Digital business models

Musk escalates legal battle with new lawsuit against OpenAI

Elon Musk’s xAI has sued OpenAI, alleging a coordinated and unlawful campaign to steal its proprietary technology. The complaint alleges OpenAI targeted former xAI staff to steal source code, training methods, and data centre strategies.

The lawsuit claims OpenAI recruiter Tifa Chen offered large packages to engineers who then allegedly uploaded xAI’s source code to personal devices. Notable incidents include Xuechen Li confessing to code theft and Jimmy Fraiture allegedly transferring confidential files via AirDrop repeatedly.

Legal experts note the case centres on employee poaching and the definition of xAI’s ‘secret sauce,’ including GPU racking, vendor contracts, and operational playbooks.

Liability may depend on whether OpenAI knowingly directed recruiters, while the company could defend itself by showing independent creation with time-stamped records.

xAI is seeking damages, restitution, and injunctions requiring OpenAI to remove its materials and destroy models built using them. The lawsuit is Musk’s latest legal action against OpenAI, following a recent antitrust case with Apple over alleged market dominance.

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Google unveils new Gemini Robotics models

Google has unveiled two new robotics models, Gemini Robotics 1.5 and Gemini Robotics-ER 1.5, designed to help robots better perceive, plan, and act in complex environments. The models aim to enable more capable robots to complete multi-step tasks efficiently and transparently.

Gemini Robotics 1.5 converts visual information and instructions into actions, letting robots think before acting and explain their reasoning. Gemini Robotics-ER 1.5 acts as a high-level planner, reasoning about the physical world and using tools like Google Search to support decisions.

Together, the models form an ‘agentic’ framework. ER 1.5 orchestrates a robot’s activities, while Robotics 1.5 carries them out, enabling the machines to tackle semantically complex tasks. The pairing strengthens generalisation across diverse environments and longer missions.

Google said Gemini Robotics-ER 1.5 is now available to developers through the Gemini API in Google AI Studio, while Gemini Robotics 1.5 is currently open to select partners. Both models advance robots’ reasoning, spatial awareness, and multi-tasking capabilities.

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Spotify launches new policies on AI and music spam

Spotify announced new measures to address AI risks in music, aiming to protect artists’ identities and preserve trust on the platform. The company said AI can boost creativity but also enable harmful content like impersonations and spam that exploit artists and cut into royalties.

A new impersonation policy has been introduced, clarifying that AI-generated vocal clones of artists are only permitted with explicit authorisation. Spotify is strengthening processes to block fraudulent uploads and mismatches, giving artists quicker recourse when their work is misused.

The platform will launch a new spam filter this year to detect and curb manipulative practices like mass uploads and artificially short tracks. The system will be deployed cautiously, with updates added as new abuse tactics emerge, in order to safeguard legitimate creators.

In addition, Spotify will back an industry standard for AI disclosures in music credits, allowing artists and rights holders to show how AI was used in production. The company said these steps show its commitment to protecting artists, ensuring transparency, and fair royalties as AI reshapes the music industry.

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AI SHIELD unveiled to protect financial AI systems

Ant International has introduced AI SHIELD, a security framework to protect AI systems used in financial services. The toolkit aims to reduce risks such as fraud, bias, and misuse in AI applications like fraud detection, payment authorisation, and customer chatbots.

At the centre of AI SHIELD is the AI Security Docker, which applies safeguards throughout development and deployment. The framework includes authentication of AI agents, continuous monitoring to block threats in real time, and ongoing adversarial testing.

Ant said the system will support over 100 million merchants and 1.8 billion users worldwide across services like Alipay+, Antom, Bettr, and WorldFirst. It will also defend against deepfake attacks and account takeovers, with the firm claiming its EasySafePay 360 tool can cut such incidents by 90%.

The initiative is part of Ant’s wider role in setting industry standards, including its work with Google on the Agent Payments Protocol, which defines how AI agents transact securely with user approval.

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Hitachi launches AI Factory with NVIDIA

Hitachi has unveiled a global AI Factory built on NVIDIA’s reference architecture to accelerate the development of physical AI solutions.

The new platform uses Hitachi iQ systems powered by NVIDIA Blackwell GPUs, alongside the Spectrum-X networking platform, to deliver unified AI infrastructure for research and deployment.

Hitachi said the AI Factory will enhance its HMAX family of AI-enabled solutions across energy, mobility, industry, and technology sectors. It will allow models to interpret data from sensors and cameras, make decisions, and act in real-world environments.

The facility integrates NVIDIA AI Enterprise software and Omniverse libraries, enabling simulation and digital twin capabilities. Both firms describe the initiative as a key driver of social innovation, combining advanced AI computing with industrial applications.

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Tech giants warn Digital Markets Act is failing

Apple and Google have urged the European Union to revisit its Digital Markets Act, arguing the law is damaging users and businesses.

Apple said the rules have forced delays to new features for European customers, including live translation on AirPods and improvements to Apple Maps. It warned that competition requirements could weaken security and slow innovation without boosting the EU economy.

Google raised concerns that its search results must now prioritise intermediary travel sites, leading to higher costs for consumers and fewer direct sales for airlines and hotels. It added that AI services may arrive in Europe up to a year later than elsewhere.

Both firms stressed that enforcement should be more consistent and user-focused. The European Commission is reviewing the Act, with formal submissions under consideration.

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OpenAI unveils ChatGPT Pulse for proactive updates

OpenAI has introduced a preview of ChatGPT Pulse, a feature designed to deliver proactive and personalised updates to Pro users on mobile. Instead of waiting for users to ask questions, Pulse researches chat history, feedback, and connected apps to deliver daily insights.

The updates appear as visual cards covering relevant topics, which users can scan quickly or expand for detail. Integrations with Gmail and Google Calendar are available, enabling suggestions such as drafting meeting agendas, recommending restaurants for trips, or reminding users about birthdays.

These integrations are optional and can be switched off at any time.

Pulse is built to prioritise usefulness over screen time, offering updates that expire daily unless saved or added to chat history. Early trials with students highlighted the importance of simple feedback to refine results, and users can guide what appears by curating topics or rating suggestions.

OpenAI plans to refine the feature further before expanding its availability beyond Pro users.

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China opens digital RMB centre in Shanghai

China has launched its international operation centre for the digital RMB in Shanghai, a move seen as a significant step towards the currency’s global expansion, according to the People’s Bank of China (PBOC).

The centre will promote digital RMB internationalisation, support digital finance innovation, and enhance financial market services. It forms part of eight measures announced earlier this year by PBOC governor Pan Gongsheng at the Lujiazui Forum.

Three major platforms have been unveiled alongside the launch: a digital payment system for international use, a blockchain service platform, and a digital asset platform.

These platforms aim to broaden the application of digital technologies in finance and improve transaction efficiency.

Experts, including Tian Xuan of Tsinghua University, describe the initiative as a milestone for China’s role in global finance, strengthening its influence in shaping the future of digital payments.

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UK government considers supplier aid after JLR cyberattack

Jaguar Land Rover (JLR) is recovering from a disruptive cyberattack, gradually bringing its systems back online. The company is focused on rebuilding its operations, aiming to restore confidence and momentum as key digital functions are restored.

JLR said it has boosted its IT processing capacity for invoicing to clear its payment backlog. The Global Parts Logistics Centre is also resuming full operations, restoring parts distribution to retailers.

The financial system used for processing vehicle wholesales has been restored, allowing the company to resume car sales and registration. JLR is collaborating with the UK’s NCSC and law enforcement to ensure a secure restart of operations.

Production remains suspended at JLR’s three UK factories in Halewood, Solihull, and Wolverhampton. The company typically produces around 1,000 cars a day, but staff have been instructed to stay at home since the August cyberattack.

The government is considering support packages for the company’s suppliers, some of whom are under financial pressure. A group identifying itself as Scattered Lapsus$ Hunters has claimed responsibility for the incident.

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Google and Flo Health settle health data privacy suit for $56 million

Google has agreed to pay $48 million, and Flo Health, a menstrual tracking app, has agreed to pay $8 million to resolve claims that the app shared users’ health data without their consent.

The lawsuit alleged that Flo used third-party tools to transmit personal information, including menstruation and pregnancy details, to companies like Google, Meta, and analytics firm Flurry.

The class-action case, filed in 2021 by plaintiff Erica Frasko and later consolidated with similar complaints, accused Flo of violating privacy laws by allowing user data to be intercepted via embedded software development kits (SDKs).

Google’s settlement, disclosed this week, covers users who inputted reproductive health data between November 2016 and February 2019.

While neither Flo nor Google admitted wrongdoing, the settlement avoids the uncertainty of a trial. A notice to claimants stated the resolution helps sidestep the costs and risks of prolonged litigation.

Meta, a co-defendant, opted to go to trial and was found liable in August for violating California’s Invasion of Privacy Act. A judge recently rejected Meta’s attempt to overturn that verdict.

According to The Record, the case has drawn significant attention from privacy advocates and the tech industry, highlighting the potential legal risks of data-sharing practices tied to ad-tracking technology.

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