Chinese nationals accused of bypassing US export controls on AI chips

Two Chinese nationals have been charged in the US with illegally exporting millions of dollars’ worth of advanced Nvidia AI chips to China, violating the export controls.

The Department of Justice (DOJ) said Chuan Geng and Shiwei Yang operated California-based ALX Solutions, which allegedly shipped restricted hardware without the required licences over the past three years.

The DOJ claims that the company exported Nvidia’s H100 and GeForce RTX 4090 graphics processing units to China via transit hubs in Singapore and Malaysia, concealing their ultimate destination.

Payments for the shipments allegedly came from firms in Hong Kong and mainland China, including a $1 million transfer in January 2024.

Court documents state that ALX falsely declared shipments to Singapore-based customers, but US export control officers could not confirm the deliveries.

One 2023 invoice for over $28 million reportedly misrepresented the buyer’s identity. Neither Geng nor Yang had sought export licences from the US Commerce Department.

Yang was arrested on Saturday, and Geng surrendered soon after. Both appeared in a Los Angeles federal court on Monday and could face up to 20 years in prison if convicted.

Nvidia and Super Micro, a supplier, said they comply with all export regulations and will cooperate with authorities.

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Korea’s LG CNS wins first overseas AI data centre deal in Indonesia

LG CNS has secured a 100 billion won ($72 million) contract to build an AI data centre in Jakarta, a first for a Korean firm in a project of this kind overseas. The centre is expected to be completed by 2026 and will house over 100,000 servers.

The deal was signed through LG Sinar Mas Technology Solutions, a joint venture between Sinar Mas Group of Indonesia and LG of South Korea. Local partner KMG, backed by Korea Investment Real Asset Management, is leading the project to create Indonesia’s largest hyperscale AI data centre.

The 11-storey facility will launch with a power capacity of 30 megawatts, with plans to expand to 220 megawatts in future phases. LG CNS will manage key infrastructure, including electricity, cooling, and telecoms systems, using technologies across the LG Group.

Safety has been a key selling point. The centre will utilise seismic isolation systems to safeguard equipment in earthquake-prone Southeast Asia. Redundant power systems will also ensure continuous operation even during outages.

Southeast Asia is emerging as a cost-effective hub for AI among global technology giants. LG CNS plans to leverage the Jakarta project as a launchpad for expanding into Singapore, Malaysia, and other international markets.

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Google Gemini AI creates personalised illustrated storybooks from your photos and ideas

Google has introduced a new feature in its Gemini AI that allows users to create short, illustrated storybooks from prompts, essays, photos, and drawings. The tool can transform everyday materials into customised children’s books with art and narration.

The company demonstrated how a mother’s CV could be reimagined as a colouring book to explain her career to her children. Gemini can also turn vacation photos, children’s sketches, or personal life events into unique 10-page books in over 45 languages.

Users can select from various visual styles, including pixel art, claymation, crochet, comics, and colouring books.

People describe their desired story and upload optional images or files to use the feature. Gemini then generates a personalised book with illustrations and audio. The service is available worldwide on desktop and mobile through the Gemini app in all supported languages.

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OpenAI targets $500 billion valuation ahead of potential IPO

OpenAI is in early discussions over a share sale that could value the company at around $500 billion, according to a source familiar with the talks.

The transaction would occur before a possible IPO and let current and former employees sell several billion dollars’ worth of shares.

The valuation marks a steep rise from the $300 billion figure attached to its most recent funding round earlier in the year. Backed by Microsoft, OpenAI has seen rapid growth in users and revenue, with ChatGPT attracting about 700 million weekly active users, up from 400 million in February.

Revenue doubled in the first seven months of the year, reaching an annualised run rate of $12 billion, and is on track for $20 billion by year-end.

The potential sale comes as competition for AI talent intensifies.

Meta has invested billions in Scale AI to lure its chief executive, Alexandr Wang, to head its superintelligence unit. At the same time, firms such as ByteDance and Databricks have used private share sales to update valuations and reward staff.

Thrive Capital and other existing OpenAI investors are discussing joining the deal.

OpenAI is also preparing a major corporate restructuring that could replace its capped-profit model and clear the way for an eventual public listing.

However, Chief Financial Officer Sarah Friar said any IPO would only happen when the company and the markets are ready.

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The end of the analogue era and the cognitive rewiring of new generations

Navigating a world beyond analogue

The digital transformation of daily life represents more than just a change in technological format. It signals a deep cultural and cognitive reorientation.

Rather than simply replacing analogue tools with digital alternatives, society has embraced an entirely new way of interacting with information, memory, time, and space.

For younger generations born into this reality, digital mediation is not an addition but the default mode of experiencing the world. A redefinition like this introduces not only speed and convenience but also cognitive compromises, cultural fragmentation, and a fading sense of patience and physical memory.

Generation Z as digital natives

Generation Z has grown up entirely within the digital realm. Unlike older cohorts who transitioned from analogue practices to digital habits, members of Generation Z were born into a world of touchscreen interfaces, search engines, and social media ecosystems.

As Generation Z enters the workforce, the gap between digital natives and older generations is becoming increasingly apparent. For them, technology has never been a tool to learn. It has always been a natural extension of their daily life.

young university students using laptop and studying with books in library school education concept

The term ‘digital native’, first coined by Marc Prensky in 2001, refers precisely to those who have never known a world without the internet. Rather than adapting to new tools, they process information through a technology-first lens.

In contrast, digital immigrants (those born before the digital boom) have had to adjust their ways of thinking and interacting over time. While access to technology might be broadly equal across generations in developed countries, the way individuals engage with it differs significantly.

Instead of acquiring digital skills later in life, they developed them alongside their cognitive and emotional identities. This fluency brings distinct advantages. Young people today navigate digital environments with speed, confidence, and visual intuition.

They can synthesise large volumes of information, switch contexts rapidly, and interact across multiple platforms with ease.

The hidden challenges of digital natives

However, the native digital orientation also introduces unique vulnerabilities. Information is rarely absorbed in depth, memory is outsourced to devices, and attention is fragmented by endless notifications and competing stimuli.

While older generations associate technology with productivity or leisure, Generation Z often experiences it as an integral part of their identity. The integration can obscure the boundary between thought and algorithm, between agency and suggestion.

Being a digital native is not just a matter of access or skill. It is about growing up with different expectations of knowledge, communication, and identity formation.

Memory and cognitive offloading: Access replacing retention

In the analogue past, remembering involved deliberate mental effort. People had to memorise phone numbers, use printed maps to navigate, or retrieve facts from memory rather than search engines.

The rise of smartphones and digital assistants has allowed individuals to delegate that mental labour to machines. Instead of internalising facts, people increasingly learn where and how to access them when needed, a practice known as cognitive offloading.

digital brain

Although the shift can enhance decision-making and productivity by reducing overload, it also reshapes the way the brain handles memory. Unlike earlier generations, who often linked memories to physical actions or objects, younger people encounter information in fast-moving and transient digital forms.

Memory becomes decentralised and more reliant on digital continuity than on internal recall. Rather than cognitive decline, this trend marks a significant restructuring of mental habits.

Attention and time: From linear focus to fragmented awareness

The analogue world demanded patience. Sending a letter meant waiting for days, rewinding a VHS tape required time, and listening to an album involved staying on the same set of songs in a row.

Digital media has collapsed these temporal structures. Communication is instant, entertainment is on demand, and every interface is designed to be constantly refreshed.

Instead of promoting sustained focus, digital environments often encourage continuous multitasking and quick shifts in attention. App designs, with their alerts, pop-ups, and endless scrolling, reinforce a habit of fragmented presence.

Studies have shown that multitasking not only reduces productivity but also undermines deeper understanding and reflection. Many younger users, raised in this environment, may find long periods of undivided attention unfamiliar or even uncomfortable.

The lost sense of the analogue

Analogue interactions involved more than sight and sound. Reading a printed book, handling vinyl records, or writing with a pen engaged the senses in ways that helped anchor memory and emotion. These physical rituals provided context and reinforced cognitive retention.

highlighter in male hand marked text in book education concept

Digital experiences, by contrast, are streamlined and screen-bound. Tapping icons and swiping a finger across glass lack the tactile diversity of older tools. Sensory uniformity might lead to a form of experiential flattening, where fewer physical cues are accessible to strengthen memory.

Digital photography lacks the permanence of a printed one, and music streamed online does not carry the same mnemonic weight as a cherished cassette or CD once did.

From communal rituals to personal streams

In the analogue era, media consumption was more likely to be shared. Families gathered around television sets, music was enjoyed communally, and photos were stored in albums passed down across generations.

These rituals helped synchronise cultural memory and foster emotional continuity and a sense of collective belonging.

The digital age favours individualised streams and asynchronous experiences. Algorithms personalise every feed, users consume content alone, and communication takes place across fragmented timelines.

While young people have adapted with fluency, creating their digital languages and communities, the collective rhythm of cultural experience is often lost.

People no longer share the same moment. They now experience parallel narratives shaped by personal profiles and rather than social connections.

Digital fatigue and social withdrawal

However, as the digital age reaches a point of saturation, younger generations are beginning to reconsider their relationship with the online world.

While constant connectivity dominates modern life, many are now striving to reclaim physical spaces, face-to-face interactions, and slower forms of communication.

In urban centres, people often navigate large, impersonal environments where community ties are weak and digital fatigue is contributing to a fresh wave of social withdrawal and isolation.

Despite living in a world designed to be more connected than ever before, younger generations are increasingly aware that a screen-based life can amplify loneliness instead of resolving it.

But the withdrawal from digital life has not been without consequences.

Those who step away from online platforms sometimes find themselves excluded from mainstream social, political, or economic systems.

Others struggle to form stable offline relationships because digital interaction has long been the default. Both groups would probably say that it feels like living on a razor’s edge.

Education and learning in a hybrid cognitive landscape

Education illustrates the analogue-to-digital shift with particular clarity. Students now rely heavily on digital sources and AI for notes, answers, and study aids.

The approach offers speed and flexibility, but it can also hinder the development of critical thinking and perseverance. Rather than engaging deeply with material, learners may skim or rely on summarised content, weakening their ability to reason through complex ideas.

ChatGPT students Jocelyn Leitzinger AI in education

Educators must now teach not only content but also digital self-awareness. Helping students understand how their tools shape their learning is just as important as the tools themselves.

A balanced approach that includes reading physical texts, taking handwritten notes, and scheduling offline study can help cultivate both digital fluency and analogue depth. This is not a nostalgic retreat, but a cognitive necessity.

Intergenerational perception and diverging mental norms

Older and younger generations often interpret each other through the lens of their respective cognitive habits. What seems like a distraction or dependency to older adults may be a different but functional way of thinking to younger people.

It is not a decline in ability, but an adaptation. Ultimately, each generation develops in response to the tools that shape its world.

Where analogue generations valued memorisation and sustained focus, digital natives tend to excel in adaptability, visual learning, and rapid information navigation.

multi generation family with parents using digital tablet with daughter at home

Bridging the gap means fostering mutual understanding and encouraging the retention of analogue strengths within a digital framework. Teaching young people to manage their attention, question their sources, and reflect deeply on complex issues remains vital.

Preserving analogue values in a digital world

The end of the analogue era involves more than technical obsolescence. It marks the disappearance of practices that once encouraged mindfulness, slowness, and bodily engagement.

Yet abandoning analogue values entirely would impoverish our cognitive and cultural lives. Incorporating such habits into digital living can offer a powerful antidote to distraction.

Writing by hand, spending time with printed books, or setting digital boundaries should not be seen as resistance to progress. Instead, these habits help protect the qualities that sustain long-term thinking and emotional presence.

Societies must find ways to integrate these values into digital systems and not treat them as separate or inferior modes.

Continuity by blending analogue and digital

As we have already mentioned, younger generations are not less capable than those who came before; they are simply attuned to different tools.

The analogue era may be gone for good, but its qualities need not be lost. We can preserve its depth, slowness, and shared rituals within a digital (or even a post-digital) world, using them to shape more balanced minds and more reflective societies.

To achieve something like this, education, policy, and cultural norms should support integration. Rather than focus solely on technical innovation, attention must also turn to its cognitive costs and consequences.

Only by adopting a broader perspective on human development can we guarantee that future generations are not only connected but also highly aware, capable of critical thinking, and grounded in meaningful memory.

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Google DeepMind launches Genie 3 to create interactive 3D worlds from text

Google DeepMind has introduced Genie 3, an AI world model capable of generating explorable 3D environments in real time from a simple text prompt.

Unlike earlier versions, it supports several minutes of continuous interaction, basic visual memory, and real-time changes such as altering weather or adding characters.

The system allows users to navigate these spaces at 24 frames per second in 720p resolution, retaining object placement for about a minute.

Users can trigger events within the virtual world by typing new instructions, making Genie 3 suitable for applications ranging from education and training to video games and robotics.

Genie 3’s improvements over Genie 2 include frame-by-frame generation with memory tracking and dynamic scene creation without relying on pre-built 3D assets.

However, the AI model still has limits, including the inability to replicate real-world locations with geographic accuracy and restricted interaction capabilities. Multi-agent features are still in development.

Currently offered as a limited research preview to select academics and creators, Genie 3 will be made more widely available over time.

Google DeepMind has noted that safety and responsibility remain central concerns during the gradual rollout.

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Malaysia tackles online scams with AI and new cyber guidelines

Cybercrime involving financial scams continues to rise in Malaysia, with 35,368 cases reported in 2024, a 2.53 per cent increase from the previous year, resulting in losses of RM1.58 billion.

The situation remains severe in 2025, with over 12,000 online scam cases recorded in the first quarter alone, involving fake e-commerce offers, bogus loans, and non-existent investment platforms. Losses during this period reached RM573.7 million.

Instead of waiting for the situation to worsen, the Digital Ministry is rolling out proactive safeguards. These include new AI-related guidelines under development by the Department of Personal Data Protection, scheduled for release by March 2026.

The documents will cover data protection impact assessments, automated decision-making, and privacy-by-design principles.

The ministry has also introduced an official framework for responsible AI use in the public sector, called GPAISA, to ensure ethical compliance and support across government agencies.

Additionally, training initiatives such as AI Untuk Rakyat and MD Workforce aim to equip civil servants and enforcement teams with skills to handle AI and cyber threats.

In partnership with CyberSecurity Malaysia and Universiti Kebangsaan Malaysia, the ministry is also creating an AI-powered application to verify digital images and videos.

Instead of relying solely on manual analysis, the tool will help investigators detect online fraud, identity forgery, and synthetic media more effectively.

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New malware steals 200,000 passwords and credit card details through fake software

Hackers are now using fake versions of familiar software and documents to spread a new info-stealing malware known as PXA Stealer.

First discovered by Cisco Talos, the malware campaign is believed to be operated by Vietnamese-speaking cybercriminals and has already compromised more than 4,000 unique IP addresses across 62 countries.

Instead of targeting businesses alone, the attackers are now focusing on ordinary users in countries including the US, South Korea, and the Netherlands.

PXA Stealer is written in Python and designed to collect passwords, credit card data, cookies, autofill information, and even crypto wallet details from infected systems.

It spreads by sideloading malware into files like Microsoft Word executables or ZIP archives that also contain legitimate-looking programs such as Haihaisoft PDF Reader.

The malware uses malicious DLL files to gain persistence through the Windows Registry and downloads additional harmful files via Dropbox. After infection, it uses Telegram to exfiltrate stolen data, which is then sold on the dark web.

Once activated, the malware even attempts to open a fake PDF in Microsoft Edge, though the file fails to launch and shows an error message — by that point, it has already done the damage.

To avoid infection, users should avoid clicking unknown email links and should not open attachments from unfamiliar senders. Instead of saving passwords and card details in browsers, a trusted password manager is a safer choice.

Although antivirus software remains helpful, hackers in the campaign have used sophisticated methods to bypass detection, making careful online behaviour more important than ever.

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Late-stage GenAI deals triple, Ireland sees growing interest

According to EY Ireland, global investment in generative AI surged to $49.2bn in the first half of 2025, eclipsing the full-year total for 2024. Despite a drop in deals, total value doubled year-on-year, reflecting a pivot towards more mature and revenue-focused ventures.

Average late-stage deal size has more than tripled to $1.55bn, while early and seed-stage activity has stagnated or declined. Landmark rounds from OpenAI, xAI, Anthropic, and Databricks drove much of the volume, alongside a notable $3.3bn agentic AI acquisition by Capgemini.

Ireland remains a strong adopter of AI, with 63% of startups using the technology. Yet funding gaps persist, particularly between €1m and €10m, posing challenges for growth-stage firms despite a strong local talent base.

Sprout Social’s acquisition of Irish analytics firm NewsWhip, though not part of the H1 figures, points to growing international interest in Irish AI capabilities. Meanwhile, US firms still dominate global deal value, capturing 97%, with the Middle East rising fast and Europe trailing at just 2%.

EY forecasts that sector-specific GenAI platforms, especially in cybersecurity and compliance, will become the next magnet for venture capital through late 2025 and beyond.

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Cloudflare claims Perplexity circumvented website scraping blocks

Cloudflare has accused AI startup Perplexity of ignoring explicit website instructions not to scrape their content.

According to the internet infrastructure company, Perplexity has allegedly disguised its identity and used technical workarounds to bypass restrictions set out in Robots.txt files, which tell bots which pages they may or may not access.

The behaviour was reportedly detected after multiple Cloudflare customers complained about unauthorised scraping attempts.

Instead of respecting these rules, Cloudflare claims Perplexity altered its bots’ user agent to appear as a Google Chrome browser on macOS and switched its network identifiers to avoid detection.

The company says these tactics were seen across tens of thousands of domains and millions of daily requests, and that it used machine learning and network analysis to identify the activity.

Perplexity has denied the allegations, calling Cloudflare’s report a ‘sales pitch’ and disputing that the bot named in the findings belongs to the company. Cloudflare has since removed Perplexity’s bots from its verified list and introduced new blocking measures.

The dispute arises as Cloudflare intensifies its efforts to grant website owners greater control over AI crawlers. Last month, it launched a marketplace enabling publishers to charge AI firms for scraping, alongside free tools to block unauthorised data collection.

Perplexity has previously faced criticism over content use, with outlets such as Wired accusing it of plagiarism in 2024.

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