The US General Services Administration (GSA) has agreed on a significant deal with Microsoft to provide federal agencies with discounted access to its AI and cloud tools suite.
Instead of managing separate contracts, the government-wide pact offers unified pricing on products including Microsoft 365, the Copilot AI assistant, and Azure cloud services, potentially saving agencies up to $3.1 billion in its first year.
The arrangement is designed to accelerate AI adoption and digital transformation across the federal government. It includes free access to the generative AI chatbot Microsoft 365 Copilot for up to 12 months, alongside discounts on cybersecurity tools and Dynamics 365.
Agencies can opt into any of the offers through September next year.
The deal leverages the federal government’s collective purchasing power to reduce costs and foster innovation.
It delivers on a White House AI action plan and follows similar arrangements the GSA announced last month with other tech giants, including Google, Amazon Web Services, and OpenAI.
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In one operation, termed ‘vibe hacking’, attackers used Claude Code to automate reconnaissance, ransomware creation, credential theft, and ransom-demand generation across 17 organisations, including those in healthcare, emergency services and government.
The firm also documents other troubling abuses: North Korean operatives used Claude to fabricate identities, successfully get hired at Fortune 500 companies and maintain access, all with minimal real-world technical skills. In another case, AI-generated ransomware variants were developed, marketed and sold to other criminals on the dark web.
Experts warn that such agentic AI systems enable single individuals to carry out complex cybercrime acts once reserved for well-trained groups.
While Anthropic has deactivated the compromised accounts and strengthened its safeguards, the incident highlights an urgent need for proactive risk management and regulation of AI systems.
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The move follows months of user complaints about Google Home’s performance, including issues with connectivity and the assistant’s failure to recognise basic commands.
With Gemini’s superior ability to understand natural language, the upgrade is expected to improve how users interact with their smart devices significantly. Home devices should better execute complex commands with multiple actions, such as dimming some lights while leaving others on.
However, the update will also introduce ‘Gemini Live’ to compatible devices, a feature allowing for natural, back-and-forth conversations with the AI chatbot.
The Gemini for Google Home upgrade will initially be rolled out on an early access basis. It will be available in free and paid tiers, suggesting that some more advanced features may be locked behind a subscription.
The update is anticipated to make Google Home and Nest devices more reliable and to handle complex requests easily.
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WhatsApp has disclosed a hacking attempt that combined flaws in its app with a vulnerability in Apple’s operating system. The company has since fixed the issues.
The exploit, tracked as CVE-2025-55177 in WhatsApp and CVE-2025-43300 in iOS, allowed attackers to hijack devices via malicious links. Fewer than 200 users worldwide are believed to have been affected.
Amnesty International reported that some victims appeared to be members of civic organisations. Its Security Lab is collecting forensic data and warned that iPhone and Android users were impacted.
WhatsApp credited its security team for identifying the loopholes, describing the operation as highly advanced but narrowly targeted. The company also suggested that other apps could have been hit in the same campaign.
The disclosure highlights ongoing risks to secure messaging platforms, even those with end-to-end encryption. Experts stress that keeping apps and operating systems up to date remains essential to reducing exposure to sophisticated exploits.
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Agentforce AI now conducts approximately 50 percent of customer interactions and has helped Salesforce reconnect with over 100 million previously neglected sales leads. The move enabled rebalancing of headcount and increased capacity for sales operations.
This development follows earlier claims that AI would augment rather than replace human roles. The company emphasises that AI handles standard cases while humans oversee complex or ambiguous ones, likening the interaction to a ‘self-driving’ model where the human steps in when needed.
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Cyber experts are warning that Bluetooth-enabled adult toys create openings for stalking, blackmail and assault, due to weak security in companion apps and device firmware. UK-commissioned research outlined risks such as interception, account takeover and unsafe heat profiles.
Officials urged better protection across consumer IoT, advising updates, strong authentication and clear support lifecycles. Guidance applies to connected toys alongside other smart devices in the home.
Security researchers and regulators have long flagged poor encryption and lax authentication in intimate tech. At the same time, recent disclosures showed major brands patching flaws that exposed emails and allowed remote account control.
Industry figures argue for stricter standards and transparency on data handling, noting that stigma can depress reporting and aid repeat exploitation. Specialist groups recommend buying only from vendors that document encryption and update policies.
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The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint effort to clarify spot cryptocurrency trading. Regulators confirmed that US and foreign exchanges can list spot crypto products- leveraged and margin ones.
The guidance follows the President’s Working Group on Digital Asset Markets recommendations, which called for rules that keep blockchain innovation within the country.
Regulators said they are ready to review filings, address custody and clearing, and ensure spot markets meet transparency and investor protection standards.
Under the new approach, major venues such as the New York Stock Exchange, Nasdaq, CME Group and Cboe Global Markets could seek to list spot crypto assets. Foreign boards of trade recognised by the CFTC may also be eligible.
The move highlights a policy shift under President Donald Trump’s administration, with Congress and the White House pressing for greater regulatory clarity.
In July, the House of Representatives passed the CLARITY Act, a bill on crypto market structure now before the Senate. The moves and the regulators’ statement mark a key step in aligning US digital assets with established financial rules.
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IBM has announced plans to develop next-generation computing architectures by integrating quantum computers with high-performance computing, a concept it calls quantum-centric supercomputing.
The company is working with AMD to build scalable, open-source platforms that combine IBM’s quantum expertise with AMD’s strength in HPC and AI accelerators. The aim is to move beyond the limits of traditional computing and explore solutions to problems that classical systems cannot address alone.
Quantum computing uses qubits governed by quantum mechanics, offering a far richer computational space than binary bits. In a hybrid model, quantum machines could simulate atoms and molecules, while supercomputers powered by CPUs, GPUs, and AI manage large-scale data analysis.
Arvind Krishna, IBM’s CEO, said the approach represents a new way of simulating the natural world. AMD’s Lisa Su described high-performance computing as foundational to tackling global challenges, noting the partnership could accelerate discovery and innovation.
An initial demonstration is planned for later this year, showing IBM quantum computers working with AMD technologies. Both companies say open-source ecosystems like Qiskit will be crucial to building new algorithms and advancing fault-tolerant quantum systems.
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Elon Musk’s AI chatbot, Grok, has faced repeated changes to its political orientation, with updates shifting its answers towards more conservative views.
xAI, Musk’s company, initially promoted Grok as neutral and truth-seeking, but internal prompts have steered it on contentious topics. Adjustments included portraying declining fertility as the greatest threat to civilisation and downplaying right-wing violence.
Analyses of Grok’s responses by The New York Times showed that the July updates shifted answers to the right on government and economy, while some social responses remained left-leaning. Subsequent tweaks pulled it back closer to neutrality.
Critics say that system prompts, such as short instructions like ‘be politically incorrect’, make it easy to adjust outputs, but also leave the model prone to erratic or offensive responses. A July update saw Grok briefly endorse a controversial historical figure before xAI turned it off.
The case highlights growing concerns about political bias in AI systems. Researchers argue that all chatbots reflect the worldviews of their training data, while companies increasingly face pressure to align them with user expectations or political demands.
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Reports that Gmail suffered a massive breach have been dismissed by Google, which said rumours of warnings to 2.5 billion users were false.
In a Monday blog post, Google rejected claims that it had issued global notifications about a serious Gmail security issue. It stressed that its protections remain effective against phishing and malware.
Confusion stems from a June incident involving a Salesforce server, during which attackers briefly accessed public business information, including names and contact details. Google said all affected parties were notified by early August.
The company acknowledged that phishing attempts are increasing, but clarified that Gmail’s defences block more than 99.9% of such attempts. A July blog post on phishing risks may have been misinterpreted as evidence of a breach.
Google urged users to remain vigilant, recommending password alternatives such as passkeys and regular account reviews. While the false alarm spurred unnecessary panic, security experts noted that updating credentials remains good practice.
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