Economic

Amazon closes AI research lab in Shanghai as global focus shifts

Amazon is shutting down its AI research lab in Shanghai, marking another step in its gradual withdrawal from China. The move comes amid continuing US–China trade tensions and a broader trend of American tech companies reassessing their presence in the country.

The company said the decision was part of a global streamlining effort rather than a response to AI concerns.

A spokesperson for AWS said the company had reviewed its organisational priorities and decided to cut some roles across certain teams. The exact number of job losses has not been confirmed.

Before Amazon’s confirmation, one of the lab’s senior researchers noted on WeChat that the Shanghai site was the final overseas AWS AI research lab and attributed its closure to shifts in US–China strategy.

The team had built a successful open-source graph neural network framework known as DGL, which reportedly brought in nearly $1 billion in revenue for Amazon’s e-commerce arm.

Amazon has been reducing its footprint in China for several years. It closed its domestic online marketplace in 2019, halted Kindle sales in 2022, and recently laid off AWS staff in the US.

Other tech giants including IBM and Microsoft have also shut down China-based research units this year, while some Chinese AI firms are now relocating operations abroad instead of remaining in a volatile domestic environment.

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Bitcoin rally attracts scammers and fake platforms

Bitcoin’s latest rally past the $120,000 mark has triggered a fresh wave of excitement among investors, but the upward trend also brings a darker side—an increase in crypto-related scams. Rising public interest and ETF demand have led scammers to target new users on unregulated platforms.

Fraudsters are using various methods to deceive investors, including fake trading apps, phishing websites, giveaway scams, and pump-and-dump schemes. Many of these platforms appear legitimate, only to disappear when users attempt to withdraw funds.

Others mimic real exchanges or impersonate support agents to steal credentials and assets.

To avoid falling victim, investors should watch for red flags such as guaranteed returns, no visible team or contact details, lack of regulatory licences, and overly slick websites. Sticking to trusted platforms, using MFA, avoiding unknown links, and checking activity helps reduce risk.

Crypto trading remains full of potential, but education and caution are essential. Staying informed about common scams and adopting safe habits is the best way to protect investments in an evolving digital landscape.

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US agencies warn of rising Interlock ransomware threat targeting healthcare sector

US federal authorities have issued a joint warning over a spike in ransomware attacks by the Interlock group, which has been targeting healthcare and public services across North America and Europe.

The alert was released by the FBI, CISA, HHS and MS-ISAC, following a surge in activity throughout June.

Interlock operates as a ransomware-as-a-service scheme and first emerged in September 2024. The group uses double extortion techniques, not only encrypting files but also stealing sensitive data and threatening to leak it unless a ransom is paid.

High-profile victims include DaVita, Kettering Health and Texas Tech University Health Sciences Center.

Rather than relying on traditional methods alone, Interlock often uses compromised legitimate websites to trigger drive-by downloads.

The malicious software is disguised as familiar tools like Google Chrome or Microsoft Edge installers. Remote access trojans are then used to gain entry, maintain persistence using PowerShell, and escalate access using credential stealers and keyloggers.

Authorities recommend several countermeasures, such as installing DNS filtering tools, using web firewalls, applying regular software updates, and enforcing strong access controls.

They also advise organisations to train staff in recognising phishing attempts and to ensure backups are encrypted, secure and kept off-site instead of stored within the main network.

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Musk denies fundraising as xAI eyes supercluster growth

According to sources cited by the Wall Street Journal, Elon Musk’s AI company xAI is reportedly working with Valor Equity Partners to raise to US$12 billion for expansion.

Valor, an investment firm founded by Antonio Gracias, a long-time associate of Musk, is in discussions with lenders to secure the capital.

Funds would be used to acquire a substantial number of Nvidia AI chips, which would then be leased to xAI to support a new large-scale data centre for training and running the Grok chatbot.

Neither Valor nor xAI provided comments in response to media enquiries. Some financial institutions involved in the talks have reportedly pushed for repayment within three years and are seeking to limit borrowing amounts to reduce risk exposure.

Developing and deploying advanced AI systems requires a vast investment in hardware, computational resources and specialist talent. Companies like OpenAI, Google and China-based DeepSeek compete intensely in this domain.

In a post on X, Musk confirmed that Grok is being trained using a supercluster with 230,000 GPUs, including 30,000 of Nvidia’s GB200 chips. Another supercluster will launch soon, beginning with 550,000 GB200 and GB300 chips.

Reports suggest xAI may spend around US$13 billion in 2025. Earlier in July, Financial Times reported that xAI was discussing raising funds in a deal potentially valuing the firm between US$170 billion and US$200 billion.

In response to those claims, Musk denied that fundraising was ongoing, stating: ‘We have plenty of capital.’

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Telegram rolls out TON Wallet for US users

Telegram’s crypto journey has taken a significant leap as its built-in TON Wallet is now available to users in the United States. For the first time, a major messaging app in the US market integrates a self-custodial crypto wallet directly into its interface.

The move comes after a lengthy delay due to regulatory uncertainty. Telegram previously viewed the US as a difficult environment, but recent changes in the regulatory landscape have improved the situation.

According to The Open Platform CEO Andrew Rogozov, the SEC’s recent decisions to narrow enforcement and drop certain cases contributed to a more predictable climate.

Now built into Telegram, TON Wallet lets users manage assets, send stablecoins, and swap tokens—no extensions, seed phrases, or extra apps needed. Onboarding uses a split-key system, linking recovery to the user’s account and email—all within the app.

The wallet is integrated with MoonPay, enabling zero-fee purchases, debit card on-ramps, and seamless crypto transactions while outsourcing compliance-related processes. Rogozov said the goal is to offer a crypto experience that feels as natural as sending a message.

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Autonomous vehicles fuel surge in 5G adoption

The global 5G automotive market is expected to grow sharply from $2.58 billion in 2024 to $31.18 billion by 2034, fuelled by the rapid adoption of connected and self-driving vehicles.

A compound annual growth rate of over 28% reflects the strong momentum behind the transition to smarter mobility and safer road networks.

Vehicle-to-everything communication is predicted to lead adoption, as it allows vehicles to exchange real-time data with other cars, infrastructure and even pedestrians.

In-car entertainment systems are also growing fast, with consumers demanding smoother connectivity and on-the-go access to apps and media.

Autonomous driving, advanced driver-assistance features and real-time navigation all benefit from 5G’s low latency and high-speed capabilities. Automakers such as BMW have already begun integrating 5G into electric models to support automated functions.

Meanwhile, the US government has pledged $1.5 billion to build smart transport networks that rely on 5G-powered communication.

North America remains ahead due to early 5G rollouts and strong manufacturing bases, but Asia Pacific is catching up fast through smart city investment and infrastructure development.

Regulatory barriers and patchy rural coverage continue to pose challenges, particularly in regions with strict data privacy laws or limited 5G networks.

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Hong Kong Post cyberattack exposes EC‑Ship user data

A cyberattack on the Hong Kong Post has been confirmed. Targeting its EC‑Ship online shipping portal, the attack compromised personal address‑book information for approximately 60,000 to 70,000 users.

The data breach included names, physical addresses, phone and fax numbers, and email addresses of both senders and recipients.

The incident, detected late Sunday into Monday, involved an attacker using a legitimate EC‑Ship account to exploit a code vulnerability. Though the system’s security protocols identified unusual activity and suspended the account, the hacker persisted until the flaw was fully patched.

Affected customers received email alerts and were advised to monitor their information closely and alert contacts of potential phishing attempts.

Hong Kong Post is now collaborating with the Hong Kong Police Force, the Digital Policy Office, and the Office of the Privacy Commissioner. It implements a layered cybersecurity solution managed by the government’s Digital Policy Office.

The Postmaster General emphasised that remediation steps have been taken to close the loophole and pledged ongoing infrastructure improvements. An official investigation is underway to reinforce resilience and safeguard user data.

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North Korea turns to Russia for AI development help

North Korea is dispatching AI researchers, interns and students to countries such as Russia in an effort to strengthen its domestic tech sector, according to a report by NK News.

The move comes despite strict UN sanctions that restrict technological exchange, particularly in high-priority areas like AI.

Kim Kwang Hyok, head of the AI Institute at Kim Il Sung University, confirmed the strategy in an interview with a pro-Pyongyang outlet in Japan. He admitted that international restrictions remain a major hurdle but noted that researchers continue developing AI applications within North Korea regardless.

Among the projects cited is ‘Ryongma’, a multilingual translation app supporting English, Russian, and Chinese, which has been available on mobile devices since 2021.

Kim also mentioned efforts to develop an AI-driven platform for a hospital under construction in Pyongyang. However, technical limitations remain considerable, with just three known semiconductor plants operating in the country.

While Russia may seem like a natural partner, its own dependence on imported hardware limits how much it can help.

A former South Korean diplomat told NK News that Moscow lacks the domestic capacity to provide high-performance chips essential for advanced AI work, making large-scale collaboration difficult.

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Spotify under fire for AI-generated songs on memorial artist pages

Spotify is facing criticism after AI-generated songs were uploaded to the pages of deceased artists without consent from estates or rights holders.

The latest case involves country singer-songwriter Blaze Foley, who died in 1989. A track titled ‘Together’ was posted to his official Spotify page over the weekend. The song sounded vaguely like a slow country ballad and was paired with AI-generated cover art showing a man who bore no resemblance to Foley.

Craig McDonald, whose label manages Foley’s catalogue, confirmed the track had nothing to do with the artist and described it as inauthentic and harmful. ‘I can clearly tell you that this song is not Blaze, not anywhere near Blaze’s style, at all,’ McDonald told 404 Media. ‘It has the authenticity of an algorithm.’

He criticised Spotify for failing to prevent such uploads and said the company had a duty to stop AI-generated music from appearing under real artists’ names.

‘It’s kind of surprising that Spotify doesn’t have a security fix for this type of action,’ he said. ‘They could fix this problem if they had the will to do so.’ Spotify said it had flagged the track to distributor SoundOn and removed it for violating its deceptive content policy.

However, other similar uploads have already emerged. The same company, Syntax Error, was linked to another AI-generated song titled ‘Happened To You’, uploaded last week under the name of Grammy-winning artist Guy Clark, who died in 2016.

Both tracks have since been removed, but Spotify has not explained how Syntax Error was able to post them using the names and likenesses of late musicians. The controversy is the latest in a wave of AI music incidents slipping through streaming platforms’ content checks.

Earlier this year, an AI-generated band called The Velvet Sundown amassed over a million Spotify streams before disclosing that all their vocals and instrumentals were made by AI.

Another high-profile case involved a fake Drake and The Weeknd collaboration, ‘Heart on My Sleeve’, which gained viral traction before being taken down by Universal Music Group.

Rights groups and artists have repeatedly warned about AI-generated content misrepresenting performers and undermining creative authenticity. As AI tools become more accessible, streaming platforms face mounting pressure to improve detection and approval processes to prevent further misuse.

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Western Union eyes faster remittances with stablecoins

Western Union has begun exploring stablecoin use for remittances, viewing the technology as an opportunity amid rising competition and regulatory clarity. CEO Devin McGranahan revealed that the firm is testing new cross-border settlement processes in regions such as South America and Africa.

Stablecoins could enhance speed, lower costs, and offer value-storing options for customers in weaker-currency markets.

The move follows the recent passage of the GENIUS Act in the US, which provides a formal legal framework for issuing and trading stablecoins. The law is already prompting banks, retailers, and financial service providers to experiment with stablecoin applications.

Western Union is reportedly considering crypto wallet services and partnerships to act as a crypto on- and off-ramp.

According to OwlTing CEO Darren Wang, interest in stablecoins has surged, with monthly business inquiries rising significantly since May. He believes regulatory frameworks like the GENIUS Act and Europe’s MiCA will help stablecoins reach widespread adoption by 2026.

He emphasised that stablecoins can cut remittance costs below the UN’s 3% target, while providing instant, round-the-clock settlements.

Global interest for stablecoins continues to grow, with firms like Walmart, Amazon, JD.com, and Alipay reportedly exploring stablecoin integration.

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