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India needs a quantum leap in defence AI, says LatentAI founder

Jags Kandasamy, founder of US-based defence tech company LatentAI, is working with Indian firms to pursue defence contracts, but says India must leapfrog forward in AI-enabled warfare. In an interview with HT, he outlined the challenges and opportunities in the India-US defence tech partnership.

At Aero India, Kandasamy saw an Indian Army prototype using computer vision on automated border weapons. While promising, the system’s heavy computing requirements limit scalability.

LatentAI, which helped the US Navy optimise AI models for underwater vehicles, offers solutions by compressing models to fit limited hardware. ‘Autonomous warfare is the future,’ he said, noting the impact of drones and AI on intelligence, targeting and surveillance.

Kandasamy’s India partner, InferQ, came through introductions by Forge Ventures, which works closely with Indian and United States defence departments. He said that government initiatives like INDUSX and IDEX are helping firms connect across borders, but procedural bottlenecks persist.

‘There’s no mechanism for non-Indian passport holders to get clearance,’ Kandasamy noted. ‘In the US, the process is transparent. Even Indian firms can’t see who makes the decisions.’

He recalled advising a founder who waited two years to get a prototype certified. ‘India can be a great proving ground, but the bureaucracy needs streamlining.’

On China, Kandasamy didn’t mince words: ‘China is a third-year PhD student in defence AI. India is in elementary school.’ He cited examples of China’s proactive investment in emerging tech from 2010, including personal offers to relocate his startups. ‘India needs to leapfrog like it did with telecom.’

Still, Kandasamy praised India’s IDEX programme for uncovering strong homegrown tech talent. ‘There are smart people and ideas, but they need support and scale.’

To improve bilateral cooperation, he suggested reciprocal security clearances and defining interoperability frameworks between US and Russian-origin systems in India. ‘India won’t abandon its Russian hardware. But if we can protect both sides’ secrets while working together, that would be real progress.’

‘India and the US are linchpins of a democratic society,’ he concluded. ‘We have to make this partnership work.’

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Vietnam adopts AI in elite sports training

Vietnam is integrating AI technology into its national sports training programmes to improve performance in international competitions. A new partnership between the Sports Authority of Việt Nam (SAV) and Dreamax Company will see AI applied from 2025 to 2030.

The Vietnamese technology will analyse performance data, monitor adaptation to training, and predict injury risk using devices that collect environmental and spatial indicators. The first implementations are set to begin next week, marking a shift towards data-driven performance evaluation and coaching.

SAV Director Nguyễn Danh Hoàng Việt said the initiative addresses outdated systems and builds on the country’s recent sporting successes by offering more sophisticated and personalised training. Dreamax stated that the AI system supports national management and provides public insight into sporting progress.

Collected data, managed as national security information, will be analysed to measure the programme’s impact over its first year. If successful, the AI-based approach may expand to other teams as Vietnam targets greater achievements in future Asian Games and Olympic events.

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Council of Europe picks Jylo to power AI platform

The Council of Europe has chosen Jylo, a European enterprise AI provider, to support over 3,000 users across its organisation.

The decision followed a competitive selection process involving multiple AI vendors, with Jylo standing out for its regulatory compliance and platform adaptability.

As Europe’s leading human rights body, the Council aims to use AI responsibly to support its legal and policy work. Jylo’s platform will streamline document-based workflows and reduce administrative burdens, helping staff focus on critical democratic and legal missions.

Leaders from both Jylo and the Council praised the collaboration. Jylo CEO Shawn Curran said the partnership reflects shared values around regulatory compliance and innovation.

The Council’s CIO, John Hunter, described Jylo’s commitment to secure AI as a perfect fit for the institution’s evolving digital strategy.

Jylo’s AI Assistant and automation features are designed specifically for knowledge-driven organisations. The rollout is expected to strengthen the Council’s internal efficiency and reinforce Jylo’s standing as a trusted AI partner across the European public and legal sectors.

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OpenAI rejects Robinhood’s token offering

OpenAI has publicly disavowed Robinhood’s decision to sell so-called ‘OpenAI tokens’, warning that these blockchain-based contracts do not offer real equity in the company.

In a statement posted on X, OpenAI made clear that it had not approved, endorsed, or participated in the initiative and emphasised that any equity transfer requires its direct consent.

Robinhood recently announced plans to offer tokenised access to private firms like OpenAI and SpaceX for investors in the EU. The tokens do not represent actual shares but mimic price movements using blockchain contracts.

Despite OpenAI’s sharp rejection, Robinhood’s stock surged to record highs following the announcement.

A Robinhood spokesperson later claimed the tokens were linked to a special purpose vehicle (SPV) that owns OpenAI shares, though SPVs do not equate to direct ownership either.

The company said the move aims to give everyday investors indirect exposure to high-profile startups through digital contracts.

Robinhood CEO Vlad Tenev defended the strategy on X, saying the token sale was just the beginning of a broader effort to democratise access to private markets.

OpenAI, meanwhile, declined to comment further.

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Xbox projects cancelled amid Microsoft layoffs

Microsoft has confirmed plans to cut up to 9,000 jobs—roughly 4% of its global workforce—in its latest round of redundancies this year. The company cited the need to adapt to a rapidly evolving market, while pressing ahead with major investments in artificial intelligence.

Although Microsoft did not specify which divisions will be affected, reports suggest its Xbox gaming unit will face significant cuts. According to internal emails, the reboot of Perfect Dark and the game Everwild have been cancelled, and The Initiative, the studio behind Perfect Dark, will shut down.

Additional layoffs are impacting other gaming studios, including Turn 10 and ZeniMax Online Studios. ZeniMax’s long-time director Matt Firor has announced his departure. Meanwhile, Ireland’s Romero Games has also been affected after funding for its project was pulled by a publisher.

The upcoming job cuts will mark Microsoft’s fourth round of layoffs in 2025. Over 800 affected roles are based in Washington state, including in Redmond and Bellevue, key Microsoft hubs. The company is currently investing $80bn in AI infrastructure, including data centres and chips.

Microsoft’s AI push has seen it hire AI pioneer Mustafa Suleyman to lead its Microsoft AI division and deepen ties with OpenAI. However, tensions have reportedly grown in that relationship. Bloomberg noted difficulty in selling Microsoft’s Copilot tool, as many users prefer ChatGPT.

At the same time, AI talent wars are heating up. Meta has reportedly offered huge bonuses to poach researchers, while Amazon’s Andy Jassy said last month that AI would eventually replace certain roles at his company.

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Bitcoin-backed life insurance now available in Russia

Two major Russian insurers, Renaissance Life and BCS Life Insurance, have introduced investment life insurance policies (ILIPs) tied to Bitcoin. These products give wealthy investors exposure to Bitcoin via BlackRock’s IBIT, without needing to hold the asset directly.

Renaissance Life’s ‘Cryptocapital’ policy has a two-year term, a minimum investment of 1.5 million rubles (about $19,000), and offers full capital protection. If Bitcoin prices surge, investors could earn up to 2.4 million rubles in pre-tax gains.

BCS Life offers a similar policy with a three-year duration and a higher entry threshold of 3 million rubles, adding flexibility through portfolio rebalancing.

Both policies use Bitcoin futures contracts traded on the Moscow Exchange, marking a shift towards regulated, crypto-linked financial products. The offerings target affluent clients seeking Bitcoin exposure with capital protection.

The launch reflects a broader trend of integrating Bitcoin into mainstream financial instruments, especially following Bitcoin’s rise past $100,000 and greater regulatory clarity. Other firms like Meanwhile Insurance have also introduced crypto-based insurance solutions in response to global demand.

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Spotify hit by AI band hoax controversy

A band called The Velvet Sundown has gone viral on Spotify, gaining over 850,000 monthly listeners, yet almost nothing is known about the people behind it.

With no live performances, interviews, or social media presence for its supposed members, the group has fuelled growing speculation that both it and its music may be AI-generated.

The mystery deepened after Rolling Stone first reported that a spokesperson had admitted the tracks were made using an AI tool called Suno, only to later reveal the spokesperson himself was fake.

The band denies any connection to the individual, stating on Spotify that the account impersonating them on X is also false.

AI detection tools have added to the confusion. Rival platform Deezer flagged the music as ‘100% AI-generated’, although Spotify has remained silent.

While CEO Daniel Ek has said AI music isn’t banned from the platform, he expressed concerns about mimicking real artists.

The case has reignited industry fears over AI’s impact on musicians. Experts warn that public trust in online content is weakening.

Musicians and advocacy groups argue that AI is undercutting creativity by training on human-made songs without permission. As copyright battles continue, pressure is mounting for stronger government regulation.

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Ripple partners with AMINA Bank to expand in Europe

Ripple has partnered with Swiss-based AMINA Bank, regulated by FINMA, to offer custody and trading of its RLUSD stablecoin, establishing a compliant presence in Europe.

RLUSD has already secured approval from major regulators, including the New York Department of Financial Services and the Dubai Financial Services Authority.

Ripple is integrating the asset into its recently acquired prime brokerage platform, Hidden Road. It is also using RLUSD across the Ripple Payments platform for enterprise cross-border transactions.

AMINA cited Ripple’s transparent structure and regulatory commitment as key factors in the partnership. The bank, formerly SEBA Bank, has been a leader in regulated digital asset services since 2019. Its collaboration with Taurus, a Deutsche Bank-backed firm, further strengthens its position in digital finance.

Ripple is positioning RLUSD as a compliant alternative within Europe’s evolving regulatory landscape under MiCA. The Swiss partnership supports RLUSD’s long-term growth by offering legal clarity, regulated access, and a path toward broader liquidity across the continent.

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xAI gets Memphis approval to run 15 gas turbines

xAI, Elon Musk’s AI company, has secured permits to operate 15 natural gas turbines at its Memphis data centre, despite facing legal threats over alleged Clean Air Act violations.

The Shelby County Health Department approved the generators, which can produce up to 247 megawatts, provided specific emissions controls are in place.

Environmental lawyers say xAI had already been running as many as 35 generators without permits. The Southern Environmental Law Center (SELC), acting on behalf of the NAACP, has accused the company of serious pollution and is preparing to sue.

Even under the new permit, xAI is allowed to emit substantial pollutants annually, including nearly 10 tons of formaldehyde — a known carcinogen.

Community concerns about the health impact remain strong. A local group pledged $250,000 for an independent air quality study, and although the City of Memphis carried out its own tests, the SELC questioned their validity.

The tests missed ozone levels and were reportedly conducted in favourable wind conditions, with equipment placed too close to buildings.

Officials previously argued that the turbines were exempt from regulation due to their ‘mobile’ status, a claim the SELC refuted as legally flawed. Meanwhile, xAI has recently raised $10 billion, split between debt and equity, highlighting its rapid expansion, even as regulatory scrutiny grows.

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India’s top darknet dealer laundered crypto with Monero for two years

India’s Narcotics Control Bureau (NCB) has arrested a 35-year-old engineer from Kerala accused of running the country’s largest darknet drug network alone. The suspect, ‘Ketamelon,’ reportedly ran a Level 4 darknet drug operation for two years without his family knowing.

Authorities seized more than 1,100 LSD blots, over 130 grams of ketamine, and cryptocurrency assets valued at over $82,000 during the four-month investigation. The drugs were reportedly sourced from international suppliers, including a UK-based vendor believed to be the world’s largest LSD supplier.

Shipments reached cities such as Bengaluru, Chennai, Delhi, and Himachal Pradesh.

The suspect laundered proceeds using Monero, a privacy-focused cryptocurrency designed to hide transaction details, making it popular among darknet criminals.

While privacy coins like Monero offer enhanced anonymity, experts warn they are not entirely untraceable, as blockchain ledgers permanently record all transactions.

The operation comes amid wider global efforts targeting cybercrime and crypto-facilitated illegal markets.

Recently, the US Treasury sanctioned a Russian hosting provider linked to ransomware and darknet drug sales, highlighting increasing international pressure on digital criminal networks.

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