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Samsung reports record first-quarter operating profit driven by chip unit surge
Samsung Electronics reported a 750 percent increase in first-quarter operating profit, reaching 57.2 trillion won, driven by a 49-fold surge in chip unit income. The company attributes this growth to increased AI infrastructure spending and soaring memory prices. Samsung expects memory shortages to deepen into next year and has signed multi-year contracts with customers. Despite the financial success, workers are considering strike action over pay disputes following competitor bonuses.
OpenAI signs contract with US government for military AI use
OpenAI announced a contract with the US government to provide AI models for military missions, reversing its previous policy against military applications. The deal coincides with President Trump's Operation Epic Fury against Iran. OpenAI states the military needs strong AI to counter adversaries integrating AI technologies. CEO Sam Altman previously faced criticism for the shift, while competitor Anthropic's CEO Dario Amodei concluded government misuse was impossible to prevent. OpenAI included clauses prohibiting mass domestic surveillance and autonomous weaponry, though the government had previously skirted similar prohibitions.
McKinsey & Company suffers AI platform breach exposing system prompts
On February 28, 2026, an autonomous AI agent developed by CodeWall exploited a SQL injection vulnerability in McKinsey & Company's internal generative AI platform, Lilli. The breach, occurring within two hours, granted read-write access to 46.5 million chat messages, 728,000 sensitive file names, 57,000 user accounts, and 95 system prompts. The attack highlighted critical architectural failures regarding authentication and prompt management, raising significant concerns about the security of enterprise AI infrastructure used by 43,000 employees.
Nearly half of UK businesses suffered cyber attacks last year
New government research reveals that 43% of UK businesses experienced a cyber security breach or attack in the last 12 months, affecting approximately 612,000 firms. Phishing remains the most prevalent and disruptive incident type, with rates increasing to 51% this year. While medium and large businesses are more likely to be targeted, significant numbers of micro and small firms were also affected. Adoption of advanced security controls like two-factor authentication remains low. The National Cyber Security Centre warns of a 'perfect storm' driven by technological change and geopolitical tensions, urging businesses to prioritise cyber hygiene and governance.
AI boom drives Taiwan and South Korea stock markets to record highs
Artificial intelligence demand has propelled the stock markets of Taiwan and South Korea to record levels. Taiwan's GDP grew 13.7% in Q1 2026, while its market capitalisation surpassed Canada's. South Korea's Kospi Index reached an all-time high, overtaking the UK. Chip manufacturers TSMC, Samsung Electronics, and SK Hynix are driving this growth, with production struggling to meet surging global demand for AI chips and memory. Analysts remain optimistic despite potential risks from the Iran conflict.
OpenAI accelerates Stargate infrastructure buildout ahead of potential IPO
OpenAI has surpassed its initial target of securing 10GW of US AI capacity by 2029 under its Stargate project, adding over 3GW in the last 90 days. This expansion occurs as the company explores a potential IPO valued up to $1tn, despite reports of missed revenue and user-growth targets. Analysts note the timing creates uncertainty regarding whether future ChatGPT revenue will cover the escalating physical costs of data centres, chips, and power required to maintain competitiveness against rivals like Google and Meta.
Experts warn VECT 2.0 ransomware functions as data destruction tool
Cybersecurity researchers from Check Point report that VECT 2.0, a ransomware variant marketed on dark web forums, functions as a data wiper rather than an encryptor. Flawed nonce handling causes files larger than 128 KB to be permanently destroyed. Victims cannot recover data even if they pay the ransom. The malware is associated with TeamPCP and targets various file types including databases and documents.
Pure DC confirms continued Middle East investment despite drone debris
Pure Data Centres confirmed it has not paused investment in the Middle East, contradicting earlier comments by CEO Gary Wojtaszek. While CNBC reported a shrapnel strike on an Abu Dhabi facility, Pure DC stated no service interruption occurred, though drone debris was found and removed. The company remains committed to the region as a key strategic pillar, with active discussions in Abu Dhabi and Saudi Arabia. Recent attacks on other data centers highlight increasing military significance of digital infrastructure.
US and allies urge careful adoption of AI agents
The Australian and US governments, alongside British, Canadian, and New Zealand counterparts, released guidance on Friday warning of risks associated with agentic AI systems. The document highlights potential productivity losses, service disruptions, and cybersecurity incidents. It advises organisations to restrict access to sensitive data, use agents only for low-risk tasks, and implement strong governance, human oversight, and continuous monitoring to mitigate systemic risks and unexpected behaviours.
General Dynamics lands $716M Abrams sustainment deal
General Dynamics Land Systems secured a $716.2 million five-year sustainment contract for Abrams tanks, Joint Assault Bridges, and Assault Breacher Vehicles, effective through April 2031. The agreement, awarded by the Army Contracting Command at Detroit Arsenal, covers maintenance, training, and foreign military sales support. A separate $13.5 million modification pushed a related technical support contract past $1 billion in cumulative value. Funding will be obligated per task order.
Microchip Technology builds new hydrogen maser facility in Alabama
Microchip Technology announced the construction of a new facility in Alabama to increase production of hydrogen masers. The expansion addresses surging demand from GPS III satellites, 5G and 6G networks, and military contracts. The plant aims to reduce lead times, enhance supply chain resilience, and secure national security by manufacturing critical timing components domestically. The project will create dozens of jobs and leverages state incentives.
US technology companies invest 700 billion in AI creating pressure on China
US technology giants are investing over 700 billion USD in artificial intelligence this year, significantly outpacing Chinese counterparts. Major US firms including Google, Microsoft, Meta, and Amazon are increasing capital expenditure, driven by high memory costs and growing application demand. While Chinese cloud providers are estimated to spend around 105 billion USD, representing roughly one-tenth of US investment, analysts note that Chinese companies are developing large-scale AI models of comparable quality. This disparity is attributed to US restrictions on advanced chip exports, forcing Chinese firms to rely more on software and algorithmic improvements.
Splunk warns backdoor injection threatens AI model reliability
Splunk, a security firm owned by Cisco, reports in its Top 50 Cybersecurity Threats that backdoor injection attacks pose a severe risk to AI models. These attacks involve implanting hidden triggers in training data, causing models to behave maliciously under specific conditions. Research indicates that as few as 250 poisoned documents can compromise models regardless of size. Additionally, model poisoning can lead to misinformation and a lack of trust. The report highlights that supply chain vulnerabilities and shared datasets increase these risks, potentially accelerating model collapse.
NIST NCCoE launches new OT cybersecurity project to boost visibility
The National Institute of Standards and Technology and its National Cybersecurity Center of Excellence have launched a new operational technology cybersecurity project aimed at enhancing visibility into OT environments. The initiative addresses critical blind spots in industrial control systems, legacy infrastructure, and embedded devices that pose significant risks to national security and critical infrastructure. By focusing on scalable methods for asset discovery and monitoring, the project seeks to mitigate vulnerabilities exploited by nation-states and ransomware gangs, shifting cybersecurity strategy from reactive controls to proactive, intelligence-driven risk management.
Rockwell Collins awarded $472m contract for Chinook avionics
The US Army Contracting Command awarded Rockwell Collins a $472.4 million contract for CH-47 Chinook avionics integration, modification, and engineering support. The cost-plus-fixed-fee CTES V contract covers command, control, and communications integration across all Chinook variants through April 2031. Work locations and funding are determined per order. Rockwell Collins, now part of RTX's Collins Aerospace, is the sole bidder and primary avionics partner for the program.
Big Tech earnings focus on AI capex
Earnings reports from Alphabet, Amazon, Meta, and Microsoft are scheduled to be released after the bell. These four companies are the largest spenders on artificial intelligence computing infrastructure. Mandeep Singh of Bloomberg Intelligence provided a preview of the upcoming reports.
Tech giants ramp up AI spending but returns remain uncertain
Jefferies reports that global technology companies plan to spend approximately $700 billion on AI infrastructure this year, with projections reaching $800 billion next year. Despite this unprecedented investment by major US firms including Microsoft, Amazon, Alphabet, and Meta, concerns persist regarding weak returns and unclear monetisation strategies. The report highlights that capital expenditure as a percentage of operating cash flow is projected to rise to 92% by 2026. While demand for computing power continues, the gap between investment and profitability remains a significant risk for the sector.
Pentagon accelerates development of containerized 300kW+ laser weapons for cruise missile defense
New Pentagon budget documents reveal the US military is accelerating the Joint Laser Weapon System (JLWS), a containerized directed-energy system capable of over 300 kilowatts. Designed to shoot down cruise missiles, the JLWS is a key component of the $17.9 billion Golden Dome initiative. The FY2027 budget allocates $452 million for directed energy system development. The Navy aims to integrate high-energy laser subsystems with command-and-control and thermal management for naval testing, building on lessons from earlier programs like HELIOS.
Critical cPanel zero-day exploited alongside Black Axe arrests and HHS data center review
A critical authentication bypass vulnerability in cPanel (CVE-2026-41940) is being actively exploited, prompting an emergency patch. Simultaneously, Swiss and German police arrested ten suspected members of the Nigerian transnational criminal group Black Axe for romance scams and money laundering. In the US, the House Homeland Security Subcommittee is reviewing whether to designate data centers as a standalone critical infrastructure sector. Additional threats include a new Python backdoor, widespread phishing attacks in the UK, AI-generated npm malware linked to North Korea, and rapid exploitation of a LiteLLM SQL injection flaw.
Bluekit phishing platform uses AI to automate sophisticated cyberattacks
A new platform called Bluekit has emerged, enabling digital criminals to automate phishing attacks using artificial intelligence models such as GPT-4, Claude, and LLaMA. The tool allows users to create highly convincing, personalized emails and fake login pages for popular services including Gmail, iCloud, GitHub, and Ledger without requiring advanced technical skills. It integrates with Telegram for real-time data exfiltration and includes anti-detection mechanisms to evade security systems. Experts warn that this technology significantly lowers the barrier to entry for cybercrime, making attacks harder to identify and more effective against even experienced users.