Google has introduced a new version of its Gemini AI platform tailored specifically for US government use, called Gemini for Government. The platform combines features such as image generation, enterprise search, and AI agent development, with compliance to standards like Sec4 and FedRAMP.
Gemini includes pre-built AI agents for research and idea generation, while also offering tools to create custom agents. US government customers will pay $0.50 per year for basic access, undercutting rivals OpenAI and Anthropic, who each launched $1 government-focused AI packages earlier this year.
Google emphasised security, privacy, and automation in its pitch, positioning the product as an all-in-one solution for public sector institutions. The launch follows the Trump administration’s AI Action Plan, which seeks to promote AI growth.
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US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.
The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.
US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.
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Citi has expanded its digital client platform, CitiDirect Commercial Banking, with new AI capabilities to improve customer service and security.
The platform now supports over half of Citi’s global commercial banking client base and handles around 2.3 million sessions.
AI features assist in fraud detection, automate customer queries, and provide real-time onboarding updates and guidance.
KYC renewals have been simplified through automated alerts and pre-filled forms, cutting effort and processing time for clients.
Live in markets including the UK, US, India, and others, the platform has received positive feedback from over 10,000 users. Citi says the enhancements are part of a broader effort to make mid-sized corporate banking faster, more innovative, and more efficient.
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Honda has entered a multiyear partnership with US-based startup Helm.ai to enhance self-driving systems in its vehicles.
The collaboration focuses on developing advanced driver assistance for Honda’s mass market range, with a target launch set for 2027.
Helm.ai, backed by over $100 million in funding, specialises in AI camera-based perception software and simulation technologies.
Honda has held an equity stake in the firm since 2021, having invested at least $30 million to support early-stage development.
The move places Honda among major global carmakers aiming to deliver partial automation on highways and regular roads. Existing systems like GM’s SuperCruise and Tesla’s Autopilot have already pushed ahead in the driver assistance space.
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OpenAI chief Sam Altman has warned that the US may be underestimating China’s rapid advancement in AI.
Speaking to CNBC, Altman explained that China’s use of open-source models and its manufacturing capacity may allow it to move faster in some areas of development.
He questioned the effectiveness of export controls, noting that chip restrictions may not be enough to curb long-term innovation. Chinese firms like DeepSeek and MoonshotAI are gaining traction with open-weight models that rival US offerings in cost and capability.
Altman’s comments echo concerns voiced earlier by Nvidia’s CEO, who said firms like Huawei continue to grow despite restrictions.
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Japanese technology giant SoftBank has announced plans to buy a $2 billion stake in Intel, signalling a stronger push into the American semiconductor industry.
The investment comes as Washington debates greater government involvement in the sector, with reports suggesting President Donald Trump is weighing a US government stake in the chipmaker.
SoftBank will purchase Intel’s common stock at $23 per share. Its chairman, Masayoshi Son, said semiconductors remain the backbone of every industry and expressed confidence that advanced chip manufacturing will expand in the US, with Intel playing a central role.
The move follows SoftBank’s increasing investments in the US, including its role in the $500 billion ‘Stargate’ AI project announced earlier this year.
Once a dominant force in Silicon Valley, Intel has struggled against rivals such as Nvidia and AMD. Under new CEO Lip-Bu Tan, the company is cutting 15% of its workforce and reducing costs to stabilise operations.
After a private meeting, Trump recently criticised Tan’s leadership but later softened his stance.
Shares in both companies slipped following the announcement, with SoftBank down 2.2% in Tokyo and Intel falling 3.7% in New York.
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The US government is reportedly considering acquiring a stake in Intel to support its domestic chip manufacturing plans. Talks began after Intel CEO Lip-Bu Tan met with Trump administration officials on 11 August, following calls for his resignation over alleged China ties.
President Trump has pushed for greater control over the semiconductor sector and recently criticised Tan, prompting political pressure on Intel’s board.
While Intel declined to comment on a possible deal, it stated its commitment to supporting US technology and manufacturing leadership.
The proposed stake would aid Intel’s delayed Ohio chip factory project and expand its US production capacity.
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Google has rolled out Flight Deals, a new AI‑powered tool for flexible, budget‑conscious travellers within Google Flights. It allows users to type natural‑language descriptions of their ideal trip, such as favourite activities or timeframe, and receive bargain flight suggestions in return.
Powered by Gemini, the feature parses conversational inputs and taps real‑time flight data from multiple airlines and agencies.
The tool identifies low fares and even proposes destinations users might not have considered, ranking options by percentage savings or lowest price.
Currently in beta, Flight Deals is available in the US, Canada, and India without special opt‑in. It is also accessible via the Google Flights menu.
Traditional Google Flights remains available, with a new option to exclude basic economy fares in the US and Canada.
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Law enforcement agencies in the United States and abroad have coordinated a raid to dismantle the BlackSuit ransomware operation, seizing servers and domains and approximately $1 million in cryptocurrency linked to ransom demands.
The action, led by the Department of Justice, Homeland Security Investigations, the Secret Service, the IRS and the FBI, involved cooperation with agencies across the UK, Germany, France, Canada, Ukraine, Ireland and Lithuania.
BlackSuit, a rebranded successor to the Royal ransomware gang and connected to the notorious Conti group, has been active since 2022. It has targeted over 450 US organisations across healthcare, government, manufacturing and education sectors, demanding more than $370 million in ransoms.
The crypto seized was traced back to a 2023 ransom payment of around 49.3 Bitcoin, valued at approximately $1.4 million. Investigators worked with cryptocurrency exchanges to freeze and recover roughly $1 million of those funds in early 2024.
At the Emkay Confluence in Mumbai, Chief Economic Adviser V. Anantha Nageswaran emphasised that while trade-related concerns remain significant, they must not obscure the urgent need for India to boost its AI and semiconductor sectors.
He pointed to AI’s transformative economic potential and strategic importance, warning that India must act decisively to remain competitive as the United States and China advance aggressively in these domains.
By focusing on energy transition, energy security, and enhanced collaboration across sectors, Nageswaran argued that India can strengthen its innovation capacity and technological self-reliance.
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