US

Huang says Chinese AI science is world class

NVIDIA’s CEO has praised China’s open-source AI work during a high-profile visit to Beijing, spotlighting DeepSeek as an example of world-class science and engineering.

At the International Supply Chain Expo, Huang highlighted the global value of Chinese contributions to AI research.

He told former Alibaba executive Wang Jian that Chinese researchers publish more AI papers than any other nation, calling their output A-plus in both science and engineering. Huang named DeepSeek, Alibaba, Tencent, MiniMax, and Baidu’s Ernie Bot globally significant AI leaders.

The visit coincides with a policy shift by the US government allowing Nvidia to resume H20 chip exports to China. Huang confirmed that export licenses are expected soon, potentially unlocking billions in lost revenue.

Industry watchers see this development as pivotal for Nvidia, which had paused shipments under earlier restrictions. The chipmaker’s renewed access to China’s semiconductor market could reshape global AI infrastructure over the next year.

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US moves to block Chinese tech in undersea Internet cables

The United States is moving to strengthen the security of its digital infrastructure by proposing new regulations on undersea internet cables.

The Federal Communications Commission (FCC) plans to ban the connection of submarine cables to the US if they involve Chinese technology or equipment. It also aims to prohibit companies that are flagged as national security threats, including Huawei and ZTE.

Additionally, the FCC will seek public comments on further measures to protect undersea cable infrastructure, as part of an ongoing review of regulations overseeing the global network of submarine cables that carry 99% of international internet traffic.

These policy moves reflect US concerns over China’s role in internet infrastructure and potential espionage. Since 2020, regulators have blocked multiple cable projects linking the US to Hong Kong due to security risks.

Recent incidents, such as suspected sabotage in the Baltic Sea, Taiwan’s accusations of cable cutting by Chinese vessels, and Houthi-linked damage to cables in the Red Sea, highlight the growing vulnerability of global communications networks.

These steps guard against foreign adversary ownership, cyber threats, and physical sabotage.

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Salt Typhoon compromises critical US infrastructure

A US state’s Army National Guard network was thoroughly compromised by the Chinese cyberespionage group Salt Typhoon from March to December 2024. According to a confidential federal memo, hackers extracted highly sensitive information, including administrator credentials, network maps, and interstate communication data, raising alarm over data leaked across all 50 states and four US territories.

Security analysts caution that the breach goes beyond intelligence gathering. With access to National Guard systems, integral to state-level threat response and civilian support, the group is poised to exploit vulnerabilities in critical infrastructure, particularly during crises or conflict.

Salt Typhoon, linked to China’s Ministry of State Security, has a track record of penetrating telecommunications, energy grids, transport systems, and water utilities. Often leveraging known vulnerabilities in Cisco and Palo Alto equipment, the group has exfiltrated over 1,400 network configuration files from more than 70 US critical infrastructure providers.

Federal agencies, including DHS and CISA, are sounding the alarm: this deep infiltration presents a serious national security threat and indicates a strategic shift in cyber warfare. Navigating Sun Typhoon’s persistent access through local and federal networks is now a top priority in defending the critical systems on which communities rely.

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Netherlands urges EU to reduce reliance on US cloud providers

The Dutch government has released a policy paper urging the European Union to take coordinated action to reduce its heavy dependence on non-EU cloud providers, especially from the United States.

The document recommends that the European Commission introduce a clearer and harmonized approach at the EU level.

Key proposals include creating a consistent definition of ‘cloud sovereignty,’ adjusting public procurement rules to allow prioritizing sovereignty, promoting open-source technologies and standards, setting up a common European decision-making framework for cloud choices, and ensuring sufficient funding to support the development and deployment of sovereign cloud technologies.

These measures aim to strengthen the EU’s digital independence and protect public administrations from external political or economic pressures.

A recent investigation found that over 20,000 Dutch institutions rely heavily on US cloud services, with Microsoft holding about 60% of the market.

The Dutch government warned this dependence risks national security and fundamental rights. Concerns escalated after Microsoft blocked the ICC prosecutor’s email following US sanctions, sparking political outrage.

In response, the Dutch parliament called for reducing reliance on American providers and urged the government to develop a roadmap to protect digital infrastructure and regain control.

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AI system screens diabetic eye disease with near-perfect accuracy

A new AI programme is showing remarkable accuracy in detecting diabetic retinopathy, a leading cause of preventable blindness. The SMART system, short for Simple Mobile AI Retina Tracker, can scan retinal images using even basic smartphones and has achieved over 99% accuracy.

Researchers at the University of Texas Health Sciences Center in the US trained the AI using thousands of retinal images from diverse populations across six continents. The system processes images in under a second and can distinguish diabetic retinopathy from other eye diseases.

Experts say the technology could dramatically expand access to eye screenings, particularly in areas lacking specialist care. By integrating the tool into regular check-ups, both primary care providers and ophthalmologists could streamline early diagnosis.

Researchers highlighted that the tool’s mobile accessibility allows for global reach, potentially screening billions. The findings were presented at the annual meeting of The Endocrine Society, though they have yet to be peer-reviewed.

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Tech giants work to avert an AI‑driven energy crisis

The AI boom is triggering alarms in the energy sector, with data centres expected to consume 3% of the world’s electricity by 2030, double today’s share. This projection has spurred tech firms to pursue aggressive efficiency strategies.

Control systems powered by AI regulate cooling more precisely, while liquid cooling systems replace inefficient air-based approaches. Cutting-edge chips and more innovative software have already yielded energy savings of 20–30% per workflow.

Infrastructure improvements mean data-centre support systems now consume just 10% of the energy that powering the servers does. Despite these advances, the total energy demand continues to rise, prompting investments in technology upgrades and low-carbon power sources.

A global race is underway as US and Chinese companies push for increasingly efficient AI chips. Still, experts warn that overall consumption will grow, so efficiency alone won’t be enough. Broad energy planning and sustainable strategies are critical to avoid a looming power crunch as AI proliferates.

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China deploys new malware tool for border phone searches

Chinese authorities reportedly use a powerful new malware tool called Massistant to extract data from seized Android phones. Developed by Xiamen Meiya Pico, the tool enables police to access messages, photos, locations, and app data once they have physical access to a device.

Cybersecurity firm Lookout revealed that Massistant operates via a desktop-connected tower, requiring unlocked devices but no advanced hacking techniques. Researchers said affected users include Chinese citizens and international travellers whose phones may be searched at borders.

The malware leaves traces on compromised phones, allowing for post-infection removal, but authorities already have the data by then. Forums in China have shown increasing user complaints about malware following police interactions.

Massistant is seen as the successor to an older tool, MSSocket, with Meiya Pico now controlling 40% of China’s digital forensics market. They previously sanctioned the firm for its surveillance tech links to the Chinese government’s use.

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Thinking Machines Lab raises $2bn to build safer AI

Thinking Machines Lab, an AI startup founded earlier this year by former OpenAI executive Mira Murati, has raised $2 billion in new funding. The round, which values the company at $12 billion, was led by Andreessen Horowitz and backed by Nvidia, Cisco, AMD, and others.

The company aims to develop safer and more reliable AI systems by focusing on how people naturally interact with the world, including speech and vision. Its first product, due in the coming months, will offer open-source components designed to support researchers and startups.

At launch, nearly two-thirds of the team had previously worked at OpenAI, underscoring the company’s ambition to lead in the field of frontier AI. Murati said the startup plans to make its science publicly available to support understanding and transparency.

The investment comes amid a surge in AI-related funding, which accounted for over 64% of all US startup deal value in the first half of 2025. Growing interest in generative and multimodal AI continues to attract major capital despite wider concerns over tech sector spending.

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Military-trained hacker brought down in telecom data theft

A former US Army Private admitted in court to a sweeping cybercrime operation targeting major telecom providers AT&T and Verizon between April 2023 and December 2024.

Operating as ‘kiberphant0m,’ he infiltrated at least ten corporate networks, stealing login credentials and sensitive call logs, including those of senior officials.

Prosecutors revealed a sophisticated scheme: the hacker used brute‑force SSH attacks, coordinated with online accomplices via Telegram, and attempted extortion valued at over US$1 million. Stolen call records were posted and sold on dark‑web platforms such as BreachForums.

Wagenius pleaded guilty to charges including wire fraud conspiracy, computer extortion, and aggravated identity theft. He faces a combined sentence of up to 27 years, with his sentencing hearing scheduled for 6 October 2025.

Security analysts note this case highlights the increasing threat of insiders exploiting privileged access and illustrates how even service‑level employees can orchestrate wide‑scale cyber intrusions and extortion campaigns.

It also underscores the strategic role of public-private coordination in dismantling online illicit economies.

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Europe’s quantum ambitions meet US private power and China’s state drive

Quantum computing could fundamentally reshape technology, using quantum bits (qubits) instead of classical bits. Qubits allow complex calculations beyond classical computing, transforming sectors from pharmaceuticals to defence.

Europe is investing billions in quantum technology, emphasising technological sovereignty. Yet, it competes fiercely with the United States, which enjoys substantial private investment, and China, powered by significant state-backed funding.

The UK began quantum initiatives early, launching the National Quantum Programme 2014. It recently pledged £2.5 billion more, supporting start-ups like Orca Computing and Universal Quantum, alongside nations like Canada, Israel, and Japan.

Europe accounted for eight of the nineteen quantum start-ups established globally in 2024, including IQM Quantum Computers and Pasqal. Despite Europe’s scientific strengths, it only captured 5% of global quantum investments, versus 50% for the US.

The European Commission aims to strengthen quantum capabilities by funding six chip factories and a continent-wide Quantum Skills Academy. However, attracting sufficient private investment remains a significant challenge.

The US quantum industry thrives, driven by giants such as IBM, Google, Microsoft, IonQ, Rigetti, and D-Wave Quantum. Recent breakthroughs include Microsoft’s topological qubit and Google’s Willow quantum chip.

D-Wave Quantum has demonstrated real-world quantum advantages, solving complex optimisation problems in minutes. Its technology is now used commercially in logistics, traffic management, and supply chains.

China, meanwhile, leads in state-driven quantum funding, investing $15 billion directly and managing a $138 billion tech venture fund. By contrast, US federal investment totals about $6 billion, underscoring China’s aggressive approach.

Global investment in quantum start-ups reached $1.25 billion in Q1 2025 alone, reflecting a shift towards practical applications. By 2040, the quantum market is projected to reach $173 billion, influencing global economics and geopolitics.

Quantum computing raises geopolitical concerns, prompting democratic nations to coordinate through bodies like the OECD and G7. Interoperability, trust, and secure infrastructure have become essential strategic considerations.

Europe’s quantum ambitions require sustained investment, standard-setting leadership, and robust supply chains. Its long-term technological independence hinges on moving swiftly beyond initial funding towards genuine strategic autonomy.

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