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”.

Observers express concern that the division has lost its independence and commercial reality has taken over

When Sir Demis Hassabis said AI had brought the world to a “pivotal moment in human history” last month, he knew another big change was imminent.

This shift was closer to home. The Nobel prize-winning head of Google DeepMind, Google’s AI unit, announced this week he was relinquishing his day-to-day duties as chief executive and becoming chair. He is also taking on the role of chief scientist at DeepMind’s parent, Alphabet.

The mission of the Flock app is quietly subversive: to encourage users to ditch their screens and explore the wonderful world of birding

On a brilliantly bright afternoon in his gallery and studio in Bolinas, a small town on the northern California coast, Keith Hansen was putting the finishing touches on a watercolor of an almost improbably flamboyant painted bunting.

With an ultra-fine sable brush, he made a few intricate additions to the cobalt blue plumage on the bunting’s head, and, satisfied with his work, slipped the watercolor into a stout binder that every few days welcomes a new addition.

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 since reported 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 land for 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.

Ruling comes as part of second phase of landmark trial that found social media company enabled harm against users

A New Mexico court has ordered Meta, the parent company of Facebook, to pay $567m into a fund aimed at redressing adverse mental health impacts from the social media giant’s platforms.

The Thursday ruling comes as a part of the second phase of a landmark trial the social media giant lost in March. At the time, a jury found that the company knowingly harmed children’s mental health and concealed what it knew about child sexual exploitation on its platforms, and imposed the maximum penalty: a $375m fine.

Agreement with RWE is fifth deal Trump team has made with energy companies, offering payouts to give up projects

The German energy company RWE has reached a $1.22bn deal with the US government to relinquish its offshore wind leases and instead redirect funds towards fossil fuel investments.

The agreement marks the fifth deal the Donald Trump administration has struck with energy companies, offering payouts in exchange for abandoning renewable energy projects and redirecting investment towards fossil fuels.

Profit jump fuelled largely by unknown US refund amount as Japanese video game firm records quarterly sales drop

Nintendo has reported a jump in profits, as the Japanese game maker’s earnings were buoyed up by a long-awaited refund on Donald Trump’s tariffs.

The company said profits surged 53.5% to ¥147.4bn (£694m) over the three months to June, substantially beating expert forecasts for ¥77.8bn.

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.

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).

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.

Pre-programmed flights gather data at different altitudes then return to bases to recharge and download

Weather happens in the boundary layer, the atmosphere from ground level to a few thousand metres, but this can be difficult to study in detail: weather stations are too low, and aircraft are expensive. Instrumented weather balloons are the traditional solution, and thousands are released every day. But these are at the mercy of the wind and use irreplaceable helium.

Drones offer an alternative and the US company Meteomatics has taken the idea further with Meteobase, a base station on the ground with a drone that can be launched and recovered automatically. It carries out a pre-programmed flight, gathering data at different altitudes, then returns to recharge and download data which the Meteobase sends to researchers.

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.

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.

‘Ratepayer Protection Pledge’ president has touted is non-binding as people continue to struggle with rising bills

Donald Trump has announced that about 200 entities have signed on to his non-binding “Ratepayer Protection Pledge”, expanding a voluntary commitment which claims to ensure US consumers will not bear the cost of the AI datacenter build-out.

Trump delivered remarks on Thursday at the Environmental Protection Agency (EPA) headquarters, alongside Lee Zeldin, the agency’s administrator, and Chris Wright, the energy secretary. Other attenders included governors who signed on to the pledge, including Brian Kemp of Georgia, Mike DeWine of Ohio, Spencer Cox of Utah and Jeff Landry of Louisiana.

In interview, billionaire says instead of running ‘Doge’ he should’ve ‘worked on my companies’ and shares extreme predictions

Elon Musk has admitted he became too consumed by politics during his volatile alliance with Donald Trump and his brief appointment as the president’s financial axman, running the so-called “department of government efficiency” (Doge).

The world’s richest person, and briefly its first trillionaire after his SpaceX company floated on the New York stock exchange in June, made the confession in a wide-ranging interview with the Economist published on Thursday. He shared his positions on subjects from foreign wars to AI, and made a number of eye-opening predictions for the future.

Donald Trump approves agreement to help country make fuel for civilian nuclear programme

Donald Trump signed a nuclear agreement with Saudi Arabia on Wednesday that could enable the kingdom to enrich its own uranium for nuclear reactions.

The US energy secretary, Chris Wright, and his Saudi counterpart, Prince Abdulaziz bin Salman, signed “a peaceful nuclear cooperation agreement” and “an accompanying bilateral safeguards agreement,” according to a statement from the US Department of Energy.