The morning briefing.
While you slept: Hackers exploited Instagram's AI bot to compromise 20,000 accounts, the UK pushes for sovereign AI and child safety, and global tech stocks face a sell-off.
AI Security Vulnerabilities. Recent incidents highlight critical vulnerabilities in AI systems. Hackers exploited Meta's AI-powered support bot to compromise over 20,000 Instagram accounts, including high-profile ones. This incident underscores the risks associated with deploying AI in sensitive operational roles. Furthermore, the rise of agentic AI introduces new enterprise security challenges, as seen with the OpenClaw vulnerability, while insurers like Aviva are detecting record levels of AI-assisted fraud.
Global AI Investment & Competition. The global AI landscape continues to see significant investment and intensifying competition. London-based PhysicsX secured $300 million at a $2.4 billion valuation for its AI-driven engineering solutions. Meanwhile, China's Moonshot AI, developer of the Kimi assistant, reached a staggering $30 billion valuation after a sixfold increase in six months, reflecting a surge in Chinese AI model API call volumes that have surpassed US counterparts for six consecutive weeks.
UK AI Policy & Development. The UK is actively shaping its AI policy and capabilities, with Prime Minister Keir Starmer issuing an ultimatum to tech firms to implement child safety software by September. This move aims to block explicit images on children's phones, signaling a firm stance on online safety. Concurrently, the UK is advancing its sovereign AI ambitions, with British AI company Cosine securing industry backing to co-design Britain’s first sovereign frontier model, Lu.
Tech Market & Innovation Trends. Broader tech markets are experiencing volatility, with global stock markets falling amid concerns over AI-linked tech firms after a sharp sell-off of US tech stocks. Innovation continues, however, with Apple's WWDC expected to unveil a major AI upgrade to Siri, potentially unlocking new hardware. UK startup NewOrbit also raised €16 million for commercial satellites in very low Earth orbit. Separately, the pursuit of nuclear fusion faces a critical tritium fuel shortage.
Hackers Tricked Instagram AI to Take Over 20,000 Accounts
Hackers exploited Meta’s AI-powered support bot to compromise approximately 20,000 Instagram accounts, including those of the White House and US Space Force. Meta has since addressed the vulnerability and is taking steps to secure affected accounts.
New Siri AI Upgrade at WWDC Could Unlock New Apple Hardware
Apple's upcoming WWDC is expected to feature a significant AI upgrade to Siri, potentially leading to new hardware like an Apple TV, HomePod mini, and an updated Siri Remote. This enhancement aims to improve Siri's capabilities and integration across Apple's ecosystem.
Starmer Gives Tech Firms Ultimatum on Child Phone Safety Software
UK Prime Minister Keir Starmer has given tech companies until September to install software that blocks explicit images on children’s mobile phones. Failure to comply will result in new legislation enforcing the requirement.
Cosine Secures Backing for Britain’s First Sovereign Frontier AI Model
British AI company Cosine has secured industry backing to co-design Lu, the UK Government’s first sovereign frontier AI model. This initiative is part of the UK’s broader strategy to become an AI maker.
PhysicsX Raises $300M at $2.4BN Valuation for AI Engineering
London-based PhysicsX, an AI startup transforming engineering design and simulation, has raised $300 million at a $2.4 billion valuation. The funding will accelerate its work in compressing complex design processes.
Kimi AI Reaches $30 Billion Valuation After Sixfold Increase
Moonshot AI, the developer of the Kimi AI assistant, has reached a $30 billion pre-money valuation in a new fundraising round. This marks a sixfold increase in its valuation within half a year.
China's AI Model API Call Volume Surpasses US for Six Weeks
Chinese AI models have surpassed US counterparts in API call volume on OpenRouter for six consecutive weeks. DeepSeek-V4-Flash leads, and MiniMax M3 has broken into the global top three.
OpenClaw Vulnerability Reveals Agentic AI Security Risks
The OpenClaw vulnerability has exposed how autonomous AI agents are reshaping enterprise security risks. This highlights the evolving challenges in protecting systems that rely on agentic AI.
Aviva Detects Record £230M in Bogus Insurance Claims as AI Use Rises
Insurer Aviva detected a record £230 million in bogus insurance claims last year, with scammers increasingly using AI to fake accident scenes, documents, and exaggerate damage. The company identified over 18,400 suspect claims in 2025.
AI Driving Positive Tech Job Growth in Europe Despite Security Risks
Data from the Linux Foundation and WEF indicates that AI is driving net positive tech job growth across Europe, challenging job displacement concerns. However, it still presents growing security risks and skills gaps.
NewOrbit Raises €16M to Build Satellites for Very Low Earth Orbit
UK-based SpaceTech company NewOrbit has closed an oversubscribed €16 million Series A round. The funding will support the launch of the world’s first commercial satellite designed for very low Earth orbit (VLEO).
Artificial Sun Faces Fuel Crisis as Tritium Nears $40,000 Per Gram
The global inventory of tritium, crucial for nuclear fusion, stands at just 20 kilograms, with prices reaching $40,000 per gram. This shortage threatens the commercialization of nuclear fusion, even as China's HL-3 tokamak advances.
Global Stock Markets Fall Amid Concerns Over AI-Linked Tech Firms
Global stock markets have fallen following a sharp sell-off in US tech stocks last week, as investors express concern over firms at the heart of the AI boom. Oil prices also jumped due to renewed Middle East conflict.
Uber, Wayve, and Waymo Headed for Robotaxi Showdown in London
Uber customers in the UK can now join an interest list to be matched with a Wayve robotaxi, intensifying the competition with Waymo in London. This marks a significant step in the expansion of autonomous ride-hailing services.