US

X restricts Grok image editing after global backlash

Elon Musk’s X has limited the image editing functions of its Grok AI tool after criticism over the creation of sexualised images of real people.

The platform said technological safeguards have been introduced to block such content in regions where it is illegal, following growing concern from governments and regulators.

UK officials described the move as a positive step, although regulatory scrutiny remains ongoing.

Authorities are examining whether X complied with existing laws, while similar investigations have been launched in the US amid broader concerns over the misuse of AI-generated imagery.

International pressure has continued to build, with some countries banning Grok entirely instead of waiting for platform-led restrictions.

Policy experts have welcomed stronger controls but questioned how effectively X can identify real individuals and enforce its updated rules across different jurisdictions.

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TSMC expands global manufacturing as profits hit record

TSMC reported a strong fourth-quarter performance, posting a 35 percent rise in profit to a record level, supported by sustained demand for advanced chips.

The company forecast robust growth for 2026, citing continued customer interest and tight capacity, while highlighting expectations for a significant increase in revenue in the first quarter of the year.

The Taiwanese semiconductor manufacturer confirmed that capital spending reached US$40.9 billion in 2025, slightly above earlier guidance, and indicated further increases ahead, with investment potentially rising to as much as US$56 billion in 2026 and accelerating later in the decade.

Ongoing projects include additional manufacturing capacity in the US, expansion in Japan, and continued investment in Taiwan.

TSMC also signalled that more US facilities may be planned, following earlier commitments to large-scale investment in Arizona.

Developments come amid discussions between Taiwan and the US on trade and tariffs, as well as broader policy efforts in Washington to encourage domestic semiconductor production.

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Grok to be integrated into Pentagon networks as the US expands military AI strategy

The US Department of Defence plans to integrate Elon Musk’s AI tool Grok into Pentagon networks later in January, according to Defence Secretary Pete Hegseth.

The system is expected to operate across both classified and unclassified military environments as part of a broader push to expand AI capabilities.

Hegseth also outlined an AI acceleration strategy designed to increase experimentation, reduce administrative barriers and prioritise investment across defence technology.

An approach that aims to enhance access to data across federated IT systems, aligning with official views that military AI performance relies on data availability and interoperability.

The move follows earlier decisions by the Pentagon to adopt Google’s Gemini for an internal AI platform and to award large contracts to Anthropic, OpenAI, Google and xAI for agentic AI development.

Officials describe these efforts as part of a long-term strategy to strengthen US military competitiveness in AI.

Grok’s integration comes amid ongoing controversy, including criticism over generated imagery and previous incidents involving extremist and offensive content. Several governments and regulators have already taken action against the tool, adding scrutiny to its expanded role within defence systems.

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Concerns grow over planned EU-US biometrics deal

The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.

The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.

EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.

Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.

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Teen victim turns deepfake experience into education

A US teenager targeted by explicit deepfake images has helped create a new training course. The programme aims to support students, parents and school staff facing online abuse.

The course explains how AI tools are used to create sexualised fake images. It also outlines legal rights, reporting steps and available victim support resources.

Research shows deepfake abuse is spreading among teenagers, despite stronger laws. One in eight US teens know someone targeted by non-consensual fake images.

Developers say education remains critical as AI tools become easier to access. Schools are encouraged to adopt training to protect students and prevent harm.

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AI race shows diverging paths for China and the US

The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.

The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.

Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.

Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.

Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.

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Meta backs US nuclear projects for AI growth

A series of agreements has been announced by Meta to support nuclear energy projects in the US, aiming to secure up to 6.6 gigawatts of clean and reliable electricity for data centres and AI infrastructure by 2035. The company said the move supports grid stability while reinforcing domestic energy capacity.

The agreements include support for existing nuclear facilities operated by Vistra in Ohio and Pennsylvania, as well as commitments to advanced reactor developers TerraPower and Oklo.

Meta stated that the arrangements are intended to extend the operational life of current plants while accelerating the deployment of next-generation nuclear technologies.

According to Meta, the projects are expected to generate thousands of construction roles and hundreds of long-term operational jobs, while contributing to the firm’s power to regional electricity grids.

The company added that energy costs associated with its data centres are fully covered through corporate agreements, instead of being passed on to US consumers.

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Smartphone reliance grows amid uneven broadband access

Most Americans now use the internet daily and own smartphones, according to new Pew Research Center data. Around four in ten adults describe their internet use as almost constant.

Broadband access remains widespread, yet sharp income gaps persist across the US. Just over half of households earning under $30,000 subscribe, compared with almost all higher earners.

Smartphone ownership is nearly universal, even among older age groups. Many lower-income and younger adults increasingly rely on phones as their primary internet connection.

Researchers say digital inequality remains a defining challenge despite technological progress. Policymakers face pressure to address affordability, access, and long-term digital inclusion nationwide.

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ChatGPT reaches 40 million daily users for health advice

More than 40 million people worldwide now use ChatGPT daily for health-related advice, according to OpenAI.

Over 5 percent of all messages sent to the chatbot relate to healthcare, with three in five US adults reporting use in the past three months. Many interactions occur outside clinic hours, highlighting the demand for AI guidance in navigating complex medical systems.

Users primarily turn to AI to check symptoms, understand medical terms, and explore treatment options.

OpenAI emphasises that ChatGPT helps patients gain agency over their health, particularly in rural areas where hospitals and specialised services are scarce.

The technology also supports healthcare professionals by reducing administrative burdens and providing timely information.

Despite growing adoption, regulatory oversight remains limited. Some US states have attempted to regulate AI in healthcare, and lawsuits have emerged over cases where AI-generated advice has caused harm.

OpenAI argues that ChatGPT supplements rather than replaces medical services, helping patients interpret information, prepare for care, and navigate gaps in access.

Healthcare workers are also increasingly using AI. Surveys show that two in five US professionals, including nurses and pharmacists, use generative AI weekly to draft notes, summarise research, and streamline workflows.

OpenAI plans to release healthcare policy recommendations to guide the responsible adoption of AI in clinical settings.

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Social Security move to digital payments

The US Social Security Administration has ended the routine issuance of paper benefit cheques in favour of electronic payments after a 30 September federal deadline. Electronic methods such as direct deposit or prepaid cards are now standard for most beneficiaries.

US officials say the shift speeds up payment delivery and strengthens security since electronic payments are less likely to be lost or stolen than mailed cheques. The move also aims to help reduce federal costs and fraud risks.

A small number of recipients can still receive paper cheques if they qualify for an exemption by showing they lack access to banking services or digital payment systems. People must contact Treasury to request a waiver.

SSA urges beneficiaries to set up or confirm direct deposit details through their online account or use a prepaid card to avoid delays. Recipients without bank accounts are encouraged to enrol for secure electronic options.

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