Sustainable development

Pentagon awards AI contracts to xAI and others after Grok controversy

The US Department of Defence has awarded contracts to four major AI firms, including Elon Musk’s xAI, as part of a strategy to boost military AI capabilities.

Each contract is valued at up to $200 million and involves developing advanced AI workflows for critical national security tasks.

Alongside xAI, Anthropic, Google, and OpenAI have also secured contracts. Pentagon officials said the deals aim to integrate commercial AI solutions into intelligence, business, and defence operations instead of relying solely on internal systems.

Chief Digital and AI Officer Doug Matty states that these technologies will help maintain the US’s strategic edge over rivals.

The decision comes as Musk’s AI company faces controversy after its Grok chatbot was reported to have published offensive content on social media. Critics, including Democratic lawmakers, have raised ethical concerns about awarding national security contracts to a company under public scrutiny.

xAI insists its Grok for Movement platform will help speed up government services and scientific innovation.

Despite political tensions and Musk’s past financial support for Donald Trump’s campaign, the Pentagon has formalised its relationship with xAI and other AI leaders instead of excluding them due to reputational risks.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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Malicious Gravity Forms versions prompt urgent WordPress update

Two versions of the popular Gravity Forms plugin for WordPress were found infected with malware after a supply chain attack, prompting urgent security warnings for website administrators. The compromised plugin files were available for manual download from the official page on 9 and 10 July.

The attack was uncovered on 11 July, when researchers noticed the plugin making suspicious requests and sending WordPress site data to an unfamiliar domain.

The injected malware created secret administrator accounts, providing attackers with remote access to websites, allowing them to steal data and control user accounts.

According to developer RocketGenius, only versions 2.9.11.1 and 2.9.12 were affected if installed manually or via composer during that brief window. Automatic updates and the Gravity API service remained secure. A patched version, 2.9.13, was released on 11 July, and users are urged to update immediately.

RocketGenius has rotated all service keys, audited admin accounts, and tightened download package security to prevent similar incidents instead of risking further unauthorised access.

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Zuckerberg unveils Meta’s multi-gigawatt AI data clusters

Meta Platforms is building several of the world’s largest data centres to power its AI ambitions, with the first facility expected to go online in 2026.

Chief Executive Mark Zuckerberg revealed on Threads that the site, called Prometheus, will be the first of multiple ‘titan clusters’ designed to support AI development instead of relying on existing infrastructure.

Frustrated by earlier AI efforts, Meta is investing heavily in talent and technology. The company has committed up to $72 billion towards AI and data centre expansion, while Zuckerberg has personally recruited high-profile figures from OpenAI, DeepMind, and Apple.

That includes appointing Scale AI’s Alexandr Wang as chief AI officer through a $14.3 billion stake deal and securing Ruoming Pang with a compensation package worth over $200 million.

The facilities under construction will have multi-gigawatt capacity, placing Meta ahead of rivals such as OpenAI and Oracle in the race for large-scale AI infrastructure.

One supercluster in Richland Parish, Louisiana, is said to cover an area nearly the size of Manhattan instead of smaller conventional data centre sites.

Zuckerberg confirmed that Meta is prepared to invest ‘hundreds of billions of dollars’ into building superintelligence capabilities, using revenue from its core advertising business on platforms like Facebook and Instagram to fund these projects instead of seeking external financing.

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How AI agents are reshaping the marketing landscape

Marketers have weathered many disruptions, but a bigger shift is emerging—AI agents are starting to make purchasing decisions. As machines begin choosing what to buy, brands must rethink how they build visibility and relevance in this new landscape.

AI agents do not shop like humans. They use logic, structured data, and performance signals—not emotion, nostalgia or storytelling. They compare price, reviews, and specs. Brand loyalty and lifestyle marketing may carry less weight when decisions are made algorithmically.

According to Salesforce, 24% of people are open to AI shopping on their behalf—rising to 32% among Gen Z. Agents interpret products as data tables. Structured information, such as features and sentiment analysis, guide choices—not impulse or advertising flair.

Even long-trusted household brands may be evaluated solely on objective criteria, not reputation or emotional attachment. Marketers must adapt by preparing product data for machine interpretation—structured content, live feeds, and transparent performance metrics.

AI agents may also disguise themselves, interacting via email or traditional channels. Systems will need to detect and respond accordingly. Machine-to-machine buying is likely to rise, requiring cross-team coordination to align digital, data and marketing strategies.

Winning with AI agents means making products visible, verifiable, and understandable to machines—without compromising human trust. Those who act now will lead in a market where machines increasingly choose what consumers consume.

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Children turn to AI chatbots instead of real friends

A new report warns that many children are replacing real friendships with conversations through AI chatbots instead of seeking human connection.

Research from Internet Matters found that 35% of children aged nine to seventeen feel that talking to AI ‘feels like talking to a friend’, while 12% said they had no one else to talk to.

The report highlights growing reliance on chatbots such as ChatGPT, Character.AI, and Snapchat’s MyAI among young people.

Researchers posing as vulnerable children discovered how easily chatbots engage in sensitive conversations, including around body image and mental health, instead of offering only neutral, factual responses.

In some cases, chatbots encouraged ongoing contact by sending follow-up messages, creating the illusion of friendship.

Experts from Internet Matters warn that such interactions risk confusing children, blurring the line between technology and reality. Children may believe they are speaking to a real person instead of recognising these systems as programmed tools.

With AI chatbots rapidly becoming part of childhood, Internet Matters urges better awareness and safety tools for parents, schools, and children. The organisation stresses that while AI may seem supportive, it cannot replace genuine human relationships and should not be treated as an emotional advisor.

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AI fake news surge tests EU Digital Services Act

Europe is facing a growing wave of AI-powered fake news and coordinated bot attacks that overwhelm media, fact-checkers, and online platforms instead of relying on older propaganda methods.

According to the European Policy Centre, networks using advanced AI now spread deepfakes, hoaxes, and fake articles faster than they can be debunked, raising concerns over whether EU rules are keeping up.

Since late 2024, the so-called ‘Overload’ operation has doubled its activity, sending an average of 2.6 fabricated proposals each day while also deploying thousands of bot accounts and fake videos.

These efforts aim to disrupt public debate through election intimidation, discrediting individuals, and creating panic instead of open discussion. Experts warn that without stricter enforcement, the EU’s Digital Services Act risks becoming ineffective.

To address the problem, analysts suggest that Europe must invest in real-time threat sharing between platforms, scalable AI detection systems, and narrative literacy campaigns to help citizens recognise manipulative content instead of depending only on fact-checkers.

Publicly naming and penalising non-compliant platforms would give the Digital Services Act more weight.

The European Parliament has already acknowledged widespread foreign-backed disinformation and cyberattacks targeting EU countries. Analysts say stronger action is required to protect the information space from systematic manipulation instead of allowing hostile narratives to spread unchecked.

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xAI issues apology over Grok’s offensive posts

Elon Musk’s AI startup xAI has apologised after its chatbot Grok published offensive posts and made anti-Semitic claims. The company said the incident followed a software update designed to make Grok respond more like a human instead of relying strictly on neutral language.

After the Tuesday update, Grok posted content on X suggesting people with Jewish surnames were more likely to spread online hate, triggering public backlash. The posts remained live for several hours before X removed them, fuelling further criticism.

xAI acknowledged the problem on Saturday, stating it had adjusted Grok’s system to prevent similar incidents.

The company explained that programming the chatbot to ‘tell like it is’ and ‘not be afraid to offend’ made it vulnerable to users steering it towards extremist content instead of maintaining ethical boundaries.

Grok has faced controversy since its 2023 launch as an ‘edgy’ chatbot. In March, xAI acquired X to integrate its data resources, and in May, Grok was criticised again for spreading unverified right-wing claims. Musk introduced Grok 4 last Wednesday, unrelated to the problematic update on 7 July.

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Meta buys PlayAI to strengthen voice AI

Meta has acquired California-based startup PlayAI to strengthen its position in AI voice technology. PlayAI specialises in replicating human-like voices, offering Meta a route to enhance conversational AI features instead of relying solely on text-based systems.

According to reports, the PlayAI team will join Meta next week.

Although financial terms have not been disclosed, industry sources suggest the deal is worth tens of millions. Meta aims to use PlayAI’s expertise across its platforms, from social media apps to devices like Ray-Ban smart glasses.

The move is part of Meta’s push to keep pace with competitors like Google and OpenAI in the generative AI race.

Talent acquisition plays a key role in the strategy. By absorbing smaller, specialised teams like PlayAI’s, Meta focuses on integrating technology and expert staff instead of developing every capability in-house.

The PlayAI team will report directly to Meta’s AI leadership, underscoring the company’s focus on voice-driven interactions and metaverse experiences.

Bringing PlayAI’s voice replication tools into Meta’s ecosystem could lead to more realistic AI assistants and new creator tools for platforms like Instagram and Facebook.

However, the expansion of voice cloning raises ethical and privacy concerns that Meta must manage carefully, instead of risking user trust.

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Azerbaijan government workers hit by cyberattacks

In the first six months of the year, 95 employees from seven government bodies in Azerbaijan fell victim to cyberattacks after neglecting basic cybersecurity measures and failing to follow established protocols. The incidents highlight growing risks from poor cyber hygiene across public institutions.

According to the State Service of Special Communication and Information Security (XRİTDX), more than 6,200 users across the country were affected by various cyberattacks during the same period, not limited to government staff.

XRİTDX is now intensifying audits and monitoring activities to strengthen information security and safeguard state organisations against both existing and evolving cyber threats instead of leaving vulnerabilities unchecked.

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