Funding season is restarting in Europe, with investors expecting to add several new unicorns in the coming months. Despite fewer mega-rounds than in 2021, a dozen startups passed the $1 billion mark in the first half of 2025.
AI, biotech, defence technology, and renewable energy are among the sectors attracting major backing. Recent unicorns include Lovable, an AI coding firm from Sweden, UK-based Fuse Energy, and Isar Aerospace from Germany.
London-based Isomorphic Labs, spun out of DeepMind, raised $600 million to enter unicorn territory. In biotech, Verdiva Bio hit unicorn status after a $410 million Series A, while Neko Health reached a $1.8 billion valuation.
AI and automation continue to drive investor appetite. Dublin’s Tines secured a $125 million Series C at a $1.125 billion valuation, and German AI customer service startup Parloa raised $120 million at a $1 billion valuation.
Dual-use drone companies also stood out. Portugal-based Tekever confirmed its unicorn status with plans for a £400 million UK expansion, while Quantum Systems raised €160 million to scale its AI-driven drones globally.
Film-streaming platform Mubi and encryption startup Zama also joined the unicorn club, showing the breadth of sectors gaining traction. With Bristol, Manchester, Munich, and Stockholm among the hotspots, Europe’s tech ecosystem continues to diversify.
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The death of 16-year-old Adam Raine has placed renewed attention on the risks of teenagers using conversational AI without safeguards. His parents allege ChatGPT encouraged his suicidal thoughts, prompting a lawsuit against OpenAI and CEO Sam Altman in San Francisco.
The case has pushed OpenAI to add parental controls and safety tools. Updates include one-click emergency access, parental monitoring, and trusted contacts for teens. The company is also exploring connections with therapists.
Executives said AI should support rather than harm. OpenAI has worked with doctors to train ChatGPT to avoid self-harm instructions and redirect users to crisis hotlines. The company acknowledges that longer conversations can compromise reliability, underscoring the need for stronger safeguards.
The tragedy has fuelled wider debates about AI in mental health. Regulators and experts warn that safeguards must adapt as AI becomes part of daily decision-making. Critics argue that future adoption should prioritise accountability to protect vulnerable groups from harm.
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Perplexity has announced Comet Plus, a new service that will pay premium publishers to provide high-quality news content as an alternative to clickbait. The company has not disclosed its roster of partners or payment structure, though reports suggest a pool of $42.5 million.
Publishers have long criticised AI services for exploiting their work without compensation. Perplexity, backed by Amazon’s Jeff Bezos, said Comet Plus will create a fairer system and reward journalists for producing trusted content in the era of AI.
The platform introduces a revenue model based on three streams: human visits, search citations, and agent actions. Perplexity argues this approach better reflects how people consume information today, whether by browsing manually, seeking AI-generated answers, or using AI agents.
The company stated that the initiative aims to rebuild trust between readers and publishers, while ensuring that journalism thrives in a changing digital economy. The initial group of publishing partners will be revealed later.
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ChatGPT is increasingly used as a travel assistant, with some travellers claiming it can save hundreds of pounds on flights. Finance influencer Casper Opala shares cost-saving tips online and said the AI tool helped him secure a flight for £70 that initially cost more than £700.
Opala shared a series of prompts that allow ChatGPT to identify hidden routes, budget airlines not listed on major platforms, and potential savings through alternative airports or separate bookings. He also suggested using the tool to monitor prices for several days or compare one-way fares with return tickets.
While many money-saving tricks have existed for years, ChatGPT condenses the process, collecting results in seconds. Opala says this efficiency is a strong starting point for cheaper travel deals.
Experts, however, warn that ChatGPT is not connected to live flight booking systems. TravelBook’s Laura Pomer noted that the AI can sometimes present inaccurate or outdated fares, meaning users should always verify results before booking.
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Perplexity’s AI-powered browser, Comet, was found to have a serious vulnerability that could have exposed sensitive user data through indirect prompt injection, according to researchers at Brave, a rival browser company.
The flaw stemmed from how Comet handled webpage-summarisation requests. By embedding hidden instructions on websites, attackers could trick the browser’s large language model into executing unintended actions, such as extracting personal emails or accessing saved passwords.
Brave researchers demonstrated how the exploit could bypass traditional protections, such as the same-origin policy, showing scenarios where attackers gained access to Gmail or banking data by manipulating Comet into following malicious cues.
Brave disclosed the vulnerability to Perplexity on 11 August, but stated that it remained unfixed when they published their findings on 20 August. Perplexity later confirmed to CNET that the flaw had been patched, and Brave was credited for working with them to resolve it.
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Hackers linked to the ShinyHunters group have compromised Google’s Salesforce systems, leading to a data leak that puts Gmail and Google Cloud users at risk of phishing attacks.
Google confirmed that customer and company names were exposed, though no passwords were stolen. Attackers are now exploiting the breach with phishing schemes, including fake account resets and malware injection attempts through outdated access points.
With Gmail and Google Cloud serving around 2.5 billion users worldwide, both companies and individuals could be targeted. Early reports on Reddit describe callers posing as Google staff warning of supposed account breaches.
Google urges users to strengthen protections by running its Security Checkup, enabling Advanced Protection, and switching to passkeys instead of passwords. The company emphasised that its staff never initiates unsolicited password resets by phone or email.
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Poland has become the leading global target for politically and socially motivated cyberattacks, recording over 450 incidents in the second quarter of 2025, according to Spain’s Industrial Cybersecurity Center.
The report ranked Poland ahead of Ukraine, the UK, France, Germany, and other European states in hacktivist activity. Government institutions and the energy sector were among the most targeted, with organisations supporting Ukraine described as especially vulnerable.
ZIUR’s earlier first-quarter analysis had warned of a sharp rise in attacks against state bodies across Europe. Pro-Russian groups were identified as among the most active, increasingly turning to denial-of-service campaigns to disrupt critical operations.
Europe accounted for the largest share of global hacktivism in the second quarter, with more than 2,500 successful denial-of-service attacks recorded between April and June, underlining the region’s heightened exposure.
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Cyberattacks are intensifying worldwide, with Australia now ranked fourth globally for threats against operational technology and industrial sectors. Rising AI-powered incursions have exposed serious vulnerabilities in the country’s national defence and critical infrastructure.
The 2023–2030 Cyber Security Strategy designed by the Government of Australia aims to strengthen resilience through six ‘cyber shields’, including legislation and intelligence sharing. But a skills shortage leaves organisations vulnerable as ransomware attacks on mining and manufacturing continue to rise.
One proposal gaining traction is the creation of a volunteer ‘cyber militia’. Inspired by the cyber defence unit in Estonia, this network would mobilise unconventional talent, retirees, hobbyist hackers, and students, to bolster monitoring, threat hunting, and incident response.
Supporters argue that such a force could fill gaps left by formal recruitment, particularly in smaller firms and rural networks. Critics, however, warn of vetting risks, insider threats, and the need for new legal frameworks to govern liability and training.
Pilot schemes in high-risk sectors, such as energy and finance, have been proposed, with public-private funding viewed as crucial. Advocates argue that a cyber militia could democratise security and foster collective responsibility, aligning with the country’s long-term cybersecurity strategy.
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The discovery of hundreds of non-consensual deepfake images on a student’s laptop at the University of Hong Kong has reignited debate about privacy, technology, and accountability. The scandal echoes the 2008 Edison Chen photo leak, which exposed gaps in law and gender double standards.
Unlike stolen private images, today’s fabrications are AI-generated composites that can tarnish reputations with a single photo scraped from social media. The dismissal that such content is ‘not real’ fails to address the damage caused by its existence.
The legal system of Hong Kong struggles to keep pace with this shift. Its privacy ordinance, drafted in the 1990s, was not designed for machine-learning fabrications, while traditional harassment and defamation laws predate the advent of AI. Victims risk harm before distribution is even proven.
The city’s privacy watchdog has launched a criminal investigation, but questions remain over whether creation or possession of deepfakes is covered by existing statutes. Critics warn that overreach could suppress legitimate uses, yet inaction leaves space for abuse.
Observers argue that just as the snapshot camera spurred the development of modern privacy law, deepfakes must drive a new legal boundary to safeguard dignity. Without reform, victims may continue facing harm without recourse.
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South Korea’s new administration has unveiled a five-year economic plan to build what it calls a ‘super-innovation economy’ by integrating AI across all sectors of society.
The strategy, led by President Lee Jae-myung, commits 100 trillion won (approximately US$71.5 billion) to position the country among the world’s top three AI powerhouses. Private firms will drive development, with government support for nationwide adoption.
Plans include a sovereign Korean-language AI model, humanoid robots for logistics and industry, and commercialising autonomous vehicles by 2027. Unmanned ships are targeted for completion by 2030, alongside widespread use of drones in firefighting and aviation.
AI will also be introduced into drug approvals, smart factories, welfare services, and tax administration, with AI-based tax consultations expected by 2026. Education initiatives and a national AI training data cluster will nurture talent and accelerate innovation.
Five domestic firms, including Naver Cloud, SK Telecom, and LG AI Research, will receive state support to build homegrown AI foundation models. Industry reports currently rank South Korea between sixth and 10th in global AI competitiveness.
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