Digital business models Archives | Page 409 of 581

CrowdStrike cuts jobs amid AI shift

Cybersecurity firm CrowdStrike is laying off 500 employees—5% of its workforce—as it shifts towards an AI-led operating model to boost efficiency and hit a $10 billion annual revenue goal.

In a letter to staff, CEO George Kurtz described AI as a ‘force multiplier’ meant to reduce hiring needs instead of expanding headcount.

The restructure, expected to cost up to $53 million through mid-2026, will still see hiring in customer-facing and engineering roles.

Yet despite its optimism, the company’s regulatory filings flag notable risks in depending on AI, such as faulty outputs, legal uncertainty, and the challenge of managing fast-moving systems. Analysts have also linked the shift to wider market pressures, not merely strategic innovation.

Principal analyst Sofia Ali warned that the AI-first approach may backfire if transparency, governance, and human oversight are not prioritised. Over-reliance on automation—especially in threat detection or customer support—could erode user trust instead of reinforcing it, particularly during critical incidents.

CrowdStrike’s move mirrors a broader tech trend: over 52,000 tech jobs were cut in early 2025 as firms embraced AI to replace automatable roles. For cybersecurity leaders, the challenge now lies in balancing AI’s promise with the human expertise essential to trust and resilience.

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AI spending remains strong despite Trump’s tariffs, says Goldman Sachs

President Donald Trump’s new tariffs may force companies to adjust staffing and marketing budgets, but spending on AI will likely remain protected. That is according to Eric Sheridan, co-business unit leader for technology, media, and telecommunications at Goldman Sachs.

Speaking on the Goldman Sachs Exchange podcast, Sheridan said the latest tariffs are expected to create more volatility in operational costs, particularly affecting head count, marketing, and long-term projects.

However, he predicted that investment in AI would not suffer the same impact. ‘Given the sheer number of players investing both offensively and defensively at AI, I think this spend will get protected for a little longer,’ he explained.

Sheridan cited Meta as a prime example. In its recent first-quarter earnings, Meta raised its annual capital expenditure guidance to between $64 and $72 billion, up from a previous range of $60 to $65 billion.

CEO Mark Zuckerberg reaffirmed that AI remains the company’s top priority, even as Meta cut other expenses such as salaries and marketing.

‘We continue to find ways to find efficiencies inside the organization, but we are not at a point where we want to sacrifice long-duration investments,’ Sheridan noted, summarising Meta’s stance.

The broader business environment is shifting as companies respond to Trump’s ‘Liberation Day’ tariffs, announced on April 2. These include a 10% baseline levy and additional ‘reciprocal tariffs.’

While most reciprocal tariffs are paused for 90 days as negotiations continue, C h ina faces a hefty 145% tariff. United States and Chinese officials are set to meet for trade talks this weekend in Switzer l and, potentially shaping the next phase of global trade dynamics.

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Musk denies OpenAI’s sabotage claims in court battle

Elon Musk has denied accusations from OpenAI that he is waging a campaign to undermine the startup, asserting that his legal actions are justified.

In a recent court filing, Musk’s lawyer dismissed claims that he used lawsuits, social media and press attacks to sabotage OpenAI, stating the real issue lies in the company’s alleged abandonment of its original nonprofit mission.

Musk’s attorney argued that this move fails to address concerns about OpenAI prioritising profit over its charitable goals, labelling the nonprofit structure an ‘inconvenience’ to CEO Sam Altman’s ambitions.

The US legal battle, set for trial in March 2026, stems from Musk’s accusations that OpenAI strayed from its founding principles after taking significant investment from Microsoft.

Meanwhile, OpenAI has countersued, claiming Musk is actively working to harm the company and its relationships with investors and customers.

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Indian stock exchanges curb foreign access amid cybersecurity concerns

India’s two largest stock exchanges, the National Stock Exchange (NSE) and BSE Ltd, have temporarily restricted overseas access to their websites amid rising concerns over cyber threats. The move does not affect foreign investors’ ability to trade on Indian markets.

Sources familiar with the matter confirmed the decision followed a joint meeting between the exchanges, although no recent direct attack has been specified.

Despite the restrictions, market operations remain fully functional, with officials emphasising that the measures are purely preventive.

The precautionary step comes during heightened regional tensions between India and Pakistan, though no link to the geopolitical situation has been confirmed. The NSE has yet to comment publicly on the situation.

A BSE spokesperson noted that the exchanges are monitoring cyber risks both domestically and internationally and that website access is now granted selectively to protect users and infrastructure.

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Palantir and partners promise rapid AI deployment in banking

Palantir Technologies, xAI, and TWG Global have announced a new partnership aimed at accelerating the adoption of artificial intelligence across the financial services industry. The initiative promises faster deployment and measurable results within just 90 days.

The collaboration seeks to help financial institutions integrate AI into their core operations. As financial institutions strive to modernise, the companies aim to overcome what they call the ‘agentic tech debt bubble’ and deliver real, scalable value.

The offering combines Palantir’s platform, xAI’s advanced language models, and TWG Global’s operational expertise, including a Governance Foundation for data readiness and a suite of AI-driven tools.

TWG Global will lead implementation efforts, focusing on involving senior executives directly to ensure AI integration becomes a central business strategy rather than a sidelined tech project. The partnership builds on an earlier venture between Palantir and TWG Global.

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Google cuts 200 jobs as AI and cloud take priority

Google has laid off around 200 employees from its global business unit as the company sharpens its focus on AI and cloud services. The job cuts, which affected the sales and partnerships team, were first reported by The Information and later confirmed by Google.

The reduction forms part of a wider resource reallocation across parent company Alphabet, reflecting a broader trend in the tech sector.

Big tech firms, facing increased demand for AI development and data centre expansion, have been streamlining operations and shifting investments towards emerging technologies. Earlier this year, Meta also reduced its workforce by around 3,600 employees, citing performance-based criteria for the decision.

In a statement to Reuters, Google described the layoffs as a ‘small’ adjustment designed to streamline operations, improve collaboration, and enhance responsiveness to customer needs.

However, the latest move adds to a growing list of job cuts across Google since early 2023, when the company slashed 12,000 jobs — 6% of its global workforce.

Only last month, Google also reduced roles in its platforms and devices group. That round of layoffs affected teams working on key products such as Android, Pixel, and Chrome. As the company continues to prioritise AI and cloud growth, further workforce adjustments may be expected in the months ahead.

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Google boosts AI coding and video skills with Gemini 2.5 Pro

Google has unveiled Gemini 2.5 Pro Preview (I/O edition), its latest AI model update, ahead of the annual I/O developer conference.

The new version introduces upgrades designed to enhance coding assistance, video comprehension, and web development capabilities, further highlighting the company’s commitment to integrating generative AI across its products.

According to Google, Gemini 2.5 Pro delivers noticeable improvements in software development workflows. The AI model now ranks first on the WebArena leaderboard, which assesses the quality of AI-generated websites through human feedback.

Google reports a 147-point increase in Elo score compared to the previous version. Enhanced features also include better code interpretation and generation, real-time function calling, and lower rates of silent failures in tasks such as bug fixing and editing.

Video analysis is another key area of progress. Gemini 2.5 Pro achieved an 84.8% score on the VideoMMe benchmark, which evaluates AI performance in understanding and answering questions about visual content, particularly educational videos.

This marks another step in Google’s multimodal AI ambitions, which seek to unify text, images, code, audio, and video into cohesive AI systems. However, Google has not detailed how privacy and content safety are managed when processing video data.

Developers can now access Gemini 2.5 Pro via the Gemini API, Google AI Studio, and Vertex AI, as well as through Gemini’s mobile and web apps.

Currently released as a preview, the model will likely receive updates following developer feedback during and after the I/O event. Details about general availability or potential pricing changes have not been disclosed.

The release of Gemini 2.5 Pro comes as AI competition intensifies, with OpenAI, Anthropic, and Meta also advancing their foundation models. While Google highlights Gemini’s strong performance in coding and web development, broader comparisons between models remain limited for now.

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Apple may replace Google with AI in Safari

Apple may soon reshape how users search the web on iPhones and other devices by integrating AI-powered search engines directly into Safari instead of relying solely on Google.

According to Bloomberg, the company is ‘actively looking at’ expanding options in its browser to include AI systems such as OpenAI’s ChatGPT and Perplexity, potentially disrupting Google’s long-held dominance in online search.

Currently, Google pays Apple around $20 billion a year to remain the default search engine in Safari — about 36% of the search ad revenue generated through Apple devices. But that relationship may be under pressure, especially as AI tools gain popularity.

Apple has already partnered with OpenAI to bring ChatGPT into Siri, while Google is now pushing to include its Gemini AI system in future Apple products.

Alphabet’s shares dropped 6% following the news, while Apple saw a 2% dip. Apple executive Eddy Cue, testifying in an ongoing antitrust case, noted a recent decline in Safari searches and said he expects AI search tools to eventually replace traditional engines like Google.

Apple, he added, plans to introduce these AI services as built-in alternatives in Safari in the near future.

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LockBit ransomware Bitcoin addresses exposed

Nearly 60,000 Bitcoin addresses linked to LockBit’s ransomware operations have been exposed following a major breach of the group’s dark web affiliate panel.

The leak, which included a MySQL database dump, was shared publicly online and could assist blockchain analysts in tracing LockBit’s financial activity instead of leaving such transactions untracked.

Despite the scale of the breach, no private keys were leaked. A LockBit representative reportedly confirmed the incident in a message, stating that no sensitive access data was compromised.

However, the exposed database included 20 tables, such as one labelled ‘builds’ that contained details about ransomware created by affiliates and their targeted companies.

Another table, ‘chats,’ revealed over 4,400 messages from negotiations between victims and LockBit operators, offering a rare glimpse into the inner workings of ransomware extortion tactics.

Analysts believe the hack may be connected to a separate breach of the Everest ransomware site, as both featured identical messages, hinting at a possible link.

The incident has again underscored the central role of cryptocurrency in the ransomware economy. Each victim is typically given a unique address for payments, making tracking difficult.

Instead of remaining hidden, these addresses now give law enforcement and blockchain experts a chance to trace payments and potentially link them to previously unidentified actors.

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Xapo Bank introduces Bitcoin-backed loans for long-term holders

Xapo Bank’s CEO, Seamus Rocca, sees Bitcoin-backed loans as the next logical step as investor confidence grows. As Bitcoin’s price hovers between $95,000 and $97,000, more investors are choosing to borrow against their BTC instead of selling it.

Xapo Bank’s lending product, launched in March, allows clients to borrow up to $1 million using Bitcoin as collateral.

The demand for such loans is fuelled by a shift in market sentiment, with investors moving from short-term speculation to a longer-term outlook.

Rocca highlighted that institutional adoption, including Bitcoin ETFs, is contributing to this change in attitude. The bank offers flexible loan-to-value (LTV) ratios, allowing borrowers to access liquidity while keeping their BTC.

With conservative LTV levels, Bitcoin prices would need to drop significantly for borrowers to face liquidation, making this an appealing option for long-term holders.

The product helps investors manage emergency expenses without selling their Bitcoin. It’s enabling them to continue benefiting from potential price appreciation while maintaining liquidity.

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