Economic

Publishers lose traffic as readers trust AI more

Online publishers are facing an existential threat as AI increasingly becomes the primary source of information for users, warned Cloudflare CEO Matthew Prince during an Axios event in Cannes.

As AI-generated summaries dominate user queries, search engine referrals have plunged, urgently pushing media outlets to reconsider how they sustain revenue from their content.

Traffic patterns have dramatically shifted. A decade ago, Google sent a visitor to publishers for every two pages it crawled.

Today, that ratio has ballooned to 18:1. The picture is more extreme for AI firms: OpenAI’s ratio has jumped from 250:1 to 1,500:1 in just six months, while Anthropic’s has exploded from 6,000:1 to a staggering 60,000:1.

Although AI systems typically include links to sources, Prince noted that ‘people aren’t following the footnotes,’ meaning fewer clicks and less ad revenue.

Prince argued that audiences are beginning to trust AI summaries more than the original articles, reducing publishers’ visibility and direct engagement.

As the web becomes increasingly AI-mediated, fewer people read full articles, raising urgent questions about how creators and publishers can be fairly compensated.

To tackle the issue, Cloudflare is preparing to launch a new anti-scraping tool to block unauthorised data harvesting. Prince hinted that the tool has broad industry support and will be rolled out soon.

He remains confident in Cloudflare’s capacity to fight against such threats, noting the company’s daily battles against sophisticated global cyber actors.

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Hidden privacy risk: Meta AI app may make sensitive chats public

Meta’s new AI app raises privacy concerns as users unknowingly expose sensitive personal information to the public.

The app includes a Discover feed where anyone can view AI chats — even those involving health, legal or financial data. Many users have accidentally shared full resumes, private conversations and medical queries without realising they’re visible to others.

Despite this, Meta’s privacy warnings are minimal. On iPhones, there’s no clear indication during setup that chats will be made public unless manually changed in settings.

Android users see a brief, easily missed message. Even the ‘Post to Feed’ button is ambiguous, often mistaken as referring to a user’s private chat history rather than public content.

Users must navigate deep into the app’s settings to make chats private. They can restrict who sees AI prompts there, stop sharing on Facebook and Instagram, and delete previous interactions.

Critics argue the app’s lack of clarity burdens users, leaving many at risk of oversharing without realising it.

While Meta describes the Discover feed as a way to explore creative AI usage, the result has been a chaotic mix of deeply personal content and bizarre prompts.

Privacy experts warn that the situation mirrors Meta’s longstanding issues with user data. Users are advised to avoid sharing personal details with the AI entirely and immediately turn off all public sharing options.

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France appeals porn site ruling based on EU legal grounds

The French government is challenging a recent decision by the Administrative Court of Paris that temporarily halted the enforcement of mandatory age verification on pornographic websites based in the EU. The court found France’s current approach potentially inconsistent with the EU law—specifically the 2002 E-Commerce Directive—which upholds the ‘country-of-origin’ principle.

That rule limits an EU country’s authority to regulate online services hosted in another member state unless it follows a formal process involving both the host country and the European Commission. The dispute’s heart is whether France correctly followed the required legal steps.

While French authorities say they notified the host countries of porn companies like Hammy Media (Xhamster) and Aylo (owner of Pornhub and others) and waited the mandated three months, legal experts argue that notifying the Commission is also essential. So far, there is no confirmation that this additional step was taken, which may weaken France’s legal standing.

Digital Minister Clara Chappaz reaffirmed the government’s commitment to enforcing age checks, calling it a ‘priority’ in a public statement. The ministry insists its rules align with the EU’s Audiovisual Media Services Directive.

However, the court’s ruling highlights broader tensions between France’s national digital regulations and overarching the EU law. Similar legal challenges have already forced France to adjust parts of its digital, influencer, and cloud regulation frameworks in the past two years.

The appeal could have significant implications for age restrictions on adult content and how France asserts digital sovereignty within the EU. If the court upholds the suspension, other digital regulations based on national initiatives may also be vulnerable to legal scrutiny under the EU principles.

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SoftBank plans $1 trillion AI and robotics park in Arizona

SoftBank founder Masayoshi Son is planning what could become his most audacious venture yet: a $1 trillion AI and robotics industrial park in Arizona.

Dubbed ‘Project Crystal Land’, the initiative aims to recreate a high-tech manufacturing hub reminiscent of China’s Shenzhen, focused on AI-powered robots and next-gen automation.

Son is courting global tech giants — including Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung — to join the vision, though none have formally committed.

The plan hinges on support from federal and state governments, with SoftBank already discussing possible tax breaks with US officials, including Commerce Secretary Howard Lutnick.

While TSMC is already investing $165 billion in Arizona facilities, sources suggest Son’s project has not altered the chipmaker’s current roadmap. SoftBank hopes to attract semiconductor and AI hardware leaders to power the park’s infrastructure.

Son has also approached SoftBank Vision Fund portfolio companies to participate, including robotics startup Agile Robots.

The park may serve as a production hub for emerging tech firms, complementing SoftBank’s broader investments, such as a potential $30 billion stake in OpenAI, a $6.5 billion acquisition of Ampere Computing, and funding for Stargate, a global data centre venture with OpenAI, Oracle, and MGX.

While the vision is still early, Project Crystal Land could radically shift US high-tech manufacturing. Son’s strategy relies heavily on project-based financing, allowing extensive infrastructure builds with minimal upfront capital.

As SoftBank eyes long-term AI growth and increased investor confidence, whether this futuristic park will become a reality — or another of Son’s high-stakes dreams remains to be seen.

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In-app investing coming soon to X

Elon Musk’s plan to turn X into a social and financial hub is moving forward, with in-app investing and payments on the way. X CEO Linda Yaccarino said the new financial features, including a possible X debit card, will launch soon.

According to the Financial Times, users can carry out transactions ranging from splitting bills to making investments—all within the app. Yaccarino described it as a future where users manage their financial lives directly through X.

A limited beta version of ‘X Money’ was quietly launched in May.

Despite Musk’s well-known enthusiasm for Dogecoin, memecoin and other cryptocurrencies were not mentioned. Musk has frequently promoted Dogecoin, but X’s financial plans currently leave out crypto integration.

The move reflects Musk’s long-term vision of building an ‘everything app.’ Originally co-founding X.com in 1999, which became PayPal, Musk later revived the X brand when acquiring Twitter in 2022.

The platform is now inching closer to merging social media with finance—without, for the moment, embracing crypto.

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Over $4 billion in crypto options expire today

Over $4.1 billion in Bitcoin and Ethereum options are set to expire today, stirring expectations of price swings across the crypto market. The bulk comes from Bitcoin contracts valued at $3.5 billion, while Ethereum options account for around $565 million.

Data from Deribit shows 33,972 BTC and 224,509 ETH contracts reaching expiry. Traders are watching the market closely, as options expiration often triggers short-term volatility.

Bitcoin’s put-to-call ratio of 1.0 suggests a neutral stance among traders, while Ethereum’s lower 0.69 ratio indicates a tilt toward bullish expectations. Both assets currently trade below their respective ‘max pain’ points.

Analysts note that prices often move toward max pain levels, causing short-term shifts. Broader sentiment remains cautious amid geopolitical tensions and recent US Federal Reserve remarks.

Traders are increasingly hedging against downside risk, particularly concerning possible Middle East conflict and shifting interest rate expectations.

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EU AI Act challenges 68% of European businesses, AWS report finds

As AI becomes integral to digital transformation, European businesses struggle to adapt to new regulations like the EU AI Act.

A report commissioned by AWS and Strand Partners revealed that 68% of surveyed companies find the EU AI Act difficult to interpret, with compliance absorbing around 40% of IT budgets.

Businesses unsure of regulatory obligations are expected to invest nearly 30% less in AI over the coming year, risking a slowdown in innovation across the continent.

The EU AI Act, effective since August 2024, introduces a phased risk-based framework to regulate AI in the EU. Some key provisions, including banned practices and AI literacy rules, are already enforceable.

Over the next year, further requirements will roll out, affecting AI system providers, users, distributors, and non-EU companies operating within the EU. The law prohibits exploitative AI applications and imposes strict rules on high-risk systems while promoting transparency in low-risk deployments.

AWS has reaffirmed its commitment to responsible AI, which is aligned with the EU AI Act. The company supports customers through initiatives like AI Service Cards, its Responsible AI Guide, and Bedrock Guardrails.

AWS was the first primary cloud provider to receive ISO/IEC 42001 certification for its AI offerings and continues to engage with the EU institutions to align on best practices. Amazon’s AI Ready Commitment also offers free education on responsible AI development.

Despite the regulatory complexity, AWS encourages its customers to assess how their AI usage fits within the EU AI Act and adopt safeguards accordingly.

As compliance remains a shared responsibility, AWS provides tools and guidance, but customers must ensure their applications meet the legal requirements. The company updates customers as enforcement advances and new guidance is issued.

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North Korea’s BlueNoroff uses deepfakes in Zoom calls to hack crypto workers

The North Korea-linked threat group BlueNoroff has been caught deploying deepfake Zoom meetings to target an employee at a cryptocurrency foundation, aiming to install malware on macOS systems.

According to cybersecurity firm Huntress, the attack began through a Telegram message that redirected the victim to a fake Zoom site. Over several weeks, the employee was lured into a group video call featuring AI-generated replicas of company executives.

When the employee encountered microphone issues during the meeting, the fake participants instructed them to download a Zoom extension, which instead executed a malicious AppleScript.

The script covertly fetched multiple payloads, installed Rosetta 2, and prompted for the system password while wiping command histories to hide forensic traces. Eight malicious binaries were uncovered on the compromised machine, including keyloggers, information stealers, and remote access tools.

BlueNoroff, also known as APT38 and part of the Lazarus Group, has a track record of targeting financial and blockchain organisations for monetary gain. The group’s past operations include the Bybit and Axie Infinity breaches.

Their campaigns often combine deep social engineering with sophisticated multi-stage malware tailored for macOS, with new tactics now mimicking audio and camera malfunctions to trick remote workers.

Cybersecurity analysts have noted that BlueNoroff has fractured into subgroups like TraderTraitor and CryptoCore, specialising in cryptocurrency theft.

Recent offshoot campaigns involve fake job interview portals and dual-platform malware, such as the Python-based PylangGhost and GolangGhost trojans, which harvest sensitive data from victims across operating systems.

The attackers have impersonated firms like Coinbase and Uniswap, mainly targeting users in India.

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Massive data leak exposes 16 billion login credentials from Google, Facebook, and more

One of the largest-ever leaks of stolen login data has come to light, exposing more than 16 billion records across widely used services, including Facebook, Google, Telegram, and GitHub. The breach, uncovered by researchers at Cybernews, highlights a growing threat to individuals and organisations.

The exposed data reportedly originated from info stealer malware, previous leaks, and credential-stuffing tools. A total of 30 separate datasets were identified, some containing over 3.5 billion entries.

These were briefly available online due to unsecured cloud storage before being removed. Despite the swift takedown, the data had already been collected and analysed.

Experts have warned that the breach could lead to identity theft, phishing, and account takeovers. Smaller websites and users with poor cybersecurity practices are especially vulnerable. Many users continue to reuse passwords or minor variations of them, increasing the risk of exploitation.

While the leak is severe, users employing two-factor authentication (2FA), password managers, or passkeys are less likely to be affected.

Passkeys, increasingly adopted by companies like Google and Apple, offer a phishing-resistant login method that bypasses the need for passwords altogether.

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Washington city orders removal of crypto ATMs over rising scams 

The Spokane City Council in Washington State has unanimously voted to ban virtual currency kiosks across the city, including crypto ATMs. The ordinance targets approximately 50 machines found at convenience stores, gas stations, and major retailers such as Safeway and Walgreens.

Operators must remove their kiosks within 60 days or risk fines and potential loss of business licences.

Council members highlighted the growing threat these kiosks pose to vulnerable residents, particularly seniors, who have fallen victim to scams. Council Member Paul Dillon described the machines as ‘preferred tools’ for fraudsters exploiting the decentralised nature of cryptocurrency and limited tracking options for stolen funds.

The council initially sought state-level regulation, but after legislative delays, Spokane chose local action to address the issue.

The FBI estimates $5.6 billion of the $6.5 billion lost nationwide to fraud, scams, and extortion in 2023 involved crypto kiosks. Seniors accounted for nearly half of these losses despite being a smaller percentage of the population.

Spokane Police Detective Tim Schwering reported numerous cases where victims were deceived into buying crypto through kiosks after being contacted by scammers impersonating law enforcement or tax officials. Tragically, several local suicides have been linked to these scams.

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