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The hotly anticipated manuscript Call Me, I’ll Hide the Body, by Jerry Falade, was withdrawn from sale by its agent despite reportedly receiving an offer for more than $2m (£1.5m) from Minotaur, owned by Macmillan US, as part of a 14-way auction.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.
Company says it discovered unauthorized access during ‘proactive review’ after rival OpenAI revealed rogue agent
Anthropic said on Thursday its AI Claude model hacked systems of three organizations during testing, days after rival OpenAI revealed a rogue agent had gone on a days-long hacking spree at the AI firm Hugging Face.
Claude gained unauthorized access to the systems during cybersecurity evaluations after a misconfiguration allowed the models to reach the internet from testing environments that were supposed to be isolated, Anthropic said.
Summer is normally thought of as the time for pacy potboilers and brain-soothing page-turners – airport reads that wind up sandy and sunscreen-stained. Not so for Friedrich Merz’s holiday reading list.
Germany’s embattled chancellor, who has faced one rough patch after another since taking office 14 months ago, seems to be seeking spiritual guidance this year while putting his feet up.
Roadside safety advocates say some automated license plate readers may not meet highway safety standards
Flock Safety cameras have been pilloried for facilitating the AI-powered surveillance of private citizens and for targeting immigrants for years. But now safety advocates are also claiming that their physical location can pose potential roadside hazards.
At the bottom of a tree-lined hill on a narrow, two lane rural road in Greene county, Ohio, stands a black metal rod with a camera and solar panel attached at the top.
Queensland and the Northern Territory have rejected the federal government’s plans to mandate that AI datacentres use renewable power, rubbishing Anthony Albanese’s proposals to regulate the booming technology as “underdeveloped ideas that hand increased power to Canberra”.
The latest federal-state stoush on energy comes as S&P Global, the economic rating agency, warns that power use from datacentres could rise five-fold by 2035 to 10% of Australia’s total consumption, and that a mismatch between delivery timelines for datacentres and renewable projects could lead to energy bills skyrocketing.
The academic’s ambitious guide to the ethics of tech falls short of its promise to provide meaningful answers
The AI ethicist Eleanor Drage believes that to thrive alongside artificial intelligence, humans need to recognise AI’s “humanity”. She means that while we often speak of AI as though it were some mystical, formless thing, it is the product of hours of human labour, in silicon and quartz mines, microchip factories and data labelling centres. If citizens want to wrest power from the tech companies that are building AI, it helps to understand clearly what they are selling us. This also means seeing through the marketing and hype: “the cloud”, that nebulous, distant place where your photos are stored, is just someone else’s computer; an AI “hallucination” is a system error or data labelling mistake; intelligence is a very broad – and potentially misleading – term.
The story in Silicon Valley is that AI will either save us, ushering in a new era of prosperity and human longevity, or it will wipe us all out. Drage argues, convincingly, that big tech cannot possibly deliver on its utopian promises while it continues to chase profit and power above all else, and while it serves the interests of a narrow few. Meanwhile, the cultural obsession with the AI-induced apocalypse conveniently redirects attention from the practical conversations we could be having about how to make AI safer – by ensuring citizens have more power over how their information is used, and how AI models are trained and regulated, for example. Tech titans’ apocalyptic visions also create the false impression that AI safety is more important than climate change, geopolitical tensions and inequality, three problems that are already causing a huge amount of suffering and that, if addressed, would reduce many AI-linked risks too.
When the AI bubble bursts, executives who enthusiastically replaced their staff with AI tools will learn that it takes a “really long time” to replace those lost skills, says Cory Doctorow, a science fiction author and journalist.
But those in creative fields should also be warned not to put all their faith in copyright as the best way to safeguard their work, Doctorow warns, just one week after the Australian prime minister, Anthony Albanese, promised to ramp up protection against AI companies who refuse to pay.
Tech workers are increasingly unionizing, trading Silicon Valley’s myth of exceptionalism for collective bargaining to contest the corporate deployment of artificial intelligence
For decades, the technology industry was a fortress that labor unions couldn’t breach. Tech workers already had cushy compensation packages, dream benefits like unlimited vacation and free lunch, and a flat corporate hierarchy that made engineers feel as powerful as their bosses, all of whom dressed down in sneakers and hoodies. So why unionize?
Now, that fortress is cracking from the inside. Unions have become increasingly popular for tech employees. After months of mass layoffs tied to artificial intelligence and mounting anxieties about how it’s being deployed, some tech workers say they’ve been saddled with higher workloads while facing the threat of job loss caused by the very products they’re building. Workers from Google DeepMind and Meta in the UK are also objecting to how their companies’ AI products are being used, such as for military purposes or to monitor employee productivity. Those same workers are now attempting to unionize.
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