The University of Cambridge is set to open a new department, The Bennett School of Public Policy, later this year, dedicated to exploring how AI can improve both business and public sector operations.
However, this marks the university’s first major new academic department in the 21st century, with research priorities focused on harnessing AI to address pressing policy challenges.
Professors from a wide range of disciplines, including economics, social sciences, and medical fields, will collaborate to investigate the potential benefits and risks of AI adoption across sectors.
The school’s leadership aims to foster a generation of ‘tech-savvy’ policymakers who can effectively manage AI’s role in society while promoting sustainable and inclusive growth.
In addition to investigating AI’s economic impact, researchers will work closely with the Civil Service to develop AI workflows and help local government leaders address geographical inequality.
With a focus on cross-disciplinary expertise, the Bennett School plans to train policymakers who can tackle the complex issues of today’s world.
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Chinese AI start-up DeepSeek has revealed that its theoretical profit margins could reach 545 percent, shedding light on the financial potential of its innovative approach to AI. The Hangzhou-based company said its V3 and R1 models’ cost-to-sales ratio during 24 hours in February highlighted the massive profitability of its AI services.
However, DeepSeek clarified that actual revenues are much lower, as many services remain free or discounted during off-peak hours, and the calculations exclude research and development costs. Despite the hypothetical nature of these margins, the disclosure comes as AI start-ups worldwide struggle to prove their business models can turn sustainable profits.
Giants like OpenAI and Anthropic experiment with various revenue streams — from subscriptions to licensing fees — while investors increasingly question how soon these companies can achieve lasting profitability. What makes DeepSeek stand out is its commitment to transparency and open-source innovation.
The company publicly shared insights into its infrastructure, explaining how it optimises server loads, reduces latency, and maximises data processing efficiency. This openness contrasts sharply with many US-based competitors’ secretive, proprietary strategies, signalling DeepSeek’s confidence in its long-term vision.
Why does it matter?
In an industry racing to build more powerful AI, DeepSeek’s willingness to share its methods and potential profitability sparks an important debate: Can a balance between innovation, openness, and sustainable revenue reshape the future of AI?
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Samsung has unveiled its latest Galaxy A-series lineup, introducing the Galaxy A56, A36, and A26, packed with new AI-powered features. One of the standout additions is the ‘awesome intelligence’ suite, which brings advanced image editing capabilities.
Among these features is Best Face, allowing users to swap facial expressions in group photos — similar to Google Pixel’s Best Take. These tools, first seen in the Galaxy S25, aim to simplify capturing and editing moments.
The Galaxy A56 has performance upgrades, including an Exynos 1580 chip and a larger vapour chamber for better cooling. It features a 6.7-inch full HD Plus display with a 120Hz refresh rate, a 50MP primary camera, a 12MP ultrawide sensor, and a 5MP macro lens. Priced at $499, the A56 is set to launch in the US later this year, while the A36 and A26 will hit shelves in late March, costing $399 and $299, respectively.
Buyers in the UK can get their hands on the new devices starting 19 March, with prices beginning at €299 for the Galaxy A26. The series also promises long-term value, offering up to six years of Android OS and security updates, plus IP67 dust and water resistance on the A26, making these phones a compelling choice for budget-conscious consumers looking for modern features.
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Chinese AI startup Zhipu AI has raised over 1 billion yuan ($137.22 million) in new funding, following a previous 3 billion yuan investment in December. The latest funding round comes amid growing competition in China’s AI sector, particularly with rival DeepSeek’s large language models, which claim to rival Western models at a lower cost.
Investors in the new round include the state-backed Hangzhou City Investment Group Industrial Fund and Shangcheng Capital. Zhipu AI plans to use the funds to enhance its GLM language model and expand its AI ecosystem, with a focus on businesses in Zhejiang province and the Yangtze River Delta region.
Founded in 2019, Zhipu AI has completed 16 funding rounds and is considered one of China’s leading AI startups. The company aims to release a range of new AI models, including foundation and multimodal models, as part of its open-source strategy. The funding comes as competitors like DeepSeek continue to disrupt the AI landscape with open-source models that challenge established platforms.
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Singapore‘s government is investigating a fraud case involving servers supplied by US companies, potentially containing Nvidia’s advanced chips. Three men, including a Chinese national, were charged last week in connection with the alleged illegal transfer of these AI chips from Singapore to Chinese firm DeepSeek. Singapore’s Home Affairs and Law Minister K Shanmugam confirmed that the servers were provided by Dell Technologies and Super Micro Computer to local firms before being sent to Malaysia.
Authorities are still unsure whether Malaysia was the final destination, but they are working with US officials to determine if the servers contained restricted US export-controlled items. The US is already investigating whether DeepSeek has used banned Nvidia chips, which could lead to violations of export laws. The case forms part of a broader probe into suspected smuggling activities linked to AI chips being moved from countries like Singapore to China.
Singapore, a key market for Nvidia, is also examining allegations that DeepSeek may have acquired thousands of advanced Nvidia chips illegally. However, DeepSeek has denied these claims, stating that it only used legally purchased chips, including the Nvidia H800 model. The investigation is ongoing, with Singapore continuing to cooperate with US authorities.
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Chinese smartphone maker Honor plans to invest $10 billion over the next five years to develop AI for its devices as it prepares for a public listing. CEO James Li revealed at the Mobile World Congress in Barcelona that the company aims to expand beyond smartphones into AI-powered PCs, tablets, and wearables.
Honor’s push into AI comes after completing a shareholder restructuring in December, bringing it closer to an initial public offering, though no timeline has been set. The announcement also aligns with a surge in AI investment in China, driven by the popularity of DeepSeek’s affordable language models.
While Honor’s market share in China slipped from second to fourth place last year, it has gained significant support from the Shenzhen government, including R&D funding and tax breaks. The company is also focusing on expanding internationally as it strengthens its AI capabilities.
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Senator Elizabeth Warren has called for tougher restrictions on Chinese technology, urging President Donald Trump’s nominee for a key trade role to reinforce AI chip controls.
In a letter to Jeffrey Kessler, the nominee for the Commerce Department’s Bureau of Industry and Security, Warren cited concerns over Chinese startup DeepSeek and its AI advancements. She argued for tighter enforcement of export restrictions and measures to curb chip smuggling.
Chinese firms like Huawei and SMIC, already on the US Entity List, continue to acquire American technology through front companies, Warren warned.
She pressed Kessler to address this issue and determine whether these companies violated US laws by producing advanced chips using American technology. Strengthened controls on ChangXin Memory Technology and high-powered inference chips, such as Nvidia’s H20, were also among her recommendations.
Kessler, who previously served as the Commerce Department’s top trade enforcement official, acknowledged China‘s progress in cutting-edge technology. His confirmation hearing before the Senate Banking Committee is set to examine how the US can maintain its technological edge while enforcing export restrictions effectively.
The debate comes amid ongoing tensions over AI and semiconductor technology between Washington and Beijing.
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OpenAI has rolled out a research preview of its latest GPT-4.5 model for Pro users, with plans to extend access to a wider audience over the next few weeks. The upgraded model boasts better pattern recognition, enhanced emotional intelligence, and an improved ability to generate creative insights.
The new version of GPT-4.5 also addresses a common issue with AI models, ‘hallucinations’ or the generation of false information, reducing its rate to 37.1%, compared to previous models’ higher rates. OpenAI’s CEO Sam Altman acknowledged some logistical challenges in the rollout, including GPU shortages, but assured users that more resources would be added soon.
While GPT-4.5 can handle tasks such as coding and content creation, it currently lacks some advanced features, such as voice and video capabilities. As OpenAI expands its offering, the company continues to refine the model to meet the growing demand for more powerful AI tools.
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A new report from CrowdStrike, the US-based cybersecurity company, examines the evolution of cyber threats in 2024, identifying shifts toward malware-free intrusions, artificial intelligence-assisted social engineering, and cloud-related vulnerabilities.
The researchers highlight an increase in cyber activity attributed to state-linked actors, a rise in identity-based attacks, and the growing role of generative AI in cyber operations. According to the report, 79% of cyber intrusions in 2024 did not involve traditional malware, compared to 40% in 2019. Attackers increasingly relied on remote management and monitoring tools to evade security measures. The average breakout time—the time taken for an attacker to move laterally within a compromised network—decreased to 48 minutes, with some intrusions occurring in under one minute.
The report also highlights an increased reliance on exploiting vulnerabilities, particularly for initial access. More than 52% of vulnerabilities observed in 2024 were related to gaining an initial foothold in a system, underscoring the importance of securing entry points. Attackers increasingly leveraged chained vulnerability exploits—where multiple flaws are exploited in succession—to enhance their chances of success.
Cloud security incidents also saw an increase, with valid account abuse accounting for 35% of cloud-related intrusions. Attackers focused on services such as Microsoft 365 and SharePoint, as well as enterprise APIs, to gain unauthorized access and extract data. The report emphasizes that more than half of observed vulnerabilities in 2024 were related to initial access, with an increase in attacks using chained vulnerability exploits.
Generative AI played a growing role in cyber operations, including phishing, deepfake-based social engineering, and automated disinformation campaigns. The report cites activity from groups leveraging AI-powered tactics, such as the use of fake job interviews to infiltrate technology firms.
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Chinese technology startups are scrambling for fresh funding to capitalise on the growing excitement around AI, fueled by DeepSeek‘s AI breakthrough and President Xi Jinping’s recent support for private enterprises. Companies such as AI-powered optics startup Rid Vision, brain-computer interface firm AI CARE Medical, and robotics maker Shanghai Qingbao Engine Robotics are among those seeking new onshore investments, according to venture capitalist Andrew Qian.
The surge in investment interest comes after a long period of stagnation in China‘s venture capital sector. New Access Capital, which has invested in several AI startups, noted that many businesses are now attracting both cooperation discussions and investment offers. The DeepSeek case has highlighted the rise of innovative Chinese tech firms, moving away from previous trends of copycat startups, and offering hope for a revitalised venture capital environment.
Despite the growing investor enthusiasm, challenges remain. The strict regulatory scrutiny of initial public offerings (IPOs) in China, coupled with heightened tensions between China and the US, complicate the prospects for exit strategies. Venture capital firms are particularly focused on AI-related businesses, with several companies in sectors like AI image generation and medical tech securing significant funding in recent weeks.
However, the overall fundraising environment remains difficult. Data shows a sharp decline in venture capital investments since 2021, and while investor sentiment has improved post-DeepSeek, concerns over the regulatory landscape and geopolitical tensions persist. Some analysts remain cautious about the near-term outlook for IPOs, especially for offshore listings.
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