Cybersecurity

AI market surge raises alarm over financial stability

AI has become one of the dominant forces in global markets, with AI-linked firms now making up around 44% of the S&P 500’s market capitalisation. Their soaring valuations have pushed US stock indices near levels last seen in the dot com bubble.

While optimism remains high, the future is uncertain. AI’s infrastructure demands are immense, with estimates suggesting that trillions of dollars will be needed to build and power new data centres by 2030.

Much of this investment is expected to be financed through debt, increasing exposure to potential market shocks. Analysts warn that any slowdown in AI progress or monetisation could trigger sharp corrections in AI-related asset prices.

The Bank of England has noted that financial stability risks could rise if AI infrastructure expansion continues at its current pace. Banks and private credit funds may face growing exposure to highly leveraged sectors, while power and commodity markets could also come under strain from surging AI energy needs.

Although AI remains a powerful growth driver for the US economy, its rapid expansion is creating new systemic vulnerabilities. Policymakers and financial institutions are urged to monitor the sector closely as the next phase of AI-driven growth unfolds.

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Copilot Mode turns Edge into an active assistant

Edge says the browser should work with you, not just wait for clicks. Copilot Mode adds chat-first tabs, multi-tab reasoning, and a dynamic pane for in-context help. Plan trips, compare options, and generate schedules without tab chaos.

Microsoft Copilot now resumes past sessions, so projects pick up exactly where you stopped. It can execute multi-step actions, like building walking tours, end-to-end. Optional history signals improve suggestions and speed up research-heavy tasks.

Voice controls handle quick actions and deeper chores with conversational prompts. Ask Copilot to open pages, summarise threads, or unsubscribe you from promo emails. Reservations and other multi-step chores are rolling out next.

Journeys groups past browsing into topic timelines for fast re-entry, with explicit opt-in. Privacy controls are prominent: clear cues when Copilot listens, acts, or views. You can toggle Copilot Mode off anytime.

Security features round things out: local AI blocks scareware overlays by default. Built-in password tools continuously create, store, and monitor credentials. Copilot Mode is in all Copilot markets on Edge desktop and mobile and is coming soon.

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US Department of Justice charges former L3Harris executive with selling trade secrets to Russian buyer

The US Department of Justice has accused a former executive at defense contractor L3Harris of stealing and selling trade secrets to a buyer in Russia.

According to court filings, Peter Williams, a 39-year-old Australian citizen and former general manager of L3Harris division Trenchant, allegedly sold eight trade secrets from two unnamed companies between April 2022 and August 2025, earning about $1.3 million.

Williams, known internally as ‘Doogie,’ led Trenchant, which develops hacking and surveillance tools for Western governments, including the United States. He joined the company in October 2024 and left in August 2025, according to U.K. business records.

The DOJ’s ‘criminal information’ document, which, similar to an indictment, represents a formal accusation, did not identify the companies involved or the Russian buyer. Prosecutors are seeking to recover assets they say Williams acquired through the sale of trade secrets.

The case is being prosecuted by the DOJ’s National Security Division under the Counterintelligence and Export Control Section. An arraignment and plea hearing is scheduled for October 29 in Washington, DC.

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Australia demands answers from AI chatbot providers over child safety

Australia’s eSafety Commissioner has issued legal notices to four major AI companion platforms, requiring them to explain how they are protecting children from harmful or explicit content.

Character.ai, Nomi, Chai, and Chub.ai were all served under the country’s Online Safety Act and must demonstrate compliance with Australia’s Basic Online Safety Expectations.

The notices follow growing concern that AI companions, designed for friendship and emotional support, can expose minors to sexualised conversations, suicidal ideation, and other psychological risks.

eSafety Commissioner Julie Inman Grant said the companies must show how their systems prevent such harms, not merely react to them, warning that failure to comply could lead to penalties of up to $825,000 per day.

AI companion chatbots have surged in popularity among young users, with Character.ai alone attracting nearly 160,000 monthly active users in Australia.

The Commissioner stressed that these services must integrate safety measures by design, as new enforceable codes now extend to AI platforms that previously operated with minimal oversight.

A move that comes amid wider efforts to regulate emerging AI technologies and ensure stronger child protection standards online.

Breaches of the new codes could result in civil penalties of up to $49.5 million, marking one of the toughest online safety enforcement regimes globally.

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Alaska Airlines grounds all US flights after IT failure

Alaska Airlines temporarily grounded all US flights on Thursday following a nationwide IT outage. The carrier confirmed a technical failure had disrupted operations and imposed a ground stop while engineers worked to restore systems.

The outage also affected Horizon Air, a regional airline operated by Alaska Airlines, according to the Federal Aviation Administration. The company has not disclosed how many flights were delayed or cancelled.

Alaska Airlines, headquartered in Seattle, serves over 140 destinations across 37 states and 12 countries. Its partner, Hawaiian Airlines, remained unaffected by the disruption, which marked the carrier’s second major outage this year.

The incident comes amid wider US aviation challenges linked to staffing shortages from the ongoing government shutdown. Officials said normal flight operations were gradually resuming as systems recovered nationwide.

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Lawmakers urge EU to curb Huawei’s role in solar inverters over security risks

Lawmakers and security officials are increasingly worried that Huawei’s dominant role in solar inverters could create a new supply-chain vulnerability for Europe’s power grids. Two MEPs have written to the European Commission urging immediate steps to limit ‘high-risk’ vendors in energy systems.

Inverters are a technology that transforms solar energy into the electrical current fed into the power network; many are internet-connected so vendors can perform remote maintenance. Cyber experts warn that remote access to large numbers of inverters could be abused to shut devices down or change settings en masse, creating surges, drops or wider instability across the grid.

Chinese firms, led by Huawei and Sungrow, supply a large share of Europe’s installed inverter capacity. SolarPower Europe estimates Chinese companies account for roughly 65 per cent of the market. Some member states are already acting: Lithuania has restricted remote access to sizeable Chinese installations, while agencies in the Czech Republic and Germany have flagged specific Huawei components for further scrutiny.

The European Commission is preparing an ICT supply-chain toolbox to de-risk critical sectors, with solar inverters listed among priority areas. Suspicion of Chinese technology has surged in recent years. Beijing, under President Xi Jinping, requires domestic firms to comply with government requests for data sharing and to report software vulnerabilities, raising Western fears of potential surveillance.

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NVIDIA AI Day Sydney showcases Australia’s growing role in global AI innovation

Australia took centre stage in the global AI landscape last week as NVIDIA AI Day Sydney gathered over a thousand participants to explore the nation’s path toward sovereign AI.

The event, held at ICC Sydney Theatre, featured discussions on agentic and physical AI, robotics and AI factories, highlighting how the next generation of computing is driving transformation across sectors.

Industry leaders, including Commonwealth Bank of Australia, Canva and emerging startups, joined NVIDIA executives to discuss how advanced computing and AI are shaping innovation.

Brendan Hopper of the Commonwealth Bank praised NVIDIA’s role in expanding Australia’s AI ecosystem through infrastructure, partnerships and education.

Speakers such as Giuseppe Barca of QDX Technologies emphasised how AI, high-performance computing and quantum research are redefining scientific progress.

With over 600 NVIDIA Inception startups and more than 20 universities using NVIDIA technologies, Australia’s AI ecosystem is expanding rapidly. Partners like Firmus Technologies, ResetData and SHARON AI underscored how AI Day Sydney demonstrated the nation’s readiness to become a regional AI hub.

The event also hosted Australia’s first ‘Startup, VC and Partner Connect’, linking entrepreneurs, investors and government officials to accelerate collaboration.

Presentations from quantum and healthcare innovators, alongside hands-on NVIDIA Deep Learning Institute sessions, showcased real-world AI applications from generative design to medical transcription.

NVIDIA’s Sudarshan Ramachandran said Australia’s combination of high-performance computing heritage, visual effects expertise and emerging robotics sector positions it to lead in the AI era.

Through collaboration and infrastructure investment, he said, the country is building a thriving ecosystem that supports discovery, sustainability and economic growth.

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$MELANIA coin faces court claims over price manipulation

Executives behind the $MELANIA cryptocurrency, launched by Melania Trump in January, are accused in court filings of orchestrating a pump-and-dump scheme. The coin surged from a few cents to $13.73 before falling to 10 cents, while $TRUMP dropped from $45.47 to $5.79.

Investors allege the creators planned the price surge and collapse to profit from rapid trading. Court papers allege Meteora executives used accomplices to buy and sell $MELANIA quickly, securing large profits while ordinary investors lost money.

Melania Trump herself is not named in the lawsuit, which describes her as unaware of the alleged scheme.

The $MELANIA allegations are now part of broader legal proceedings involving multiple cryptocurrencies that began earlier this year. Meteora has not commented, while the Trump family reportedly earned over $1bn from crypto ventures in the past year.

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Airbus, Leonardo and Thales merge space units for 2027 launch

Three of Europe’s leading aerospace firms, Airbus, Leonardo and Thales, have agreed to merge their space businesses into a single joint venture to strengthen Europe’s global competitiveness.

A new company that will combine satellite and space service operations from the three groups, bringing together about 25,000 employees and generating around €6.5 billion in annual revenue.

The joint venture, expected to start operating in 2027 following regulatory approval, will integrate Airbus’s Space Systems and Space Digital units, Leonardo’s Space Division, and Thales’s stakes in Thales Alenia Space, Telespazio and optics company Thales SESO.

Airbus will hold a 35 per cent stake, while Leonardo and Thales will each own 32.5 per cent.

The companies said the partnership aims to accelerate innovation, unify Europe’s fragmented space sector, and enhance its autonomy in critical technologies.

Executives described the move as a milestone for Europe’s space ambitions, combining resources and research capacity to boost exports and technological leadership.

Project Bromo, as it was internally known, had been in development for more than a year. After months of valuation and governance talks, the agreement now paves the way for a new European space powerhouse capable of challenging US rivals and shaping the future of global space operations.

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South Korea moves to lead the AI era with OpenAI’s economic blueprint

Poised to become a global AI powerhouse, South Korea has the right foundations in place: advanced semiconductor production, robust digital infrastructure, and a highly skilled workforce.

OpenAI’s new Economic Blueprint for Korea sets out how the nation can turn those strengths into broad, inclusive growth through scaled and trusted AI adoption.

The blueprint builds on South Korea’s growing momentum in frontier technology.

Following OpenAI’s first Asia–Pacific country partnership, initiatives such as Stargate with Samsung and SK aim to expand advanced memory supply and explore next-generation AI data centres alongside the Ministry of Science and ICT.

A new OpenAI office in Seoul, along with collaboration with Seoul National University, further signals the country’s commitment to becoming an AI hub.

A strategy that rests on two complementary paths: building sovereign AI capabilities in infrastructure, data governance, and GPU supply, while also deepening cooperation with frontier developers like OpenAI.

The aim is to enhance operational maturity and cost efficiency across key industries, including semiconductors, shipbuilding, healthcare, and education.

By combining domestic expertise with global partnerships, South Korea could boost productivity, improve welfare services, and foster regional growth beyond Seoul. With decisive action, the nation stands ready to transform from a fast adopter into a global standard-setter for safe, scalable AI systems.

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