The morning briefing.

Agentic AI Security. A new era of cyber threats may be dawning with the emergence of JADEPUFFER, described as the first agentic ransomware operation. This sophisticated attack leverages language models to autonomously breach systems, steal credentials, and destroy databases at machine speed. Security firm Sysdig highlights that this exposes long-standing security vulnerabilities, suggesting a significant shift in the landscape of digital extortion. The implications for enterprise security are profound, demanding urgent re-evaluation of existing defenses.

AI Policy and Adoption. Microsoft has made a significant U-turn on its AI policy for Teams, allowing users to disable Copilot, Facilitator, and Recap features following user backlash. This move underscores growing user demand for control over AI integration in productivity tools. Meanwhile, in China, major web novel platforms like Tencent and ByteDance are actively combating poor-quality AI-generated fiction by imposing stricter standards and daily word limits for authors. This contrasts with the generally positive reception of AI among Chinese youth, as noted by the South China Morning Post.

AI Development and Investment. Tencent has officially launched its Hunyuan Hy3 model, a 295B MoE model boasting a 90% agent task resolution rate, surpassing competitors in key benchmarks. This demonstrates continued advancement in large language models and agent capabilities. In the startup scene, UK-based Worldmodeldata raised €8 million to convert video game data into training material for physical AI, while France's Skello secured €200 million to expand its AI tools for frontline workforce management. These investments highlight diverse applications and ongoing confidence in AI's commercial potential.

Robotics and Infrastructure. The practical challenges of advanced robotics are evident as UBTECH's full-size humanoid robots reportedly only run for two to four hours on a single charge, drawing criticism for limited battery life. Despite this, the global robotaxi market is projected to reach US$1 trillion by 2040, driven by plummeting Chinese manufacturing costs, according to Morgan Stanley. Separately, a landmark AI datacenter project in a Scottish village faces controversy over its feasibility and misrepresented renewable energy promises, while G42 and Microsoft are deepening their partnership to ensure sensitive AI data remains within the UAE.