E-commerce and trade

Meta plans $10 billion investment in Scale AI

Meta Platforms is reportedly in talks to invest over $10 billion in Scale AI, a data labelling startup already backed by Nvidia, Amazon, and Meta itself.

The deal, if finalised, would mark Meta’s largest external investment in AI to date, representing a notable shift away from its prior reliance on in-house research and open-source projects.

Founded in 2016, Scale AI supports the training of AI models through high-quality labelled datasets. It also provides a platform for AI research collaboration, now with contributors in more than 9,000 locations.

The company was last valued at nearly $14 billion following a 2024 funding round involving Meta and Microsoft.

Meta’s planned investment signals an aggressive expansion of its AI ambitions. Earlier this year, CEO Mark Zuckerberg announced up to $65 billion in AI spending for 2025. It includes Meta’s Llama chatbot, now embedded into Facebook, Instagram and WhatsApp, reaching one billion users monthly.

The move puts Meta in closer competition with Microsoft, which has committed over $13 billion to OpenAI, and Amazon and Alphabet, which are backing rival AI firm Anthropic. Scale AI declined to comment, while Meta has yet to respond publicly.

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Nvidia and FCA open AI sandbox for UK fintechs

Financial firms across the UK will soon be able to experiment with AI in a new regulatory sandbox, launched by the Financial Conduct Authority (FCA) in partnership with Nvidia.

Known as the Supercharged Sandbox, it offers a secure testing ground for firms wanting to explore AI tools without needing their advanced computing resources.

Set to begin in October, the initiative is open to any financial services company testing AI-driven ideas. Firms will have access to Nvidia’s accelerated computing platform and tailored AI software, helping them work with complex data, improve automation, and enhance risk management in a controlled setting.

The FCA said the sandbox is designed to support firms lacking the in-house capacity to test new technology.

It aims to provide not only computing power but also regulatory guidance and access to better datasets, creating an environment where innovation can flourish while remaining compliant with rules.

The move forms part of a wider push by the UK government to foster economic growth through innovation. Finance minister Rachel Reeves has urged regulators to clear away obstacles to growth and praised the FCA and Bank of England for acting on her call to cut red tape.

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Odyssey presents immersive AI-powered streaming

Odyssey, a startup founded by self-driving veterans Oliver Cameron and Jeff Hawke, has unveiled an AI model that allows users to interact with streaming video in real time.

The technology generates video frames every 40 milliseconds, enabling users to move through scenes like a 3D video game instead of passively watching. A demo is currently available online, though it is still in its early stages.

The system relies on a new kind of ‘world model’ that predicts future visual states based on previous actions and environments. Odyssey claims its model can maintain spatial consistency, learn motion from video, and sustain coherent video output for five minutes or more.

Unlike models trained solely on internet data, Odyssey captures real-world environments using a custom 360-degree, backpack-mounted camera to build higher-fidelity simulations.

Tech giants and AI startups are exploring world models to power next-generation simulations and interactive media. Yet creative professionals remain wary. A 2024 study commissioned by the Animation Guild predicted significant job disruptions across film and animation.

Game studios like Activision Blizzard have been scrutinised for using AI while cutting staff.

Odyssey, however, insists its goal is collaboration instead of replacement. The company is also developing software to let creators edit scenes using tools like Unreal Engine and Blender.

Backed by $27 million in funding and supported by Pixar co-founder Ed Catmull, Odyssey aims to transform video content across entertainment, education, and advertising through on-demand interactivity.

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FBI warns BADBOX 2.0 malware is infecting millions

The FBI has issued a warning about the resurgence of BADBOX 2.0, a dangerous form of malware infecting millions of consumer electronics globally.

Often preloaded onto low-cost smart TVs, streaming boxes, and IoT devices, primarily from China, the malware grants cyber criminals backdoor access, enabling theft, surveillance, and fraud while remaining essentially undetectable.

BADBOX 2.0 forms part of a massive botnet and can also infect devices through malicious apps and drive-by downloads, especially from unofficial Android stores.

Once activated, the malware enables a range of attacks, including click fraud, fake account creation, DDoS attacks, and the theft of one-time passwords and personal data.

Removing the malware is extremely difficult, as it typically requires flashing new firmware, an option unavailable for most of the affected devices.

Users are urged to check their hardware against a published list of compromised models and to avoid sideloading apps or purchasing unverified connected tech.

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Broadcom beats estimates but stock dips after-hours

Broadcom reported strong second-quarter earnings and revenue driven by robust AI demand and solid networking performance.

Despite beating expectations and raising its outlook, the stock fell 3.47% in after-hours trading on Thursday — likely due to profit-taking instead of concern about fundamentals. Shares had previously rallied over 75% since April.

Revenue for the quarter ending May 5 reached US$15 billion, up 20% year-on-year. Adjusted earnings per share were US$1.58, exceeding estimates by two cents.

Net income more than doubled to US$4.97 billion. CEO Hock Tan attributed the strength to growing demand for AI infrastructure and contributions from VMware, which Broadcom acquired in late 2023.

Broadcom forecasted Q3 revenue of approximately US$15.8 billion, slightly above analyst expectations. AI-related revenue is set to increase to US$5.1 billion, up from US$4.4 billion in Q2, fuelled by custom AI accelerators and high-speed networking chips used in hyperscale data centres.

Tan said that the trend should continue through fiscal 2026.

Semiconductor solutions brought in US$8.4 billion in Q2, up 17% from last year, while software revenue rose 25% to US$6.6 billion, with VMware as a key contributor.

About 30% of Broadcom’s AI-related revenue now comes from its switching business, reflecting increasing demand for AI chip clusters. Despite the slight dip in share price, analysts continue to view Broadcom as a key player in AI infrastructure.

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Semiconductor innovation drives AI chip boom

The global AI chip design market is set for explosive growth, with its value projected to rise from USD 73.87 billion in 2024 to USD 468.9 billion by 2032.

This rapid expansion, driven by a 25.98% compound annual growth rate, reflects rising demand for AI in everyday devices, cloud computing, and industrial automation.

Surging adoption of AI-powered technologies across sectors—from smartphones and autonomous vehicles to manufacturing and healthcare—is fuelling the need for advanced, energy-efficient chips.

Companies are investing in smaller, faster processors and real-time edge computing solutions, while governments in countries like the US, China, and South Korea are backing local AI chip development through funding and research initiatives.

North America currently leads the market thanks to tech giants like NVIDIA, Google, and Intel, but Asia-Pacific is growing fastest, particularly as China and South Korea accelerate efforts toward self-reliance in AI hardware.

Industry leaders such as Arm, Intel, and Qualcomm are racing to optimise performance while managing power demands, placing AI chip design at the heart of the next digital transformation wave.

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EU launches global digital strategy

The European Union has launched a sweeping international digital strategy to bolster its global tech leadership and secure a human-centric digital transformation. With the digital and AI revolution reshaping economies and societies worldwide, the EU is positioning itself as a reliable partner in building resilient, open, and secure digital ecosystems.

The strategy prioritises collaboration with international partners to scale digital infrastructure, strengthen cybersecurity, and support emerging technologies like AI, quantum computing, and semiconductors while promoting democratic values and human rights in digital governance. The EU will deepen and expand its global network of Digital Partnerships and Dialogues to remain competitive and secure in a fast-changing geopolitical landscape.

These collaborations focus on research, industrial innovation, regulatory cooperation, and secure supply chains, while engaging countries across Africa, Latin America, Asia, and the EU’s own neighbourhood. The strategy also leverages trade instruments and investment frameworks such as the Global Gateway to support secure 5G and 6G networks, submarine cables, and digital public infrastructure, helping partner countries improve connectivity, resilience, and sustainability.

To enhance global digital governance, the EU is pushing for international standards that uphold privacy, security, and openness, and opposing efforts to fragment the internet. It supports inclusive multilateralism, working through institutions like the UN, G7, and OECD to shape rules for the digital age.

With initiatives ranging from AI safety cooperation and e-signature mutual recognition to safeguarding children online and combating disinformation, the EU aims to set the benchmark for ethical and secure digital transformation. At the heart of this vision is the EU Tech Business Offer—a modular, cross-border platform combining technology, capacity-building, and financing.

Through Team Europe and partnerships with industry, the EU seeks to bridge the digital divide, export trusted digital solutions, and foster an interconnected world aligned with European democratic principles. The strategy underscores that in today’s interconnected world, the EU’s prosperity and security hinge on shaping a digital future that is competitive, inclusive, and values-driven.

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M&S CEO targeted by hackers in abusive ransom email

Marks & Spencer has been directly targeted by a ransomware group calling itself DragonForce, which sent a vulgar and abusive ransom email to CEO Stuart Machin using a compromised employee email address.

The message, laced with offensive language and racist terms, demanded that Machin engage via a darknet portal to negotiate payment. It also claimed that the hackers had encrypted the company’s servers and stolen customer data, a claim M&S eventually acknowledged weeks later.

The email, dated 23 April, appears to have been sent from the account of an Indian IT worker employed by Tata Consultancy Services (TCS), a long-standing M&S tech partner.

TCS has denied involvement and stated that its systems were not the source of the breach. M&S has remained silent publicly, neither confirming the full scope of the attack nor disclosing whether a ransom was paid.

The cyber attack has caused major disruption, costing M&S an estimated £300 million and halting online orders for over six weeks.

DragonForce has also claimed responsibility for a simultaneous attack on the Co-op, which left some shelves empty for days. While nothing has yet appeared on DragonForce’s leak site, the group claims it will publish stolen information soon.

Investigators believe DragonForce operates as a ransomware-as-a-service collective, offering tools and platforms to cybercriminals in exchange for a 20% share of any ransom.

Some experts suspect the real perpetrators may be young hackers from the West, linked to a loosely organised online community called Scattered Spider. The UK’s National Crime Agency has confirmed it is focusing on the group as part of its inquiry into the recent retail hacks.

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G42 and Mistral team up to build AI platforms

Abu Dhabi-based tech company G42 has partnered with French startup Mistral AI to co-develop advanced AI platforms and infrastructure across Europe, the Middle East, and the Global South.

The collaboration aims to span the full AI value chain, from model training to sector-specific applications, combining Mistral’s open-weight language models with G42’s infrastructure expertise.

The deal builds on prior AI cooperation agreements endorsed by UAE President Sheikh Mohamed bin Zayed and French President Emmanuel Macron, reinforcing both countries’ shared ambition to lead in AI innovation.

G42 subsidiaries Core42 and Inception will support the initiative by contributing technical development and deployment capabilities.

This partnership is part of a broader UAE strategy to position itself as a global AI hub and diversify its economy beyond oil. With AI expected to add up to $91 billion to the UAE’s economy by 2030, such international alliances reflect a shift in AI power centres toward the Middle East.

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Reddit accuses Anthropic of misusing user content

Reddit has taken legal action against AI startup Anthropic, alleging that the company scraped its platform without permission and used the data to train and commercialise its Claude AI models.

The lawsuit, filed in San Francisco’s Superior Court, accuses Anthropic of breaching contract terms, unjust enrichment, and interfering with Reddit’s operations.

According to Reddit, Anthropic accessed the platform more than 100,000 times despite publicly claiming to have stopped doing so.

The complaint claims Anthropic ignored Reddit’s technical safeguards, such as robots.txt files, and bypassed the platform’s user agreement to extract large volumes of user-generated content.

Reddit argues that Anthropic’s actions undermine its licensing deals with companies like OpenAI and Google, who have agreed to strict content usage and deletion protocols.

The filing asserts that Anthropic intentionally used personal data from Reddit without ever seeking user consent, calling the company’s conduct deceptive. Despite public statements suggesting respect for privacy and web-scraping limitations, Anthropic is portrayed as having disregarded both.

The lawsuit even cites Anthropic’s own 2021 research that acknowledged Reddit content as useful in training AI models.

Reddit is now seeking damages, repayment of profits, and a court order to stop Anthropic from using its data further. The market responded positively, with Reddit’s shares closing nearly 67% higher at $118.21—indicating investor support for the company’s aggressive stance on data protection.

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