Economic Archives | Page 414 of 708 | Digital Watch Observatory

Tech stocks rally after Trump halts tariffs

Global stock markets experienced a significant surge following President Donald Trump’s announcement of a 90-day suspension on tariffs for several countries. The tech-heavy Nasdaq Composite Index soared over 12%, marking its second-best day ever and the most substantial gain since January 2001.

Leading technology firms saw remarkable recoveries. Apple’s shares jumped over 15%, achieving their best performance since January 1998, after enduring a severe four-day decline that erased nearly $800 million in market value.

Tesla and Nvidia also experienced substantial gains, rising 18% and 22% respectively, while Meta Platforms increased by 15%. Amazon, Microsoft, and Alphabet each posted gains of around 10%.

Asian markets mirrored this positive trend, with Japan’s benchmark index climbing more than 2,000 points shortly after the Tokyo exchange opened. Investors responded favourably to the tariff relief, anticipating reduced trade tensions and improved economic prospects.

Despite the optimism, concerns remain regarding ongoing trade disputes, particularly with China. While tariffs were paused for several nations, levies on Chinese imports were raised to 125%, potentially impacting companies with significant manufacturing operations in China, such as Apple.

Analysts caution that, despite the current market rally, the long-term implications of these trade policies warrant close monitoring.

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Google pushes AI limits with Ironwood

Google has announced Ironwood, its latest and most advanced AI processor, marking the seventh generation of its custom Tensor Processing Unit (TPU) architecture.

Designed specifically for the growing demands of its Gemini models, particularly those requiring complex simulated reasoning, which Google refers to as ‘thinking’, Ironwood represents a significant leap forward in performance.

Instead of relying solely on software updates, Google is highlighting how hardware like Ironwood plays a central role in boosting AI capabilities, ushering in what it calls the ‘age of inference.’

However, this TPU is not just faster but dramatically more scalable. Ironwood chips will operate in tightly connected clusters of up to 9,216 units, each cooled by liquid and linked through an enhanced Inter-Chip Interconnect.

These chips can also be deployed in smaller 256-chip servers, offering flexibility for cloud developers and researchers.

Instead of offering modest improvements, Ironwood delivers a peak throughput of 4,614 teraflops per chip, alongside 192GB of memory and 7.2 terabits per second of bandwidth, making it vastly superior to its predecessor, Trillium.

Google says this advancement is more than a performance boost, it’s a foundation for building AI agents that can act on a user’s behalf by gathering information and producing outputs proactively.

Rather than functioning as passive tools, AI systems powered by Ironwood are intended to behave more independently, reflecting a growing trend toward what Google calls ‘agentic AI.’

While Google’s comparison to supercomputers like El Capitan may be flawed due to differing hardware standards, there’s no doubt Ironwood is a substantial upgrade. The company claims it is twice as powerful per watt as the v5p TPU, even if the newer Trillium (v6) chip wasn’t included in the comparison.

Regardless, Ironwood is expected to power the next generation of AI breakthroughs, as the company prepares to move beyond its current Gemini 2.5 model.

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ChatGPT accused of enabling fake document creation

Concerns over digital security have intensified after reports revealed that OpenAI’s ChatGPT has been used to generate fake identification cards.

The incident follows the recent introduction of a popular Ghibli-style feature, which led to a sharp rise in usage and viral image generation across social platforms.

Among the fakes circulating online were forged versions of India’s Aadhaar ID, created with fabricated names, photos, and even QR codes.

While the Ghibli release helped push ChatGPT past 150 million active users, the tool’s advanced capabilities have now drawn criticism.

Some users demonstrated how the AI could replicate Aadhaar and PAN cards with surprising accuracy, even using images of well-known figures like OpenAI CEO Sam Altman and Tesla’s Elon Musk. The ease with which these near-perfect replicas were produced has raised alarms about identity theft and fraud.

The emergence of AI-generated IDs has reignited calls for clearer AI regulation and transparency. Critics are questioning how AI systems have access to the formatting of official documents, with accusations that sensitive datasets may be feeding model development.

As generative AI continues to evolve, pressure is mounting on both developers and regulators to address the growing risk of misuse.

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Malware hidden in fake Office add-ins targets crypto users

Hackers are using bogus Microsoft Office extensions uploaded to SourceForge to spread malware. Cybersecurity firm Kaspersky has warned that the malware is designed to steal cryptocurrency.

One listing, posing as ‘officepackage,’ contains genuine Office add-ins. However, it also hides ClipBanker — a virus that swaps copied crypto wallet addresses with those belonging to attackers.

The malware tricks users by mimicking legitimate Office add-in pages, complete with download buttons and developer-style layouts. Once installed, ClipBanker monitors the clipboard and replaces wallet addresses without users’ knowledge.

It also gathers IP addresses, usernames, and system data, which it sends to the attackers via Telegram. In some cases, the virus checks for antivirus software or previous infections and self-deletes if detected.

Kaspersky noted that the malicious files are suspiciously small or padded with junk data to appear legitimate. While the primary goal is to steal cryptocurrency, attackers may sell access to infected systems to other malicious actors.

The malware’s interface is in Russian, and most victims so far — over 4,600 — have been located in Russia.

To stay safe, Kaspersky advises downloading software only from trusted sources. The company noted a growing trend of hackers hiding malware in pirated or unofficial software to exploit users chasing free apps.

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Memecoin scandal hits Melania Trump’s crypto project

A blockchain analytics firm has alleged that the team behind the Melania Meme (MELANIA) cryptocurrency moved $30 million worth of tokens. These were taken from community reserves without explanation.

Bubblemaps revealed that the tokens were transferred to a single wallet. They were then dispersed across multiple addresses, with millions already sold or sent to exchanges. Neither the team nor co-creator Hayden Davis has commented on the transfers.

MELANIA was launched in January to coincide with Donald Trump’s return to the political spotlight. Since then, the token has plummeted by more than 96%, dropping from a high of over $13 to just $0.51.

The controversy comes amid declining enthusiasm for memecoins. Both the number of new launches and tokens maturing on Solana-based platforms have dropped significantly since January. The trend highlights a broader cooling in the once-hyped sector.

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Blockchain app ARK fights to keep human creativity ahead of AI

Nearly 20 years after his AI career scare, screenwriter Ed Bennett-Coles and songwriter Jamie Hartman have developed ARK, a blockchain app designed to safeguard creative work from AI exploitation.

The platform lets artists register ownership of their ideas at every stage, from initial concept to final product, using biometric security and blockchain verification instead of traditional copyright systems.

ARK aims to protect human creativity in an AI-dominated world. ‘It’s about ring-fencing the creative process so artists can still earn a living,’ Hartman told AFP.

The app, backed by Claritas Capital and BMI, uses decentralised blockchain technology instead of centralised systems to give creators full control over their intellectual property.

Launching summer 2025, ARK challenges AI’s ‘growth at all costs’ mentality by emphasising creative journeys over end products.

Bennett-Coles compares AI content to online meat delivery, efficient but soulless, while human artistry resembles a grandfather’s butcher trip, where the experience matters as much as the result.

The duo hopes their solution will inspire industries to modernise copyright protections before AI erodes them completely.

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Microsoft’s Copilot Vision now sees your entire screen to guide you through apps

Microsoft is testing a major upgrade to its Copilot AI that can view your entire screen instead of just working within the Edge browser.

The new Copilot Vision feature helps users navigate apps like Photoshop and Minecraft by analysing what’s on display and offering step-by-step guidance, even highlighting specific tools instead of just giving verbal instructions.

The feature operates more like a shared Teams screen instead of Microsoft’s controversial Recall snapshot system.

Currently limited to US beta testers, Copilot Vision will eventually highlight interface elements directly on users’ screens. It works on standard Windows PCs instead of requiring specialised Copilot+ hardware, with mobile versions coming to iOS and Android.

Alongside visual assistance, Microsoft is adding document search capabilities. Copilot can now find information within files like Word documents and PDFs instead of just searching by filename.

Both updates will roll out fully in the coming weeks, potentially transforming how users interact with both apps and documents on their Windows devices.

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Amazon launches Nova Sonic AI for natural voice interactions

Amazon has unveiled Nova Sonic, a new AI model designed to process and generate human-like speech, positioning it as a rival to OpenAI and Google’s top voice assistants. The company claims it outperforms competitors in speed, accuracy, and cost, and it is reportedly 80% cheaper than GPT-4o.

Already powering Alexa+, Nova Sonic excels in real-time conversation, handling interruptions and noisy environments better than legacy AI assistants.

Unlike older voice models, Nova Sonic can dynamically route requests, fetching live data or triggering external actions when needed. Amazon says it achieves a 4.2% word error rate across multiple languages and responds in just 1.09 seconds, faster than OpenAI’s GPT-4o.

Developers can access it via Bedrock, Amazon’s AI platform, using a new streaming API.

The launch signals Amazon’s push into artificial general intelligence (AGI), AI that mimics human capabilities.

Rohit Prasad, head of Amazon’s AGI division, hinted at future models handling images, video, and sensory data. This follows last week’s preview of Nova Act, an AI for browser tasks, suggesting Amazon is accelerating its AI rollout beyond Alexa.

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Starday plans rapid rollout of AI-developed snacks

AI-driven food company Starday has secured $11 million in Series A funding to support the development and retail expansion of its innovative food brands.

The round was led by Slow Ventures and Equal Ventures, with an additional $3 million credit facility from Silicon Valley Bank. Starday’s total funding now stands at $20 million.

Founded by Chaz Flexman, Lena Kwak, and Lily Burtis, Starday uses AI to identify market gaps and quickly create new food products that cater to evolving consumer preferences.

Its latest offerings, including allergen-free snacks like Habeya Sweet Potato Crackers and All Day chickpea protein crunch, are already available in major United States grocery chains such as Kroger and Hannaford.

With plans to launch 14 new products across its four brands, the company is aiming to redefine the pace and precision of food innovation.

CEO Flexman says the funding will help Starday partner with more retailers and food brands to fill gaps in the market, accelerating the launch of targeted products in fast-growing categories. Backers believe Starday’s data-led model gives it a structural edge in a traditionally slow-moving industry.

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LMArena tightens rules after Llama 4 incident

Meta has come under scrutiny after submitting a specially tuned version of its Llama 4 AI model to the LMArena leaderboard, sparking concerns about fair competition.

The ‘experimental’ version, dubbed Llama-4-Maverick-03-26-Experimental, ranked second in popularity, trailing only Google’s Gemini-2.5-Pro.

While Meta openly labelled the model as experimental, many users assumed it reflected the public release. Once the official version became available, users quickly noticed it lacked the expressive, emoji-filled responses seen in the leaderboard battles.

LMArena, a crowdsourced platform where users vote on chatbot responses, said Meta’s custom variant appeared optimised for human approval, possibly skewing the results.

The group released over 2,000 head-to-head matchups to back its claims, showing the experimental Llama 4 consistently offered longer, more engaging answers than the more concise public build.

In response, LMArena updated its policies to ensure greater transparency and stated that Meta’s use of the experimental model did not align with expectations for leaderboard submissions.

Meta defended its approach, stating the experimental model was designed to explore chat optimisation and was never hidden. While company executives denied any misconduct, including speculation around training on test data, they acknowledged inconsistent performance across platforms.

Meta’s GenAI chief Ahmad Al-Dahle said it would take time for all public implementations to stabilise and improve. Meanwhile, LMArena plans to upload the official Llama 4 release to its leaderboard for more accurate evaluation going forward.

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