Economic

Agentic AI forces rethink of cloud infrastructure

Cybersecurity experts warn that reliance on traditional firewalls and legacy VPNs may pose greater risks than protection. These outdated tools often lack timely updates, making them prime entry points for cyber attackers exploiting AI-powered techniques.

Many businesses depend on ageing infrastructure, unaware that unpatched VPNs and web servers expose them to significant cybersecurity threats. Experts urge companies to abandon these legacy systems and modernise their defences with more adaptive, zero-trust models.

Meanwhile, OpenAI’s reported plans for a productivity suite challenge Microsoft’s dominance, promising simpler interfaces powered by generative AI. The shift could reshape daily workflows by integrating document creation directly with AI tools.

Agentic AI, which performs autonomous tasks without human oversight, also redefines enterprise IT demands. Experts believe traditional cloud tools cannot support such complex systems, prompting calls to rethink cloud strategies for more tailored, resilient platforms.

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The US push for AI dominance through openness

In a bold move to maintain its edge in the global AI race—especially against China—the United States has unveiled a sweeping AI Action Plan with 103 recommendations. At its core lies an intriguing paradox: the push for open-source AI, typically associated with collaboration and transparency, is now being positioned as a strategic weapon.

As Jovan Kurbalija points out, this plan marks a turning point where open-weight models are framed not just as tools of innovation, but as instruments of geopolitical influence, with the US aiming to seed the global AI ecosystem with American-built systems rooted in ‘national values.’

The plan champions Silicon Valley by curbing regulations, limiting federal scrutiny, and shielding tech giants from legal liability—potentially reinforcing monopolies. It also underlines a national security-first mentality, urging aggressive safeguards against foreign misuse of AI, cyber threats, and misinformation. Notably, it proposes DARPA-led initiatives to unravel the inner workings of large language models, acknowledging that even their creators often can’t fully explain how these systems function.

Internationally, the plan takes a competitive, rather than cooperative, stance. Allies are expected to align with US export controls and values, while multilateral forums like the UN and OECD are dismissed as bureaucratic and misaligned. That bifurcation risks alienating global partners—particularly the EU, which favours heavy AI regulation—while increasing pressure on countries like India and Japan to choose sides in the US–China tech rivalry.

Despite its combative framing, the strategy also nods to inclusion and workforce development, calling for tax-free employer-sponsored AI training, investment in apprenticeships, and growing military academic hubs. Still, as Kurbalija warns, the promise of AI openness may clash with the plan’s underlying nationalistic thrust—raising questions about whether it truly aims to democratise AI, or merely dominate it.

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Women-only dating app Tea suffers catastrophic data leak

Tea, a women-only dating app, has suffered a massive data breach after its backend was found completely unsecured. Over 72,000 private images and more than 13,000 government-issued IDs were leaked online.

Some documents were dated as recently as 2025, contradicting the company’s claim that only ‘old data’ was affected. The data, totalling 59.3 GB, included verification selfies, DMs, and public posts. It spread rapidly through 4chan and decentralised platforms like BitTorrent.

Critics have blamed Tea’s use of ‘vibe coding’, AI-generated code with no proper review, which reportedly left its Firebase database open with no authentication.

Experts warn that relying on AI tools to build apps without security checks is becoming increasingly risky. Research shows nearly half of AI-generated code contains vulnerabilities, yet many startups still use it for core features. Tea users are now urged to monitor their identity and financial data.

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Samsung strikes $16.5B semiconductor deal with Tesla

The South Korean tech giant, Samsung Electronics, has secured a $16.5 billion deal to manufacture semiconductors for Tesla Inc., signalling a potential revival for its ailing foundry division.

The long-term agreement, slated to extend through 2033, was confirmed on Monday, 28 July and highlights rising confidence in Samsung’s cutting-edge chip technology, especially its 2-nanometer production line.

Although Samsung declined to name Tesla as the client, insiders familiar with the deal identified the electric vehicle leader as the buyer.

News of the pact propelled Samsung’s shares upward by 3.5%, its sharpest intraday rise in nearly a month; a clear indicator of investor optimism following a lull in the semiconductor foundry sector.

In recent quarters, Samsung has grappled to hold its ground in the cutthroat chip manufacturing market, seeing its global foundry share dip to 7.7% from 8.1%.

By contrast, market leader Taiwan Semiconductor Manufacturing Co. (TSMC) commands a 67.6% share, operating at full capacity, while Samsung struggles to fill its production lines, straining its foundry revenue.

Analysts estimate the Tesla deal could lift Samsung’s foundry sales by 10% annually, injecting fresh vigour into a faltering business segment.

Furthermore, this breakthrough may pave the way for new contracts with other fabless chipmakers, broadening Samsung’s client portfolio and securing steady growth in an unsteady industry.

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Bank of England calls for urgent digital payments reform

Bank of England Governor Andrew Bailey has called for urgent digital upgrades to the UK’s retail payments system to support future growth.

At the Mansion House dinner, he said upgrading infrastructure is vital to support the economy and stay globally competitive.

Bailey remains sceptical about launching a digital pound. While he acknowledged that stablecoins may have a future role, he stressed they must not replace commercial bank money and must be appropriately regulated.

He also warned against global banks issuing their stablecoins, which could reduce lending capacity.

He went on to express concern over rising global trade tensions, calling the shift in policy ‘the most sudden and fundamental’ in decades.

Bailey urged the IMF and WTO to step in and help restore cooperation in the international trading system.

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US real estate firm embraces crypto transactions

Christie’s International Real Estate has established a dedicated team that specialises in cryptocurrency transactions. It has become the first major US brokerage to handle home sales exclusively with digital assets.

The unit emerged after several high-profile deals, including a $65 million purchase in Beverly Hills, signalling growing demand from buyers seeking privacy and faster payments.

The new division manages a portfolio exceeding $1 billion in properties available solely for crypto purchase. Notable listings include the Invisible House in Joshua Tree and La Fin in Bel Air.

Transactions often maintain buyer anonymity, with legal representatives verifying funds and many buyers using LLCs funded by crypto, reducing transparency compared to traditional bank-backed purchases.

Favourable US regulatory changes, such as the GENIUS Act and evolving policies from housing authorities, support this shift. Aaron Kirman, Christie’s Southern California CEO, predicts crypto may make up over a third of US home sales within five years, attracting wealthy digital asset investors.

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Google launches AI feature to reshape how search results appear

Google has introduced a new experimental feature named Web Guide, aimed at reorganising search results by using AI to group information based on the query’s different aspects.

Available through Search Labs, the tool helps users explore topics in a more structured way instead of relying on the standard, linear results page.

Powered by Google’s Gemini AI, Web Guide works particularly well for open-ended or complex queries. For example, searches such as ‘how to solo travel in Japan’ would return results neatly arranged into guides, safety advice, or personal experiences instead of a simple list.

The feature handles multi-sentence questions, offering relevant answers broken into themed sections.

Users who opt in can access Web Guide via the Web tab and toggle it off without exiting the entire experiment. While it works only on that tab, Google plans to expand it to the broader ‘All’ tab in time.

The move follows Google’s broader push to incorporate Gemini into tools like AI Mode, Flow, and other experimental products.

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Microsoft replaces the blue screen of death with a sleek black version in Windows 11

Microsoft has officially removed the infamous Blue Screen of Death (BSOD) from Windows 11 and replaced it with a sleeker, black version.

As part of the update KB5062660, the Black Screen of Death now appears briefly—around two seconds—before a restart, showing only a short error message without the sad face or QR code that became symbolic of Windows crashes.

The update, which brings systems to Build 26100.4770, is optional and must be installed manually through Windows Update or the Microsoft Update Catalogue.

It is available for both x64 and arm64 platforms. Microsoft plans to roll out the update more broadly in August 2025 as part of its Windows 11 24H2 feature preview.

In addition to the screen change, the update introduces ‘Recall’ for EU users, a tool designed to operate locally and allow users to block or turn off tracking across apps and websites. The feature aims to comply with European privacy rules while enhancing user control.

Also included is Quick Machine Recovery, which can identify and fix system-wide failures using the Windows Recovery Environment. If a device becomes unbootable, it can download a repair patch automatically to restore functionality instead of requiring manual intervention.

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US stablecoin supply jumps $4 billion after new crypto laws

The recently passed GENIUS Act has sparked a $4 billion increase in the stablecoin market within a week, pushing its total value beyond $264 billion. The legislation offers clear federal rules, encouraging banks, asset managers, and crypto firms to launch new fiat-backed stablecoins.

Under the GENIUS Act, issuers must hold full reserves, undergo audits, and obtain licences to avoid SEC enforcement. Tether’s USDT and Circle’s USDC dominate this space with a combined market cap of over $227 billion.

Crypto-backed and algorithmic stablecoins remain less prominent and face distinct regulatory challenges.

Institutional involvement is rising quickly. Anchorage Digital teamed with Ethena Labs to launch a stablecoin platform, while WisdomTree introduced a regulated dollar-backed stablecoin.

Major banks, including Bank of America, JPMorgan, and Citigroup, are also preparing to enter the market, signalling broader traditional finance engagement.

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Ethereum ETF by BlackRock crosses $10 billion

The iShares Ethereum Trust (ETHA), managed by BlackRock, has surpassed $10 billion in assets under management just over a year after launch. It now ranks as the third-fastest ETF in US history to reach the milestone, trailing only two Bitcoin-focused funds.

According to Bloomberg’s Eric Balchunas, ETHA doubled from $5 billion to $10 billion in just 10 days. July brought a notable surge in inflows, with Ethereum ETFs outperforming Bitcoin ETFs on several occasions.

So far, monthly Ethereum ETF inflows have reached $4.7 billion, with ETHA leading in volume and growth.

The rapid growth has been driven by increasing institutional demand and investor confidence in Ethereum’s long-term prospects. BlackRock filed for ETHA in late 2023 and selected Coinbase Prime as custodian.

The fund tracks Ether’s market price, charges a 0.25% fee, and may soon introduce staking following favourable SEC guidance.

Analysts say ETH’s proof-of-stake model and its role in decentralised finance have made it increasingly attractive. While Bitcoin funds still dominate total assets, Ethereum ETFs are growing faster due to more substantial DeFi exposure and the potential for staking rewards.

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