Economic Archives | Page 193 of 708 | Digital Watch Observatory

Google removes Gemma AI model following defamation claims

Google has removed its Gemma AI model from AI Studio after US Senator Marsha Blackburn accused it of producing false sexual misconduct claims about her. The senator said Gemma fabricated an incident allegedly from her 1987 campaign, citing nonexistent news links to support the claim.

Blackburn described the AI’s response as defamatory and demanded action from Google.

The controversy follows a similar case involving conservative activist Robby Starbuck, who claims Google’s AI tools made false accusations about him. Google acknowledged that AI’ hallucinations’ are a known issue but insisted it is working to mitigate such errors.

Blackburn argued these fabrications go beyond harmless mistakes and represent real defamation from a company-owned AI model.

Google stated that Gemma was never intended as a consumer-facing tool, noting that some non-developers misused it to ask factual questions. The company confirmed it would remove the model from AI Studio while keeping it accessible via API for developers.

The incident has reignited debates over AI bias and accountability. Blackburn highlighted what she sees as a consistent pattern of conservative figures being targeted by AI systems, amid wider political scrutiny over misinformation and AI regulation.

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Stargate Michigan expands OpenAI’s US buildout

OpenAI will build a new campus in Saline Township, Michigan, as part of a 4.5 GW partnership with Oracle. Planned US capacity now exceeds 8 gigawatts. Investment over the next three years is expected to surpass $450 billion.

Leaders frame Stargate as a path to reindustrialise the United States while expanding access to AI benefits. Projects generate jobs during buildout and strengthen supply chains. Communities are intended to share gains.

Related Digital will develop the Michigan site, with construction expected in early 2026. More than 2,500 union construction roles are planned. A closed-loop cooling system will significantly reduce on-site water consumption.

DTE Energy will utilise existing excess transmission capacity to serve the campus. The project, not local ratepayers, will fund any required upgrades. Local energy supplies are expected to remain unaffected.

Expansion builds on previously announced sites in Texas, New Mexico, Wisconsin, and Ohio. Programmes aim to bolster modern energy and manufacturing systems. Michigan’s engineering heritage makes it a focal point for future AI infrastructure.

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When AI LLMs ‘think’ more, groups suffer, CMU study finds

Researchers at Carnegie Mellon University report that stronger-reasoning language models (LLMs) act more selfishly in groups, reducing cooperation and nudging peers toward self-interest. Concerns grow as people ask AI for social advice.

In a Public Goods test, non-reasoning models shared 96 percent; a reasoning model shared 20 percent. Adding a few reasoning steps cut cooperation nearly in half. Reflection prompts also reduced sharing.

Mixed groups showed spillover. Reasoning agents dragged down collective performance by 81 percent, spreading self-interest. Users may over-trust ‘rational’ advice that justifies uncooperative choices at work or in class.

Comparisons spanned LLMs from OpenAI, Google, DeepSeek, and Anthropic. Findings point to the need to balance raw reasoning with social intelligence. Designers should reward cooperation, not only optimise individual gain.

The paper ‘Spontaneous Giving and Calculated Greed in Language Models’ will be presented at EMNLP 2025, with a preprint on arXiv. Authors caution that more intelligent AI is not automatically better for society.

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Australian police create AI tool to decode predators’ slang

Australian police are developing an AI tool with Microsoft to decode slang and emojis used by online predators. The technology is designed to interpret coded messages in digital conversations to help investigators detect harmful intent more quickly.

Federal Police Commissioner Krissy Barrett said social media has become a breeding ground for exploitation, bullying, and radicalisation. The AI based prototype, she explained, could allow officers to identify threats earlier and rescue children before abuse occurs.

Barrett also warned about the rise of so-called ‘crimefluencers’, offenders using social media trends to lure young victims, many of whom are pre-teen or teenage girls. Australian authorities believe understanding modern online language is key to disrupting their methods.

The initiative follows Australia’s new under-16 social media ban, due to take effect in December. Regulators worldwide are monitoring the country’s approach as governments struggle to balance online safety with privacy and digital rights.

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CXMT launches LPDDR5X chips as China advances in semiconductor race

ChangXin Memory Technologies has begun mass production of LPDDR5X chips, marking a major milestone in China’s effort to strengthen its position in the global semiconductor market.

The Hefei-based manufacturer, preparing for a Shanghai stock listing, said its new DRAM generation will support faster data transfer and lower power use across mobile devices and AI systems.

The LPDDR5X range includes chips with speeds of up to 10,667 Mbps, positioning CXMT as a growing competitor to industry leaders such as Samsung, SK Hynix and Micron.

Earlier LPDDR5 versions launched in 2023 had already helped the firm progress towards advanced 16-nanometre manufacturing, narrowing the technological gap with global rivals.

Industry data indicate a rising global demand for memory chips, driven by AI applications and high-bandwidth computing. Additionally, DRAM revenue increased 17.1 percent in the second quarter, reaching US$31.6 billion.

CXMT’s expansion comes as it targets a Shanghai IPO valued at around 300 billion yuan, highlighting both investor interest and the ambition of China to achieve greater chip self-sufficiency.

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AUSTRAC cracks down on crypto ATM money laundering risks

Australia’s financial crime regulator, AUSTRAC, has fined crypto ATM operator Cryptolink $56,340 for failing to report large cash transactions on time. The regulator also ordered the company to improve its anti-money laundering (AML) and counterterrorism financing (CTF) controls.

AUSTRAC’s Crypto Taskforce identified weaknesses in Cryptolink’s risk assessments and reporting controls, raising concerns about the misuse of crypto ATMs by criminals.

According to AUSTRAC CEO Brendan Thomas, crypto ATMs remain one of the highest-risk channels for money laundering in Australia, often used to launder scam proceeds. He emphasised that operators must take stronger action to prevent criminal exploitation of the sector.

As part of the undertaking, Cryptolink must appoint independent reviewers to assess its compliance systems and validate all large cash transaction reports. Cryptolink must report its remedial progress to AUSTRAC by March 2026, having paid the fine without admitting liability.

Findings from AUSTRAC’s taskforce revealed that 85% of transactions made by the 90 most frequent ATM users were linked to scams or money mule schemes. Authorities will keep monitoring high-risk operators to improve oversight and protect consumers from crypto-related crimes.

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Reliance and Google expand Gemini AI access across India

Google has partnered with Reliance Intelligence to expand access to its Gemini AI across India.

Under the new collaboration, Jio Unlimited 5G users aged between 18 and 25 will receive the Google AI Pro plan free for 18 months, with nationwide eligibility to follow soon.

The partnership grants access to the Gemini 2.5 Pro model and includes increased limits for generating images and videos with the Nano Banana and Veo 3.1 tools.

Users in India will also benefit from expanded NotebookLM access for study and research, plus 2 TB of cloud storage shared across Google Photos, Gmail and Drive for data and WhatsApp backups.

According to Google, the offer represents a value of about ₹35,100 and can be activated via the MyJio app. The company said the initiative aims to make its most advanced AI tools available to a wider audience and support everyday productivity across India’s fast-growing digital ecosystem.

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Microsoft leaders envision AI as an invisible partner in work and play

AI, gaming and work were at the heart of the discussion during the Paley International Council Summit, where three Microsoft executives explored how technology is reshaping human experience and industry structures.

Mustafa Suleyman, Phil Spencer and Ryan Roslansky offered perspectives on the next phase of digital transformation, from personalised AI companions to the evolution of entertainment and the changing nature of work.

Mustafa Suleyman, CEO of Microsoft AI, described a future where AI becomes an invisible companion that quietly assists users. He explained that AI is moving beyond standalone apps to integrate directly into systems and browsers, performing tasks through natural language rather than manual navigation.

With features like Copilot on Windows and Edge, users can let AI automate everyday functions, creating a seamless experience where technology anticipates rather than responds.

Phil Spencer, CEO of Microsoft Gaming, underlined gaming’s cultural impact, noting that the industry now surpasses film, books and music combined. He emphasised that gaming’s interactive nature offers lessons for all media, where creativity, participation and community define success.

For Spencer, the future of entertainment lies in blending audience engagement with technology, allowing fans and creators to shape experiences together.

Ryan Roslansky, CEO of LinkedIn, discussed how AI is transforming skills and workforce dynamics. He highlighted that required job skills are changing faster than ever, with adaptability, AI literacy and human-centred leadership becoming essential.

Roslansky urged companies to focus on potential and continuous learning instead of static job descriptions, suggesting that the most successful organisations will be those that evolve with technology and cultivate resilience through education.

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WhatsApp adds passkey encryption for safer chat backups

Meta is rolling out a new security feature for WhatsApp that allows users to encrypt their chat backups using passkeys instead of passwords or lengthy encryption codes.

A feature for WhatsApp that enables users to protect their backups with biometric authentication such as fingerprints, facial recognition or screen lock codes.

WhatsApp became the first messaging service to introduce end-to-end encrypted backups over four years ago, and Meta says the new update builds on that foundation to make privacy simpler and more accessible.

With passkey encryption, users can secure and access their chat history easily without the need to remember complex keys.

The feature will be gradually introduced worldwide over the coming months. Users can activate it by going to WhatsApp settings, selecting Chats, then Chat backup, and enabling end-to-end encrypted backup.

Meta says the goal is to make secure communication effortless while ensuring that private messages remain protected from unauthorised access.

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UAE and Google launch ‘AI for All’ national skills initiative

In a major public-private collaboration, the UAE’s Artificial Intelligence, Digital Economy, and Remote Work Applications Office and Google announced the ‘AI for All’ initiative, aimed at delivering AI skills training across the United Arab Emirates.

The announcement was made on 29 October 2025 and will roll out through 2026.

The programme targets a broad audience, from students, teachers, university learners and government employees, to small and medium-sized enterprises (SMEs), creatives and content-makers.

It will cover fundamentals of AI, practical use-cases, responsible and safe AI use, and prompt-engineering for generative models. Google is also providing university students and other participants access to its advanced Gemini models as part of the skilling effort.

This initiative reflects the UAE’s broader ambition to become a global hub for innovation and talent in the AI economy, as well as Google’s regional strategy under its ‘AI Opportunity Initiative’ for the Middle East & North Africa.

By combining training, awareness campaigns and access to AI tools, the collaboration seeks to ensure that AI’s benefits are accessible to all segments of society in the UAE.

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