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Nvidia nears $4 trillion milestone as AI boom continues

Nvidia has made financial history by nearly reaching a $4 trillion market valuation, a milestone highlighting investor confidence in AI as a powerful economic force.

Shares briefly peaked at $164.42 before closing slightly lower at $162.88, just under the record threshold. The rise underscores Nvidia’s position as the leading supplier of AI chips amid soaring demand from major tech firms.

Led by CEO Jensen Huang, the company now holds a market value larger than the economies of Britain, France, or India.

Nvidia’s growth has helped lift the Nasdaq to new highs, aided in part by improved market sentiment following Donald Trump’s softened stance on tariffs.

However, trade barriers with China continue to pose risks, including export restrictions that cost Nvidia $4.5 billion in the first quarter of 2025.

Despite those challenges, Nvidia secured a major AI infrastructure deal in Saudi Arabia during Trump’s visit in May. Innovations such as the next-generation Blackwell GPUs and ‘real-time digital twins’ have helped maintain investor confidence.

The company’s stock has risen over 21% in 2025, far outpacing the Nasdaq’s 6.7% gain. Nvidia chips are also being used by the US administration as leverage in global tech diplomacy.

While competition from Chinese AI firms like DeepSeek briefly knocked $600 billion off Nvidia’s valuation, Huang views rivalry as essential to progress. With the growing demand for complex reasoning models and AI agents, Nvidia remains at the forefront.

Still, the fast pace of AI adoption raises concerns about job displacement, with firms like Ford and JPMorgan already reporting workforce impacts.

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xAI unveils Grok 4 with top benchmark scores

Elon Musk’s AI company, xAI, has launched its latest flagship model, Grok 4, alongside an ultra-premium $300 monthly plan named SuperGrok Heavy.

Grok 4, which competes with OpenAI’s ChatGPT and Google’s Gemini, can handle complex queries and interpret images. It is now integrated more deeply into the social media platform X, which Musk also owns.

Despite recent controversy, including antisemitic responses generated by Grok’s official X account, xAI focused on showcasing the model’s performance.

Musk claimed Grok 4 is ‘better than PhD level’ in all academic subjects and revealed a high-performing version called Grok 4 Heavy, which uses multiple AI agents to solve problems collaboratively.

The models scored strongly on benchmark exams, including a 25.4% score for Grok 4 on Humanity’s Last Exam, outperforming major rivals. With tools enabled, Grok 4 Heavy reached 44.4%, nearly doubling OpenAI’s and Google’s results.

It also achieved a leading score of 16.2% on the ARC-AGI-2 pattern recognition test, nearly double that of Claude Opus 4.

xAI is targeting developers through its API and enterprise partnerships while teasing upcoming tools: an AI coding model in August, a multi-modal agent in September, and video generation in October.

Yet the road ahead may be rocky, as the company works to overcome trust issues and position Grok as a serious rival in the AI arms race.

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AI industry warned of looming financial collapse

Despite widespread popularity and unprecedented investment, OpenAI may be facing a deepening financial crisis. Since launching ChatGPT, the company has lost billions yearly, including an estimated $5 billion in 2024 alone.

Tech critic Ed Zitron argues that the AI industry is heading towards a ‘subprime AI crisis’, comparing the sector’s inflated valuations and spiralling losses to the subprime mortgage collapse in 2007. Startups like OpenAI and Anthropic continue to operate at huge losses.

Companies relying on AI infrastructure are already feeling the squeeze. Anysphere, which uses Anthropic’s models, recently raised prices sharply, angering users and blaming costs passed down from its infrastructure provider.

To manage exploding demand, OpenAI has also introduced tiered pricing and restricted services for free users, raising concerns that access to AI tools will soon be locked behind expensive paywalls. With 800 million weekly users, any future revenue strategy could alienate a large part of its global base.

Zitron believes these conditions cannot sustain long-term growth and will ultimately damage revenues and public trust. The industry, he warns, may be building its future on unstable ground.

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M&S urges UK firms to report cyberattacks

Marks & Spencer has called for a legal obligation requiring UK companies to report major cyberattacks to national authorities. Chairman Archie Norman told parliament that two serious cyberattacks on prominent firms in recent months had gone unreported.

He argued that underreporting leaves a significant gap in cybersecurity knowledge. It would not be excessive regulation to require companies to report material incidents to the National Cyber Security Centre.

The retailer was hit in April by what is believed to be a ransomware attack involving DragonForce, with links to the Scattered Spider hacking group.

The breach forced a seven-week suspension of online clothing orders, costing the business around £300 million in lost operating profit.

M&S had fortunately doubled its cyber insurance last year, though it may take 18 months to process the claim.

General counsel Nick Folland added that companies must be prepared to operate manually, using pen and paper, when systems go down.

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Italy’s Piracy Shield sparks EU scrutiny over digital rights

Italy’s new anti-piracy system, Piracy Shield, has come under scrutiny from the European Commission over potential breaches of the Digital Services Act.

The tool, launched by the Italian communications regulator AGCOM, allows authorities to block suspicious websites within 30 minutes — a feature praised by sports rights holders for minimising illegal streaming losses.

However, its speed and lack of judicial oversight have raised legal concerns. Critics argue that individuals are denied the right to defend themselves before action.

A recent glitch linked to Google’s CDN disrupted access to platforms like YouTube and Google Drive, deepening public unease.

Another point of contention is Piracy Shield’s governance. SP Tech, a company owned by Lega Serie A, manages the system, which directly benefits from anti-piracy enforcement.

The Computer & Communications Industry Association was prompted to file a complaint, citing a conflict of interest and calling for greater transparency.

While AGCOM Commissioner Massimiliano Capitanio insists the tool places Italy at the forefront of the fight against illegal streaming, growing pressure from digital rights groups and EU regulators suggests a clash between national enforcement and European law.

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ChatGPT quietly tests new ‘Study Together’ feature for education

A few ChatGPT users have noticed a new option called ‘Study Together’ appearing among available tools, though OpenAI has yet to confirm any official rollout. The feature seems designed to make ChatGPT a more interactive educational companion than just delivering instant answers.

Rather than offering direct solutions, the tool prompts users to think for themselves by asking questions, potentially turning ChatGPT into a digital tutor.

Some speculate the mode might eventually allow multiple users to study together in real-time, mimicking a virtual study group environment.

With the chatbot already playing a significant role in classrooms — helping teachers plan lessons or assisting students with homework — the ‘Study Together’ feature might help guide users toward deeper learning instead of enabling shortcuts.

Critics have warned that AI tools like ChatGPT risk undermining education, so it could be a strategic shift to encourage more constructive academic use.

OpenAI has not confirmed when or if the feature will launch publicly, or whether it will be limited to ChatGPT Plus users. When asked, ChatGPT only replied that nothing had been officially announced.

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Sam Altman shrugs off Meta poaching, backs Trump, jabs at Musk

OpenAI CEO Sam Altman addressed multiple hot topics during the Sun Valley conference, including Meta’s aggressive recruitment of top AI researchers, his strained relationship with Elon Musk, and a surprising show of support for Donald Trump.

Altman downplayed Meta’s talent raids, saying he had not spoken to Mark Zuckerberg since the Meta CEO lured away three OpenAI researchers with a $100 million signing bonus. All three had worked at OpenAI’s Zurich office, which opened in 2024.

Despite the losses, Altman described the situation as ‘fine’ and ‘good’, suggesting OpenAI’s mission continues to retain top talent.

The OpenAI chief also took a subtle swipe at Meta’s smartglasses, saying he doesn’t like wearable tech and implying his company has no plans to follow suit.

On the topic of Elon Musk, Altman laughed off their rivalry, saying only that Musk’s bust-ups with everybody, and hinting at the long-running tension between the two former co-founders.

Perhaps most notably, Altman expressed disillusionment with the Democratic Party, saying he no longer feels represented by mainstream figures he once supported.

He praised Donald Trump’s focus on AI infrastructure. He even donated $1 million to Trump’s inaugural fund — a gesture reflecting a broader shift among Silicon Valley leaders warming to Trump as his popularity rises.

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Ransomware gangs feud after M&S cyberattack

A turf war has erupted between two significant ransomware gangs, DragonForce and RansomHub, following cyberattacks on UK retailers including Marks and Spencer and Harrods.

Security experts warn that the feud could result in companies being extorted multiple times as criminal groups compete to control the lucrative ransomware-as-a-service (RaaS) market.

DragonForce, a predominantly Russian-speaking group, reportedly triggered the conflict by rebranding as a cartel and expanding its affiliate base.

Tensions escalated after RansomHub’s dark-web site was taken offline in what is believed to be a hostile move by DragonForce, prompting retaliation through digital vandalism.

Cybersecurity analysts say the breakdown in relationships between hacking groups has created instability, increasing the likelihood of future attacks. Experts also point to a growing risk of follow-up extortion attempts by affiliates when criminal partnerships collapse.

The rivalry reflects the ruthless dynamics of the ransomware economy, which is forecast to cost businesses $10 trillion globally by the end of 2025. Victims now face not only technical challenges but also the legal and financial fallout of navigating increasingly unpredictable criminal networks.

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US targets Southeast Asia to stop AI chip leaks to China

The US is preparing stricter export controls on high-end Nvidia AI chips destined for Malaysia and Thailand, in a move to block China’s indirect access to advanced GPU hardware.

According to sources cited by Bloomberg, the new restrictions would require exporters to obtain licences before sending AI processors to either country.

The change follows reports that Chinese engineers have hand-carried data to Malaysia for AI training after Singapore began restricting chip re-exports.

Washington suspects Chinese firms are using Southeast Asian intermediaries, including shell companies, to bypass existing export bans on AI chips like Nvidia’s H100.

Although some easing has occurred between the US and China in areas such as ethane and engine components, Washington remains committed to its broader decoupling strategy. The proposed measures will reportedly include safeguards to prevent regional supply chain disruption.

Malaysia’s Trade Minister confirmed earlier this year that the US had requested detailed monitoring of all Nvidia chip shipments into the country.

As the global race for AI dominance intensifies, Washington appears determined to tighten enforcement and limit Beijing’s access to advanced computing power.

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Samsung profits slump as US chip ban hits AI exports

Samsung Electronics expects its second-quarter operating profits to exceed half, citing Washington’s export controls on advanced AI chips to China.

The company announced a projected 56% year-on-year drop in operating profit, falling to 4.6 trillion won ($3.3 billion), with revenue down 6.5% from the previous quarter.

The semiconductor division, a core part of Samsung’s business, suffered due to reduced utilisation and inventory value adjustments.

US restrictions have made it difficult for South Korea’s largest conglomerate to ship high-end chips to China, forcing some of its production lines to run below capacity.

Despite weak performance in the foundry sector, the memory business remained relatively stable. Analysts pointed to weaker-than-expected sales of HBM chips used for AI and a drop in NAND storage prices, while a declining won-dollar exchange rate further pressured earnings.

Looking ahead, Samsung expects a modest recovery as demand for memory chips, mainly from AI-driven data centres, improves in the year’s second half.

The company is also facing political pressure from Washington, with threats of new tariffs prompting talks between Seoul and the US administration.

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