Sustainable development

Nvidia refutes chip backdoor allegations as China launches probe

Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.

The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.

The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.

China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.

In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.

Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.

The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.

Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.

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FBI warns public to avoid scanning QR codes on unsolicited packages

The FBI has issued a public warning about a rising scam involving QR codes placed on packages delivered to people who never ordered them.

According to the agency, these codes can lead recipients to malicious websites or prompt them to install harmful software, potentially exposing sensitive personal and financial data.

The scheme is a variation of the so-called brushing scam, in which online sellers send unordered items and use recipients’ names to post fake product reviews. In the new version, QR codes are added to the packaging, increasing the risk of fraud by directing users to deceptive websites.

While not as widespread as other fraud attempts, the FBI urges caution. The agency recommends avoiding QR codes from unknown sources, especially those attached to unrequested deliveries.

It also advised consumers to pay close attention to the web address that appears before tapping on any QR code link.

Authorities have noted broader misuse of QR codes, including cases where criminals place fake codes over legitimate ones in public spaces.

In one recent incident, scammers used QR stickers on parking meters in New York to redirect people to third-party payment pages requesting card details.

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Cybersecurity sector sees busy July for mergers

July witnessed a significant surge in cybersecurity mergers and acquisitions (M&A), spearheaded by Palo Alto Networks’ announcement of its definitive agreement to acquire identity security firm CyberArk for an estimated $25 billion.

The transaction, set to be the second-largest cybersecurity acquisition on record, signals Palo Alto’s strategic entry into identity security.

Beyond this significant deal, Palo Alto Networks also completed its purchase of AI security specialist Protect AI. The month saw widespread activity across the sector, including LevelBlue’s acquisition of Trustwave to create the industry’s largest pureplay managed security services provider.

Zurich Insurance Group, Signicat, Limerston Capital, Darktrace, Orange Cyberdefense, SecurityBridge, Commvault, and Axonius all announced or finalised strategic cybersecurity acquisitions.

The deals highlight a strong market focus on AI security, identity management, and expanding service capabilities across various regions.

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OpenAI pulls searchable chats from ChatGPT

OpenAI has removed a feature that allowed users to make their ChatGPT conversations publicly searchable, following backlash over accidental exposure of sensitive content.

Dane Stuckey, OpenAI’s CISO, confirmed the rollback on Thursday, describing it as a short-lived experiment meant to help users find helpful conversations. However, he acknowledged that the feature posed privacy risks.

‘Ultimately, we think this feature introduced too many opportunities for folks to accidentally share things they didn’t intend to,’ Stuckey wrote in a post on X. He added that OpenAI is working to remove any indexed content from search engines.

The move came swiftly after Fast Company and privacy advocate Luiza Jarovsky reported that some shared conversations were appearing in Google search results.

Jarovsky posted examples on X, noting that even though the chats were anonymised, users were unknowingly revealing personal experiences, including harassment and mental health struggles.

To activate the feature, users had to tick a box allowing their chat to be discoverable. While the process required active steps, critics warned that some users might opt in without fully understanding the consequences. Stuckey said the rollback will be complete by Friday morning.

The incident adds to growing concerns around AI and user privacy, particularly as conversational platforms like ChatGPT become more embedded in everyday life.

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UK universities urged to act fast on AI teaching

UK universities risk losing their competitive edge unless they adopt a clear, forward-looking approach to ΑΙ in teaching. Falling enrolments, limited funding, and outdated digital systems have exposed a lack of AI literacy across many institutions.

As AI skills become essential for today’s workforce, employers increasingly expect graduates to be confident users rather than passive observers.

Many universities continue relying on legacy technology rather than exploring the full potential of modern learning platforms. AI tools can enhance teaching by adapting to individual student needs and helping educators identify learning gaps.

However, few staff have received adequate training, and many universities lack the resources or structure to embed AI into day-to-day teaching effectively.

To close the growing gap between education and the workplace, universities must explore flexible short courses and microcredentials that develop workplace-ready skills.

Introducing ethical standards and data transparency from the start will ensure AI is used responsibly without weakening academic integrity.

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As Meta AI grows smarter on its own, critics warn of regulatory gaps

While OpenAI’s ChatGPT and Google’s Gemini dominate headlines, Meta’s AI is making quieter, but arguably more unsettling, progress. According to CEO Mark Zuckerberg, Meta’s AI is advancing rapidly and, crucially, learning to improve without external input.

In a blog post titled ‘Personal Superintelligence’, Zuckerberg claimed that Meta AI is becoming increasingly powerful through self-directed development. While he described current gains as modest, he emphasised that the trend is both real and significant.

Zuckerberg framed this as part of a broader mission to build AI that acts as a ‘personal superintelligence’, a tool that empowers individuals and becomes widely accessible. However, critics argue this narrative masks a deeper concern: AI systems that can evolve autonomously, outside human guidance or scrutiny.

The concept of self-improving AI is not new. Researchers have previously built systems capable of learning from other models or user interactions. What’s different now is the speed, scale and opacity of these developments, particularly within big tech companies operating with minimal public oversight.

The progress comes amid weak regulation. While governments like the Biden administration have issued AI action plans, experts say they lack the strength to keep up. Meanwhile, AI is rapidly spreading across everyday services, from healthcare and education to biometric verification.

Recent examples include Google’s behavioural age-estimation tools for teens, illustrating how AI is already making high-stakes decisions. As AI systems become more capable, questions arise: How much data will they access? Who controls them? And can the public meaningfully influence their design?

Zuckerberg struck an optimistic tone, framing Meta’s AI as democratic and empowering. However, that may obscure the risks of AI outpacing oversight, as some tech leaders warn of existential threats while others focus on commercial gains.

The lack of transparency worsens the problem. If Meta’s AI is already showing signs of self-improvement, are similar developments happening in other frontier models, such as GPT or Gemini? Without independent oversight, the public has no clear way to know—and even less ability to intervene.

Until enforceable global regulations are in place, society is left to trust that private firms will self-regulate, even as they compete in a high-stakes race for dominance. That’s a risky gamble when the technology itself is changing faster than we can respond.

As Meta AI evolves with little fanfare, the silence may be more ominous than reassuring. AI’s future may arrive before we are prepared to manage its consequences, and by then, it might be too late to shape it on our terms.

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Amazon reports $18.2B profit boost as AI strategy takes off

Amazon has reported a 35% increase in quarterly profit, driven by rapid growth in its AI-powered services and cloud computing arm, Amazon Web Services (AWS).

The tech and e-commerce giant posted net income of $18.2 billion for Q2 2025, up from $13.5 billion a year earlier, while net sales rose 13% to $167.7 billion and exceeded analyst expectations.

CEO Andy Jassy attributed the strong performance to the company’s growing reliance on AI. ‘Our conviction that AI will change every customer experience is starting to play out,’ Jassy said, referencing Amazon’s AI-powered Alexa+ upgrades and new generative AI shopping tools.

AWS remained the company’s growth engine, with revenue climbing 17.5% to $30.9 billion and operating profit rising to $10.2 billion. The surge reflects the increasing demand for cloud infrastructure to support AI deployment across industries.

Despite the solid earnings, Amazon’s share price dipped more than 3% in after-hours trading. Analysts pointed to concerns over the company’s heavy capital spending, particularly its aggressive $100 billion AI investment strategy.

Free cash flow over the past year fell to $18.2 billion, down from $53 billion a year earlier. In Q2 alone, Amazon spent $32.2 billion on infrastructure, nearly double the previous year’s figure, much of it aimed at expanding its data centre and logistics capabilities to support AI workloads.

For the current quarter, Amazon projected revenue of $174.0 to $179.5 billion and operating income between $15.5 and $20.5 billion, slightly below investor hopes but still reflecting double-digit year-on-year growth.

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Gulf states reframe AI as the ‘new oil’ in post‑petroleum push

Gulf states are actively redefining national strategy by embracing AI as a cornerstone of post-oil modernization. Saudi Arabia, through its AI platform Humain, a subsidiary of the Public Investment Fund, has committed state resources to build core infrastructure and develop Arabic multimodal models. Concurrently, the UAE is funding its $100 billion MGX initiative and supporting projects like G42 and the Falcon open-source model from Abu Dhabi’s Technology Innovation Institute.

Economic rationale underpins this ambition. Observers suggest that broad AI adoption across GCC sectors, including energy, healthcare, aviation, and government services, could add as much as $150 billion to regional GDP. Yet, concerns persist around workforce limitations, regulatory maturation, and geopolitical complications tied to supply chain dependencies.

Interest in AI has also reached geopolitical levels. Gulf leaders have struck partnerships with US firms to secure advanced AI chips and infrastructure, as seen during high-profile agreements with Nvidia, AMD, and Amazon. Critics caution that hosting major data centres in geopolitically volatile zones introduces physical and strategic risks, especially in contexts of rising regional tension.

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EU AI Act oversight and fines begin this August

A new phase of the EU AI Act takes effect on 2 August, requiring member states to appoint oversight authorities and enforce penalties. While the legislation has been in force for a year, this marks the beginning of real scrutiny for AI providers across Europe.

Under the new provisions, countries must notify the European Commission of which market surveillance authorities will monitor compliance. But many are expected to miss the deadline. Experts warn that without well-resourced and competent regulators, the risks to rights and safety could grow.

The complexity is significant. Member states must align enforcement with other regulations, such as the GDPR and Digital Services Act, raising concerns regarding legal fragmentation and inconsistent application. Some fear a repeat of the patchy enforcement seen under data protection laws.

Companies that violate the EU AI Act could face fines of up to €35 million or 7% of global turnover. Smaller firms may face reduced penalties, but enforcement will vary by country.

Rules regarding general-purpose AI models such as ChatGPT, Gemini, and Grok also take effect. A voluntary Code of Practice introduced in July aims to guide compliance, but only some firms, such as Google and OpenAI, have agreed to sign. Meta has refused, arguing the rules stifle innovation.

Existing AI tools have until 2027 to comply fully, but any launched after 2 August must meet the new requirements immediately. With implementation now underway, the AI Act is shifting from legislation to enforcement.

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China says the US used a Microsoft server vulnerability to launch cyberattacks

China has accused the US of exploiting long-known vulnerabilities in Microsoft Exchange servers to launch cyberattacks on its defence sector, escalating tensions in the ongoing digital arms race between the two superpowers.

In a statement released on Friday, the Cyber Security Association of China claimed that US hackers compromised servers belonging to a significant Chinese military contractor, allegedly maintaining access for nearly a year.

The group did not disclose the name of the affected company.

The accusation is a sharp counterpunch to long-standing US claims that Beijing has orchestrated repeated cyber intrusions using the same Microsoft software. In 2021, Microsoft attributed a wide-scale hack affecting tens of thousands of Exchange servers to Chinese threat actors.

Two years later, another incident compromised the email accounts of senior US officials, prompting a federal review that criticised Microsoft for what it called a ‘cascade of security failures.’

Microsoft, based in Redmond, Washington, has recently disclosed additional intrusions by China-backed groups, including attacks exploiting flaws in its SharePoint platform.

Jon Clay of Trend Micro commented on the tit-for-tat cyber blame game: ‘Every nation carries out offensive cybersecurity operations. Given the latest SharePoint disclosure, this may be China’s way of retaliating publicly.’

Cybersecurity researchers note that Beijing has recently increased its use of public attribution as a geopolitical tactic. Ben Read of Wiz.io pointed out that China now uses cyber accusations to pressure Taiwan and shape global narratives around cybersecurity.

In April, China accused US National Security Agency (NSA) employees of hacking into the Asian Winter Games in Harbin, targeting personal data of athletes and organisers.

While the US frequently names alleged Chinese hackers and pursues legal action against them, China has historically avoided levelling public allegations against American intelligence agencies, until now.

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