Under new rules, tech companies will be asked to share AI models with government for review before public release

Donald Trump signed an executive order to create a voluntary framework for the federal government to vet powerful new AI models before they are released. Tuesday’s highly anticipated order represents an attempt by the president to tighten his grip on cybersecurity and national security threats posed by AI, tacking against his earlier deregulatory stance. But the voluntary nature of the framework shows that, while Trump has toed a more cautious line on AI than when he first took office last year, he is still reluctant to impose regulations on the tech industry.

Under the new guidelines, tech companies would be asked to share their AI models with the government for a voluntary review, up to 30 days before a public release. The Trump administration says doing so will allow them to improve national security, particularly with regards to cybersecurity.

Markets take note as world’s biggest equity fundraiser bids to garner more money than three biggest-ever IPOs combined

• Kenneth Rogoff: will AI create a permanent underclass?

Google’s parent company, Alphabet, has said it plans to raise up to $80bn (£59bn) in equity to fund its vast artificial intelligence infrastructure investments, raising further questions over the economics of the AI boom.

The move, the largest equity fundraising ever according to analysts, includes a $10bn share sale to the US investment group Berkshire Hathaway, which was led until last year by Warren Buffett.

Rolling coverage of the latest economic and financial news

• Anthropic confidentially files for initial public offering on US stock market

In a landmark moment, gold has overtaken US government bonds as the world’s top reserve asset, according to calculations from the European Central Bank.

The ECB says that gold made up 27% of total official foreign reserves at the end of 2025, ahead of US Treasuries (22% of reserves) and the euro (15%).

Forces of fragmentation are becoming more pronounced. Geopolitical tensions continue to drive strong central bank demand for gold.

In nominal terms, the gold price surged by around 60% and 30% in 2025 and 2024 respectively, which mechanically increases the share of gold in total official foreign reserves.

Correcting for such valuation effects by using the gold price at the end of 2023, the share of the euro (16%) remains at par with the share of gold (16%), while the share of US Treasuries continues to be markedly higher (26%).

State sues maker of ChatGPT and CEO Sam Altman, alleging company ‘allowed a dangerous product to reach millions’

Florida filed a lawsuit against OpenAI, the maker of ChatGPT, and its CEO, Sam Altman, on Monday alleging that the company concealed serious safety risks with its chatbot. Florida is the first US state to sue the artificial intelligence company.

The 83-page suit was brought by Florida’s attorney general, James Uthmeier, and alleges that OpenAI “aggressively marketed” ChatGPT to the public while ignoring safety warnings and possible dangers of the product.

In today’s newsletter: Its software is used from health services to militaries. But controversies and criticism of the $375bn company are leading some to ask if Palantir is too powerful

Good morning. The Peter Mandelson story keeps unfolding. Peter Walker explains here what is in the latest release of documents, and Henry Dyer takes a look at the key papers missing from the latest disclosures. Today we are covering another major story: Palantir.

Few companies attract controversy more than Palantir. Since the pandemic, the US data analytics company has grown voraciously, using its AI-driven software to make sense of intractable datasets for customers around the world. For the NHS, it analyses patient records; for the US military, it’s focused on targets in Iran. Palantir’s products are widely used, with the business now worth $375bn.

UK politics | Peter Mandelson was receiving sensitive security briefings about the Foreign Office’s work, and was in discussions with the head of MI6, before he had completed the developed vetting process, documents reveal.

Ukraine | Russian air raids on major Ukrainian centres including Kyiv, Dnipro and Kharkiv killed at least five people and wounded dozens by early morning on Tuesday, authorities said.

Environment | More than a million jobs, higher wages, nearly half a trillion pounds in investment in the pipeline – the UK’s green economy is powering ahead, according to research by the country’s leading business organisation.

US news | Donald Trump is reconsidering whether to keep pressing for a $1.8bn fund to compensate his allies, a person familiar with his thinking said, as the justice department paused the program to comply with a court order.

UK news | Sir Alan Bates has said that the schemes set up to compensate post office operators over the Horizon IT scandal have been an “utter disaster” and that the government should not be involved in running them.

Breach of high-profile accounts raises concerns about reliance on AI for security measures such as passwords

Hackers used Meta’s AI-powered support chatbot to infiltrate high-profile Instagram accounts, the company has confirmed, saying it resolved the problem after researchers exposed it.

The targets ranged from Barack Obama’s White House account to the beauty retailer Sephora and the US Space Force chief master sergeant, John Bentivegna, according to reporting from 404 Media. Everyday users complained of similar hijackings on Reddit and X over the weekend.

Financial stakes of AI race rise as Elon Musk’s SpaceX, OpenAI and Anthropic are slated to go public this year

Anthropic has filed confidentially for an initial public offering on the US stock market, the company announced on Monday. The AI firm makes the Claude chatbot, popular with software engineers and other business clients, and has seen a meteoric rise this year.

The company did not disclose the valuation it will target on the stock market, nor did it make public other terms of the offering. The startup announced on Thursday that it had raised $65bn in funding to value the company at $965bn post-money. Anthropic was valued at $380bn in February.

The roots of AI in rightwing ideology is examined in Valerie Veatch’s enjoyable doc, including an array of colourful, often crazed, figures

Director Valerie Veatch made her name with documentaries such as Love Child (about an online gaming-addicted couple whose child died of malnutrition) and Me at the Zoo (about American vlogger Cara Cunningham), films that explore the intersection of real-world subcultures and internet communities. Her latest continues in this vein, although its self-set remit is a bit broader, more urgent and germane to everyone right now: the pursuit of artificial intelligence, its dark history in eugenics and highly debatable utility today (despite the stock-market bubble pushing the value of a half-dozen companies towards the stratosphere).

The thrust of the film is largely polemic, guiding the viewer towards AI-sceptical conclusions one persuasive soundbite at a time. Nevertheless, it also serves as a very useful, straightforward primer on AI history, touching on a dazzling array of colourful, often crazed figures, including Victorian British eugenicist Francis Galton, Silicon Valley founding father and overt racist William Shockley and current-day jillionaire jerk Elon Musk. Sadly, the film is not so up-to-date that it covers Musk and former friend-turned-foe Sam Altman’s recent courtroom brawl, but that doesn’t detract from the thrust of Veatch and her interviewees’ arguments.

Coalition of more than 100 organisations says move could lead to more children ending up in adult detention facilities

A coalition of more than a hundred refugee children’s organisations has said controversial plans to use AI to assess the age of young asylum seekers could lead to more children wrongly ending up in adult prisons or detention centres.

The warning follows a Home Office announcement on Friday of a contract to roll out AI facial age estimation technology on young asylum seekers whose age is disputed.

A new belief set is uniting some of the wealthiest men in the world around a ‘transhuman’ future – actual humanity be damned

Sam Altman, the chief executive of OpenAI, took to the Internet a few years ago to propose that homo sapiens would be the first species “to design our own descendants”. In his best case scenario, the “merge” between humans and artificial intelligence occurs at some point over the next 50 years. The alternative, where we remain simply human and the machines follow their own path, is more ominous. “If two different species both want the same thing and only one can have it – in this case, to be the dominant species on the planet and beyond – they are going to have conflict,” he wrote.

More recently, Elon Musk, the world’s richest man, who at one point last year was granted the power to reconfigure the US federal government, argued on his social media platform, X, that “it increasingly appears that humanity is a biological bootloader for digital superintelligence” – our role in the history of the cosmos reduced to that of the low level code that boots up a computer before you can run sophisticated programs on it.

From digital twins to models ‘sculpted’ by programmers, generative AI has been popping up all over the fashion industry. When an Australian e-commerce retailer started using AI-generated models to sell products, lifestyle editor Alyx Gorman had to see if the garments were more than mere pixels.

The Iconic, which sells the dress worn in this video, said in a statement: ‘Where AI-generated imagery is used to advertise products for sale on our platform, our expectation is that it is clearly labelled and that the product itself is represented as accurately as possible for customers.’

Meanwhile, Atoir, the designer, said: ‘The Australian fashion industry is highly competitive, particularly for independent brands. We believe that when used responsibly, tools like this can help smaller businesses to operate with greater agility while still maintaining the creative standards and product integrity that matter to both the brand and the customer’

• Calling all fashion models … now AI is coming for you

While companion robots are being introduced and virtual experiences hope to ‘take loneliness away’, one expert agrees tech should never replace the human element

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“You’ll never get rid of humans,” Prof Wendy Moyle says, during a discussion about robots and other technology in aged care and residential homes.

Then, a beat later, she adds: “Well, I don’t think we’ll get rid of humans.”

Experts say AI firm’s engagement with Vatican risks creating ‘feelgood’ discourse that lacks critical examination

Why did Anthropic’s founder sit beside the pope during a warning about AI?

In the first major written teaching of his papacy, Pope Leo XIV took artificial intelligence to task. The pontiff delineated the technology’s most concerning threats to humanity: replacing workers, accelerating war and exploiting the environment. At a ceremony honoring the holy teaching the day of its release at the Vatican, the pope was flanked by an unusual guest speaker: Anthropic co-founder Chris Olah, one of the people behind the AI boom so worrying Leo.

Guardian readers in the US spoke of fears about unregulated AI in response to the pope’s encyclical warning about the risks of the technology

In his first major papal text since assuming leadership of the Catholic church last year, Pope Leo issued a stark warning about the rise of artificial intelligence this week, denouncing the “culture of power” driving the AI age.

Calling for the “most rigorous” ethical constraints on AI – which he described as one of the greatest threats facing humanity today – the first US-born pope also warned of “new forms of slavery” emerging through the digital economy.

Speaking at Amazon’s AI on the Lot event, the Rogue One film-maker Gareth Edwards said ‘it’ll do anything you ask’ and ‘it’s going to be better than CGI’

Jurassic World Rebirth and Rogue One director Gareth Edwards has enthusiastically endorsed the use of generative AI in film-making, saying “it is a fucking genius at helping you” and “it’s going to be better than CGI”.

Edwards was speaking at AI on the Lot, an event in Culver City, California, organised by Amazon, and in remarks reported by the Hollywood Reporter said: “I can’t see a reason why you wouldn’t become interested in this stuff as a film-maker. It’s so clearly a tool that might be up there with the camera. It’s going to be better than CGI.”

Exclusive: IPPR thinktank calls for new measures to boost employees’ influence at ‘pivotal moment’ in history

Workers urgently need more bargaining power over the way AI is adopted in the workplace to ensure the benefits are fairly shared, according to a TUC-backed report from a leading thinktank.

The Institute for Public Policy Research (IPPR) is calling for a package of measures to boost employees’ influence at what it calls a “pivotal moment in the history of work”.

The intelligent and thoughtful encyclical is an important warning of the uses and misuses of a rapidly developing technology. Silicon Valley is wrong to dismiss it

Often I’m asked if I think that the novels of the future will all be written by AI. It’s not so much a question as a provocation. Do I worry that a machine can do what I do, only better? I usually say something like: “No algorithm is going to write Anna Karenina!” which is also not a real answer.

So I’m grateful to Pope Leo XIV, the American pope, for his recently issued letter to the world, Magnifica Humanitas: On Safeguarding the Human Person in the Time of Artificial Intelligence. It’s a long (more than 40,00 words), intelligent and thoughtful encyclical in which the pope addresses the uses and misuses of a rapidly developing technology. Now when someone asks my opinion of AI, I can refer them to the pope’s letter, or at least chapter three.

Claude’s parent company’s $65bn in latest funding round underscores vast sums of money still flowing into industry

Anthropic, the AI firm behind the Claude chatbot, announced on Thursday it had raised $65bn in funding to value the company at $965bn post-money. The move makes Anthropic the world’s most valuable AI startup, eclipsing its competitor OpenAI.

The deal marks an exceedingly successful period of growth for Anthropic, which was once considered to be a smaller player in the global AI arms race. The widespread adoption of its products by large enterprise businesses, especially following its release of powerful coding assistants late last year, has turned it into a dominant player in the industry.

Picture was created by administrator in charge of station’s Facebook account who wanted to create ‘friendlier image’

It was an arresting image and an irresistible story. A group of tough Thai police officers – five men and one woman – all wearing elaborate festival-style dresses, surrounding a drug dealer they had caught while undercover.

The image, released by local police, was so compelling that it found its way on to the front page of the UK’s Daily Star, as well as in picture stories in the Telegraph, the Sun and the New York Post.

Datacentres used 22% of country’s electricity last year, pushing up household bills, study suggests

Energy demand by datacentres in Ireland has added hundreds of euros to household electricity bills in a pattern that could be replicated across Europe, according to a report.

Ireland’s growing number of datacentres last year used 22% of the country’s electricity, more than all urban homes combined, according to the Central Statistics Office. The equivalent figure in the US and UK is 6%.