Economic Archives | Page 196 of 684 | Digital Watch Observatory

OpenAI and AMD strike 6GW GPU deal to power next-generation AI infrastructure

AMD and OpenAI have announced a strategic partnership to deploy up to six gigawatts of AMD GPUs, marking one of the largest AI compute collaborations.

The multi-year agreement will begin with the rollout of one gigawatt of AMD Instinct MI450 GPUs in the second half of 2026, with further deployments planned across future AMD generations.

A deal that deepens a long-standing relationship between the two companies began with AMD’s MI300X and MI350X series.

OpenAI will adopt AMD as a core strategic compute partner, integrating its technology into large-scale AI systems and jointly optimising product roadmaps to support next-generation AI workloads.

To strengthen alignment, AMD has issued OpenAI a warrant for up to 160 million shares, with tranches vesting as the partnership achieves deployment and share-price milestones. AMD expects the collaboration to deliver tens of billions in revenue and boost its non-GAAP earnings per share.

AMD CEO Dr Lisa Su called the deal ‘a true win-win’ for both companies, while OpenAI’s Sam Altman said the partnership will ‘accelerate progress and bring advanced AI benefits to everyone faster’.

The collaboration positions AMD as a leading hardware supplier in the race to build global-scale AI infrastructure.

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Galaxy launches GalaxyOne wealth platform for investors

Galaxy has launched GalaxyOne, a unified wealth management platform designed to help individuals grow and manage their investments seamlessly. The platform unites high-yield cash accounts, crypto, and equities, giving users greater control and convenience.

GalaxyOne offers FDIC-insured cash deposits with a 4.00% Annual Percentage Yield (APY) and Galaxy Premium Yield accounts offering 8.00% APY for accredited investors. These rates are supported by Galaxy’s $1.1 billion institutional lending business, ensuring transparency and financial strength.

Users can reinvest earnings into Bitcoin or other cryptos, linking traditional finance with digital assets. The platform allows trading of US-listed equities, ETFs, and leading crypto assets like Bitcoin, Ethereum, and Solana- all within a single, precision-built interface.

Built on the foundation of Fierce, the mobile platform Galaxy acquired in 2024, GalaxyOne now expands to Android and web users. Galaxy plans to add business accounts, crypto staking, and new brokerage and lending products, expanding investment options.

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Italy passes Europe’s first national AI law

Italy has become the first EU country to pass a national AI law, introducing detailed rules to govern the development and use of AI technologies across key sectors such as health, work, and justice.

The law, approved by the Senate on 17 September and in effect on 10 October, defines new national authorities responsible for oversight, including the Agency for Digital Italy and the National Cybersecurity Agency. Both bodies will supervise compliance, security, and responsible use of AI systems.

In healthcare, the law simplifies data-sharing for scientific research by allowing the secondary use of anonymised or pseudonymised patient data. New rules also ensure transparency and consent when AI is used by minors under 14.

The law introduces criminal penalties for those who use AI-generated images or videos to cause harm or deception. The Italian approach combines regulation with innovation, seeking to protect citizens while promoting responsible growth in AI development.

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Breach at third-party support provider exposes Discord user data

Discord has disclosed a security incident after a third-party customer service provider was compromised. The breach exposed personal data from users who contacted Discord’s support and Trust & Safety teams.

An unauthorised party accessed the provider’s ticketing system and targeted user data in an extortion attempt. Discord revoked access, launched an investigation with forensic experts, and notified law enforcement. Impacted users will be contacted via official email.

Compromised information may include usernames, contact details, partial billing data, IP addresses, customer service messages, and limited government-ID images. Passwords, authentication data, and full credit card numbers were not affected.

Discord has notified data protection authorities and strengthened security controls for third-party providers. It has also reviewed threat detection systems to prevent similar incidents.

The company urges affected users to remain vigilant against suspicious messages. Service agents are available to answer questions and provide additional support.

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Galaxy users get Coinbase One perks via Samsung Wallet

Samsung Electronics has expanded its partnership with Coinbase to integrate cryptocurrency trading directly into Samsung Wallet for US Galaxy users. The update allows users to buy crypto within the app using Samsung Pay, further merging digital payments with investment management.

The collaboration also introduces a complimentary three-month Coinbase One subscription for Samsung Wallet users. The premium tier removes trading fees on select assets, increases staking rewards, and provides exclusive partner deals.

Samsung executives said the goal is to make everyday financial tools more seamless for millions of Galaxy users. The Wallet already stores IDs, memberships, and car keys, and now supports peer-to-peer transfers and instalment payments through partnered financial institutions.

Coinbase said the initiative leverages its trusted trading infrastructure and Samsung’s global reach to make crypto access more convenient. More than 75 million US Galaxy users are expected to benefit, with expansion to other markets planned in the near future.

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A new AI strategy by the EU to cut reliance on the US and China

The EU is preparing to unveil a new strategy to reduce reliance on American and Chinese technology by accelerating the growth of homegrown AI.

The ‘Apply AI strategy’, set to be presented by the EU tech chief Henna Virkkunen, positions AI as a strategic asset essential for the bloc’s competitiveness, security and resilience.

According to draft documents, the plan will prioritise adopting European-made AI tools across healthcare, defence and manufacturing.

Public administrations are expected to play a central role by integrating open-source EU AI systems, providing a market for local start-ups and reducing dependence on foreign platforms. The Commission has pledged €1bn from existing financing programmes to support the initiative.

Brussels has warned that foreign control of the ‘AI stack’ (the hardware and software that underpin advanced systems) could be ‘weaponised’ by state and non-state actors.

These concerns have intensified following Europe’s continued dependence on American tech infrastructure. Meanwhile, China’s rapid progress in AI has further raised fears that the Union risks losing influence in shaping the technology’s future.

Several high-potential AI firms have already been hosted by the EU, including France’s Mistral and Germany’s Helsing. However, they rely heavily on overseas suppliers for software, hardware, and critical minerals.

The Commission wants to accelerate the deployment of European AI-enabled defence tools, such as command-and-control systems, which remain dependent on NATO and US providers. The strategy also outlines investment in sovereign frontier models for areas like space defence.

President Ursula von der Leyen said the bloc aims to ‘speed up AI adoption across the board’ to ensure it does not miss the transformative wave.

Brussels hopes to carve out a more substantial global role in the next phase of technological competition by reframing AI as an industrial sovereignty and security instrument.

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Labour market remains stable despite rapid AI adoption

Surveys show persistent anxiety about AI-driven job losses. Nearly three years after ChatGPT’s launch, labour data indicate that these fears have not materialised. Researchers examined shifts in the US occupational mix since late 2022, comparing them to earlier technological transitions.

Their analysis found that shifts in job composition have been modest, resembling the gradual changes seen during the rise of computers and the internet. The overall pace of occupational change has not accelerated substantially, suggesting that widespread job losses due to AI have not yet occurred.

Industry-level data shows limited impact. High-exposure sectors, such as Information and Professional Services, have seen shifts, but many predate the introduction of ChatGPT. Overall, labour market volatility remains below the levels of historical periods of major change.

To better gauge AI’s impact, the study compared OpenAI’s exposure data with Anthropic’s usage data from Claude. The two show limited correlation, indicating that high exposure does not always imply widespread use, especially outside of software and quantitative roles.

Researchers caution that significant labour effects may take longer to emerge, as seen with past technologies. They argue that transparent, comprehensive usage data from major AI providers will be essential to monitor real impacts over time.

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Thousands affected by AI-linked data breach in New South Wales

A major data breach has affected the Northern Rivers Resilient Homes Program in New South Wales.

Authorities confirmed that personal information was exposed after a former contractor uploaded data to the AI platform ChatGPT between 12 and 15 March 2025.

The leaked file contained over 12,000 records, with details including names, addresses, contact information and health data. Up to 3,000 individuals may be impacted.

While there is no evidence yet that the information has been accessed by third parties, the NSW Reconstruction Authority (RA) and Cyber Security NSW have launched a forensic investigation.

Officials apologised for the breach and pledged to notify all affected individuals in the coming week. ID Support NSW is offering free advice and resources, while compensation will be provided for any costs linked to replacing compromised identity documents.

The RA has also strengthened its internal policies to prevent unauthorised use of AI platforms. An independent review of the incident is underway to determine how the breach occurred and why notification took several months.

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Bitcoin pauses after reaching new all-time high

Bitcoin’s rally has slowed after reaching an intraday high of $125,725, signalling a possible short-term cooling phase following its record-breaking climb. Despite the pause, indicators show the bullish trend remains intact, with higher highs and strong momentum across key timeframes.

Analysts note that Bitcoin’s price may consolidate near the $120,000–$121,000 support zone before resuming its upward trajectory. The relative strength index (RSI) at 71 and stochastic reading of 89 suggest overbought conditions, increasing the likelihood of a brief retracement.

Resistance remains firm around $125,000–$126,000, while traders watch for renewed volume and upward confirmation.

Short-term charts reveal mixed signals. A local double top around $125,725 and falling volume indicate profit-taking, yet moving averages across all key periods continue to flash bullish signals.

If Bitcoin holds above $121,000, analysts expect the pullback to stabilise as part of a healthy consolidation phase, potentially paving the way for another breakout above $126,000.

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Jaguar Land Rover begins gradual restart after major cyber-attack

Jaguar Land Rover (JLR) is beginning to restart production after a severe cyber-attack forced the company to shut down factories across several countries. Operations will restart at Wolverhampton, with other sites like Solihull and Halewood reopening gradually in the coming weeks.

The attack, which occurred at the end of August, halted manufacturing and paralysed the carmaker’s IT systems.

The disruption has caused significant financial strain across JLR’s supply chain, with many small businesses facing weeks without income. The government has offered a £1.5 billion loan guarantee to support suppliers, but industry leaders warn the assistance does not go far enough.

Evtec Group chairman David Roberts called the policy ‘toothless’, saying companies still struggle to cover labour and payroll costs after six weeks of zero revenue.

Experts believe recovery will take time, as restarting industrial production involves complex processes that cannot resume instantly. Former Aston Martin boss Andy Palmer warned that some suppliers may not survive the prolonged halt, risking further disruption.

JLR has confirmed its recovery programme is ‘firmly underway’ and that its global parts logistics centre is returning to normal operations, yet full production may remain weeks away.

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