated that it remains X’s responsibility to ensure the chatbot’s outputs meet European standards, and retention of all internal records is crucial for ongoing monitoring and accountability.

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New York launches 2026 with new AI proposals

New York is beginning 2026 with a renewed push to shape how AI is used, focusing on consumer protection while continuing to attract major tech investment. The move follows the recent signing of the RAISE Act, a landmark law aimed at enhancing safety standards for advanced AI models, and signals that state leaders intend to remain active in AI governance this year.

Governor Kathy Hochul has unveiled a new package of proposals, primarily aimed to protecting children online. The measures would expand age verification requirements, set safer default settings on social media platforms for minors, limit certain AI chatbot features for children, and give parents greater control over their children’s financial transactions. The proposals, part of Hochul’s annual ‘State of the State’ agenda, must still pass the state legislature before becoming law.

At the same time, New York is positioning itself as a welcoming environment for AI and semiconductor development. Hochul recently announced a $33 million research and development expansion in Manhattan by London-based AI company ElevenLabs.

In addition, Micron is expected to begin construction later this month on a massive semiconductor facility in White Plains, part of a broader $100 billion investment plan that underscores the state’s ambitions in advanced technology and manufacturing.

Beyond child safety and economic development, state officials are also focusing to how algorithms impact everyday costs. Attorney General Letitia James is investigating Instacart over allegations that its pricing systems charge different customers different prices for the same products.

The probe follows the implementation of New York’s Algorithmic Pricing Disclosure Act, which took effect late last year, requiring companies to be more transparent about the use of automated pricing tools.

The attorney general’s office is also examining broader accountability issues tied to AI systems, including reports involving the misuse of generative AI. Together, these actions underscore New York’s commitment to addressing voter concerns regarding affordability, safety, and transparency, while also harnessing the economic potential of rapidly evolving AI technologies.

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