Economic

Experts debate when quantum computers could break modern encryption

Scientists are divided over when quantum computers will become powerful enough to break today’s digital encryption, a moment widely referred to as ‘Q–Day’.

While predictions range from just two years to several decades, experts agree that governments and companies must begin preparing urgently for a future where conventional security systems may fail.

Quantum computing uses subatomic behaviour to process data far faster than classical machines, enabling rapid decryption of information once considered secure.

Financial systems, healthcare data, government communications, and military networks could all become vulnerable as advanced quantum machines emerge.

Major technology firms have already made breakthroughs, accelerating concerns that encryption safeguards could be overwhelmed sooner than expected.

Several cybersecurity specialists warn that sensitive data is already being harvested and stored for future decryption, a strategy known as ‘harvest now, decrypt later’.

Regulators in the UK and the US have set timelines for shifting to post-quantum cryptography, aiming for full migration by 2030-2035. However, engineering challenges and unresolved technical barriers continue to cast uncertainty over the pace of progress.

Despite scepticism over timelines, experts agree that early preparation remains the safest approach. Experts stress that education, infrastructure upgrades, and global cooperation are vital to prevent disruption as quantum technology advances.

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AI-driven semiconductor expansion continues despite market doubts

The pace of the AI infrastructure boom continues to accelerate, with semiconductor supply chains signalling sustained long-term demand.

NVIDIA remains the most visible beneficiary as data centre investment drives record GPU purchases, yet supplier activity further upstream suggests confidence extends well beyond a single company.

ASML, the Dutch firm that exclusively supplies extreme ultraviolet lithography equipment, has emerged as a critical indicator of future chip production.

Its machines are essential for advanced semiconductor manufacturing, meaning strong performance reflects expectations of high chip volumes across the industry rather than short-term speculation. Quarterly earnings underline that momentum.

ASML reported €32.7 billion in net sales, while new bookings reached a record €13 billion, more than double the previous quarter.

New orders reflect how much capacity manufacturers expect to need, pointing to sustained expansion driven by anticipated AI workloads.

Company leadership attributed the surge directly to AI-related demand, with customers expressing growing confidence in the durability of data centre investment.

While order fulfilment will take years and some plans may change, industry signals suggest a slowdown in AI infrastructure spending is not imminent.

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Google faces new UK rules over AI summaries and publisher rights

The UK competition watchdog has proposed new rules that would force Google to give publishers greater control over how their content is used in search and AI tools.

The Competition and Markets Authority (CMA) plans to require opt-outs for AI-generated summaries and model training, marking the first major intervention under Britain’s new digital markets regime.

Publishers argue that generative AI threatens traffic and revenue by answering queries directly instead of sending users to the original sources.

The CMA proposal would also require clearer attribution of publisher content in AI results and stronger transparency around search rankings, including AI Overviews and conversational search features.

Additional measures under consultation include search engine choice screens on Android and Chrome, alongside stricter data portability obligations. The regulator says tailored obligations would give businesses and users more choice while supporting innovation in digital markets.

Google has warned that overly rigid controls could damage the user experience, describing the relationship between AI and search as complex.

The consultation runs until late February, with the outcome expected to shape how AI-powered search operates in the UK.

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AI surge ‘bigger than the internet’ but with risk of major shake-out

In a commentary highlighted by a BBC article, Cisco’s chief executive, Chuck Robbins, reportedly compared the current AI boom to the early dot-com bubble, suggesting that while AI’s long-term impact could be transformative, the market may also face a period of significant turbulence and ‘wreckage’ before durable winners emerge.

Robbins warned that massive capital flows into AI companies, many of which lack clear revenue paths, resemble past speculative cycles and could lead to sharp contractions or failures among weaker players in the tech ecosystem.

He also noted that productivity gains from AI may be real but come with job reshaping, security risks and economic disruptions along the way.

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Pinterest lays off up to 15% of staff to fund AI transformation

Social media and visual discovery platform Pinterest disclosed a major global restructuring plan in early 2026 that will cut between 700 and 800 jobs, roughly 10–15% of its workforce, and shrink its physical office footprint, with most reductions expected to occur in the first half of the year.

In regulatory and internal communications, CEO Bill Ready framed the layoffs as necessary to ‘position the company for long-term success in an increasingly AI-driven world’, enabling the business to redirect funds and talent from legacy roles toward AI-focused teams and AI-powered products, including visual search, personalisation and ad technologies.

Pinterest’s workforce cuts are part of a wider industry trend where tech firms trim staff in traditional areas and bolster AI capabilities, reflecting pressure to improve efficiency, respond to slowing advertising growth and compete with rivals leveraging generative and recommendation technologies.

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AI’s growing role in environmental sustainability

AI is expanding rapidly, driving rising electricity and water consumption, which has fuelled concerns about environmental damage. Growth in data centres and intensive computing workloads is increasing pressure on global energy systems.

At the same time, AI is being deployed to reduce resource use and emissions across multiple industries. In agriculture, data-driven irrigation systems help farmers apply water more precisely, cutting waste while lowering the energy needed for pumping and distribution.

Efficiency gains are also visible in data centres, where intelligent systems manage workloads and cooling more effectively. Despite a sharp rise in global internet traffic, improvements in energy management have helped slow the growth of electricity consumption.

Energy companies, building operators and airlines are adopting AI to cut emissions and improve efficiency. From detecting methane leaks to optimising heating systems and flight routes, wider use of these technologies could help balance AI’s environmental costs with measurable climate benefits.

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SoftBank plans massive new investment in OpenAI

SoftBank is in discussions to invest an additional $30 billion in OpenAI, as the Japanese conglomerate deepens its commitment to the AI pioneer. The potential funding round could reach $100 billion, valuing OpenAI at approximately $830 billion.

Chief Executive Masayoshi Son has taken an aggressive approach in the AI race, following a $41 billion investment last year that secured an 11 percent stake. OpenAI is facing increasing operational costs to train and maintain its AI models while competing with Alphabet’s Google.

Both SoftBank and OpenAI are also investors in Stargate, a $500 billion project to build AI data centres critical to US efforts to maintain a technological edge over China. The ambitious plan highlights the strategic importance of AI infrastructure in the global market.

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Yahoo launches AI-powered search Scout

Yahoo has introduced Scout, a new AI-powered search engine designed to compete with Google AI Mode and Perplexity. The tool transforms traditional search results into direct answers, interpreting natural language queries with the help of Yahoo’s extensive user data and content.

Scout combines the Claude AI model from Anthropic with Bing’s grounding API to ensure information is accurate and drawn from authoritative sources. Users can access personalised insights, whether checking the weather, tracking stock prices, or verifying news stories.

The platform also includes shopping and finance features, offering quick comparisons between products and synthesised financial information refreshed every ten minutes. Currently in beta, Yahoo Scout is available to US users via the Yahoo Search app and website, with plans to expand its personalisation features.

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Job cuts signal Pinterest’s deeper shift toward AI-powered products

Pinterest is cutting under 15% of its workforce as part of a broader restructuring aimed at shifting more investment toward AI-driven products and roles.

In a regulatory filing, the company said the changes are designed to support transformation initiatives, including reallocating resources to AI-focused teams and reshaping its sales and go-to-market strategy.

The restructuring will also include reductions in office space, with completion targeted for the end of September and expected pre-tax charges ranging from $35 million to $45 million.

Pinterest had around 5,200 employees at the end of last year, meaning the layoffs will affect several hundred staff as the platform accelerates its AI integration.

Recent launches such as AI-powered board updates and the Pinterest Assistant shopping tool reflect a wider trend across the tech sector, where companies are trimming headcount while expanding AI investment.

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Canada’s Cyber Centre flags rising ransomware risks for 2025 to 2027

The national cyber authority of Canada has warned that ransomware will remain one of the country’s most serious cyber threats through 2027, as attacks become faster, cheaper and harder to detect.

The Canadian Centre for Cyber Security, part of Communications Security Establishment Canada, says ransomware now operates as a highly interconnected criminal ecosystem driven by financial motives and opportunistic targeting.

According to the outlook, threat actors are increasingly using AI and cryptocurrency while expanding extortion techniques beyond simple data encryption.

Businesses, public institutions and critical infrastructure in Canada remain at risk, with attackers continuously adapting their tactics, techniques and procedures to maximise financial returns.

The Cyber Centre stresses that basic cyber hygiene still provides strong protection. Regular software updates, multi-factor authentication and vigilance against phishing attempts significantly reduce exposure, even as attack methods evolve.

A report that also highlights the importance of cooperation between government bodies, law enforcement, private organisations and the public.

Officials conclude that while ransomware threats will intensify over the next two years, early warnings, shared intelligence and preventive measures can limit damage.

Canada’s cyber authorities say continued investment in partnerships and guidance remains central to building national digital resilience.

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