Allianz breach affects most US customers

Allianz Life has confirmed a major cyber breach that exposed sensitive data from most of its 1.4 million customers in North America.

The attack was traced back to 16 July, when a threat actor accessed a third-party cloud system using social engineering tactics.

The cybersecurity breach affected a customer relationship management platform but did not compromise the company’s core network or policy systems.

Allianz Life acted swiftly by notifying the FBI and other regulators, including the attorney general’s office in Maine.

Those impacted are offered two years of credit monitoring and identity theft protection. The company has begun contacting affected individuals but declined to reveal the full number involved due to an ongoing investigation.

No other Allianz subsidiaries were affected by the breach. Allianz Life employs around 2,000 staff in the US and remains a key player within the global insurer’s North American operations.

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Huawei challenges Nvidia with AI super server

Huawei has unveiled its most powerful AI server, the CloudMatrix 384, to challenge Nvidia’s grip on the high-performance AI infrastructure market.

The system, launched at the World AI Conference in Shanghai, uses 384 Ascend 910C chips, significantly outnumbering Nvidia’s 72 B200 GPUs in the GB200 NVL72.

Although Nvidia’s GPUs remain more powerful individually, Huawei’s design relies on stacking and high-speed chip interconnection to boost overall performance.

The company claims the CloudMatrix 384 can deliver 300 petaflops of computing power, well above Nvidia’s 180 petaflops, though it consumes nearly four times more energy.

The US recently reversed its ban on Nvidia’s H20 chip exports to China, seeking to curb Huawei’s momentum. However, ongoing reports of smuggled Nvidia GPUs raise doubts over the effectiveness of these restrictions.

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Guess AI model sparks fashion world debate

A striking new ‘supermodel’ has appeared in the August print edition of Vogue, featuring in a Guess advert for their summer collection. Uniquely, the flawless blonde model is not real, as a small disclaimer reveals she was created using AI.

While Vogue clarifies the AI model’s inclusion was an advertising decision, not editorial, it marks a significant first for the magazine and has ignited widespread controversy.

The development raises serious questions for real models, who have long campaigned for greater diversity, and consumers, particularly young people, are already grappling with unrealistic beauty standards.

Seraphinne Vallora, the company behind the controversial Guess advert, comprises founders Valentina Gonzalez and Andreea Petrescu. They told the BBC that Guess’s co-founder, Paul Marciano, approached them on Instagram to create an AI model for the brand’s summer campaign.

Valentina Gonzalez explained, ‘We created 10 draft models for him and he selected one brunette woman and one blonde that we developed further.’ Petrescu described AI image generation as a complex process, with their five employees taking up to a month to create a finished product, charging clients like Guess up to the low six figures.

However, plus-size model Felicity Hayward, with over a decade in the industry, criticised the use of AI models, stating it ‘feels lazy and cheap’ and worried it could ‘undermine years of work towards more diversity in the industry.’

Hayward believes the fashion industry, which saw strides in inclusivity in the 2010s, has regressed, leading to fewer bookings for diverse models. She warned, ‘The use of AI models is another kick in the teeth that will disproportionately affect plus-size models.’

Gonzalez and Petrescu insist they do not reinforce narrow beauty standards, with Petrescu claiming, ‘We don’t create unattainable looks – the AI model for Guess looks quite realistic.’ They contended, ‘Ultimately, all adverts are created to look perfect and usually have supermodels in, so what we do is no different.’

While admitting their company’s Instagram shows a lack of diversity, Gonzalez explained to the BBC that attempts to post AI images of women with different skin tones did not gain traction, stating, ‘people do not respond to them – we don’t get any traction or likes.’

They also noted that the technology is not yet advanced enough to create plus-size AI women. However, this mirrors a 2024 Dove campaign that highlighted AI bias by showing image generators consistently producing thin, white, blonde women when asked for ‘the most beautiful woman in the world.’

Vanessa Longley, CEO of eating disorder charity Beat, found the advert ‘worrying,’ telling the BBC, ‘If people are exposed to images of unrealistic bodies, it can affect their thoughts about their own body, and poor body image increases the risk of developing an eating disorder.’

The lack of transparent labelling for AI-generated content in the UK is also a concern, despite Guess having a small disclaimer. Sinead Bovell, a former model and now tech entrepreneur, told the BBC that not clearly labelling AI content is ‘exceptionally problematic’ due to ‘AI is already influencing beauty standards.’

Sara Ziff, a former model and founder of Model Alliance, views Guess’s campaign as “less about innovation and more about desperation and need to cut costs,’ advocating for ‘meaningful protections for workers’ in the industry.

Seraphinne Vallora, however, denies replacing models, with Petrescu explaining, ‘We’re offering companies another choice in how they market a product.’

Despite their website claiming cost-efficiency by ‘eliminating the need for expensive set-ups… hiring models,’ they involve real models and photographers in their AI creation process. Vogue’s decision to run the advert has drawn criticism on social media, with Bovell noting the magazine’s influential position, which means they are ‘in some way ruling it as acceptable.’

Looking ahead, Bovell predicts more AI-generated models but not their total dominance, foreseeing a future where individuals might create personal AI avatars to try on clothes and a potential ‘society opting out’ if AI models become too unattainable.

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Meta forms AI powerhouse by appointing Shengjia Zhao as chief scientist

Meta has appointed former OpenAI researcher Shengjia Zhao as Chief Scientist of its newly formed AI division, Meta Superintelligence Labs (MSL).

Zhao, known for his pivotal role in developing ChatGPT, GPT-4, and OpenAI’s first reasoning model, o1, will lead MSL’s research agenda under Alexandr Wang, the former CEO of Scale AI.

Mark Zuckerberg confirmed Zhao’s appointment, saying he had been leading scientific efforts from the start and co-founded the lab.

Meta has aggressively recruited top AI talent to build out MSL, including senior researchers from OpenAI, DeepMind, Apple, Anthropic, and its FAIR lab. Zhao’s presence helps balance the leadership team, as Wang lacks a formal research background.

Meta has reportedly offered massive compensation packages to lure experts, with Zuckerberg even contacting candidates personally and hosting them at his Lake Tahoe estate. MSL will focus on frontier AI, especially reasoning models, in which Meta currently trails competitors.

By 2026, MSL will gain access to Meta’s massive 1-gigawatt Prometheus cloud cluster in Ohio, designed to power large-scale AI training.

The investment and Meta’s parallel FAIR lab, led by Yann LeCun, signal the company’s multi-pronged strategy to catch up with OpenAI and Google in advanced AI research.

The collaboration dynamics between MSL, FAIR, and Meta’s generative AI unit remain unclear, but the company now boasts one of the strongest AI research teams in the industry.

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UN urges global rules for AI to prevent inequality

According to Doreen Bogdan-Martin, head of the UN’s International Telecommunications Union, the world must urgently adopt a unified approach to AI regulation.

She warned that fragmented national strategies could deepen global inequalities and risk leaving billions excluded from the AI revolution.

Bogdan-Martin stressed that only a global framework can ensure AI benefits all of humanity instead of worsening digital divides.

With 85% of countries lacking national AI strategies and 2.6 billion people still offline, she argued that a coordinated effort is essential to bridge access gaps and prevent AI from becoming a tool that advances inequality rather than opportunity.

ITU chief highlighted the growing divide between regulatory models — from the EU’s strict governance and China’s centralised control to the US’s new deregulatory push under Donald Trump.

She avoided direct criticism of the US strategy but called for dialogue between all regions instead of fragmented policymaking.

Despite the rapid advances of AI in sectors like healthcare, agriculture and education, Bogdan-Martin warned that progress must be inclusive. She also urged more substantial efforts to bring women into AI and tech leadership, pointing to the continued gender imbalance in the sector.

As the first woman to lead ITU, she said her role was not just about achievement but setting a precedent for future generations.

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Most Americans still avoid investing in crypto

Despite growing visibility and political support, cryptocurrencies remain on the fringes for most Americans. A new Gallup poll shows that only 14% of US adults currently own digital assets—an increase since 2018, yet still a small minority.

Sixty percent say they have no interest in ever purchasing cryptocurrencies, and only 4% plan to buy shortly.

Ownership is notably higher among men aged 18–49, especially those with higher incomes and university degrees. In contrast, women, older adults, and low-income groups show limited participation.

Even among investors with over $10,000 in traditional assets, only 17% hold crypto, though this is a notable jump from 2% in 2018.

Public understanding of cryptocurrencies remains limited. While most respondents have heard of them, only 35% say they understand how they work.

Even among those with some knowledge, 64% label crypto as ‘very risky’—a figure that has increased since 2021.

The crypto sector’s volatility, scandals like FTX, and lingering security concerns continue to shape sentiment. Although regulation has improved and political attitudes have shifted, trust remains low. Only 4% of Americans consider crypto the best option for long-term investment.

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UK enforces age checks to block harmful online content for children

The United Kingdom has introduced new age verification laws to prevent children from accessing harmful online content, marking a significant shift in digital child protection.

The measures, enforced by media regulator Ofcom, require websites and apps to implement strict age checks such as facial recognition and credit card verification.

Around 6,000 pornography websites have already agreed to the new regulations, which stem from the 2023 Online Safety Act. The rules also target content related to suicide, self-harm, eating disorders and online violence, instead of just focusing on pornography.

Companies failing to comply risk fines of up to £18 million or 10% of global revenue, and senior executives could face criminal charges if they ignore Ofcom’s directives.

Technology Secretary Peter Kyle described the move as a turning point, saying children will now experience a ‘different internet for the first time’.

Ofcom data shows that around 500,000 children aged eight to fourteen encountered online pornography in just one month, highlighting the urgency of the reforms. Campaigners, including the NSPCC, called the new rules a ‘milestone’, though they warned loopholes could remain.

The UK government is also exploring further restrictions, including a potential daily two-hour time limit on social media use for under-16s. Kyle has promised more announcements soon, as Britain moves to hold tech platforms accountable instead of leaving children exposed to harmful content online.

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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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