Development

Cybercriminals trick users with fake AI apps

Cybercriminals are tricking users into downloading a dangerous new malware called Noodlophile by disguising it as AI software. Rather than using typical phishing tactics, attackers create convincing fake platforms that appear to offer AI-powered tools for editing videos or images.

These are promoted through realistic-looking Facebook groups and viral social media posts, some of which have received over 62,000 views.

Users are lured with promises of AI-generated content and are directed to bogus sites, one of which pretends to be CapCut AI, offering video editing features. Once users upload prompts and attempt to download the content, they unknowingly receive a malicious ZIP file.

Inside, it is a disguised program that kicks off a chain of infections, eventually installing the Noodlophile malware. However, this software can steal browser credentials, crypto wallet details, and other sensitive data.

The malware is linked to a Vietnamese developer who identifies themselves as a ‘passionate Malware Developer’ on GitHub. Vietnam has a known history of cybercrime activity targeting social media platforms like Facebook.

In some cases, the Noodlophile Stealer has been bundled with remote access tools like XWorm, which allow attackers to maintain long-term control over victims’ systems.

This isn’t the first time attackers have used public interest in AI for malicious purposes. Meta removed over 1,000 dangerous links in 2023 that exploited ChatGPT’s popularity to spread malware.

Meanwhile, cybersecurity experts at CYFIRMA have reported another threat: a new, simple yet effective malware called PupkinStealer, which secretly sends stolen information to hackers using Telegram bots.

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Scale AI expands into Saudi Arabia and UAE

Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a $500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a $13.8 billion valuation last year after a $1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about $870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump’s upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf’s access to cutting-edge technology.

Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech matters.

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Microsoft and OpenAI rework billion dollar deal

OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology.

According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm.

The software giant has invested over US$13 billion in OpenAI and is reportedly prepared to reduce its stake in exchange for extended access to AI developments beyond the current 2030 agreement.

The revisions also include changes to a broader agreement first established in 2019 when Microsoft committed US$1 billion to the partnership.

The restructuring reflects OpenAI’s shift in strategy as it prepares for potential independence from its largest investor. Recent reports suggest the company plans to share a smaller portion of its future revenue with Microsoft, instead of maintaining current terms.

Microsoft has declined to comment on the ongoing negotiations, and OpenAI has yet to respond.

The talks follow Microsoft’s separate US$500 billion joint venture with Oracle and SoftBank to build AI data centres in the US, further signalling the strategic value of securing long-term access to cutting-edge models.

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Honor phones get early access to Google’s AI video tool

Google’s latest AI image-to-video tool has made its debut on new Honor smartphones, ahead of its wider rollout to Gemini users.

The feature, powered by Google’s Veo 2 model, allows users to transform still images into short five-second videos directly from the Gallery app on Honor’s upcoming 400 and 400 Pro devices, launching on 22 May. The technology offers quick generation, usually taking just a minute or two per video.

Designed with simplicity in mind, the tool does not allow text prompts, leaving the AI to interpret each image as it sees fit. Results can be mixed: straightforward subjects such as pets or portraits often yield smooth, lifelike motion, but the tool struggles with complex visuals.

Some results have been amusing or surreal — a pigeon flying out of Van Gogh’s eye, for instance — suggesting that the AI’s creative choices still lack refinement.

Owners of the Honor 400 series will be able to try the feature for free for two months, with a limit of ten videos per day. After the trial, a Google subscription will likely be required, though pricing and terms have not yet been announced.

While video generation is already available to Google’s Gemini Advanced subscribers using text input, image-based generation remains limited to selected users under Google Cloud’s enterprise offerings, where it’s priced at 50 cents per second.

With this early release, Honor users gain rare first-hand access to an experimental AI feature that remains out of reach for most.

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Microsoft expands cloud push across Europe

Microsoft has unveiled a new set of commitments aimed at strengthening its digital presence across Europe, pledging to expand cloud and AI infrastructure while supporting the region’s economic competitiveness.

Announced by Microsoft President Brad Smith in Brussels, the ‘European Digital Commitments’ include a promise to increase European data centre capacity by 40% within two years, bringing the total to over 200 across 16 countries.

Smith explained that Microsoft’s goal is to provide technology that helps individuals and organisations succeed, rather than simply expanding its reach. He highlighted AI as essential to modern economies, describing it as a driving force behind what he called the ‘AI economy.’

Alongside job creation, Microsoft hopes its presence will spark wider economic benefits for customers and partners throughout the continent.

To ease concerns around data security, particularly in light of US–EU geopolitical tensions, Microsoft has added clauses in agreements with European institutions allowing it to legally resist any external order to halt operations in Europe.

If such efforts failed, Microsoft has arranged for European partners to access its code stored securely in Switzerland, instead of allowing disruptions to affect vital digital services.

Although Microsoft’s investments stand to benefit Europe, they also underscore the company’s deep dependence on the region, with over a quarter of its business based there.

Smith insisted that Microsoft’s global success would not have been possible without its European footprint, and called for continued cooperation across the Atlantic—even in the face of potential tariff disputes or political strains.

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Quantum AI interest surges in data science and cybersecurity

Quantum AI is no longer a distant concept for many businesses, with over 60 percent actively investing in or exploring the technology, according to new research from SAS.

The report highlights that the most common area of application is in data analytics and machine learning, accounting for 48 percent of use cases. Research and development follows at 41 percent, while cybersecurity ranks third at 35 percent.

The emerging field of quantum AI combines current AI with the immense processing power of quantum computing. This fusion promises breakthroughs in algorithm development, complex model training, and solving data problems that today’s systems struggle with.

Industries are also examining its potential in supply chain and logistics (31 percent), finance and risk management (26 percent), and even marketing (20 percent).

Despite growing interest, several barriers still hinder adoption. These include high costs (38 percent), a lack of understanding (35 percent), uncertainty around practical use cases (31 percent), a shortage of skilled workers (31 percent), and limited regulatory guidance (26 percent).

SAS Principal Quantum Architect Bill Wisotsky acknowledged the surrounding hype but stressed that research underway today is crucial groundwork.

Key sectors poised to benefit include life sciences, financial services, and manufacturing, particularly in areas such as drug discovery, risk analysis, and process optimisation.

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Google pays around $1.4 billion over privacy case

Google has agreed to pay $1.375 billion to settle a lawsuit brought by the state of Texas over allegations that it violated users’ privacy through features such as Incognito mode, Location History, and biometric data collection.

Despite the sizable sum, Google denies any wrongdoing, stating that the claims were based on outdated practices which have since been updated.

Texas Attorney General Ken Paxton announced the settlement, emphasising that large tech firms are not above the law.

He accused Google of covertly tracking individuals’ locations and personal searches, while also collecting biometric data such as voiceprints and facial geometry — all without users’ consent. Paxton claimed the state’s legal challenge had forced Google to answer for its actions.

Although the settlement resolves two lawsuits filed in 2022, the specific terms and how the funds will be used remain undisclosed. A Google spokesperson maintained that the resolution brings closure to claims about past practices, instead of requiring any changes to its current products.

The case comes after a similar $1.4 billion agreement involving Meta, which faced accusations of unlawfully gathering facial recognition data. The repeated scrutiny from Texas authorities signals a broader pushback against the data practices of major tech companies.

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Starkville Utilities hit by cyberattack

Starkville Utilities, a Mississippi-based electricity and water provider that also services Mississippi State University, has revealed a data breach that may have exposed sensitive information belonging to over 11,000 individuals.

The breach, which was first detected in late October last year, led the company to disconnect its network in an attempt to contain the intrusion.

Despite these efforts, an investigation later found that attackers may have accessed personal data, including full names and Social Security numbers. Details were submitted to the Maine Attorney General’s Office, confirming the scale of the breach and the nature of the data involved.

While no reports of identity theft have emerged since the incident, Starkville Utilities has chosen to offer twelve months of free identity protection services to those potentially affected. The company maintains that it is taking additional steps to improve its cybersecurity defences.

Stolen data such as Social Security numbers often ends up on underground marketplaces instead of staying idle, where it can be used for identity fraud and other malicious activities.

The incident serves as yet another reminder of the ongoing threat posed by cybercriminals targeting critical infrastructure and user data.

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Amazon expands warehouse automation with Vulcan robots

Amazon has officially unveiled its Vulcan robots, an advanced robotics system designed to improve safety and efficiency in its fulfilment centres. Already in operation at facilities in Spokane, USA, and Hamburg, Germany, the new technology was showcased at an event in Dortmund this week.

The robots combine AI-powered software with a spatula-like gripping mechanism and sensors to pick up and stow items with a high degree of precision. Amazon says the robots are capable of handling around 75 percent of its product inventory and can operate at speeds comparable to human workers.

Their design allows them to safely access items stored at the highest and lowest levels of the eight-foot storage pods used throughout Amazon’s centres.

A wider rollout is expected in the UK over the next three years, with several distribution centres in Yorkshire set to adopt the technology.

Amazon highlights the Vulcan system as a key advancement in warehouse automation, aimed at improving worker safety and streamlining complex logistics operations.

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Wiley and Perplexity partner to deliver smarter study tools

Perplexity has announced a major partnership with global academic publisher Wiley to integrate its answer engine with Wiley’s extensive library of scientific, technical, and medical learning materials.

The collaboration is designed to streamline access to trusted curriculum content, delivering a more engaging and efficient learning experience for students and educators alike.

Through an institution’s Enterprise Pro subscription, students can now access assigned Wiley materials directly within Perplexity.

This removes the need to switch between platforms, enabling students to ask questions about textbook content, receive tailored explanations, and explore real-time examples from across the web—all in one place.

The integration supports Gen Z learning preferences by offering features such as custom study guides, level-appropriate explanations, and context that links core concepts to real-world applications.

Educators will benefit from the ability to create lesson plans, tailor curriculum to current events, and generate customised learning materials with minimal effort. Institutions gain a competitive edge in education technology, while improving resource efficiency and academic outcomes.

The partnership also promotes critical AI literacy—a growing priority in classrooms. By offering students a structured environment in which to interact with AI tools and academic content, the integration supports responsible use of AI.

It emphasises information quality, proper attribution, and encourages students to develop essential critical thinking skills. Administrators interested in integrating Perplexity with Wiley can contact their Wiley representative to authorise the connection.

Once enabled, students gain seamless access to academic materials directly within the Perplexity platform.

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