E-commerce and trade

Nvidia refutes chip backdoor allegations as China launches probe

Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.

The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.

The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.

China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.

In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.

Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.

The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.

Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.

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FBI warns public to avoid scanning QR codes on unsolicited packages

The FBI has issued a public warning about a rising scam involving QR codes placed on packages delivered to people who never ordered them.

According to the agency, these codes can lead recipients to malicious websites or prompt them to install harmful software, potentially exposing sensitive personal and financial data.

The scheme is a variation of the so-called brushing scam, in which online sellers send unordered items and use recipients’ names to post fake product reviews. In the new version, QR codes are added to the packaging, increasing the risk of fraud by directing users to deceptive websites.

While not as widespread as other fraud attempts, the FBI urges caution. The agency recommends avoiding QR codes from unknown sources, especially those attached to unrequested deliveries.

It also advised consumers to pay close attention to the web address that appears before tapping on any QR code link.

Authorities have noted broader misuse of QR codes, including cases where criminals place fake codes over legitimate ones in public spaces.

In one recent incident, scammers used QR stickers on parking meters in New York to redirect people to third-party payment pages requesting card details.

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US court mandates Android app competition, loosens billing rules

Long-standing dominance over Android app distribution has been declared illegal by the Ninth Circuit Court of Appeals, reinforcing a prior jury verdict in favour of Epic Games. Google now faces an injunction that compels it to allow rival app stores and alternative billing systems inside the Google Play Store ecosystem for a three-year period ending November 2027.

A technical committee jointly selected by Epic and Google will oversee sensitive implementation tasks, including granting competitors approved access to Google’s expansive app catalogue while ensuring minimal security risk. The order also requires that developers not be tied to Google’s billing system for in-app purchases.

Market analysts warn that reduced dependency on Play Store exclusivity and the option to use alternative payment processors could cut Google’s app revenue by as much as $1 to $1.5 billion annually. Despite brand recognition, developers and consumers may shift toward lower-cost alternatives competing on platform flexibility.

While the ruling aims to restore competition, Google maintains it is appealing and has requested additional delays to avoid rapid structural changes. Proponents, including Microsoft, regulators, and Epic Games, hail the decision as a landmark step toward fairer mobile market access.

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Telegram-powered TON on track for mass adoption

TON, the blockchain natively embedded in Telegram’s app, is emerging as the most practical path to mainstream crypto adoption. With over 900 million users on Telegram and more than 150 million TON accounts created, the platform is delivering Web3 features through a familiar, app-like experience.

Unlike Ethereum or Solana, which require external wallets and technical knowledge, TON integrates features like tipping, staking, and gaming directly into Telegram. Mini apps like Notcoin and Catizen let users access blockchain without dealing with wallets or gas fees.

TON currently processes around 2 million daily transactions and may reach over 10 million daily users by 2027. Growing user fatigue with complex blockchain makes TON’s simple, mobile-first design ready to lead the next adoption wave.

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Amazon plans to bring ads to Alexa+ chats

Amazon is exploring ways to insert ads into conversations with its AI assistant Alexa+, according to CEO Andy Jassy. Speaking during the company’s latest earnings call, he described the feature as a potential tool for product discovery and future revenue.

Alexa+ is Amazon’s upgraded digital assistant designed to support more natural, multi-step conversations using generative AI. It is already available to millions of users through Prime subscriptions or as a standalone service.

Jassy said longer interactions open the door for embedded advertising, although the approach has not yet been fully developed. Industry observers see this as part of a wider trend, with companies like Google and OpenAI also weighing ad-based business models.

Alexa+ has received mixed reviews so far, with delays in feature delivery and technical challenges like hallucinations raising concerns. Privacy advocates have warned that ad targeting within personal conversations may worry users, given the data involved.

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Apple boosts AI investment with new hires and acquisitions

Apple is ramping up its AI efforts, with CEO Tim Cook confirming that the company is significantly increasing its investments in the technology. During the Q3 2025 earnings call, Cook said AI would be embedded across Apple’s devices, platforms and internal operations.

The firm has reallocated staff to focus on AI and continues to acquire smaller companies to accelerate progress, completing seven acquisitions this year alone. Capital expenditure has also risen, partly due to the growing focus on AI.

Despite criticism that Apple has lagged behind in the AI race, the company insists it will not rush features to market. More than 20 Apple Intelligence tools have already been released, with additional features like live translation and an AI fitness assistant expected by year-end.

The updated version of Siri, which promises greater personalisation, has been pushed to 2026. Cook dismissed suggestions that AI-powered hardware, like glasses, would replace the iPhone, instead positioning future devices as complementary.

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Deutsche Bank backs new euro stablecoin launch

A new euro-denominated stablecoin, EURAU, has launched on the Ethereum blockchain, backed by Deutsche Bank’s DWS, Flow Traders, and Mike Novogratz’s Galaxy. The regulated token is issued by AllUnity and complies with Germany’s BaFin and the EU’s MiCA rules.

Bullish Europe, a BaFin-regulated crypto exchange based in Frankfurt, will be the first to list EURAU. The exchange has secured four BaFin licences and is preparing for expansion across the EU under MiCA’s framework.

Key partners supporting EURAU’s launch include crypto custodian BitGo, Metzler Bank, and Fireblocks.

Euro stablecoins currently make up just 0.2% of the $273 billion global stablecoin market but have seen strong growth, increasing by nearly 60% since December 2024. Despite growth, European regulators stay cautious because US dollar stablecoins like Tether’s USDt dominate.

European Central Bank adviser Jürgen Schaaf has emphasised the need for international regulatory coordination to balance stablecoin markets and reduce reliance on the dollar.

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Amazon reports $18.2B profit boost as AI strategy takes off

Amazon has reported a 35% increase in quarterly profit, driven by rapid growth in its AI-powered services and cloud computing arm, Amazon Web Services (AWS).

The tech and e-commerce giant posted net income of $18.2 billion for Q2 2025, up from $13.5 billion a year earlier, while net sales rose 13% to $167.7 billion and exceeded analyst expectations.

CEO Andy Jassy attributed the strong performance to the company’s growing reliance on AI. ‘Our conviction that AI will change every customer experience is starting to play out,’ Jassy said, referencing Amazon’s AI-powered Alexa+ upgrades and new generative AI shopping tools.

AWS remained the company’s growth engine, with revenue climbing 17.5% to $30.9 billion and operating profit rising to $10.2 billion. The surge reflects the increasing demand for cloud infrastructure to support AI deployment across industries.

Despite the solid earnings, Amazon’s share price dipped more than 3% in after-hours trading. Analysts pointed to concerns over the company’s heavy capital spending, particularly its aggressive $100 billion AI investment strategy.

Free cash flow over the past year fell to $18.2 billion, down from $53 billion a year earlier. In Q2 alone, Amazon spent $32.2 billion on infrastructure, nearly double the previous year’s figure, much of it aimed at expanding its data centre and logistics capabilities to support AI workloads.

For the current quarter, Amazon projected revenue of $174.0 to $179.5 billion and operating income between $15.5 and $20.5 billion, slightly below investor hopes but still reflecting double-digit year-on-year growth.

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From concept to cornerstone, Ethereum turns ten

Ethereum has officially turned ten, marking a decade since the launch of its mainnet, Frontier, on 30 July 2015. Conceived by Vitalik Buterin in 2013, the platform was designed to surpass Bitcoin’s limitations by enabling smart contracts and decentralised applications.

The project’s early years were defined by significant milestones. A 2014 ICO raised over $18 million, but controversy soon followed. In 2016, a high-profile hack of The DAO led to a hard fork, splitting Ethereum into two chains.

During the 2017 ICO boom, Ethereum became the backbone for thousands of token launches, though the market later crashed under regulatory pressure. ETH’s price plummeted from near $1,450 to under $100.

Ethereum’s evolution has continued at pace. In 2022, the network transitioned to proof-of-stake through The Merge, cutting energy use by over 99%. Recent years brought soaring adoption, with DeFi, NFTs, and institutions cementing Ethereum’s place in crypto infrastructure.

Today, ETH trades near $3,800, with analysts forecasting potential highs of $15,000 within the next five years.

To commemorate its anniversary, the Ethereum Foundation has hosted global events and launched an NFT torch passed between community wallets, highlighting the network’s commitment to decentralisation and innovation.

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China says the US used a Microsoft server vulnerability to launch cyberattacks

China has accused the US of exploiting long-known vulnerabilities in Microsoft Exchange servers to launch cyberattacks on its defence sector, escalating tensions in the ongoing digital arms race between the two superpowers.

In a statement released on Friday, the Cyber Security Association of China claimed that US hackers compromised servers belonging to a significant Chinese military contractor, allegedly maintaining access for nearly a year.

The group did not disclose the name of the affected company.

The accusation is a sharp counterpunch to long-standing US claims that Beijing has orchestrated repeated cyber intrusions using the same Microsoft software. In 2021, Microsoft attributed a wide-scale hack affecting tens of thousands of Exchange servers to Chinese threat actors.

Two years later, another incident compromised the email accounts of senior US officials, prompting a federal review that criticised Microsoft for what it called a ‘cascade of security failures.’

Microsoft, based in Redmond, Washington, has recently disclosed additional intrusions by China-backed groups, including attacks exploiting flaws in its SharePoint platform.

Jon Clay of Trend Micro commented on the tit-for-tat cyber blame game: ‘Every nation carries out offensive cybersecurity operations. Given the latest SharePoint disclosure, this may be China’s way of retaliating publicly.’

Cybersecurity researchers note that Beijing has recently increased its use of public attribution as a geopolitical tactic. Ben Read of Wiz.io pointed out that China now uses cyber accusations to pressure Taiwan and shape global narratives around cybersecurity.

In April, China accused US National Security Agency (NSA) employees of hacking into the Asian Winter Games in Harbin, targeting personal data of athletes and organisers.

While the US frequently names alleged Chinese hackers and pursues legal action against them, China has historically avoided levelling public allegations against American intelligence agencies, until now.

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