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Intel, Google Cloud deepen AI partnership

17 July 2026 at 15:30

Intel and Google Cloud broadened their multi-year strategic collaboration with plans to deploy Gemini Enterprise and Google Cloud infrastructure across the chipmaker’s global operations as part of a wider AI-driven transformation.

Under the expanded partnership, Intel will roll out Gemini-powered generative AI tools across engineering, supply chain and corporate functions, aiming to scale workforce capabilities through agentic workflows.

The hyperscaler’s infrastructure will also support Intel’s semiconductor development environment, with custom agentic workflows intended to speed up the chip design lifecycle and improve cross-functional execution.

Intel CIO Cindy Stoddard stated the collaboration gives employees a central hub to build and deploy agents through Gemini Enterprise, alongside elastic cloud infrastructure to scale silicon development, as part of the company’s push to move faster and more efficiently.

Karthik Narain, chief product and business officer at Google Cloud, described the partnership as an effort to pair Intel’s engineering expertise with agentic AI tools to create what he called an autonomous foundation for how the chipmaker designs, operates and scales its business.

The companies stated the deployment moves Intel beyond isolated AI pilot programmes. Through the Gemini Enterprise Agent Platform, Intel’s business units will be able to build and run tailored line-of-business agents aimed at automating core processes and speeding up data-driven decision-making.

Gemini’s reasoning capabilities will also power dedicated coding assistance and engineering automation tools designed to streamline software development pipelines and automate multi-step workflows.

Intel is separately piloting Google Cloud-powered tools for marketing and communications, including agents that can identify relevant subject matter experts, draft executive-ready messaging, and generate supporting content across communications channels.

On the infrastructure side, Intel is extending its on-premises compute capacity into Google Cloud’s C4 and N4 instances to support silicon development simulations and core engineering workloads, letting engineering teams run high-performance computing simulations concurrently to shorten chip development cycles.

The tie-up builds on a partnership which has deepened steadily this year. In April, Google committed to using multiple generations of Intel’s Xeon processors, including the 18A-manufactured Xeon 6, to support AI training and inference in its data centres, alongside a plan to co-develop custom infrastructure processing units.

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Micron strikes top-tier vehicle supply chain deals

17 July 2026 at 09:27

Micron Technology secured strategic supply agreements with major automotive partners including Qualcomm and Harman to guarantee long-term chip access for software-defined vehicles.

The deals come during an aggressive industry-wide race to expand manufacturing capacity to meet a massive surge in memory chip demand driven by rapid AI adoption.

As the only US-based manufacturer of high-bandwidth memory chips used in Nvidia’s AI processors, Micron occupies a unique market position alongside South Korean rivals Samsung and SK Hynix, allowing it to command premium prices while solidifying long-term commitments during ongoing hardware shortages.

Micron also struck deals with Visteon, Joynext, Denso, Astemo, and Hyundai Mobis. It stated the agreements would improve visibility and help optimise production planning. It expects greater stability in pricing and supply chains for increasingly sophisticated AI-enabled vehicle platforms.

Demand for high-performance DRAM and NAND flash memory has grown as the automotive sector transitions toward highly connected, autonomous and intelligent designs.

Modern vehicle architectures require robust computing hardware to support advanced driver assistance systems, infotainment services and high-speed connectivity.

Sanjay Mehrotra, chair, president and CEO of Micron, emphasised the next phase of automotive innovation hinges on the strength of the ecosystem behind it. He noted “memory and storage serve are critical enablers” for the sophisticated digital experiences consumers expect.

Qualcomm CEO Cristiano Amon highlighted the collaborative effort required to deliver advanced digital cockpit and driver assistance technologies. He stated working with Micron provides a strong hardware foundation as vehicles become more intelligent and connected.

The automotive sector is a key area for increasing Qualcomm’s revenue beyond mobile chips. In its April Q2 earnings, it reported Automotive sales rose 38 per cent to $1.3 billion.

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Thinking Machines releases first AI model

16 July 2026 at 09:35

Thinking Machines Lab unveiled its first AI model more than a year after former OpenAI executive Mira Murati (pictured) founded the start-up, moving it from research previews to a full launch.

The Inkling model is designed to reason natively across text, images and audio, while balancing cost against performance through variable, adjustable effort.

Thinking Machines stated the model is trained to exhibit safe behaviour across all modalities.

The company noted Inkling is a mixture-of-experts transformer with 975 billion total parameters and 41 billion active parameters, supporting a context window of up to 1 million tokens.

Thinking Machines described it as the first in a family of models of varying sizes.

Rather than chasing state-of-the-art performance in a single domain, Thinking Machines said it trained Inkling for solid capabilities across agentic tasks, reasoning, coding, instruction-following, factuality, vision and audio, positioning it as a foundation model for future releases.

The company acknowledged Inkling is not the most performant model available today, closed or open.

Inkling is open-weight, meaning developers can download and customise the model without access to training data or source code.

It is available for fine-tuning on Tinker, Thinking Machines’ developer platform, alongside a so-called Inkling Playground for testing the model directly.

Bloomberg reported Thinking Machines is not aiming to monetise the model itself; the company currently generates revenue through Tinker, which it sells to customers including hedge fund Bridgewater Associates for financial-task fine-tuning.

The news outlet noted Murati’s company raised $2 billion at a $12 billion valuation last year and was reportedly in talks over a larger subsequent round, though it added several employees have since departed for firms including Meta Platforms and OpenAI.

Bloomberg also reported the launch could help fill a gap in the US open model market, as Meta shifts focus on proprietary offerings and rising AI spending pushes some users toward freely available Chinese models.

Thinking Machines was founded in early 2025 by Murati and a host of other former OpenAI employees, with the company initially focused on collaboration between the technology and people.

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Anthropic plans investor meetings as IPO looms

16 July 2026 at 09:33

Anthropic is reportedly seeking to meet with investors ahead of a potential mega-IPO, as the company prepares to join a wave of AI-driven stock market debuts.

Bloomberg reported the banks leading the offering are scheduling meetings between investors and the Claude chatbot maker in the coming weeks, citing people familiar with the matter. The news outlet previously stated Anthropic is considering an IPO as soon as October.

Deliberations remain ongoing and details including timing could still change, Bloomberg stated.

Moving ahead on the timeline would put Anthropic ahead of rival OpenAI, which is now eyeing a debut in 2027 after earlier targeting 2026.

The news site noted an IPO in October would also see Anthropic list before DeepSeek, the Chinese AI company which has been steadily gaining market share.

DeepSeek is reportedly preparing its own IPO and could file this year.

Bloomberg stated Anthropic is working with Morgan Stanley, Goldman Sachs and JPMorgan Chase on its IPO.

The AI player is also navigating uncertainty tied to its relationship with the Trump administration, which briefly imposed foreign access restrictions on two of Anthropic’s top models.

Anthropic separately sued the US Department of War after it declared the company posed a risk to the nation’s supply chain.

The company was valued at $965 billion following a funding round in May, making it one of the world’s largest private companies and pushing its valuation past OpenAI’s for the first time.

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Bell edges closer to D2D service launch

16 July 2026 at 09:33

Bell Canada completed construction of its first sovereign direct-to-device (D2D) satellite ground station, a milestone in a strategy to offer connectivity beyond the reach of its traditional wireless network.

The facility in the province of Quebec connects with AST SpaceMobile satellites, with testing underway as the operator works to build the infrastructure required to provide D2D services.

Bell stated the companies completed integration testing covering “text messaging, broadband data connectivity”, and voice and video calls.

Video streaming, IoT and public alert tests are scheduled for the coming weeks.

The milestone builds on demonstrations Bell and AST SpaceMobile ran in 2025.

In addition to connecting customers in rural or remote locations, Bell stated the service is expected to support use cases including emergency response, environmental monitoring, resource development, energy production and transportation.

The company is continuing to build ground station infrastructure elsewhere in Canada, with additional sites under construction in the provinces of Ontario, Alberta, and Newfoundland and Labrador.

Bell explained the facilities would provide nationwide D2D coverage while ensuring customer traffic runs through domestic infrastructure and data remains sovereign.

EVP and CTO Mark McDonald said the ground infrastructure “is designed to support a full suite of D2D capabilities including messaging, data connectivity, voice calling and video streaming”.

AST SpaceMobile CCO Chris Ivory pointed to Canada’s geography as a driver for the project, explaining the work with Bell would provide seamless connectivity “beyond the reach of traditional terrestrial networks”.

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Trump sets up AI threat coordination group

15 July 2026 at 11:49

The US government launched a cybersecurity coordination group allowing AI developers and service providers a formal way to work together to respond to threats emerging from the technology.

The White House stated it, along with the Department of the Treasury, Homeland Security, Department of War and the Cybersecurity and Infrastructure Security Agency worked closely with industry partners to detect threats faster and develop a rapid and prioritised response to cyber vulnerabilities across critical infrastructure sectors.

The group, called Gold Eagle, has been spearheaded by President Donald Trump as part of his vision to secure and accelerate American AI innovation.

It was first revealed as part of Trump’s executive order in June to promote advanced AI innovation and security, which includes plans for the release of a new operational model for cyber defence.

The model aims to tap into frontier AI capabilities to continue advancing faster than adversaries, reduce duplicative scanning efforts and “deliver prioritised and actionable threat and remediation information to defenders” across the government and private sector.

The White House statement explained Gold Eagle will help government and industry collectively identify risks, prioritise action and strengthen the resilience of systems that power the economy, national security and daily life.

Companies involved in the coordination group were not disclosed.

Trump’s administration has taken a hands-on approach to AI regulation.

In May it unveiled a legislative framework to create uniform security and safety guardrails. This followed another executive order at the end of 2025 to secure control of AI regulation away from individual states.

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New York puts mega data centres on ice

14 July 2026 at 16:37

New York made history by becoming the first US state to halt the construction of massive new data centres, imposing a one-year moratorium as concerns escalate over the environmental and financial toll of the AI boom.

The moratorium, outlined in an executive order signed by Governor Kathy Hochul (pictured), targets hyperscale operations by halting discretionary environmental permits for new facilities requiring 50 megawatts or more of power.

The rapid expansion of facilities housing thousands of computer servers has triggered intense community and political backlash across the US.

“This pause will remain in place for up to one year while New York establishes the strongest possible framework to protect our community’s guardrails to reduce the risk to our energy grid, minimize land disruption, noise pollution, and protect our natural resources, especially our water supply,” Hochul stated during a press conference. “We’re going to explore having hyperscale data centres pay into a larger fund to support our grid statewide.

“We need to invest in this, help defray costs, reduce bills for our rate payers,” she added. “We expect this process, which we already launched, to be completed within the year.

Once the policy is in place, the freeze will be reviewed and lifted, Hochul stated.

She also said the data centres should only be built in areas which want them and “they will never be exempt from local zoning, local approvals”.

Local populations are increasingly concerned the energy-hungry centres by companies including Alphabet, Microsoft, Meta, Amazon, and Oracle are inflating residential utility bills, straining electricity grids and consuming millions of gallons of water for cooling.

Hochul framed the aggressive intervention as a necessary protective measure for state residents, stating as data centre development threatens to hike utility bills and deplete natural resources, it is her responsibility to act.

She noted labour organisations will have a seat at the AI data centre discussions “so projects can include wage standards and labour agreements and prioritise local hiring”.

To further rein in the sector, Hochul announced plans to pursue legislation to repeal lucrative sales tax exemptions currently enjoyed by hyperscale data centre operators.

“New Yorkers work hard and, on my watch, their tax dollars will not be used to benefit these large firms, these centres.”

Reuters reported Hochul directed state officials to develop a Generic Environmental Impact Statement. The comprehensive assessment will establish consistent operating and environmental standards for new facilities while examining the overall footprint of data centre construction and operation across the state.

The construction ban will be lifted once the rigorous regulatory guidelines are finalised.

The news outlet reported state lawmakers recently passed a bill targeting data centres consuming 20 megawatts or more of power, representing a wider scope than the governor’s executive order.

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FCC wraps AWS-3 re-auction with $3.5B in bids

24 June 2026 at 09:54

The US Federal Communications Commission (FCC) closed an AWS-3 re-auction with gross winning bids topping $3.5 billion in what was the agency’s first spectrum sale after a four-year lapse in activity.

Bidding concluded for Auction 113 yesterday (23 June) after 72 rounds for the 200 licences across the 1695-1710MHz, 1755-1780MHz and 2155-2180MHz bands.

All the licences received bids in the process, which had 17 qualified participants and began on 2 June.

The frequencies were originally auctioned to Dish Network, which is now part of EchoStar, in 2014 but never made it into service after a series of defaults and bid withdrawals left them sitting unused in the FCC’s inventory for more than a decade.

In 2015, Dish Network affiliates Northstar Wireless and SNR Wireless surrendered a number of spectrum licences worth $3.5 billion after a dispute with the FCC over discounts.

In April, the FCC and EchoStar reached an agreement which included the latter dropping a lawsuit it filed in a US Court of Appeals over the defaults by Northstar and SNR.

The financial total carries significant regulatory implications. Up to $3.3 billion of the proceeds will be legally directed to cover funds borrowed for the FCC’s Secure and Trusted Communications Networks Reimbursement Program, commonly known as the “rip and replace” initiative to swap out Huawei and ZTE gear from US networks.

Surpassing the $3.5 billion mark clears the $2.9 billion threshold required for EchoStar to avoid paying a potential shortfall payment to the regulator under a prior settlement framework.

While specific winning bidders remain anonymous under strict anti-collusion quiet period rules, AT&T, Verizon, T-Mobile US and SpaceX are widely expected to have driven the demand.

The event marks a milestone for FCC chair Brendan Carr, representing the return of the agency’s auction power.

“After years on the sidelines, FCC auctions are finally back,” Carr stated. “Today’s successful auction generated billions of dollars in competitive bids to put spectrum to effective commercial use, and it bolsters competition in the wireless marketplace.”

The FCC plans to carry the momentum into its upcoming Upper C-Band auction, tracking on schedule to meet a congressional deadline to auction at least 100MHz of the spectrum by July 2027.

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SpaceX inks computing deal with Reflection AI

23 June 2026 at 10:10

SpaceX reportedly signed a significant computing power deal with Reflection AI, making the open-source start-up the latest outside company to tap Elon Musk’s Colossus infrastructure.

CNBC reported Reflection will get access to Nvidia’s GB300 chips, the company’s top-tier hardware for training and running advanced AI models, housed at SpaceX’s Colossus 2 facility in Memphis, Tennessee.

Reflection agreed to pay SpaceX $150 million per month starting 1 July through 2029, with total payments reaching roughly $6.3 billion if the agreement runs its full term.

Either party can terminate the contract with 90 days’ notice after the first three months. Bloomberg reported Reflection will pay SpaceX’s AI division, SpaceXAI, under the arrangement.

Colossus was originally built in part to power Grok, Musk’s AI chatbot as a rival to ChatGPT, but SpaceX has increasingly opened the infrastructure to outside AI companies seeking compute capacity.

The deal is smaller than two of SpaceX’s other compute agreements. According to TechCrunch, SpaceX’s existing contracts with Anthropic and Google cost those companies $1.25 billion and $920 million per month, respectively, with both agreements also running through July 2029.

CNBC reported SpaceX has also struck a computing power-related deal with Cursor prior to buying the company for $60 billion earlier this month.

In October 2025, Nvidia led a $2 billion funding round for the open-source start-up, directly contributing $800 million of the total to value Reflection AI at $8 billion.

Reflection AI was founded in 2024 by Misha Laskin and Ioannis Antonoglou, both alumni of Google’s DeepMind lab.

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Groq lands $650M to aid shift from chips to AI Inference

23 June 2026 at 09:37

Groq raised $650 million in funding as the company revamps itself from a chip startup into a data centre operator focused on AI inference.

The round was led by growth-focused investment company Disruptive and hedge fund Infinitum, both of which already hold board seats at Groq.

The funding follows a non-exclusive licensing agreement Groq struck with Nvidia in December 2025. At Nvidia’s GTC event earlier this year, the chipmaker unveiled its next-generation LPX platform, which incorporates Groq’s inference technology.

US-based Groq stated it plans to use the new cash to expand its network of 13 data centres in North America, Europe, the Middle East and Asia-Pacific, and quadruple total capacity to 200 megawatts by the end of 2027.

The new capital will also fund the fit-out of its existing footprint with Groq’s latest inference technology, including Nvidia’s new LPX system.

In September 2025 Groq raised $750 million, which valued it at $6.9 billion. Its backers include KDDI, Samsung Electronics, Cisco Systems and BlackRock.

Groq chair Alex Davis stated the company spent years building the technology, infrastructure and operational expertise needed for AI’s next phase, adding it is positioned to become a foundational layer of the AI economy.

Groq also announced several executive additions alongside the funding news. Alan Rice, who previously worked on xAI’s Colossus data centre project and Meta data centres, is now COO.

Sinclair Schuller will start as CTO in July, with Rakesh Malhotra joining as chief product officer the same month. Schuller and Malhotra previously worked together at enterprise cloud platform Apprenda and later co-founded a separate software engineering firm.

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Huawei shipments cost Bosch $36M

18 June 2026 at 11:24

German technology giant Bosch settled a case with the US Department of Commerce for supplying $72 million-worth of sensor products and software subject to export restrictions to Huawei.

The products falling foul of US rules were Micro-Electro-Mechanical Systems (MEMS) sensors used in smartphones, wearables and vehicles, along with automotive software.

Announcing the $36.2 million settlement, the US department’s Bureau of Industry and Security (BIS) noted Bosch had disclosed the information itself and cooperated with the subsequent proceedings.

BIS explained the products shipped to Huawei or affiliates were covered by the Foreign Direct Product Rule, part of Export Administration Regulations (EAR) restricting the supply of some goods made using specific technology of US origin without a licence.

Shipments found to break the rules were made between 16 September 2020 and 26 September 2024.

Alongside the fine, Bosch must give up profits made as a result of the transactions.  

BIS assistant secretary of commerce for export enforcement David Peters said the company had “several opportunities to avoid these violations had they exercised the increased vigilance BIS has repeatedly said it expects of companies whose transactions are governed by the EAR”.

“Today’s action should serve as a warning to embrace compliance and as an example of the benefits of voluntary self-disclosure.”

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Threads hits 500M users as Meta rolls out new features

17 June 2026 at 10:24

Meta Platforms’ Threads app has reached 500 million monthly active users, marking a significant milestone for the platform as it moves to deepen engagement through a suite of new community tools and personalised feed controls.

The social media giant stated the growth has been driven largely by communities, which are groups of users sharing interests spanning books, basketball, parenting, and music.

To mark the milestone, Meta is graduating its communities feature out of beta and launching a series of updates aimed at making those groups more visible and easier to navigate.

The communities hub is being added to the main menu to the left of the feed, making it easier for users to find and switch between groups.

Communities will also get their own distinct icons to make them more recognisable across the platform, alongside a progress indicator showing users how close a topic is to achieving full community status and what they can do to help it get there.

Champion recognition is being expanded to more users across communities, with local communities launching in Japan, Korea and Taiwan with native-language tags.

Meta stated Live Chats will expand to more communities in the coming weeks, with co-hosting and the ability to quote moments directly to a user’s feed.

Your Algo
Alongside the community updates, Meta is introducing Your Algo, a new personal feed setting which builds on the Dear Algo feature launched in February.

While Dear Algo allowed users to tell the Threads algorithm what they wanted to see more or less of, Your Algo adds a private layer of control, letting users filter specific topics from their feed and set how long a request lasts across one, three or seven days. Both tools will be manageable from a single hub.

Your Algo rolled out in the US, Canada, UK, Australia, and New Zealand.

Meta stated the updates are the beginning of continued investment in the platform based on user feedback.

It launched Threads in July 2023 in a bid to compete against Elon Musk-owned X.

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Nokia expands US facility to boost photonic chip output

17 June 2026 at 09:37

Nokia highlighted a major expansion of its advanced test and packaging operations in the US state of Pennsylvania, in a move designed to scale production of optical networking technologies which underpin AI infrastructure.

The Finnish vendor stated the investment will increase the facility’s production capacity by up to 10 times its current level, with the extended capability expected to be commercially available by the end of Q3.

Nokia said the expansion in Allentown, Pennsylvania, is expected to nearly double the workforce there to more than 500 across engineering, manufacturing and R&D, with a projected economic impact of more than $500 million over the next five years.

It noted the Allentown site is one of only a few facilities in the US providing advanced test and packaging of photonic chips into optical modules for use in AI and telecoms infrastructure.

Nokia stated less than 2% of global semiconductor advanced test and packaging currently takes place in the US, making domestic capacity a strategic priority. The company claimed its optical technologies can reduce energy usage in AI communications by as much as 75%.

The expansion is part of Nokia’s multi-year plan to invest $4 billion in research and manufacturing in the US for AI-ready network connectivity.

The Allentown project involves approximately $30 million in total investment, including around $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS and Science Act tax credit.

Nokia CEO Justin Hotard said the “AI supercycle” is fundamentally reshaping network and infrastructure requirements and noted the Allentown expansion was a direct investment in that future.

“It also reflects the strong partnership between Nokia, the United States, and the Commonwealth of Pennsylvania to support advanced manufacturing, create jobs, and strengthen US technology leadership and global competitiveness,” he said.

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SpaceX seals $60B Cursor deal to boost AI coding

16 June 2026 at 16:27

SpaceX has agreed to acquire startup Cursor in a $60 billion deal, the latest move in Elon Musk’s push to close the gap with rivals on AI-powered coding tools.

A regulatory filing today (16 June) with the US Securities and Exchange Commission (SEC) confirmed Cursor investors will receive SpaceX stock based on the implied $60 billion equity value of the startup.

The transaction, which converts an earlier option into a binding merger agreement, is expected to close in Q3. After gaining regulatory approvals, Cursor will become a wholly owned subsidiary of SpaceX. The filing was signed by SpaceX CFO Bret Johnsen.

The deal came a week after SpaceX completed the largest initial public offering in history.

Bloomberg reported the Cursor acquisition is central to SpaceX’s ambitions for its AI business.

The news outlet noted Musk has publicly acknowledged xAI, which is now part of SpaceX’s operations, trails rivals including Anthropic and OpenAI on coding capabilities.

Bloomberg also reported SpaceX’s AI unit has been hit by internal turmoil, with dozens of departures across engineering and data training and ongoing difficulty recruiting top talent, prompting Elon Musk to bring in leadership from Starlink to steady the business.

It also noted US-based Cursor, whose AI coding assistant launched in 2023, has become one of the fastest-growing coding startups by helping developers write and debug software through chatbot prompts.

Before SpaceX moved to acquire the company, Cursor was reportedly in talks for a funding round that would have valued it at more than $50 billion, according to Bloomberg.

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Judge tosses out xAI, OpenAI trade secret lawsuit

16 June 2026 at 09:13

A US federal judge reportedly dismissed xAI’s trade secret lawsuit against rival OpenAI with prejudice, dealing another legal blow to Elon Musk in his widening battle with Sam Altman’s company.

Reuters reported Elon Musk-owned xAI failed to demonstrate OpenAI induced former xAI engineer Xuechen Li to misappropriate trade secrets, or that Li disclosed any confidential information during a presentation he gave while OpenAI was recruiting him.

In the order, the judge wrote xAI essentially equated asking a job candidate about prior work experience with encouraging a potential employee to divulge trade secrets obtained during that work.

The news agency stated the dismissal with prejudice means xAI cannot raise the same claims again.

The judge already dismissed an earlier version of the lawsuit in February, giving xAI an opportunity to strengthen its case. Having found xAI failed to cure the shortcomings in its amended complaint, the judge ruled it would be futile to allow further attempts.

The lawsuit was originally filed in September 2025, alleging OpenAI engaged in a coordinated campaign to hire away xAI employees to access trade secrets related to its Grok chatbot, including source code and data centre deployment strategies.

Musk’s AI company claimed former employees took confidential material when they left for roles at OpenAI.

Reuters noted OpenAI previously called the lawsuit baseless and part of Musk’s ongoing campaign of harassment against the company.

The case is part of a broader legal battle between Musk and OpenAI, which he co-founded alongside OpenAI CEO Sam Altman before departing.

Musk is separately suing OpenAI over its conversion to a for-profit company, while the AI firm has countersued Musk for harassment.

xAI also sued Apple in federal court, alleging it conspired with OpenAI to suppress rival platforms.  

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US orders Anthropic to suspend Fable 5, Mythos 5 models

15 June 2026 at 09:15

Anthropic was directed by the Trump administration to immediately suspend all access to its two most advanced AI models, Fable 5 and Mythos 5, citing national security concerns.

The directive issued on 12 June ordered the AI lab to disable both models for all customers globally, including foreign national Anthropic employees, whether inside or outside the US.

The Trump administration’s letter to Anthropic targeted foreign nationals, but because ensuring compliance would require verifying the nationality of every user, it shut both models down entirely for all customers, Anthropic stated in a blog.

The letter did not specify the nature of its national security concern, but Anthropic said its understanding is goverment officials believe a method of bypassing the model’s safeguards through jailbreaking has been identified.

The AI player stated it reviewed a demonstration of the technique and found it exposed only a small number of previously known minor vulnerabilities, all of which can be replicated using other publicly available AI models without any bypass required.

Anthropic pushed back on the administration’s justification for the suspension. The company noted in the weeks building up to Fable 5’s launch, it worked extensively with the US government, the UK AI Safety Institute and multiple private organisations.

Those tests, Anthropic said, showed Fable 5’s protections were substantially stronger than any previously deployed model. No tester has yet found a universal jailbreak capable of broadly bypassing the model’s defences, according to Anthropic.

It did acknowledge perfect jailbreak resistance is not currently achievable for any AI model provider and stated it disclosed this limitation publicly at launch.

Anthropic adopted what it describes as a defence in depth strategy, combining narrow jailbreak resistance with thorough monitoring and a 30-day customer data retention policy specifically designed to detect and shut down successful attacks.

Amazon angle
The Wall Street Journal (WSJ) reported the directive followed conversations between Amazon CEO Andy Jassy and US officials including Treasury Secretary Scott Bessent, after the retail giant’s researchers used a series of prompts to extract information from Fable 5 which were restricted.

Anthropic said it is complying with the legal order but disagrees the narrow potential jailbreak warrants recalling a model deployed to hundreds of millions of users. The company warned that applying this standard across the industry would effectively halt all new frontier model deployments.

Forbes reported some customers are seeking refunds from Anthropic for the disabling of Fable 5, citing a post on Reddit from the company which offers a prorated refund.

Anthropic apologised for the disruption, describing the situation as a misunderstanding, and said it is working to restore access as soon as possible.

AI policy shifts
Kevin Frazier, adjunct research fellow at the Cato Institute, said the episode exposes a deeper structural problem. The decision, he said, based on questionable justifications and made by actors subject to few effective constraints, strengthens the case for Congress to pass a transparent and technically grounded AI governance framework.

“Transparency, fairness, clarity, and evidence-driven enforcement should be core components of AI governance,” he said. “So long as AI policy decisions are driven by a few actors taking action behind closed doors in response to non-public reports, we will be far short of that standard.”

The Trump administration previously took a hands-off approach to AI regulations to spur development and stay ahead of China.

Earlier this month, Trump signed an executive order directing pre-deployment testing of frontier AI models, but the order was voluntary and did not create a licensing requirement.

In March 2026, the administration released its national AI legislative framework, a move aimed to create uniform security and safety guardrails while also attempting to pre-empt states from enacting their own rules.

Anthropic is currently on a Department of War blacklist designating the company as supply chain risk and barring it from government use. A federal judge blocked the order for the federal government to cut all contracts with Anthropic. The legal battle is ongoing.

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NTT Global Data Centres hunts $1B to fund US expansion

12 June 2026 at 09:30

NTT Global Data Centres (GDC) is reportedly seeking at least $1 billion in fresh capital to fund new development projects in the US, working with Citigroup to raise funds.

Bloomberg reported the company, which is a subsidiary of NTT Group, is selling stakes with the investment bank2sedxzsz`Ω in a development vehicle for new US data centre projects.

The size of the equity offering could increase depending on investor demand, and the company may also raise a credit facility alongside it.

The news site stated NTT GDC, which is the world’s third-largest data centre provider outside of China, has started sending marketing materials to prospective long-term investors including pension and infrastructure funds, with a formal sale process expected to launch in the coming weeks.

Bloomberg explained the establishment of a development company which owns and manages pre-revenue early-stage assets, gives data centre builders the flexibility to target a broader pool of long-term investors, who in turn can demand higher returns for taking on early-stage project risk.

The news site stated the talks are at an early stage, with details including timing and the final size of the fundraising subject to change.

In May 2025, NTT Data announced it bought land across North America, Europe and Asia to support nearly a gigawatt of planned data centre capacity, including new sites in the US states of Oregon and Arizona.

NTT GDC CEO Doug Adams told Bloomberg in March 2026 the company is working on 34 projects which will double its capacity within two years, with total capacity set to reach over five gigawatts within five years.

Also in March, NTT Data announced a multi-year plan to invest more than $10 billion by 2027 to deliver infrastructure capable of supporting dense AI workloads.

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