Economic

AI surge ‘bigger than the internet’ but with risk of major shake-out

In a commentary highlighted by a BBC article, Cisco’s chief executive, Chuck Robbins, reportedly compared the current AI boom to the early dot-com bubble, suggesting that while AI’s long-term impact could be transformative, the market may also face a period of significant turbulence and ‘wreckage’ before durable winners emerge.

Robbins warned that massive capital flows into AI companies, many of which lack clear revenue paths, resemble past speculative cycles and could lead to sharp contractions or failures among weaker players in the tech ecosystem.

He also noted that productivity gains from AI may be real but come with job reshaping, security risks and economic disruptions along the way.

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Pinterest lays off up to 15% of staff to fund AI transformation

Social media and visual discovery platform Pinterest disclosed a major global restructuring plan in early 2026 that will cut between 700 and 800 jobs, roughly 10–15% of its workforce, and shrink its physical office footprint, with most reductions expected to occur in the first half of the year.

In regulatory and internal communications, CEO Bill Ready framed the layoffs as necessary to ‘position the company for long-term success in an increasingly AI-driven world’, enabling the business to redirect funds and talent from legacy roles toward AI-focused teams and AI-powered products, including visual search, personalisation and ad technologies.

Pinterest’s workforce cuts are part of a wider industry trend where tech firms trim staff in traditional areas and bolster AI capabilities, reflecting pressure to improve efficiency, respond to slowing advertising growth and compete with rivals leveraging generative and recommendation technologies.

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AI’s growing role in environmental sustainability

AI is expanding rapidly, driving rising electricity and water consumption, which has fuelled concerns about environmental damage. Growth in data centres and intensive computing workloads is increasing pressure on global energy systems.

At the same time, AI is being deployed to reduce resource use and emissions across multiple industries. In agriculture, data-driven irrigation systems help farmers apply water more precisely, cutting waste while lowering the energy needed for pumping and distribution.

Efficiency gains are also visible in data centres, where intelligent systems manage workloads and cooling more effectively. Despite a sharp rise in global internet traffic, improvements in energy management have helped slow the growth of electricity consumption.

Energy companies, building operators and airlines are adopting AI to cut emissions and improve efficiency. From detecting methane leaks to optimising heating systems and flight routes, wider use of these technologies could help balance AI’s environmental costs with measurable climate benefits.

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SoftBank plans massive new investment in OpenAI

SoftBank is in discussions to invest an additional $30 billion in OpenAI, as the Japanese conglomerate deepens its commitment to the AI pioneer. The potential funding round could reach $100 billion, valuing OpenAI at approximately $830 billion.

Chief Executive Masayoshi Son has taken an aggressive approach in the AI race, following a $41 billion investment last year that secured an 11 percent stake. OpenAI is facing increasing operational costs to train and maintain its AI models while competing with Alphabet’s Google.

Both SoftBank and OpenAI are also investors in Stargate, a $500 billion project to build AI data centres critical to US efforts to maintain a technological edge over China. The ambitious plan highlights the strategic importance of AI infrastructure in the global market.

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Yahoo launches AI-powered search Scout

Yahoo has introduced Scout, a new AI-powered search engine designed to compete with Google AI Mode and Perplexity. The tool transforms traditional search results into direct answers, interpreting natural language queries with the help of Yahoo’s extensive user data and content.

Scout combines the Claude AI model from Anthropic with Bing’s grounding API to ensure information is accurate and drawn from authoritative sources. Users can access personalised insights, whether checking the weather, tracking stock prices, or verifying news stories.

The platform also includes shopping and finance features, offering quick comparisons between products and synthesised financial information refreshed every ten minutes. Currently in beta, Yahoo Scout is available to US users via the Yahoo Search app and website, with plans to expand its personalisation features.

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Job cuts signal Pinterest’s deeper shift toward AI-powered products

Pinterest is cutting under 15% of its workforce as part of a broader restructuring aimed at shifting more investment toward AI-driven products and roles.

In a regulatory filing, the company said the changes are designed to support transformation initiatives, including reallocating resources to AI-focused teams and reshaping its sales and go-to-market strategy.

The restructuring will also include reductions in office space, with completion targeted for the end of September and expected pre-tax charges ranging from $35 million to $45 million.

Pinterest had around 5,200 employees at the end of last year, meaning the layoffs will affect several hundred staff as the platform accelerates its AI integration.

Recent launches such as AI-powered board updates and the Pinterest Assistant shopping tool reflect a wider trend across the tech sector, where companies are trimming headcount while expanding AI investment.

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Canada’s Cyber Centre flags rising ransomware risks for 2025 to 2027

The national cyber authority of Canada has warned that ransomware will remain one of the country’s most serious cyber threats through 2027, as attacks become faster, cheaper and harder to detect.

The Canadian Centre for Cyber Security, part of Communications Security Establishment Canada, says ransomware now operates as a highly interconnected criminal ecosystem driven by financial motives and opportunistic targeting.

According to the outlook, threat actors are increasingly using AI and cryptocurrency while expanding extortion techniques beyond simple data encryption.

Businesses, public institutions and critical infrastructure in Canada remain at risk, with attackers continuously adapting their tactics, techniques and procedures to maximise financial returns.

The Cyber Centre stresses that basic cyber hygiene still provides strong protection. Regular software updates, multi-factor authentication and vigilance against phishing attempts significantly reduce exposure, even as attack methods evolve.

A report that also highlights the importance of cooperation between government bodies, law enforcement, private organisations and the public.

Officials conclude that while ransomware threats will intensify over the next two years, early warnings, shared intelligence and preventive measures can limit damage.

Canada’s cyber authorities say continued investment in partnerships and guidance remains central to building national digital resilience.

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TikTok struggles to stabilise US infrastructure after data centre outage

TikTok says recovery of its US infrastructure is progressing, although technical issues continue to affect parts of the platform after a data centre power outage.

The disruption followed the launch of a new US-based entity backed by American investors, a move aimed at avoiding a nationwide ban.

Users across the country reported problems with searches, video playback, posting content, loading comments and unexpected behaviour in the For You algorithm. TikTok said the outage also affected other apps and warned that slower load times and timeouts may persist, rather than returning to normal performance.

In a statement posted by the TikTok USDS Joint Venture, the company said collaboration with its US data centre partner has restored much of the infrastructure, but posting new content may still trigger errors.

Creators may also see missing views, likes, or earnings due to server timeouts rather than actual data loss.

TikTok has not named the data centre partner involved, while severe winter storms across the US may have contributed to the outage. Despite growing scepticism around the timing of the disruption, the company insists that user data and engagement remain secure.

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OpenAI prepares ad rollout inside free ChatGPT service

Advertising is set to be introduced within the free ChatGPT service, signalling a shift in how the platform will be monetised as its user base continues to expand rapidly. The move reflects OpenAI’s plans to turn widespread adoption into a sustainable revenue stream.

The company confirmed that ad testing will begin in the coming weeks, with sponsored content shown at the bottom of relevant ChatGPT responses. OpenAI said advertisements will be clearly labelled and separated from organic answers.

ChatGPT now serves more than 800 million users globally, most of whom currently access the service at no cost. Despite the high valuation, the company has continued to operate at a loss while expanding its infrastructure and AI capabilities.

Advertising represents OpenAI’s latest effort to diversify income beyond paid subscriptions and enterprise services. Sponsored recommendations will be shown only when products or services are deemed relevant to the user’s ongoing conversation.

The shift places OpenAI closer to traditional digital platform business models, raising broader questions about how commercial incentives may shape conversational AI systems as they become central gateways to online information.

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Gemini 3 powers new conversational AI features across Google Search

Google has unveiled two major Search upgrades, making Gemini 3 the default model for AI Overviews and enabling smoother conversational AI interactions. The updates improve exploration of complex topics, enabling longer questions and more natural follow-up interactions.

Gemini 3 now powers AI Overviews directly within search results, delivering faster, more precise responses where AI assistance adds value. Users can move seamlessly from summaries into deeper, contextual conversations in AI Mode.

The enhanced experience combines quick snapshots with in-depth exploration, offering prominent links for further discovery. Testing shows that users favour fluid interactions that allow natural back-and-forth exchanges, improving clarity and efficiency across search journeys.

The rollout extends globally on mobile, enabling direct entry into AI Mode from AI Overviews. Google says the updates reflect its broader goal of making Search more intuitive, flexible, and capable of handling increasingly complex information needs.

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