Google aims for profit with new AI Search

At its annual developer event, Google I/O, Google unveiled a new feature called AI Mode, built directly into its core product, Google Search.

Rather than being a separate app, AI Mode integrates a chatbot into the search engine, allowing users to ask complex, detailed queries and receive direct answers along with curated web links. Google hopes this move will stop users from drifting to other AI tools instead of its own services.

The launch follows concerns that Google Search was starting to lose ground. Investors took notice when Apple’s Eddy Cue revealed that Safari searches had dropped for the first time in April, as users began to favour AI-powered alternatives.

A decline like this led to a 7% drop in Alphabet’s stock, highlighting just how critical search remains to Google’s dominance. By embedding AI into Search, Google aims to maintain its leadership instead of risking a steady erosion of its user base.

Unlike most AI platforms still searching for profitability, Google’s AI Mode is already positioned to make money. Advertising—long the engine of Google’s revenue—will be introduced into AI Mode, ensuring it generates income just as traditional search does.

While rivals burn through billions running large language models, Google is simply monetising the same way it always has.

AI Mode also helps defend Google’s biggest asset. Rather than seeing AI as a threat, Google embraced it to reinforce Search and protect the advertising revenue it depends on.

Most AI competitors still rely on expensive, unsustainable models, whereas Google is leveraging its existing ecosystem instead of building from scratch. However, this gives it a major edge in the race for AI dominance.

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China blames Taiwan for tech company cyberattack

Chinese authorities have accused Taiwan’s ruling Democratic Progressive Party of backing a cyberattack on a tech company based in Guangzhou.

According to public security officials in the city, an initial police investigation linked the attack to a foreign hacker group allegedly supported by the Taiwanese government.

The unnamed technology firm was reportedly targeted in the incident, with local officials suggesting political motives behind the cyber activity. They claimed Taiwan’s Democratic Progressive Party had provided backing instead of the group acting independently.

Taiwan’s Mainland Affairs Council has not responded to the allegations. The ruling DPP has faced similar accusations before, which it has consistently rejected, often describing such claims as attempts to stoke tension rather than reflect reality.

A development like this adds to the already fragile cross-strait relations, where cyber and political conflicts continue to intensify instead of easing, as both sides exchange accusations in an increasingly digital battleground.

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AI regulation fight heats up over US federal moratorium

The US House of Representatives has passed a budget bill containing a 10-year moratorium on the enforcement of state-level artificial intelligence laws. With broad bipartisan concern already surfacing, the Senate faces mounting pressure to revise or scrap the provision entirely.

While the provision claims to exclude generally applicable legislation, experts warn its vague language could override a wide array of consumer protections and privacy rules in the US. The moratorium’s scope, targeting AI-specific regulations, has triggered alarm among concerned groups.

Critics argue the measure may hinder states from addressing real-world harms posed by AI technologies, such as deepfakes, discriminatory algorithms, and unauthorised data use.

Existing and proposed state laws, ranging from transparency requirements in hiring and healthcare to protections for artists and mental health app users, may be invalidated under the moratorium.

Several experts noted that states have often acted more swiftly than the federal government in confronting emerging tech risks.

Supporters contend the moratorium is necessary to prevent a fragmented regulatory landscape that could stifle innovation and disrupt interstate commerce. However, analysts point out that general consumer laws might also be jeopardised due to the bill’s ambiguous definitions and legal structure.

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German court allows Meta to use Facebook and Instagram data

A German court has ruled in favour of Meta, allowing the tech company to use data from Facebook and Instagram to train AI systems. A Cologne court ruled Meta had not breached the EU law and deemed its AI development a legitimate interest.

According to the court, Meta is permitted to process public user data without explicit consent. Judges argued that training AI systems could not be achieved by other equally effective and less intrusive methods.

They noted that Meta plans to use only publicly accessible data and had taken adequate steps to inform users via its mobile apps.

Despite the ruling, the North Rhine-Westphalia Consumer Advice Centre remains critical, raising concerns about legality and user privacy. Privacy group Noyb also challenged the decision, warning it could take further legal action, including a potential class-action lawsuit.

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AI regulation offers development opportunity for Latin America

Latin America is uniquely positioned to lead on AI governance by leveraging its social rights-focused policy tradition, emerging tech ecosystems, and absence of legacy systems.

According to a new commentary by Eduardo Levy Yeyati at the Brookings Institution, the region has the opportunity to craft smart AI regulation that is both inclusive and forward-looking, balancing innovation with rights protection.

Despite global momentum on AI rulemaking, Latin American regulatory efforts remain slow and fragmented, underlining the need for early action and regional cooperation.

The proposed framework recommends flexible, enforceable policies grounded in local realities, such as adapting credit algorithms for underbanked populations or embedding linguistic diversity in AI tools.

Governments are encouraged to create AI safety units, invest in public oversight, and support SMEs and open-source innovation to avoid monopolisation. Regulation should be iterative and participatory, using citizen consultations and advisory councils to ensure legitimacy and resilience through political shifts.

Regional harmonisation will be critical to avoid a patchwork of laws and promote Latin America’s role in global AI governance. Coordinated data standards, cross-border oversight, and shared technical protocols are essential for a robust, trustworthy ecosystem.

Rather than merely catching up, Latin America can become a global model for equitable and adaptive AI regulation tailored to the needs of developing economies.

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Nvidia unveils cheaper AI chip for China

Nvidia is preparing to launch a lower-cost AI chip for China that complies with US export restrictions, with mass production expected to begin as early as June.

The upcoming GPU will be based on the latest Blackwell architecture but will carry reduced specifications compared to the recently restricted H20 model. It is expected to sell for $6,500 to $8,000, significantly cheaper than the $10,000–$12,000 H20, reflecting its simpler design and less advanced components.

Sources say the new chip, likely named either the 6000D or B40, will use GDDR7 memory instead of high-bandwidth memory and will avoid Taiwan Semiconductor Manufacturing Co’s CoWoS packaging technology.

Nvidia had initially planned to downgrade the H20, but tighter US rules made that unviable. Instead of relying on its older Hopper architecture, the company is shifting to Blackwell for future developments in China.

Nvidia has been forced to adapt repeatedly due to tightening US export restrictions aimed at slowing China’s technological progress. Its market share in China has dropped from 95% before 2022 to around 50% today, as competitors like Huawei gain ground with chips like the Ascend 910B.

CEO Jensen Huang noted that continuing restrictions could further drive Chinese firms towards domestic alternatives, cutting Nvidia off from more of the $50 billion data centre market.

Huang also revealed that US curbs have forced Nvidia to write off $5.5 billion in inventory and abandon $15 billion in potential sales. New limits now target GPU memory bandwidth, a key factor for AI performance, capping it at around 1.8 terabytes per second.

The upcoming chip is expected to remain just within this limit, allowing Nvidia to retain a foothold in China instead of exiting the market entirely.

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Cyber scams use a three-letter trap

Staying safe from cybercriminals can be surprisingly simple. While AI-powered scams grow more realistic, some signs are still painfully obvious.

If you spot the letters ‘.TOP’ in any message link, it’s best to stop reading and hit delete. That single clue is often enough to expose a scam in progress.

Most malicious texts pose as alerts about road tolls, deliveries or account issues, using trusted brand names to lure victims into clicking fake links.

The worst of these is the ‘.TOP’ top-level domain (TLD), which has become infamous for its role in phishing and scam operations. Although launched in 2014 for premium business use, its low cost and lack of oversight quickly made it a favourite among cyber gangs, especially those based in China.

Today, nearly one-third of all .TOP domains are linked to cybercrime — far surpassing the criminal activity seen on mainstream domains like ‘.com’.

Despite repeated warnings and an unresolved compliance notice from internet regulator ICANN, abuse linked to .TOP has only worsened.

Experts warn that it is highly unlikely any legitimate Western organisation would ever use a .TOP domain. If one appears in your messages, the safest option is to delete it without clicking.

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Secret passwords could fight deepfake scams

As AI-generated images grow increasingly lifelike, a cyber security expert has warned that families should create secret passwords to guard against deepfake scams.

Cody Barrow, chief executive of EclecticIQ and a former US government adviser, says AI is making it far easier for criminals to impersonate others using fabricated videos or images.

Mr Barrow and his wife now use a private code to confirm each other’s identity if either receives a suspicious message or video.

He believes this precaution, simple enough for anyone regardless of age or digital skills, could soon become essential. ‘It may sound dramatic here in May 2025,’ he said, ‘but I’m quite confident that in a few years, if not months, people will say: I should have done that.’

The warning comes the same week Google launched Veo 3, its AI video generator capable of producing hyper-realistic footage and lifelike dialogue. Its public release has raised concerns about how easily deepfakes could be misused for scams or manipulation.

Meanwhile, President Trump signed the ‘Take It Down Act’ into law, making the creation of deepfake pornography a criminal offence. The bipartisan measure will see prison terms for anyone producing or uploading such content, with First Lady Melania Trump stating it will ‘prioritise people over politics’

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Authorities strike down cybercriminal servers

Authorities across Europe, North America and the UK have dismantled a major global malware network by taking down over 300 servers and seizing millions in cryptocurrency. The operation, led by Eurojust, marks a significant phase of the ongoing Operation Endgame.

Law enforcement agencies from Germany, France, the Netherlands, Denmark, the UK, the US and Canada collaborated to target some of the world’s most dangerous malware variants and the cybercriminals responsible for them.

The takedown also resulted in international arrest warrants for 20 suspects and the identification of more than 36 individuals involved.

The latest move follows similar action in May 2024, which had been the largest coordinated effort against botnets. Since the start of the operation, over €21 million has been seized, including €3.5 million in cryptocurrency.

The malware disrupted in this crackdown, known as ‘initial access malware’, is used to gain a foothold in victims’ systems before further attacks like ransomware are launched.

Authorities have warned that Operation Endgame will continue, with further actions announced through the coalition’s website. Eighteen prime suspects will be added to the EU Most Wanted list.

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Quandela presents Belenos, a powerful 12-qubit quantum computer

French quantum computing startup Quandela has unveiled Belenos, a 12-qubit photonic quantum computer that it claims delivers 4,000 times more computing power than its predecessor.

The first integrated version is set to be delivered to EuroHPC/GENCI and operated at the CEA’s Très Grand Centre de Calcul (TGCC) before the end of 2025.

Currently, Belenos is accessible via the cloud to over 1,200 researchers across 30 countries in Europe, North America, and Asia.

Instead of relying solely on local deployments, this cloud availability enables researchers to explore hybrid HPC-quantum use cases in fields such as structural mechanics, meteorology, and materials science.

Quandela has ambitious plans to double the qubit count by 2026 with the launch of Canopus. Within three years, the company aims to develop a photonic quantum computer with more than 40 qubits, continuing its focus on systems that avoid cryogenic cooling by using photonics-based methods instead.

‘Our cloud-accessible Belenos system lets partners work on tasks where computing speed and operations per data point are crucial — areas where competitors fall short,’ said co-founder and CEO Niccolo Somaschi.

The platform is designed for practical applications in machine learning and at the AI-quantum interface, which Quandela views as strategically vital sectors for the future.

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