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Chinese cloud provider reportedly joins the homegrown silicon party

Alibaba has reportedly developed an AI accelerator amid growing pressure from Beijing to curb the nation's reliance on Nvidia GPUs. …

DOD: Defense Secretary Pete Hegseth said the Pentagon has halted a decade-old Microsoft program that has allowed Chinese coders, remotely supervised by U.S. contractors, to work on sensitive DOD cloud systems. In a digital video address to the public posted yesterday, the secretary said DOD was made aware of the "digital escorts" program last month and that the program has exposed the Defense Department to unacceptable risk -- despite being designed to comply with government contracting rules. "If you're thinking 'America first,' and common sense, this doesn't pass either of those tests," Hegseth said, adding that he initiated an immediate review of the program upon learning of it. "I want to report our initial findings. ... The use of Chinese nationals to service Department of Defense cloud environments? It's over," he said. Additionally, Hegseth said DOD has issued a formal letter of concern to Microsoft, documenting a breach of trust, and that DOD is requiring a third-party audit of the digital escorts program to pore over the code and submissions made by Chinese nationals. The audit will be free of charge to U.S. taxpayers, he said.

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Bias, a lack of safety reporting, and the whole 'MechaHitler' thing are all the evidence needed, say authors

Public advocacy groups are demanding the US government cease any use of xAI's Grok in the federal government, calling the AI unsafe, untested, and ideologically biased.…

Federal Trade Commission Chairman Andrew Ferguson accused Google of using "partisan" spam filtering in Gmail that sends Republican fundraising emails to the spam folder while delivering Democratic emails to inboxes. From a report: Ferguson sent a letter yesterday to Alphabet CEO Sundar Pichai, accusing the company of "potential FTC Act violations related to partisan administration of Gmail." Ferguson's letter revives longstanding Republican complaints that were previously rejected by a federal judge and the Federal Election Commission. "My understanding from recent reporting is that Gmail's spam filters routinely block messages from reaching consumers when those messages come from Republican senders but fail to block similar messages sent by Democrats," Ferguson wrote. The FTC chair cited a recent New York Post report on the alleged practice. The letter told Pichai that if "Gmail's filters keep Americans from receiving speech they expect, or donating as they see fit, the filters may harm American consumers and may violate the FTC Act's prohibition of unfair or deceptive trade practices." Ferguson added that any "act or practice inconsistent with" Google's obligations under the FTC Act "could lead to an FTC investigation and potential enforcement action."

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Microsoft has found no link between the August 2025 KB5063878 security update and customer reports of failure and data corruption issues affecting solid-state drives (SSDs) and hard disk drives (HDDs). From a report: Redmond first told BleepingComputer last week that it is aware of users reporting SSD failures after installing this month's Windows 11 24H2 security update. In a subsequent service alert seen by BleepingComputer, Redmond said that it was unable to reproduce the issue on up-to-date systems and began collecting user reports with additional details from those affected. "After thorough investigation, Microsoft has found no connection between the August 2025 Windows security update and the types of hard drive failures reported on social media," Microsoft said in an update to the service alert this week. "As always, we continue to monitor feedback after the release of every Windows update, and will investigate any future reports."

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GMP library test meltdown has AMD looking for answers

Chipmaker AMD is looking into a report from the GMP project about two Ryzen processors that failed during testing. Could too much math be to blame?…

ArsTechnica: Today's video game consoles are hundreds of dollars more expensive than you'd expect based on historic pricing trends. That's according to an Ars Technica analysis of decades of pricing data and price-cut timing across dozens of major US console releases. The overall direction of this trend has been apparent to industry watchers for a while now. Nintendo, Sony, and Microsoft have failed to cut their console prices in recent years and have instead been increasing the nominal MSRP for many current consoles in the past six months. But when you crunch the numbers, it's pretty incredible just how much today's console prices defy historic expectations, even when you account for higher-than-normal inflation in recent years. If today's consoles were seeing anything like what used to be standard price cuts over time, we could be paying around $200 today for pricey systems like the Switch OLED, PS5 Digital Edition, and Xbox Series S.

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But the cure may ruin the web....

With AI's rise, AI web crawlers are strip-mining the web in their perpetual hunt for ever more content to feed into their Large Language Model (LLM) mills. How much traffic do they account for? According to Cloudflare, a major content delivery network (CDN) force, 30% of global web traffic now comes from bots. Leading the way and growing fast? AI bots.…

French President Emmanuel Macron vowed a strong response [non-paywalled source] if any country takes measures that undermine Europe's digital sovereignty. From a report: Earlier this week, US President Donald Trump threatened to impose fresh tariffs and export restrictions on countries that have digital services taxes or regulations that harm American tech companies. France was among the first nations to implement a digital services tax. "We will not let anyone else decide for us on this matter," he told reporters in Toulon, France, on Friday. "We cannot allow our digital sector or the regulations we have chosen for ourselves, which are a necessity, to be threatened today." Trump has long railed against EU tech and antitrust regulation over US tech giants including Alphabet's Google and Apple.

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Look who's visiting the watering hole these days

Amazon today said it disrupted an intel-gathering attempt by Russia's APT29 to trick Microsoft users into unwittingly granting the Kremlin-backed cyberspies access to their accounts and data.…

Platform's staffer complains security review was 'rushed'

Microsoft-owned collaborative coding platform GitHub is deepening its ties with Elon Musk's xAI, bringing early access to the company's Grok Code Fast 1 large language model (LLM) into GitHub Copilot. However, a whistleblower has claimed that the rollout suffers from inadequate security testing and an engineering team operating under duress.…

One of Australia's largest banks has apologized to staff who found out they had been fired through an automated email asking them to hand back their laptops. From a report: ANZ's retail banking executive Bruce Rush said it was "not our intention to share such sensitive news with you in this way" as the firm cuts jobs in its retail banking business. The bank said the emails were sent to some staff ahead of schedule in error. It said it has since stopped sending the emails and that staff have been spoken to personally. The Financial Sector Union said the email caused "panic and distress" and was a result of the company forcing through a "chaotic pace of change." The union's president Wendy Streets said it had not been consulted on the changes the bank was making, adding that "ANZ must do better." "Speed and cost-cutting cannot come at the expense of dignity and respect for workers," Ms Streets said, describing the "botched" episode as "disgusting." Mr Rush wrote in an email to staff: "Unfortunately, these emails indicate an exit date for some of our colleagues before we've been able to share their outcome with them."

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'It blows my mind,' says SecDef

The Pentagon has formally kiboshed Microsoft's use of China-based employees to support Azure cloud services deployed by US government agencies, and it's demanding Microsoft do more of its own digging to determine whether any sensitive data was compromised. …

A newly published Investigatory Powers Tribunal filing indicates the UK government's Technical Capability Notice to Apple went beyond the company's Advanced Data Protection encryption to include standard iCloud services used by millions [non-paywalled source]. The document states the UK Home Office order "is not limited to" ADP data and applies "globally in respect of the relevant data categories of all iCloud users." The filing emerged days after Trump administration officials claimed the UK had agreed to drop efforts targeting American citizens' data. Apple launched its legal challenge in March after receiving the TCN, which the company cannot discuss publicly under the Investigatory Powers Act. The tribunal scheduled a hearing for early next year. Apple withdrew ADP from UK customers in February.

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The $5.7B check has cleared, CFO says

Intel's agreement with the US government incudes a clause that would allow the feds to take an additional five percent stake in the chipmaker if it ceases to have a controlling share in its foundry business.…

Chocolate Factory says people keep marking them as such, so QED

The Trump administration has accused Google of discriminating against Republicans' emails and warned that the tech giant could be in line for a crackdown.…

Universities facing federal research budget cuts are increasingly turning to corporate partnerships for funding as Georgia Tech secures $70 million from industry this fiscal year -- 28% more than last year and representing 15% of campus research funding versus the 6% national average. The Atlanta school's corporate engagement office has fielded multiple weekly calls from other institutions seeking guidance after securing deals including Hyundai's $55 million stadium naming rights agreement alongside undisclosed research investments in electric vehicle and hydrogen fuel technologies. The arrangements come with restrictions: nondisclosure agreements limit publication options for graduate students, and companies typically avoid funding basic research without immediate commercial applications. Federal grants still constitute over half of university research spending nationally, supporting early-stage discovery work that laid groundwork for current quantum computing developments.

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A remarkable mixture of different components, but it works

RefreshOS is a Debian and KDE-based distro with a difference: it casts its net a lot wider for tools and components.…

An anonymous reader shares a report: Valve has started to comply with the UK's Online Safety Act, by rolling out a requirement for all Brits to verify their age with a credit card to access "mature content" pages and games on Steam. UK users won't even be able to access the community hubs of mature content games unless a valid credit card is stored on a Steam account. While platforms like Reddit, Bluesky, and Discord have opted for age verification checks using selfies, Valve is restricting its age checks to just credit cards, according to a support article. "Among all age assurance mechanisms reviewed by Valve, this process preserves the maximum degree of user privacy," says Valve. "Having the credit card stored as a payment method acts as an additional deterrent against circumventing age verification by sharing a single Steam user account among multiple persons."

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A 56-year-old tech industry veteran killed his mother and himself in Old Greenwich, Connecticut on August 5 after months of interactions with ChatGPT that encouraged his paranoid delusions. Greenwich police discovered Stein-Erik Soelberg and his 83-year-old mother Suzanne Eberson Adams dead in their home. Videos posted by Soelberg documented conversations where ChatGPT repeatedly assured him he was sane while validating his beliefs about surveillance campaigns and poisoning attempts by his mother. The chatbot told him a Chinese food receipt contained demonic symbols and that his mother's anger over a disconnected printer indicated she was "protecting a surveillance asset." OpenAI has contacted Greenwich police and announced plans for updates to help keep users experiencing mental distress grounded in reality.

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