US

SoftBank profit jumps on AI-driven rebound

SoftBank Group reported a 124% surge in quarterly profit, driven by booming AI demand that lifted chip sales and startup valuations. Net income reached ¥517.18 billion ($3.5 billion) in the fiscal fourth quarter, with the Vision Fund swinging back to a profit of ¥26.1 billion.

The results provide momentum for SoftBank’s ambitions to invest heavily in OpenAI and US-based AI infrastructure. Plans include a $30 billion stake in OpenAI and leading a $100 billion push into data centres under the Stargate project, which could eventually grow to $500 billion.

However, investor caution amid tariffs and tech protectionism has delayed detailed financing discussions. Despite these hurdles, SoftBank’s chip unit Arm Holdings has benefited from rising global AI investments, even as near-term forecasts remain mixed.

For the full year, SoftBank earned ¥1.15 trillion, reversing a significant loss from the previous year. The company continues to navigate risks tied to the volatile tech start-up market, especially as Vision Fund portfolio firms go public in India.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Masked cybercrime groups rise as attacks escalate worldwide

Cybercrime is thriving like never before, with hackers launching attacks ranging from absurd ransomware demands of $1 trillion to large-scale theft of personal data. Despite efforts from Microsoft, Google and even the FBI, these threat actors continue to outpace defences.

A new report by Group-IB has analysed over 1,500 cybercrime investigations to uncover the most active and dangerous hacker groups operating today.

Rather than fading away after arrests or infighting, many cybercriminal gangs are re-emerging stronger than before.

Group-IB’s May 2025 report highlights a troubling increase in key attack types across 2024 — phishing rose by 22%, ransomware leak sites by 10%, and APT (advanced persistent threat) attacks by 58%. The United States was the most affected country by ransomware activity.

At the top of the cybercriminal hierarchy now sits RansomHub, a ransomware-as-a-service group that emerged from the collapsed ALPHV group and has already overtaken long-established players in attack numbers.

Behind it is GoldFactory, which developed the first iOS banking trojan and exploited facial recognition data. Lazarus, a well-known North Korean state-linked group, also remains highly active under multiple aliases.

Meanwhile, politically driven hacktivist group NoName057(16) has been targeting European institutions using denial-of-service attacks.

With jurisdictional gaps allowing cybercriminals to flourish, these masked hackers remain a growing concern for global cybersecurity, especially as new threat actors emerge from the shadows instead of disappearing for good.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

New AI tool boosts delivery of children’s support plans

In the US, Stoke-on-Trent City Council has introduced AI to speed up the production of special educational needs reports amid growing demand. The new system is already showing results, with 83% of plans issued within the 20-week target in April, up from just 43% the previous year.

Traditionally compiled by individual case workers, Education, Health and Care Plans (EHCPs) are now being partially automated using AI trained to extract information from psychological and medical documents.

Despite the use of AI, a human case worker still reviews each report to check for accuracy and ensure the needs of the child are properly represented.

The aim is to improve both efficiency and the quality of reports by allowing staff to focus on substance rather than repetitive formatting tasks.

Councillors welcomed the move, highlighting the potential of technology to reduce backlogs and improve outcomes for families.

Alongside the AI rollout, the US council has hired more educational psychologists, reformed the application process, and increased early intervention efforts to manage rising demand.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US senator calls for AI chip tracking to protect national security

A new bill introduced by Republican Senator Tom Cotton aims to bolster national security by requiring location verification features on American-made AI chips.

The Chip Security Act, announced on 9 May, would ensure such technology does not end up in the hands of foreign adversaries, particularly China.

Cotton urged the US Departments of Commerce and Defence to assess how tracking mechanisms could help detect and prevent illegal chip exports.

He also called for stricter obligations for companies exporting AI chips, including notifying authorities if devices are tampered with or redirected from their original destinations.

The proposed legislation follows a policy shift announced on 7 May by the Trump administration to ease restrictions on AI chip exports previously imposed under President Biden.

Cotton argued that better security practices could allow US firms to expand globally without undermining the country’s technological edge.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AMD faces a $1.5 billion loss from US chip curbs

AMD expects to lose around US$1.5 billion in revenue this year because of new US export restrictions on advanced AI chips, which now require a licence to be sold to China.

The US government, under both the Biden and Trump administrations, has tightened curbs on chip exports in an effort to slow China’s progress in developing powerful AI systems, citing national security risks.

China makes up roughly a quarter of AMD’s total revenue, so these measures could reduce AMD’s expected annual earnings by almost 5 per cent.

Despite this setback, AMD posted stronger-than-expected second-quarter revenue guidance, forecasting around US$7.4 billion, likely driven by customers rushing to stockpile chips before the new rules fully take effect.

CEO Lisa Su said the impact from the curbs would be mostly felt during the second and third quarters, yet she still expects revenue from the company’s AI data centre chips to grow by strong double digits in 2024.

AMD’s finance chief Jean Hu clarified the projected US$1.5 billion revenue loss is tied directly to the latest export controls introduced in April.

Although AMD is under pressure, demand for its high-performance chips remains solid, with tech giants like Microsoft and Meta continuing to invest heavily in AI infrastructure.

The company’s data centre division saw sales jump 57 per cent to US$3.7 billion, helping push total revenue up 36 per cent to US$7.44 billion—both figures exceeding analyst expectations. Adjusted earnings stood at 96 cents per share, slightly above estimates.

Rival chipmaker Nvidia has also warned it now requires a licence to export to China and faces an even larger US$5.5 billion hit.

Meanwhile, other tech firms didn’t fare as well—Marvell Technology and Super Micro disappointed investors, with shares falling after they issued weaker outlooks, adding further signs of turbulence in the chip sector.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

IBM boosts US manufacturing with $150 billion pledge

IBM has announced a major $150 billion investment in the US over the next five years, with a significant portion earmarked for expanding production of quantum computers and mainframes.

The move follows similar commitments from tech giants like Nvidia and Apple, as industry leaders respond to the Trump administration’s push for increased domestic manufacturing.

Of the total sum, more than $30 billion will be dedicated to scaling up IBM’s US-based manufacturing of quantum systems and mainframes, vital for processing vast data and critical tasks.

IBM, which operates one of the world’s largest quantum computing fleets, stated the investment reflects both technological ambition and a strategic gesture towards current US trade policies.

While the quantum computing field has seen exciting advancements, including new chip generations from rivals like Google, opinions remain divided on when practical applications will emerge.

IBM’s latest investment signals long-term confidence in the technology, even as the company navigates recent challenges, including the cancellation of 15 government contracts during federal cost-cutting efforts.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Cyberattacks against US soar in early 2025

Cyberattacks targeting the US surged dramatically in early 2025, according to a new report from cybersecurity firm Trellix. Between October 2024 and March 2025, advanced persistent threats (APTs) increased by 136% compared to the previous quarter.

China’s cyber operations showed significant sophistication, with groups such as APT40 and Mustang Panda leading the charge. APT41, another Chinese-affiliated group, intensified its activities by 113%, focusing on exploiting both new and known vulnerabilities rather than relying on phishing tactics.

Analysts noted that nearly half of these threats originated from China, while over a third were linked to Russia. Meanwhile, Russia’s APT29, also known as Midnight Blizzard, primarily targeted transportation, shipping, and telecommunications sectors.

The report highlighted that government institutions remained the primary focus of hostile cyber actors. However, the telecommunications industry experienced a sharp 92% increase in APT attacks, while the technology sector faced a staggering 119% rise.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Nvidia moves to comply with US export rules

Nvidia is planning to redesign its AI chips to comply with tightened US export restrictions, aiming to retain its foothold in China instead of pulling back.

According to a report by The Information, the chipmaker has already informed major Chinese clients, such as Alibaba, ByteDance, and Tencent, about its revised strategy. The discussions reportedly occurred during CEO Jensen Huang’s visit to Beijing in mid-April.

The visit came just after Washington expanded its curbs on high-performance AI chip exports to China, specifically targeting Nvidia’s H20 chip.

Originally developed to meet earlier US rules, the H20 has now also been deemed too powerful for export under the new regulations. The US government says the move is aimed at preventing China’s military from accessing cutting-edge AI.

Nvidia previously warned that the latest restrictions could cost it up to $5.5 billion in lost revenue. Instead of backing away, the company is now preparing redesigned chips to stay within legal bounds while continuing to serve Chinese tech firms.

Customers have been told that prototype chips could be ready by June.

In addition, Nvidia is developing a tailored version of its next-generation AI chip, Blackwell, specifically for China. These efforts underline Nvidia’s attempt to balance regulatory compliance with its commercial interests in one of the world’s largest AI markets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Musk says AI should replace federal jobs

Elon Musk has suggested that AI should replace many federal government workers, criticising the US administration as bloated and inefficient.

Speaking privately at the Milken Institute Global Conference in Beverly Hills, Musk argued AI could perform government tasks faster and with greater accuracy, ultimately saving taxpayers money.

His remarks coincided with the winding down of his controversial volunteer role leading the Department of Government Efficiency (DOGE), an initiative born under Donald Trump’s presidency.

Musk spent over 100 days embedded in the White House, even setting up a small office in the West Wing. Despite joking about its minimal view and sleeping in the Lincoln Bedroom, he claimed his work had major impacts — including rooting out fraud and slashing federal budgets.

Musk said DOGE was responsible for cutting $160 billion in government spending, although no formal evidence has been released to support that figure.

The programme has sparked intense backlash. Thousands of federal employees were reportedly dismissed or resigned during the DOGE audits, prompting lawsuits and allegations of illegal firings.

Critics say the sweeping cuts have left the US less prepared for emergencies and reduced its global influence, allowing China to expand its reach. Protesters have targeted Tesla in response, leading Trump to defend Musk and condemn the attacks.

Although scaling back his involvement in Washington, Musk isn’t leaving entirely. He will now spend only one or two days a week on government affairs, returning more of his focus to Tesla amid flagging sales and investor pressure.

Despite the chaos, DOGE has inspired new political groups in Congress, blurring the line between satire and policy. Musk himself finds it all surreal, asking, ‘Are we in a simulation here?’

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US lawmakers push for app store age checks

A new bill introduced by US lawmakers could force app stores like Apple’s App Store and Google Play to verify the age of all users, in a move aimed at increasing online safety for minors.

Known as the App Store Accountability Act, the legislation would require age categorisation and parental consent before minors can download apps or make in-app purchases. If passed, the law would apply to platforms with at least five million users and would come into effect one year after approval.

The bill proposes dividing users into age brackets — from ‘young child’ to ‘adult’ — and holding app stores accountable for enforcing access restrictions.

Lawmakers behind the bill, Republican Senator Mike Lee and Representative John James, argue that Big Tech companies must take responsibility for limiting children’s exposure to harmful content. They believe app stores are the right gatekeepers for verifying age and protecting minors online.

Privacy advocates and tech companies have voiced concern about the bill’s implications. Legal experts warn that verifying users’ ages may require sensitive personal data, such as ID documents or facial recognition scans, raising the risk of data misuse.

Apple said such verification would apply to all users, not just children, and criticised the idea as counterproductive to privacy.

The proposal has widened a rift between app store operators and social media platforms. While Meta, X, and Snap back centralised age checks at the app store level, Apple and Google accuse them of shifting the burden of responsibility.

Both tech giants emphasise the importance of shared responsibility and continue to engage with lawmakers on crafting practical and privacy-conscious solutions.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!