The United States Department of Justice is investigating Super Micro Computer, according to a Wall Street Journal report citing sources familiar with the matter. Following the news, shares of the AI server maker fell by about 5%.
Earlier in the month, Super Micro had denied allegations made by short-seller Hindenburg Research, which accused the company of ‘accounting manipulation’ and cited issues like undisclosed related-party transactions and failure to comply with export controls.
Hindenburg revealed its short position in Super Micro in August, prompting a further examination of the company’s financial practices. Super Micro has dismissed the report as containing ‘false or inaccurate statements.’ The server maker did not immediately respond to requests for comment from Reuters.
Three Iranian nationals have been indicted in the US for their alleged involvement in a hacking campaign targeting former President Donald Trump’s 2020 campaign. The US Justice Department unsealed charges against Seyyed Ali Aghamiri, Yasar Balaghi, and Masoud Jalili, who are believed to be affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC). The three individuals, based in Iran, face charges including material support for terrorism, computer fraud, wire fraud, and identity theft.
Though no evidence suggests the stolen data was used, Iran’s intent to influence the US election was highlighted. The State Department has issued a $10 million reward for information leading to the capture of Aghamiri, Balaghi, and Jalili. According to the indictment, the hackers impersonated government officials and used spear-phishing tactics to infiltrate systems and steal sensitive information. Their motives, beyond general geopolitical disruption, reportedly included avenging the death of Iranian military commander Qasem Soleimani, who was killed in a US strike in January 2020.
The US and UK governments issued indictments alongside sanctions and alerts, highlighting ongoing cybersecurity threats posed by the IRGC. Both countries’ cybersecurity agencies jointly released a 14-page advisory detailing recent cyber activities linked to the IRGC, cautioning against tactics described in the indictment and additional tools used to target presidential campaigns, senior government officials, think tank leaders, journalists, activists, and lobbyists. In addition, John Hultquist from Google’s Threat Intelligence Group stated that Iran controls ‘multiple contractors’ responsible for some of the most aggressive cyber operations in the Middle East, Europe, and the US.
Spotify faced a three-hour outage, disrupting service for over 40,000 users in the US. Users reported problems with playlists, random stops in music, and being unable to stream beyond recently played songs. By the afternoon, fewer than 600 users continued to experience issues.
Downdetector, a site that tracks outages, recorded the disruption, while Spotify reassured users on social media that services were returning to normal. However, the company did not comment on the cause of the outage when contacted by Reuters.
We’re aware of some issues right now with the app and our web page, and are checking them out!
Despite this incident, Spotify’s subscriber base remains strong. In the second quarter, the number of paying subscribers rose to 246 million.
The temporary outage in the US was an inconvenience for many, but Spotify quickly moved to resolve the issue. Most users saw their services restored within a few hours, ensuring minimal disruption overall.
A federal judge has scaled down a privacy lawsuit against Apple, which alleged the company collected personal data from iPhone, iPad, and Apple Watch users without permission. The lawsuit targets Apple’s apps, including the App Store, Apple Music, and Apple TV. US District Judge Edward Davila dismissed most claims involving the “Allow Apps to Request to Track” setting, clarifying that it only governs data collection by third-party apps and websites, not Apple’s in-house apps.
Despite dismissing many claims, the judge allowed some to proceed related to Apple’s ‘Share [Device] Analytics’ setting. The plaintiffs claim that Apple continued collecting data even after users disabled the setting, despite promises that it would stop data sharing. Judge Davila agreed, noting that users could reasonably assume they had withdrawn consent based on Apple’s own disclosure that disabling the option would prevent data collection.
This lawsuit is part of a broader trend of legal actions against major tech companies like Google and Meta, accusing them of gathering user data without proper consent. Neither Apple nor the plaintiffs’ lawyers have responded to requests for comment on the case as it unfolds.
A British man has been arrested and charged by US authorities for hacking into the computers of five companies to illegally obtain information about their expected earnings, resulting in profits of $3.75 million from insider trading. Robert Westbrook, 39, from London, faces multiple charges, including securities fraud, wire fraud, and five counts of computer fraud, with the US Department of Justice seeking his extradition.
Westbrook was arrested this week in the UK and is facing additional civil charges from the US Securities and Exchange Commission (SEC). Although the companies involved were not explicitly named in court documents, financial details indicate that they could include Tupperware, Tutor Perini, Guidewire Software, Murphy USA, and Lumentum Holdings.
Authorities allege that Westbrook was involved in a “hack-to-trade” scheme, gaining access to executives’ email accounts between January 2019 and May 2020. He allegedly utilised nonpublic information to trade stocks and options before at least 14 earnings announcements and even set up automatic forwarding of emails from these executives to his accounts.
Jorge Tenreiro, acting chief of the SEC’s crypto assets and cyber unit, characterised Westbrook’s actions as sophisticated international hacking, involving the use of anonymous email accounts, VPNs, and bitcoin to conceal his activities. Each charge of securities and wire fraud carries a maximum penalty of 20 years in prison, while the computer fraud charges could lead to up to five years each.
Semiconductor manufacturers are set to pour a record $400 billion into chip-making equipment from 2025 to 2027, as the global industry association SEMI estimates. This surge is being driven by China, South Korea, and Taiwan, who are ramping up their production capacity in response to US-China trade tensions and soaring demand for AI and memory chips. Investment is expected to jump by 24%, reaching $123 billion in 2025 alone.
China is projected to lead the investment race, committing over $100 billion in the next three years as it strives for self-sufficiency in semiconductor production. South Korea, home to major memory chip producers Samsung and SK Hynix, is expected to spend $81 billion, while Taiwan, led by chipmaking giant TSMC, plans to invest $75 billion. Other regions, including the Americas, Japan, and Europe, are also ramping up investments, driven by government policies aimed at securing semiconductor supply chains.
Leading chip-making equipment suppliers, such as ASML, Applied Materials, KLA Corp, Lam Research, and Tokyo Electron, are set to benefit significantly from this investment boom. By 2027, spending on semiconductor equipment in the US, Japan, and Europe is expected to more than double from 2024 levels as countries push to stabilise semiconductor supply chains for emerging technologies.
Uber Technologies and WeRide announced a partnership on Wednesday to integrate the Chinese self-driving technology firm’s vehicles into Uber’s rideshare platform, beginning in the UAE. This collaboration represents WeRide’s first foray with a global ride-hailing service. This allows Uber to expand its reach beyond China while continuing to incorporate robotaxis into its offerings. Earlier this month, Uber also expanded its partnership with Waymo to roll out robotaxis in Austin and Atlanta, and in August, it teamed up with General Motors’ Cruise to feature autonomous vehicles on its platform beginning next year.
The WeRide partnership is scheduled to launch in Abu Dhabi later this year, following the company’s acquisition of the UAE’s first and only national license for self-driving vehicles, which allows it to test and operate robotaxis on public roads across the country. WeRide had aimed to list its shares in the US, targeting a valuation of up to $5 billion; however, its initial public offering has been postponed as the firm completes the necessary documentation.
Meanwhile, the Biden administration recently proposed restrictions preventing Chinese automakers from testing self-driving cars on US roads, extending to vehicle software and hardware produced by other foreign adversaries, including Russia.
The US Federal Trade Commission (FTC) has cracked down on five companies for deceptive use of AI. Three cases involved businesses falsely claiming to help consumers generate passive income through e-commerce. The FTC also reached settlements with DoNotPay and Rytr, two companies accused of misleading consumers with their AI tools. DoNotPay, which marketed automated legal services, agreed to a $193,000 settlement and will notify customers of the tool’s limitations, while Rytr faced criticism for allowing users to create fake product reviews through its AI writing feature.
FTC Chair Lina M. Khan stressed that AI tools must comply with existing laws, making it clear that deceiving or misleading consumers with AI is illegal. Despite not admitting wrongdoing, both Rytr and DoNotPay settled with the FTC. Rytr agreed to discontinue its review-generating feature, used to create fake product reviews, while DoNotPay accepted a settlement without admitting fault.
The FTC’s actions have sparked internal debate on how to regulate AI. While all five commissioners supported cracking down on false AI claims, the two Republican commissioners raised concerns about the agency’s authority in the Rytr case. This division highlights differing views within the FTC on the scope of its regulatory powers when addressing AI-related issues.
The US Commerce Department has finalised a $123 million grant for Polar Semiconductor to expand its Minnesota facility, a development anticipated to nearly double the company’s production capacity for power and sensor chips. This grant marks the first award from the Biden administration’s $52.7 billion semiconductor manufacturing and research subsidy program, designed to strengthen domestic chip production. Commerce Secretary Gina Raimondo emphasised that this funding will help establish a new US-owned foundry, raising Polar’s output from about 20,000 wafers to 40,000 per month, serving key industries such as aerospace, automotive, and defence.
The state of Minnesota is contributing $75 million to Polar Semiconductor’s $525 million expansion project. Polar is primarily owned by Sanken Electric, holding a 70% stake, while Allegro MicroSystems owns the remaining 30%. Recently, the company secured investment commitments totalling $175 million from Niobrara Capital and Prysm Capital. Meanwhile, the US Commerce Department has allocated over $35 billion for various semiconductor initiatives, including substantial grants to major companies like Samsung, Intel, TSMC, and Micron Technology.
White House economic adviser Lael Brainard announced that more funding awards will be finalised shortly, with Commerce Secretary Gina Raimondo confirming additional financial support for companies expected in the coming weeks. This initiative is part of the 2022 chips law, which aims to boost US competitiveness against China and significantly enhance domestic chip production. Additionally, Congress has recently approved legislation designed to streamline federal permitting processes for semiconductor manufacturing projects, facilitating quicker and more efficient development in the industry.
Vietnam’s President To Lam met with leading US firms in New York, pledging to strengthen the domestic tech sector. Discussions focused on boosting Vietnam’s digital transformation and enhancing strategic industries like AI and semiconductors. The Vietnamese president also held talks with major companies including Apple, Blackstone, and Warburg Pincus.
Meta, which already has millions of Facebook users in Vietnam, committed to increasing its investment in the country. Plans include expanding virtual reality production in Vietnam, signalling a stronger presence in the nation’s tech landscape. Meta’s Nick Clegg expressed confidence in Vietnam’s digital potential.
During Lam’s visit, cooperation agreements with US firms were signed. These agreements cover various sectors such as energy, artificial intelligence, and a new data centre initiative, further solidifying ties between the two nations.
The Vietnamese government emphasised that digital transformation will be key to future economic growth. Lam reaffirmed Vietnam’s commitment to advancing the tech economy and fostering innovation through international collaboration.
