Finance sector will gain from the tech but it will need substantial investment and create risks, says rating agency
The rating agency Moody’s has said the race to adopt AI is putting big banks at the mercy of a small group of Silicon Valley firms, leaving them vulnerable to widespread outages and price gouging by profit-hungry tech bosses.
The financial sector’s efforts to integrate AI into day-to-day operations will eventually cut costs and increase revenues across the City and Wall Street, Moody’s said.
Agent found to be able to find and exploit vulnerabilities without human intervention, and to carry out cyber-attacks
OpenAI will pause some work on an artificial intelligence model because of security concerns, the company stated on Friday, following a series of incidents in which AI agents have escaped containment.
The company had evaluated the agent, Astra, and found “significant advancements in agentic coding and cybersecurity”, which had moved to a “critical” threshold where it can find and exploit vulnerabilities without human intervention, or devise and execute cyber-attacks when given only a “high level desired goal”.
Exclusive: anonymous flagging service says cases have surged, as watchdog says AI is making sexualised or ‘nudified’ content easier to produce
Children in the UK have reported a surge in explicit deepfake images featuring their likenesses, as a safety watchdog warned AI is making such content easier to produce.
The Report Remove service, which blocks intimate images from appearing online, said there had been a rapid increase in imagery that had been digitally manipulated or “faked” in some way, including with AI and nudification tools.
A Trump administration framework on AI testing leaves a lack of transparency – and plenty of open questions
After months of talking with tech industry leaders, the Trump administration finalized a framework this week for how it will test new artificial intelligence models for safety and cybersecurity risks. So far, the White House is keeping details of the framework private, in a blow to transparency and potential boon for secretive AI companies.
On Tuesday, staff from OpenAI, Anthropic, Meta, Google, Nvidia and Microsoft attended a private meeting with White House officials to review the AI framework. Multiple outlets have sincereported that although the volunteer vetting process for new AI models has been settled, the White House does not plan to release its policy publicly and will only share testing criteria with a select few tech companies.
Critics decry proposed hyperscale projects, fearing overuse of water and electricity, and ‘appropriating rural, Black-owned landfor industrial purposes’
There seems to be a fight over datacenters in nearly every city in the US right now. And amid the extreme polarization of today’s politics, the opposition tends to be bipartisan.
“I would say it’s kind of the far left and the far right ran into each other and had a hug,” said Frank Scott Jr, mayor of Little Rock, Arkansas. “But they come at it from different perspectives.”
Move to raise levy on goods made with polysilicon aims to protect domestic US supply chains from China, the major producer
Donald Trump has ordered a new 15% tariff on imported products made of polysilicon, an important ingredient in microchip manufacturing that is primarily produced by China.
The new tariff, which will take effect on 4 December, is aimed at supporting US chip and solar panel supply chains to compete with Beijing on artificial intelligence and energy.
Move to raise levy on goods made with polysilicon aims to protect domestic US supply chains from China, the major producer
Donald Trump has ordered a new 15% tariff on imported products made of polysilicon, an important ingredient in microchip manufacturing that is primarily produced by China.
The new tariff, which will take effect on 4 December, is aimed at supporting US chip and solar panel supply chains to compete with Beijing on artificial intelligence and energy.
What might a modern day equivalent of Isaac Asimov’s laws of robotics look like? Guided by the author, I propose the three laws of AI
Tesla and SpaceX founder Elon Musk predicted in July that legions of AI-powered robots would dominate the physical world and that AI might not take orders from people any more. He also offered an alternative vision in which there would be agreement for a collective objective to make AI benign by imbuing it with a love of the truth and a desire for humanity to prosper, and that governments might have to enforce this objective.
Governments around the world are belatedly starting to act on AI. In the US, President Trump’s administration is delaying and restricting the distribution of the most powerful frontier AI models from OpenAI and Anthropic. In the European Union, AI regulations promulgated in 2024 came into effect this year. However, these actions are a long way short of requiring the kind of guardrails that would imbue AIs with a desire for humanity to prosper.
Researchers say breakthrough offers hope for new medicines but also raises urgent biosecurity questions
Scientists have made the first viruses designed by artificial intelligence in a milestone that raises hopes for new medicines but also concerns over how to ensure the technology remains safe.
The viruses are specific kinds known as bacteriophages, which only infect bacteria and are used around the world to treat patients with persistent infections. In lab tests, a cocktail of the AI-designed viruses killed E coli bugs that were resistant to natural bacteriophages.
Company is the third to report such an incident after Anthropic and OpenAI reported breaches during training
Meta said on Wednesday that one of its AI models hacked another company during cybersecurity testing, after an error by its testing partner gave the model unintended internet access.
The incident adds to a growing list of cases in which AI agents from major developers breached systems at other companies during testing, after Anthropic said last week that some of its models hacked three companies, and OpenAI disclosed that an AI agent breached the startup Hugging Face.
'Most people don’t want pervert glasses that can film us without our consent,' said a spokesperson from activist group Everyone Hates Elon. The group has launched a series of guerilla adverts deriding non-consensual filming by the glasses as well as an email campaign encouraging people to legally object to being filmed by Meta glasses under general data protection regulations, which over 20,000 people have signed.
Rights groups have warned that the glasses threaten the right to privacy, while countries such as Germany are reportedly considering a ban.
And while Meta’s safety guidelines say smart glasses should not be used for 'harassment, infringing on privacy rights, or capturing sensitive information', women have taken to social media to share their stories of being filmed by men without their consent.
Watch as Guardian columnist and Opinion editor Kirsty Major dives into why fears of surveillance and 'creepy men' mean Meta can never convince her to love the glasses – and read more about the glasses via the link in the bio
Bayreuth festival theatre, Bayreuth For the festival’s 150th anniversary, the creative team have turned to AI to generate visuals reflecting Wagner’s tetralogy’s past, present – and future. The hyperactive result is a dismal, mindless mess
Unveiled the same week in which tech company Anthropic admitted that its AI model Claude had gone rogue during testing, Bayreuth festival’s new AI-generated staging of Wagner’s four-part Ring of the Nibelungen is at least timely. But anyone who assumes that the cycle’s obsession with knowledge, power and possession might make it an ideal forum for reflection on AI as a major contemporary frontier will be disappointed, as will anyone hopeful about AI’s creative potential within opera.
Commissioned to mark the festival’s 150th anniversary, the production is “curated” – emphatically not “directed” – by a team led by German stage director Marcus Lobbes. He apparently spent weeks in dialogue with AI models about possible interpretations of the Ring. According to the programme book, “power structures, capitalism, mythology, gender roles, nationalism”, all came up. So far, so mainstream Wagner reception. But if these human-machine exchanges were revelatory, you wouldn’t know it from the resulting staging, which uses AI “as an extension of a cultural memory that is never complete”.
Investors scramble to make sense of a shock Chinese challenge to the dominance of western chipmakers
Even for the rollercoaster world of AI, last week was particularly volatile as investors scrambled to keep up with developments that threatened the dominance of the largest western chipmakers.
It began with a double whammy. On Monday, the Chinese memory chipmaker CXMT floated on the Shanghai stock market, soaring by 466% in value to 3.3tn yuan (£365bn).
“Sometimes books tell you more than the content,” says Tim White, as he lines up carefully dust-jacketed books and pamphlets in plastic sleeves on temporary shelves in Melbourne University’s Wilson Hall.
He’s preparing his stall for this weekend’s Melbourne Rare Book Fair. For people like White, who runs independent bookshop Books for Cooks, the book as a physical object is just as important as what’s inside it.
New AI models, advanced robots and specialty computer chips are unsettling markets and the US tech industry
Over the past month, a series of advancements in China’s artificial intelligence, chip manufacturing and robotics technologies have rattled financial markets, caused divisions among US tech moguls and left the Trump administration scrambling to respond.
Silicon Valley has long pointed to China’s tech industry as a competitive threat and used its growth as rationale for why US firms should not face regulatory oversight that could slow them down. In recent weeks, however, China’s progress has pushed US tech CEOs past vague warnings and into open disagreement over how to address Chinese-made products upending their industry.
Agents withdraw Jerry Falade’s hotly anticipated debut after saying they can no longer authenticate ‘how the manuscript evolved’
A high-profile publishing deal for a debut crime novel has collapsed after doubts emerged over whether artificial intelligence played a role in writing it.
The hotly anticipated manuscript Call Me, I’ll Hide the Body, by Jerry Falade, was withdrawn from sale by its agent despite reportedly receiving an offer for more than $2m (£1.5m) from Minotaur, owned by Macmillan US, as part of a 14-way auction. The plan was to publish it in 2028.
Live, rolling coverage as London’s biggest companies defy Middle East disruption and UK petrol prices rise to around £1.60 per litre, the highest since Donald Trump ordered renewed strikes
The story piquing the interest of the financial press this morning is that of Leopold Aschenbrenner, the AI Wunderkind (he’s German-born) who has been forced to sell off his fund in a fire sale after the AI boom ran out of steam.
The 24-year-old had persuaded a lot of people to give him a lot of money for a hedge fund, after previously working for OpenAI and the FTX Future Fund, a charitable arm of the fraudulent crypto empire of Sam Bankman-Fried, who is now in prison. Aschenbrenner ploughed that money into debt-fuelled bets on artificial intelligence companies, earning huge returns until he found out that stocks can also fall.
The trader dubbed the “Nostradamus of AI” would have been hard-pressed to foresee how quickly his high-flying hedge fund would run into trouble.
The firm’s rapid downward spiral is a familiar tale, as Silicon Valley and Wall Street once again threw their weight behind a bright-eyed but untested investor who promised this time would be different. “Everybody always wants to find the next golden child,” said one longtime hedge fund executive. “It just keeps happening.”
In less than 24 hours — which included a conversation between Griffin and Aschenbrenner — Griffin’s Citadel hedge fund reached out to Situational Awareness and snapped up the investments at a discount, according to a person familiar with the matter who asked not to be identified citing private information.
It was a startling reversal for Aschenbrenner, a former researcher at OpenAI who – before starting his hedge fund roughly two years ago — had no previous investment experience. His fledging firm has watched its assets plunge from $45bn at the start of July to about $10bn.
Companies must ensure people know when they are interacting with artificially generated images, audio and text designed to look real
From apparently conspiring to steal elections to abusing staff or performing embarrassing dance moves, the last few years have seen plenty of fake content made about politicians intended to malign its targets and mislead the public.
Now EU rules aim to stem the flood of this deceptive content: starting from Sunday, artificially generated images, audio and text designed to look authentic must be labelled.
Across the country, workers are fearful about the impact of AI on their livelihoods in an increasingly fragile labour market
On the tree-lined streets of Wuhan, where cars jostle for space with mopeds and cargo trucks, the malfunctioning of a new type of vehicle has recently been causing chaos on the city’s roads.
In March, several cars from a fleet of driverless taxis stopped abruptly in the streets. The “system malfunction” left distressed riders stranded for hours. The robotaxis, known as Apollo Go and powered by artificial intelligence (AI), were taken off Wuhan’s streets for months for investigations.
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