Development

Hong Kong to speed up tech hub plan with China

One of S.A.R. of China, Hong Kong, is preparing to accelerate its cross-border technology hub plans with mainland China as the city seeks new growth drivers to offset its fragile economy.

Chief Executive John Lee is set to deliver his annual policy address on Wednesday, with the Northern Metropolis project expected to take centre stage.

The initiative aims to transform a sparsely populated area into a base for advanced industries and innovation, while reducing reliance on finance and real estate.

According to state-owned media, the government will ease financing rules to attract companies in AI, renewable energy and medical technology.

An urgency that comes despite signs of recovery, as the economy of Hong Kong grew at its fastest pace in over a year last quarter. Yet home prices continue to fall, unemployment has risen, and public finances remain stretched.

The administration is unlikely to offer sweeping property incentives, such as tax cuts or looser rules for mainland buyers, given fiscal constraints. Instead, it may revive the long-dormant Tenants Purchase Scheme, first launched in 1998, which allows public housing tenants to buy their flats at reduced prices.

Analysts say that without bold reforms, the housing market will stay under pressure as oversupply and weak sentiment weigh on values.

Hong Kong’s $7.2 trillion stock market could benefit if new listings and inflows are encouraged, especially as developers look to stimulus and lower mortgage rates to support sales.

However, with the economy of China also slowing down, doubts remain over whether deeper integration and technology investments can provide a lasting boost.

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Japan-backed AI avatar to highlight climate risks at Osaka Expo

An AI avatar named Una will be presented at the UN pavilion during the 2025 World Expo in Osaka later in the month as part of efforts to promote climate action.

The anime-inspired character, developed with support from the Japanese government, will use 3D hologram technology to engage visitors from 29 September to 4 October.

Una was launched online in May and can respond automatically in multiple languages, including English and Japanese. She was created under the Pacific Green Transformation Project, which supports renewable energy initiatives such as electric vehicles in Samoa and hydropower in Vanuatu.

Her role is to share stories of Pacific island nations facing the impacts of rising sea levels and raise awareness about climate change.

Kanni Wignaraja, UN assistant secretary-general and regional director for Asia and the Pacific, described Una as a strong voice for threatened communities. Influenced by Japanese manga and anime, she is designed to act like a cultural ambassador who connects Pacific struggles with Japanese audiences.

Pacific sea levels have risen by more than 15 centimetres in some regions over the past three decades, leading to flooding, crop damage and migration fears. The risks are existential for nations like Tuvalu, with an average elevation of just two metres.

The UN hopes Una will encourage the public to support renewable energy adoption and climate resilience in vulnerable regions.

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AI search tools challenge Google’s dominance

AI tools are increasingly reshaping how people search online, with large language models like ChatGPT drawing millions away from traditional engines.

Montreal-based lawyer and consultant Anja-Sara Lahady says she now turns to ChatGPT instead of Google for everyday tasks such as meal ideas, interior decoration tips and drafting low-risk emails. She describes it as a second assistant rather than a replacement for legal reasoning.

ChatGPT’s weekly user base has surged to around 800 million, double the figure reported in 2025. Data shows that nearly 6% of desktop searches are already directed to language models, compared with barely half that rate a year ago.

Academics such as Professor Feng Li argue that users favour AI tools because they reduce cognitive effort by providing clear summaries instead of multiple links. However, he warns that verification remains essential due to factual errors.

Google insists its search activity continues to expand, supported by AI Overviews and AI Mode, which offer more conversational and tailored answers.

Yet, testimony in a US antitrust case revealed that Google searches on Apple devices via Safari declined for the first time in two decades, underlining the competitive pressure from AI.

The rise of language models is also forcing a shift in digital marketing. Agencies report that LLMs highlight trusted websites, press releases and established media rather than social media content.

This change may influence consumer habits, with evidence suggesting that referrals from AI systems often lead to higher-quality sales conversions. For many users, AI now represents a faster and more personal route to decisions on products, travel or professional tasks.

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Millions of customer records stolen in Kering luxury brand data breach

Kering has confirmed a data breach affecting several of its luxury brands, including Gucci, Balenciaga, Brioni, and Alexander McQueen, after unauthorised access to its Salesforce systems compromised millions of customer records.

Hacking group ShinyHunters has claimed responsibility, alleging it exfiltrated 43.5 million records from Gucci and nearly 13 million from the other brands. The stolen data includes names, email addresses, dates of birth, sales histories, and home addresses.

Kering stated that the incident occurred in June 2025 and did not compromise bank or credit card details or national identifiers. The company has reported the breach to the relevant regulators and is notifying the affected customers.

Evidence shared by ShinyHunters suggests Balenciaga made an initial ransom payment of €500,000 before negotiations broke down. The group released sample data and chat logs to support its claims.

ShinyHunters has exploited Salesforce weaknesses in previous attacks targeting luxury, travel, and financial firms. Questions remain about the total number of affected customers and the potential exposure of other Kering brands.

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Codex gets smarter with GPT-5, targets GitHub Copilot and rivals

OpenAI has optimised its new GPT-5 model for Codex, its agentic software development tool, boosting performance on both quick coding sessions and long, complex projects. CEO Sam Altman said Codex already accounts for 40% of platform traffic.

GPT-5 Codex can now build full projects, add features, run tests, refactor large codebases, and conduct detailed code reviews. It dynamically adjusts the time spent ‘thinking’ based on task complexity, allowing both interactive pair programming and extended autonomous work.

OpenAI stated that the model can run independently for over seven hours, completing refactorings, fixing test failures, and delivering finished code. Early tests indicate that it catches critical bugs more reliably, allowing developers to focus on the most important issues.

The upgraded Codex is available via terminal, IDE integrations, the web, and GitHub, and comes bundled with ChatGPT Plus, Pro, Business, Edu, and Enterprise subscriptions. OpenAI launched Codex CLI in April and a research preview in May.

With GPT-5 Codex, OpenAI aims to capture market share from GitHub Copilot, Google’s Gemini, Anthropic’s Claude, and startups such as Anysphere and Windsurf. The company claims the new version delivers faster, higher-quality results for developers at every stage of the software lifecycle.

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UK to benefit from Google’s £5 billion AI plan

Google has unveiled plans to invest £5 billion (around $6.8 billion) in the UK’s AI economy over the next two years.

An announcement comes just hours before US President Donald Trump’s official visit to the country, during which economic agreements worth more than $10 billion are expected.

The investment will include establishing a new AI data centre in Waltham Cross, Hertfordshire, designed to meet growing demand for services like Google Cloud.

Alongside the facility, funds will be channelled into research and development, capital expenditure, engineering, and DeepMind’s work applying AI to science and healthcare. The project is expected to generate 8,250 annual jobs for British companies.

Google also revealed a partnership with Shell to support grid stability and contribute to the UK’s energy transition. The move highlights the economic and environmental stakes tied to AI expansion, as the UK positions itself as a hub for advanced digital technologies.

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Alphabet hits US$3 trillion valuation on AI optimism

Google’s parent company, Alphabet, has become the fourth company to reach a market value above US$3 trillion, fuelled by investor confidence in AI and relief over a favourable antitrust ruling.

Its shares jumped 4.3 percent to close at US$251.76 on 15 September, lifting the firm’s valuation to US$3.05 trillion.

The rally has added about US$1.2 trillion in value since April, with Alphabet joining Apple and Microsoft in the elite group while Nvidia remains the most valuable at US$4.25 trillion.

Investor optimism has been strengthened by expectations of a US Federal Reserve rate cut and surging demand for AI-related products.

Alphabet’s communications services unit has risen more than 26 percent in 2025, outpacing all other major sectors. Strong growth in its cloud division, new AI investments, and the Gemini model have reinforced the company’s momentum.

Analysts note that, while search continues to dominate revenues, Alphabet is increasingly viewed as a diversified technology powerhouse with YouTube, Waymo, and AI research at its core.

By avoiding a forced breakup of Chrome and Android, the antitrust ruling also removed a significant threat to its business model.

Market strategists suggest Alphabet now combines the strength of its legacy platforms with the credibility of emerging technologies, securing its place at the centre of Wall Street’s AI-driven rally.

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Google lays off over 200 AI contractors amid union tensions

The US tech giant, Google, has dismissed over 200 contractors working on its Gemini chatbot and AI Overviews tool. However, this sparks criticism from labour advocates and claims of retaliation against workers pushing for unionisation.

Many affected staff were highly trained ‘super raters’ who helped refine Google’s AI systems, yet were abruptly laid off.

The move highlights growing concerns over job insecurity in the AI sector, where companies depend heavily on outsourced and low-paid contract workers instead of permanent employees.

Workers allege they were penalised for raising issues about inadequate pay, poor working conditions, and the risks of training AI that could eventually replace them.

Google has attempted to distance itself from the controversy, arguing that subcontractor GlobalLogic handled the layoffs rather than the company itself.

Yet critics say that outsourcing allows the tech giant to expand its AI operations without accountability, while undermining collective bargaining efforts.

Labour experts warn that the cuts reflect a broader industry trend in which AI development rests on precarious work arrangements. With union-busting claims intensifying, the dismissals are now seen as part of a deeper struggle over workers’ rights in the digital economy.

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PDGrapher AI tool aims to speed up precision medicine development

Harvard Medical School researchers have developed an AI tool that could transform drug discovery by identifying multiple drivers of disease and suggesting treatments to restore cells to a healthy state.

The model, called PDGrapher, utilises graph neural networks to map the relationships between genes, proteins, and cellular pathways, thereby predicting the most effective targets for reversing disease. Unlike traditional approaches that focus on a single protein, it considers multiple factors at once.

Trained on datasets of diseased cells before and after treatment, PDGrapher correctly predicted known drug targets and identified new candidates supported by emerging research. The model ranked potential targets up to 35% higher and worked 25 times faster than comparable tools.

Researchers are now applying PDGrapher to complex diseases such as Parkinson’s, Alzheimer’s, and various cancers, where single-target therapies often fail. By identifying combinations of targets, the tool can help overcome drug resistance and expedite treatment design.

Senior author Marinka Zitnik said the ultimate goal is to create a cellular ‘roadmap’ to guide therapy development and enable personalised treatments for patients. After further validation, PDGrapher could become a cornerstone in precision medicine.

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AI challenges how students prepare for exams

Australia’s Year 12 students are the first to complete their final school years with widespread access to AI tools such as ChatGPT.

Educators warn that while the technology can support study, it risks undermining the core skills of independent thinking and writing. In English, the only compulsory subject, critical thinking is now viewed as more essential than ever.

Trials in New South Wales and South Australia use AI programs designed to guide rather than provide answers, but teachers remain concerned about how to verify work and ensure students value their own voices.

Experts argue that exams, such as the VCE English paper in October, highlight the reality that AI cannot sit assessments. Students must still practise planning, drafting and reflecting on ideas, skills which remain central to academic success.

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