Intel concedes defeat in AI race with Nvidia

Intel CEO Lip-Bu Tan has admitted the company can no longer compete with Nvidia in the AI training processor market. Speaking candidly to staff during a company-wide meeting, Tan said Nvidia’s lead is too great to overcome.

His comments mark a rare public admission of Intel’s slipping position in the global semiconductor industry.

The internal broadcast coincided with major job cuts across Intel’s global operations. Entire divisions are being downsized or shut down, including its automotive arm and parts of its manufacturing units.

Around 200 roles are being cut in Israel, along with hundreds more across other departments, as the company aims to simplify its structure and improve agility.

Tan noted that Intel has fallen out of the top 10 semiconductor firms by market value, a stark contrast to its former dominance. Once worth over $200 billion, Intel is now valued at around $100 billion.

Nvidia, meanwhile, briefly became the first company to surpass a $4 trillion valuation.

Despite the setbacks, Tan is steering Intel toward edge AI and agentic AI as areas of future growth. He stressed the need for cultural change within Intel, urging faster decision-making and a stronger focus on customer needs.

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Samsung confirms core Galaxy AI tools remain free

Samsung has confirmed that core Galaxy AI features will continue to be available free of charge for all users.

Speaking during the recent Galaxy Unpacked event, a company representative clarified that any AI tools installed on a device by default—such as Live Translate, Note Assist, Zoom Nightography and Audio Eraser—will not require a paid subscription.

Instead of leaving users uncertain, Samsung has publicly addressed speculation around possible Galaxy AI subscription plans.

While there are no additional paid AI features on offer at present, the company has not ruled out future developments. Samsung has already hinted that upcoming subscription services linked to Samsung Health could eventually include extra AI capabilities.

Alongside Samsung’s announcement, attention has also turned towards Google’s freemium model for its Gemini AI assistant, which appears on many Android devices. Users can access basic features without charge, but upgrading to Google AI Pro or Ultra unlocks advanced tools and increased storage.

New Galaxy Z Fold 7 and Z Flip 7 handsets even come bundled with six months of free access to premium Google AI services.

Although Samsung is keeping its pre-installed Galaxy AI features free, industry observers expect further changes as AI continues to evolve.

Whether Samsung will follow Google’s path with a broader subscription model remains to be seen, but for now, essential Galaxy AI functions stay open to all users without extra cost.

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New Gemini AI tool animates photos into short video clips

Google has rolled out a new feature for Gemini AI that transforms still photos into short, animated eight-second videos with sound. The capability is powered by Veo 3, Google’s latest video generation model, and is currently available to Gemini Advanced Ultra and Pro subscribers.

The tool supports background noise, ambient audio, and even spoken dialogue, with support gradually expanding to users in select countries, including India. At launch, access to the web interface is limited, though Google has announced that mobile support will follow later in the week.

To use the tool, users upload a photo, describe the intended motion, and optionally add prompts for sound effects or narration. Gemini then generates a 720p MP4 video in a 16:9 landscape format, automatically synchronising visuals and audio.

Josh Woodward, Vice President of the Gemini app and Google Labs, showcased the feature on X (formerly Twitter), animating a child’s drawing. ‘Still experimental, but we wanted our Pro and Ultra members to try it first,’ he said, calling the result fun and expressive.

To maintain authenticity, each video includes a visible ‘Veo’ watermark in the bottom-right corner and an invisible SynthID watermark. This hidden digital signature, developed by Google DeepMind, helps identify AI-generated content and preserve transparency around synthetic media.

The company has emphasised its commitment to responsible AI deployment by embedding traceable markers in all output from this tool. These safeguards come amid increasing scrutiny of generative video tools and deepfakes across digital platforms.

To animate a photo using Gemini AI’s new tool, users should follow these steps: Click on the ‘tools’ icon in the prompt bar, then choose the ‘video’ option from the menu. Upload the still image, describe the desired motion, and provide sound or narration instructions, optionally.

The underlying Veo 3 model was first introduced at Google I/O as the company’s most advanced video generation engine. It can produce high-quality visuals, simulate real-world physics, and even lip-sync dialogue from text and image-based prompts.

A Google blog post explains: ‘Veo 3 excels from text and image prompting to real-world physics and accurate lip syncing.’ The company says users can craft short story prompts and expect realistic, cinematic responses from the model.

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EU finalises AI code as 2025 compliance deadline approaches

The European Commission has released its finalised Code of Practice for general-purpose AI models, laying the groundwork for implementing the landmark AI Act. The new Code sets out transparency, copyright, and safety rules that developers must follow before deadlines.

Approved in March 2024 and effective from August, the AI Act introduces the EU’s first binding rules for AI. It bans high-risk applications such as real-time biometric surveillance, predictive policing, and emotion recognition in schools or workplaces.

Stricter obligations will apply to general-purpose models from August 2025, including mandatory documentation of training data, provided this does not violate intellectual property or trade secrets.

The Code of Practice, developed by experts with input from over 1,000 stakeholders, aims to guide AI providers through the AI Act’s requirements. It mandates model documentation, lawful content sourcing, risk management protocols, and a point of contact for copyright complaints.

However, industry voices, including the CCIA, have criticised the Code, saying it disproportionately burdens AI developers.

Member States and the European Commission will assess the effectiveness of the Code in the coming months. From August 2026, enforcement will begin for existing models, while new ones will be subject to the rules a year earlier.

The Commission says these steps are vital to ensure GPAI models are safe, transparent, and rights-respecting across the EU.

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Grok chatbot relies on Musk’s views instead of staying neutral

Grok, the AI chatbot owned by Elon Musk’s company xAI, appears to search for Musk’s personal views before answering sensitive or divisive questions.

Rather than relying solely on a balanced range of sources, Grok has been seen citing Musk’s opinions when responding to topics like Israel and Palestine, abortion, and US immigration.

Evidence gathered from a screen recording by data scientist Jeremy Howard shows Grok actively ‘considering Elon Musk’s views’ in its reasoning process. Out of 64 citations Grok provided about Israel and Palestine, 54 were linked to Musk.

Others confirmed similar results when asking about abortion and immigration laws, suggesting a pattern.

While the behaviour might seem deliberate, some experts believe it happens naturally instead of through intentional programming. Programmer Simon Willison noted that Grok’s system prompt tells it to avoid media bias and search for opinions from all sides.

Yet, Grok may prioritise Musk’s stance because it ‘knows’ its owner, especially when addressing controversial matters.

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AI technology drives sharp rise in synthetic abuse material

AI is increasingly being used to produce highly realistic synthetic abuse videos, raising alarm among regulators and industry bodies.

According to new data published by the Internet Watch Foundation (IWF), 1,286 individual AI-generated abuse videos were identified during the first half of 2025, compared to just two in the same period last year.

Instead of remaining crude or glitch-filled, such material now appears so lifelike that under UK law, it must be treated like authentic recordings.

More than 1,000 of the videos fell into Category A, the most serious classification involving depictions of extreme harm. The number of webpages hosting this type of content has also risen sharply.

Derek Ray-Hill, interim chief executive of the IWF, expressed concern that longer-form synthetic abuse films are now inevitable unless binding safeguards around AI development are introduced.

Safeguarding minister Jess Phillips described the figures as ‘utterly horrific’ and confirmed two new laws are being introduced to address both those creating this material and those providing tools or guidance on how to do so.

IWF analysts say video quality has advanced significantly instead of remaining basic or easy to detect. What once involved clumsy manipulation is now alarmingly convincing, complicating efforts to monitor and remove such content.

The IWF encourages the public to report concerning material and share the exact web page where it is located.

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Space operators face strict cybersecurity obligations under EU plan

The European Commission has unveiled a new draft law introducing cybersecurity requirements for space infrastructure, aiming to protect ground and orbital systems.

Operators must implement rigorous cyber risk management measures, including supply chain oversight, encryption, access control and incident response systems. A notable provision places direct accountability on company boards, which could be held personally liable for failures to comply.

The proposed law builds on existing EU regulations such as NIS 2 and DORA, with additional tailored obligations for the space domain. Non-EU firms will also fall within scope unless their home jurisdictions are recognised as offering equivalent regulatory protections.

Fines of up to 2% of global revenue are foreseen, with member states and the EU’s space agency EUSPA granted inspection and enforcement powers. Industry stakeholders are encouraged to engage with the legislative process and align existing cybersecurity frameworks with the Act’s provisions.

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Qantas hacked as airline cyber threats escalate

Qantas Airways has confirmed that personal data from 5.7 million customers was stolen in a recent cyberattack, including names, contact details and meal preferences. The airline stated that no financial or login credentials were accessed, and frequent flyer accounts remain secure.

An internal investigation found the data breach involved various levels of personal information, with 2.8 million passengers affected most severely. Meal preferences were the least common data stolen, while over a million customers lost addresses or birth dates.

Qantas has contacted affected passengers and says it offers support while monitoring the situation with cybersecurity experts. Under pressure to manage the crisis effectively, CEO Vanessa Hudson assured the public that extra security steps had been taken.

The breach is the latest in a wave of attacks targeting airlines, with the FBI warning that the hacking group Scattered Spider may be responsible. Similar incidents have recently affected carriers in the US and Canada.

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M&S still rebuilding after April cyber incident

Marks & Spencer has revealed that the major cyberattack it suffered in April stemmed from a sophisticated impersonation of a third-party user.

The breach began on 17 April and was detected two days later, sparking weeks of disruption and a crisis response effort described as ‘traumatic’ by Chairman Archie Norman.

The retailer estimates the incident will cost it £300 million in operating profit and says it remains in rebuild mode, although customer services are expected to normalise by month-end.

Norman confirmed M&S is working with UK and US authorities, including the National Crime Agency, the National Cyber Security Centre, and the FBI.

While the ransomware group DragonForce has claimed responsibility, Norman declined to comment on whether any ransom was paid. He said such matters were better left to law enforcement and not in the public interest to discuss further.

The company expects to recover some of its losses through insurance, although the process may take up to 18 months. Other UK retailers, including Co-op and Harrods, were also targeted in similar attacks around the same time, reportedly using impersonation tactics to bypass internal security systems.

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UN leaders chart inclusive digital future at WSIS+20

At the WSIS+20 High-Level Event in Geneva, UN leaders gathered for a pivotal dialogue on shaping an inclusive digital transformation, marking two decades since the World Summit on the Information Society (WSIS). Speakers across the UN system emphasised that technology must serve people, not vice versa.

They highlighted that bridging the digital divide is critical to ensuring that innovations like AI uplift all of humanity, not just those in advanced economies. Without equitable access, the benefits of digital transformation risk reinforcing existing inequalities and leaving millions behind.

The discussion showcased how digital technologies already transform disaster response and climate resilience. The World Meteorological Organization and the UN Office for Disaster Risk Reduction illustrated how AI powers early warning systems and real-time risk analysis, saving lives in vulnerable regions.

Meanwhile, the Food and Agriculture Organization of the UN underscored the need to align technology with basic human needs, reminding the audience that ‘AI is not food,’ and calling for thoughtful, efficient deployment of digital tools to address global hunger and development.

Workforce transformation and leadership in the AI era also featured prominently. Leaders from the International Labour Organization and UNITAR stressed that while AI may replace some roles, it will augment many more, making digital literacy, ethical foresight, and collaborative governance essential skills. Examples from within the UN system itself, such as the digitisation of the Joint Staff Pension Fund through facial recognition and blockchain, demonstrated how innovation can enhance services without sacrificing inclusivity or ethics.

As the session closed, speakers collectively reaffirmed the importance of human rights, international cooperation, and shared digital governance. They stressed that the future of global development hinges on treating digital infrastructure and knowledge as public goods.

With the WSIS framework and Global Digital Compact as guideposts, UN leaders called for sustained, unified efforts to ensure that digital transformation uplifts every community and contributes meaningfully to the Sustainable Development Goals.

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