Digital business models

Court filing details Musk’s outreach to Zuckerberg over OpenAI bid

Elon Musk attempted to bring Meta chief executive Mark Zuckerberg into his consortium’s $97.4 billion bid for OpenAI earlier this year, the company disclosed in a court filing.

According to sworn interrogations, OpenAI said Musk had discussed possible financing arrangements with Zuckerberg as part of the bid. Musk’s AI startup xAI, a competitor to OpenAI, did not respond to requests for comment.

In the filing, OpenAI asked a federal judge to order Meta to provide documents related to any bid for OpenAI, including internal communications about restructuring or recapitalisation. The firm argued these records could clarify motivations behind the bid.

Meta countered that such documents were irrelevant and suggested OpenAI seek them directly from Musk or xAI. A US judge ruled that Musk must face OpenAI’s claims of attempting to harm the company through public remarks and what it described as a sham takeover attempt.

The legal dispute follows Musk’s lawsuit against OpenAI and Sam Altman over its for-profit transition, with OpenAI filing a countersuit in April. A jury trial is scheduled for spring 2026.

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Meta strikes $10 billion cloud deal with Google

Meta has signed a cloud computing deal with Google worth more than $10 billion, marking one of the most significant agreements in the industry.

The six-year partnership will see Meta use Google Cloud’s servers, storage, networking and other services to power its massive AI projects.

The deal comes as Meta accelerates its AI infrastructure spending, with CEO Mark Zuckerberg pledging hundreds of billions of dollars for new data centres.

Last month, Meta raised its capital expenditure forecast to $72 billion and disclosed plans to offload $2 billion in data centre assets to outside partners.

The partnership highlights a growing trend of rival technology giants collaborating on AI infrastructure. Just weeks earlier, OpenAI struck a similar deal to use Google Cloud services despite being a competitor in the AI field.

These agreements have boosted Google Cloud’s performance, which saw a 32% jump in second-quarter revenue in July, surpassing market expectations.

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Russia pushes mandatory messaging app Max on all new devices

Russia will require all new mobile phones and tablets sold starting in September, including a government-backed messenger called Max. Developed by Kremlin-controlled tech firm VK, the app offers messaging, video calls, mobile payments, and access to state services.

Authorities claim Max is a safe alternative to Western apps, but critics warn it could act as a state surveillance tool. The platform is reported to collect financial data, purchase history, and location details, all accessible to security services.

Journalist Andrei Okun described Max as a ‘Digital Gulag’ designed to control daily life and communications.

The move is part of Russia’s broader push to replace Western platforms. New restrictions have already limited calls on WhatsApp and Telegram, and officials hinted that WhatsApp may face a ban.

Telegram remains widely used but is expected to face greater pressure as the Kremlin directs officials to adopt Max.

VK says Max has already attracted 18 million downloads, though parts of the app remain in testing. From 2026, Russia will also require smart TVs to come preloaded with a state-backed service offering free access to government channels.

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Google pushes agentic AI worldwide with AI Mode rollout

Google has expanded its AI Mode service to 180 additional countries, extending advanced agentic capabilities to a global audience.

Previously available only in markets such as the US, UK and India, the service allows users to search for information and carry out tasks on their behalf. The update reflects Google’s ambition to move from simple answers to action-oriented assistance.

A key rollout feature is the restaurant booking tool for AI Ultra subscribers. Using natural language requests such as ”find a romantic Italian spot for two tonight,” the system can check availability, offer personalised suggestions and confirm reservations directly within search.

The feature relies on real-time data from partners like OpenTable and highlights how Google’s AI can execute tasks instead of simply presenting options.

Further tools are expected soon, including ticketing for events and appointment scheduling. These are powered by the Gemini models, which tailor recommendations based on user behaviour and allow group planning through shared responses.

While the services could reduce reliance on third-party apps in sectors such as travel and hospitality, they also raise concerns over data privacy, inclusivity and cultural differences in an English-only rollout.

The global expansion strengthens Google’s position against rivals like Microsoft and OpenAI, who are also pushing forward in agentic AI. The company sees subscription upgrades to AI Ultra as a way to offset slower advertising growth, while early reports suggest increased user engagement.

However, the long-term impact will depend on balancing innovation with ethical safeguards as Google works to deliver more multilingual and accessible features.

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Surge in seat belt offences seen by AI monitors

AI-enabled cameras in Devon and Cornwall have detected 6,000 people failing to wear seat belts over the past year. The number caught was 50 percent higher than those penalised for using mobile phones while driving, police confirmed.

Road safety experts warn that the long-standing culture of belting up may be fading among newer generations of drivers. Geoff Collins of Acusensus noted a rise in non-compliance and said stronger legal penalties could help reverse the trend.

Current UK law imposes a £100 fine for not wearing a seat belt, with no points added to a driver’s licence. Campaigners now urge the government to make such offences endorsable, potentially adding penalty points and risking licence loss.

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Microsoft limits certain companies’ access to the SharePoint early warning system

Microsoft has limited certain Chinese companies’ access to its early warning system for cybersecurity vulnerabilities following suspicions about their involvement in recent SharePoint hacking attempts.

The decision restricts the sharing of proof-of-concept code, which mimics genuine malicious software. While valuable for cybersecurity professionals strengthening their systems, the code can also be misused by hackers.

The restrictions follow Microsoft’s observation of exploitation attempts targeting SharePoint servers in July. Concerns arose that a member of the Microsoft Active Protections Program may have repurposed early warnings for offensive activity.

Microsoft maintains that it regularly reviews participants and suspends those violating contracts, including prohibitions on participating in cyber attacks.

Beijing has denied involvement in the hacking, while Microsoft has refrained from disclosing which companies were affected or details of the ongoing investigation.

Analysts note that balancing collaboration with international security partners and preventing information misuse remains a key challenge for global cybersecurity programmes.

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Students seek emotional support from AI chatbots

College students are increasingly turning to AI chatbots for emotional support, prompting concern among mental health professionals. A 2025 report ranked ‘therapy and companionship’ as the top use case for generative AI, particularly among younger users.

Studies by MIT and OpenAI show that frequent AI use can lower social confidence and increase avoidance of face-to-face interaction. On campuses, digital mental health platforms now supplement counselling services, offering tools that identify at-risk students and provide basic support.

Experts warn that chatbot companionship may create emotional habits that lack grounding in reality and hinder social skill development. Counsellors advocate for educating students on safe AI use and suggest universities adopt tools that flag risky engagement patterns.

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Caution rises over inflated AI-driven tech valuations

US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.

The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.

US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.

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Stablecoin growth driven by new Asian currency plans

China is preparing to take a major step in the digital currency race by considering yuan-backed stablecoins, marking a sharp reversal from its earlier tough stance on cryptocurrencies. According to sources, Beijing’s cabinet will soon review a national strategy, with Hong Kong and Shanghai expected to spearhead the rollout thanks to Hong Kong’s recently passed Stablecoins Bill.

The move comes as Japan accelerates its own efforts. JPYC Inc., a Japanese fintech firm, has received regulatory approval to issue a yen-backed stablecoin, also called JPYC. The company plans to sell up to 1 trillion yen ($68 billion) worth of the tokens within three years, each pegged 1:1 to the yen and backed by liquid assets such as government bonds.

These parallel developments in East Asia could challenge the dominance of dollar-backed stablecoins, which currently make up nearly the entire global market. Analysts say the introduction of major Asian currencies into the mix could reshape digital finance and add momentum to regulatory frameworks emerging worldwide.

Stablecoins are increasingly seen as a bridge between traditional finance and digital assets, offering stability that other cryptocurrencies lack. Despite regulatory hurdles and slow adoption, the market is expected to surge to $4 trillion by 2030, signalling how pivotal the latest steps from China and Japan could be for the global financial system.

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New robotic system uses AI to analyse water quality

A new study in Robot Learning has introduced a robotic system that combines machine learning with decision-making to analyse water samples. The approach enables robots to detect, classify, and distinguish drinking water on Earth and potentially other planets.

Researchers used a hybrid method that merged the TOPSIS decision-making technique with a Random Forest Classifier trained on the Water Quality and Potability Dataset from Kaggle. By applying data balancing techniques, classification accuracy rose from 69% to 73%.

The robotic prototype includes thrusters, motors, solar power, sensors, and a robotic arm for sample collection. Water samples are tested in real time, with the onboard model classifying them as drinkable.

The system has the potential for rapid crisis response, sustainable water management, and planetary exploration, although challenges remain regarding sensor accuracy, data noise, and scalability. Researchers emphasise that further testing is necessary before real-world deployment.

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