Economic

OpenAI and io face lawsuit over branding conflict

OpenAI and hardware startup io, founded by former Apple designer Jony Ive, are now embroiled in a trademark infringement lawsuit filed by iyO, a Google-backed company specialising in custom headphones.

The legal case prompted OpenAI to withdraw promotional material linked to its $6.005 billion acquisition of io, raising questions about the branding of its future AI device.

Court documents reveal that OpenAI and io had previously met with iyO representatives and tested their custom earbud product, although the tests were unsuccessful.

Despite initial contact and discussions about potential collaboration, OpenAI rejected iyO’s proposals to invest, license, or acquire the company for $200 million. The lawsuit, however, does not centre on an earbud or wearable device, according to io’s co-founders.

Io executives clarified in court that their prototype does not resemble iyO’s product and remains unfinished. It is neither wearable nor intended for sale within the following year.

OpenAI CEO Sam Altman described the joint project as an attempt to reimagine hardware interfaces. At the same time, Jony Ive expressed enthusiasm for the device’s early design, which he claims captured his imagination.

Court testimony and emails suggest io explored various technologies, including desktop, mobile, and portable designs. Internal communications also reference possible ergonomic research using 3D ear scan data.

Although the lawsuit has exposed some development details, the main product of the collaboration between OpenAI and io remains undisclosed.

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McLaren Health Care confirms major ransomware attack and data breach

McLaren Health Care in Michigan has begun notifying over 743,000 individuals that their personal and health data may have been compromised in a ransomware attack in August 2024.

The health system confirmed that unauthorised access to its systems began on 17 July and continued until 3 August 2024, affecting McLaren Health Care and its Karmanos Cancer Centers.

A forensic investigation concluded on 5 May 2025 revealed that files containing names, Social Security numbers, driver’s licence details, medical information, and insurance data were accessed.

Notification letters began going out on 20 June 2025, and recipients are being offered 12 months of complimentary credit monitoring and identity theft protection.

Although the incident has not been officially attributed to a specific ransomware group, industry reports have previously linked the attack to the Inc. Ransom group. However, McLaren Health Care has not confirmed this, and the group has not publicly listed McLaren on its leak site.

However, this is McLaren’s second ransomware incident within a year. A previous attack by the ALPHV/BlackCat group compromised the data of more than 2.1 million individuals.

Following the August 2024 attack, McLaren Health Care restored its IT systems ahead of schedule and resumed normal operations, including reopening emergency departments and rescheduling postponed appointments and surgeries.

However, data collected manually during the outage is still being integrated into the electronic health record (EHR) system, a process expected to take several weeks.

McLaren Health Care has stated that it continues to investigate the full scope of the breach and will issue further notifications if additional data exposures are identified. The organisation works with external cybersecurity experts to strengthen its systems and prevent future incidents.

The attack caused disruptions across all 13 hospitals in the McLaren system and affiliated cancer centres, surgery centres, and clinics. While systems have been restored, McLaren has encouraged patients to remain prepared by bringing essential documents and information to appointments.

The health system expressed appreciation for its staff’s efforts and patients’ patience during the response and recovery efforts.

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Cloudflare blocks the largest DDoS attack in internet history

Cloudflare has blocked what it describes as the largest distributed denial-of-service (DDoS) attack ever recorded after nearly 38 terabytes of data were unleashed in just 45 seconds.

The onslaught generated a peak traffic rate of 7.3 terabits per second and targeted nearly 22,000 destination ports on a single IP address managed by an undisclosed hosting provider.

Instead of relying on a mix of tactics, the attackers primarily used UDP packet floods, which accounted for almost all attacks. A small fraction employed outdated diagnostic tools and methods such as reflection and amplification to intensify the network overload.

These techniques exploit how some systems automatically respond to ping requests, causing massive data feedback loops when scaled.

Originating from 161 countries, the attack saw nearly half its traffic come from IPs in Brazil and Vietnam, with the remainder traced to Taiwan, China, Indonesia, and the US.

Despite appearing globally orchestrated, most traffic came from compromised devices—often everyday items infected with malware and turned into bots without their owners’ knowledge.

To manage the unprecedented data surge, Cloudflare used a decentralised approach. Traffic was rerouted to data centres close to its origin, while advanced detection systems identified and blocked harmful packets without disturbing legitimate data flows.

The incident highlights the scale of modern cyberattacks and the growing sophistication of defences needed to stop them.

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M&S and Co‑op hit by Scattered Spider attack

High street giants M&S and Co‑op remain under siege after the Scattered Spider gang’s sophisticated cyber‑attack this April. The breaches disrupted online services and automated systems, leading to suspended orders, empty shelves and significant reputational damage.

Authorities have classified the incident as category‑2, with initial estimates suggesting losses between £270 million and £440 million. M&S expects a £300 million hit to its annual profit, with daily online sales down by up to £4 million during the outage.

In a rare display of unity, Tesco’s Booker arm stepped in to supply M&S and some independent Co‑op stores, helping to ease stock shortages. Meanwhile, cyber insurers have signalled increasing premiums, with the cost of cover for retail firms rising by up to 10 percent.

The National Cyber Security Centre and government ministers have issued urgent calls for the sector to strengthen defences, citing such high‑impact incidents as a vital wake‑up call for business readiness.

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Banks and tech firms create open-source AI standards

A group of leading banks and technology firms has joined forces to create standardised open-source controls for AI within the financial sector.

The initiative, led by the Fintech Open Source Foundation (FINOS), includes financial institutions such as Citi, BMO, RBC, and Morgan Stanley, working alongside major cloud providers like Microsoft, Google Cloud, and Amazon Web Services.

Known as the Common Controls for AI Services project, the effort seeks to build neutral, industry-wide standards for AI use in financial services.

The framework will be tailored to regulatory environments, offering peer-reviewed governance models and live validation tools to support real-time compliance. It extends FINOS’s earlier Common Cloud Controls framework, which originated with contributions from Citi.

Gabriele Columbro, Executive Director of FINOS, described the moment as critical for AI in finance. He emphasised the role of open source in encouraging early collaboration between financial firms and third-party providers on shared security and compliance goals.

Instead of isolated standards, the project promotes unified approaches that reduce fragmentation across regulated markets.

The project remains open for further contributions from financial organisations, AI vendors, regulators, and technology companies.

As part of the Linux Foundation, FINOS provides a neutral space for competitors to co-develop tools that enhance AI adoption’s safety, transparency, and efficiency in finance.

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Oakley Meta HSTN smart glasses unveiled

Meta and Oakley have revealed the Oakley Meta HSTN, a new AI-powered smart glasses model explicitly designed for athletes and fitness fans. The glasses combine Meta’s advanced AI with Oakley’s signature sporty design, offering features tailored for high-performance settings.

The device is ideal for workouts and outdoor use and is equipped with a 3K ultra-HD camera, open-ear speakers, and IPX4 water resistance.

On-device Meta AI provides real-time coaching, hands-free information and eight hours of active battery life, while a compact charging case adds up to 48 more hours.

The glasses are set for pre-order from 11 July, with a limited-edition gold-accent version priced at 499 dollars. Standard versions will follow later in the summer, with availability expanding beyond North America, Europe and Australia to India and the UAE by year-end.

Sports stars like Kylian Mbappé and Patrick Mahomes are helping introduce the glasses, representing Meta’s move to integrate smart tech into athletic gear. The product marks a shift from lifestyle-focused eyewear to functional devices supporting sports performance.

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Watson CoPilot brings AI-driven support to small firms

IBM has introduced AI-powered software to help small businesses improve operations and customer engagement. Based on its Watson AI, the tools aim to streamline tasks, reduce costs and offer deeper insights into customer behaviour.

One of the key features is Watson CoPilot, an AI assistant that handles routine customer queries using natural language processing. However, this allows employees to focus on complex tasks while improving response times and customer satisfaction.

IBM highlighted the potential of these tools to strengthen customer loyalty and drive growth in a competitive market. However, small firms may face challenges such as integration costs, data security concerns and the need for staff training.

The company provides support and resources to ease adoption and help businesses customise the technology to their needs. Using AI responsibly allows small businesses to gain a valuable edge in an increasingly digital economy.

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China pushes quantum computing towards industrial use

A Chinese startup has used quantum computing to improve breast cancer screening accuracy, highlighting how the technology could transform medical diagnostics—based in Hefei, Origin Quantum applied its superconducting quantum processor to analyse medical images faster and more precisely.

China is accelerating efforts to turn quantum research into industrial applications, with companies focusing on areas such as drug discovery, smart cities and finance. Government backing and national policy have driven rapid growth in the sector, with over 150 firms now active in quantum computing.

In addition to medical uses, quantum algorithms are being tested in autonomous parking, which has dramatically cut wait times. Banks and telecom firms have also begun adopting quantum solutions to improve operational efficiency in areas like staff scheduling.

The merging of quantum computing with AI is seen as the next significant step, with Origin Quantum recently fine-tuning a billion-parameter AI model on its quantum system. Experts expect the integration of these technologies to shift from labs to practical use in the next five years.

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Solana teams up with Kazakhstan to grow crypto startups

Solana has signed a Memorandum of Understanding with Kazakhstan’s Ministry to support the country’s growing crypto sector. The partnership aims to advance startups and improve developer education using the Solana blockchain.

The collaboration aims to promote the tokenisation of capital markets, enhancing the appeal of Kazakhstan’s Astana International Exchange (AIX) to global investors.

Solana Foundation leaders highlighted how blockchain technology could help AIX compete with major exchanges such as the NYSE and Nasdaq by storing most trading volume on-chain.

The announcement comes shortly after Kazakhstan launched the Solana Economic Zone, the first in Central Asia. Digital minister Zhaslan Madiyev called the initiative a step towards fostering web3 talent and advancing Kazakhstan’s digital economy.

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Tether CEO unveils offline password manager

Paolo Ardoino, CEO of Tether, has introduced PearPass, an open-source, offline password manager. The launch comes in response to the most significant credential breach on record, which exposed 16 billion passwords.

Ardoino criticised cloud storage, stating the time has come to abandon reliance on it for security.

The leaked data reportedly covers login details from major platforms like Apple, Meta, and Google, leaving billions vulnerable to identity theft and fraud. Experts have not yet identified the perpetrators but point to systemic flaws in cloud-based data protection.

PearPass is designed to operate entirely offline, storing credentials only on users’ devices without syncing to the internet or central servers. It aims to reduce the risks of mass hacking attempts targeting large cloud vaults.

The tool’s open-source nature allows transparency and encourages the adoption of safer, decentralised security methods.

Cybersecurity authorities urge users to change passwords immediately, enable multi-factor authentication, and monitor accounts closely.

As investigations proceed, PearPass’s launch renews the debate on personal data ownership and may set a new standard for password security.

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