BBC News technology

Google value plunges by $500bn as its own AI search hits ad sales

Fri, 30 Oct 2026 12:04:02 GMT

EPA

Google CEO Sundar Pichai has backed the company's massive spending on AI.

Kali HaysTechnology reporter and Mitchell LabiakBusiness reporter

29 October 2026

Updated 1 hour ago

Google-owner Alphabet lost just over $500bn (£374bn) in value on Thursday after it revealed its own artificial intelligence (AI) summaries were hitting search advertising revenue.

Chief business officer Philipp Schindler said Google's "AI mode", where it answers questions conversationally, was eating into the money it makes from ads which appear next to results to traditional search questions.

Yet, Schindler said he felt "very good about our trajectory" with an AI-focused version of the search engine.

Google's role in answering the world's questions has been challenged by the AI boom, with millions of people using programs such as ChatGPT and Claude instead.

Kim Scott, who formerly led Google's advertising business, told the BBC's Today programme that the company would "rather eat its own lunch than allow someone else to eat their lunch" by having its own AI summaries hit its search revenue.

She said that Google was founded on the idea of making long-term bets on technology – even if they hurt the firm in the short term.

"I think they're making a long-term bet on AI," she said.

In its results published on Wednesday, Alphabet revealed that total revenue grew 25% in the three months to the end of September, compared to the same period last year, hitting $127.6bn.

However, the firm did not make as much money as analysts had predicted, particularly in its advertising arm, which spooked many investors.

Shares in the company plummeted over 12% to a six-month low following the release of the results.

By the end of Thursday, the company's total stock market value had fallen to $3.46 trillion from $3.97 trillion the day before.

Investors not buying Amazon's trillion-dollar business hopes

Microsoft and Amazon also issued updates this week, and joined Google in plans to keep spending huge sums of cash in the ongoing AI race.

But investors appeared dismayed at the impacts these plans are having on the ability of each to keep growing their core lines of business.

Amazon's stock took a hit on Thursday , with its shares falling 6% in after-hours trading.

Alongside quarterly sales growth of 11%, hitting $201bn, the company shared a staggering cash flow figure of negative $42bn.

That number shows that Amazon is not only spending more money than it makes, but that spending has increased six-fold over the span of three months.

Chief executive Andy Jassy claimed the business was spending in part because it had the chance at, not one, but two businesses that could end up bringing in $1 trillion for Amazon the future.

Jassy did not specify what two Amazon businesses those may be. But during a call with financial analysts he repeatedly mentioned the financial opportunity presented by Amazon making and selling its own computer chips, as well as its AI developer platform Bedrock, which offers paying users access to most major AI models and tools.

"One of the lessons we've learned over 20-plus years is that there is not one tool to rule the world," Jassy said. "People always assume whatever is in the lead early on will be the only thing that people use - it's never true."

As Jassy was asked several times to explain the company's spending, he admitted it "would be more convenient" if it were spread over the next 25 years. "That's not the world we live in," he added.

"We can fund this plan, and I think it will forever change the size, the revenue, the free cash flow of Amazon."

Microsoft begs the question of AI's real value

Wall Street's reaction to Microsoft's update was more muted, with shares falling by less than 1% on Thursday.

The company, which is also one of OpenAI's largest investors, spent around $5bn less on investments dedicated to AI. It also revealed earlier this week plans to cut thousands of workers, which will further reduce the company's costs.

Meanwhile, its revenue grew 19% from a year earlier, hitting $92.3bn for the quarter. Its crucial cloud business grew by 30% to $63bn.

Chief executive Satya Nadella said the use of Copilot, Microsoft's AI chatbot and tool, has seen "automated tasks nearly double since July" as daily users grew by 500% from a year ago.

Usually lower spending and growing sales earns a positive reaction from investors.

But Woo said Wall Street is trying to look farther into the future when it comes to which businesses will truly make good on their big promises around AI.

"Microsoft's results reinforce that enterprise demand for AI remains strong, but they also highlight a much bigger question facing the technology industry, where AI value will ultimately be captured," Woo said.

Who could be behind the Binance hack and what we know so far

Fri, 30 Oct 2026 11:57:33 GMT

Getty Images

Laura Cress

Technology reporter

2 hours ago

Binance, the world's largest crypto exchange, has been hit by what is believed to be the largest crypto hack ever at $6.3bn (£4.7bn).

Crypto is a type of digital asset which does not exist physically like cash or coins. Instead, people use digital wallets on their smartphones or computers to access and manage it.

Richard Teng, Binance's co-chief executive officer, said it is working with the authorities to work out what has happened and it will cover all losses.

Here's what we know so far.

Binance says it is beginning to recover crypto funds after $6.3bn hack thought to be largest ever

What is Binance?

Binance is the world's largest cryptocurrency exchange by trading volume, where people can buy, sell and trade digital currencies, like Bitcoin, as well as deposit and withdraw them.

It was founded in China in 2017 and has hundreds of millions of registered users worldwide.

The exchange has come under scrutiny over the past few years - notably in 2023, when its then-chief executive, Changpeng Zhao, resigned after pleading guilty to money laundering violations.

Last year, a lawsuit in the US accused the company of helping send millions of dollars to US-designated terrorist organisations.

In 2024, the company said it has more than $160bn in assets.

From Bitcoin to blockchain: Key cryptocurrency terms and what they mean

How did the hack happen?

The hack happened to Binance's global centralised exchange, Binance.com.

Binance.us, which provides trading services specifically for US residents, said it has not been affected by the issue.

In a statement, Teng said: "Our initial investigation suggests this security incident may have started with a compromised DevOps engineer's laptop.

"That gave an attacker access to a service container, where they submitted unauthorised withdrawal transactions."

He said the hack "was not a simple 'one-click' action" but a "more complex attack process".

Raghu Nandakumara, vice president of industry strategy at cybersecurity platform Illumio, said this could mean an engineer was "talked into taking a test" and malware - malicious software – "landed on their laptop while they did it".

Because the laptop already had sufficient security privileges, Nandakumara said early reports suggest it became "the attacker's route straight into production, and from there to the wallets".

"You can build a vault with mathematical firewalls, but if the individual holding the keys can be duped, the vault is opened," said Dr Clive Summerfield, head of FARx, a biometrics in AI security company.

Bloomberg via Getty Images

Binance co-chief executive officer Richard Teng speaks at a conference

Who is behind the hack?

It is not yet known who is behind the attack, but some analytics firms have pointed to North Korea - though this has not been confirmed.

AI-powered investigations company TRM Labs said in a report several elements of the Binance attack resembled earlier incidents linked to the territory, including a $1.5bn (£1.1bn) hack on the ByBit exchange in 2025.

These previous attacks have been linked to a cluster of cyber-criminals accused of working directly for the regime called the Lazarus Group - also known as TraderTraitor.

North Korean foreign policy expert Dr Edward Howell, from the University of Oxford, has told the BBC that Pyongyang "has a long history of using cyber warfare to extract cash".

Howell said North Korea "basically has a state-run cyber warfare agency", which it uses "to fund its weapons of mass destruction programmes" and as a "slush fund" for its leader Kim Jong Un's regime.

Howell added that as of the current day "about 40 – 50% of North Korea's weapons of mass destruction programmes are funded by cyber and crypto-currency warfare".

North Korea has always denied any involvement in these attacks; Binance has not directly responded to BBC queries about the incident's potential links to the area.

What does it mean for Binance users?

In his earlier statement, Teng said Binance users' funds are safe and, as a precaution, all deposits and withdrawals had been temporarily suspended.

He said the firm would cover all losses from its emergency reserve set up for such situations, and make up the rest with company funds.

Binance said it had been working with partners to freeze the affected assets, with around $3bn reportedly located so far.

"We are still on track towards the expected timeline to resume the withdrawal service in 45 hours," it said.

Users from other crypto platforms have also been warned to be wary of hackers seeking to exploit the situation.

Marijus Briedis, NordVPN's chief technology officer, said people should be on the lookout for things such as "an email claiming your funds are at risk", "a fake support account offering help" or "a message urging you to move your cryptocurrency to a 'safe' wallet".

"Check updates through the Binance app or a website address you already trust," he said.

"Avoid links in unsolicited messages, and never give anyone your password, verification codes or wallet recovery phrase."

Getty Images

Binance.us said it had not been affected by the issue

What does this mean for cryptocurrency and the wider financial system?

Jennifer Craven, an international commercial fraud expert at the law firm Pinsent Masons, said the repercussions of the hack could "extend well beyond Binance".

"More broadly, the incident exposes the fragility of parts of the crypto ecosystem," she said.

"If a platform as sophisticated as Binance can suffer a serious attack, regulators will inevitably ask what that means for smaller, less mature platforms and currencies."

She said the attack would likely accelerate scrutiny of how the sector protects both its infrastructure and its customers.

Although there is no evidence yet that AI was used in this attack, it fits into a much wider concern in the financial industry of whether AI agents could potentially identify weaknesses in software and work out how to exploit them much faster than human hackers.

The Bank of England has warned, external this could leave institutions struggling to fix vulnerabilities before attackers take advantage of them.

How many people use cryptocurrency?

Crypto has become an increasingly popular way of investing and transferring money online, partly because, unlike traditional currencies, it is not controlled by central banks or governments.

This makes it popular for people who think decentralisation can bring financial freedom.

But it also makes it extremely volatile, with it rising and falling in value at the whim of buyers and sellers.

According to Solcard, a crypto-funded prepaid payment and virtual card platform, somewhere between 560 million and 741 million people own crypto worldwide in 2026.

From Bitcoin to Binance: Crypto terms and what they mean

Fri, 30 Oct 2026 11:35:51 GMT

Getty Images

Liv McMahon, Joe Tidy & Brandon Drenon

BBC News

13 December 2022

Updated 2 hours ago

From the rapidly rising and falling values of Bitcoin to high-profile heists like the hacking of Binance, the world of cryptocurrencies is often in the headlines.

The world's biggest crypto exchange said hackers had gained access to $6.3bn (£4.7bn) worth of digital assets, and while it has frozen about half, many remained in the hands of the thieves.

These stories are full of specialist language that people outside the industry struggle to understand.

So if you're unsure what the blockchain or a crypto echange or even a cryptocurrency itself are, here are some key terms and what they mean.

Bitcoin

While many may struggle with the finer points of crypto, pretty much everyone has heard of its most famous product: Bitcoin. But what actually is it?

Bitcoin is a cryptocurrency, which is to say a type of digital currency. Unlike traditional currencies, Bitcoin is not controlled by centralised financial institutions.

This makes it popular for people who think decentralisation can bring financial freedom, but it also makes it extremely volatile with it rising and falling in value at the whim of Bitcoin buyers and sellers.

Donald Trump has pledged to make the US the "crypto capital of the world" - backtracking on his previous claim that Bitcoin was a "scam".

Its price topped a much-awaited threshold of $100,000 in December 2024, then rose to $120,000 in July 2025 as US politicians prepared to debate bills to regulate digital assets.

In October 2025, Bitcoin hit an all-time high of around $126,000, buoyed by a continued wave of institutional investment and positive market sentiment. But it has been known to plummet in value just as quickly as it spikes.

In early February 2026, its price dipped below $65,000 to effectively wipe out gains achieved under President Trump.

Against the backdrop of these frequent price fluctuations, speculation continues about the true identity of Bitcoin's mysterious inventor known only as Satoshi Nakamoto.

Blockchain

Blockchain is the technology underpinning all cryptocurrencies, and many related products like non-fungible tokens (NFTs). In essence, it is a virtual spreadsheet on which all the buying and selling of crypto is recorded. They are arranged in blocks linked together in a giant chain - hence the name.

Every cryptocurrency transaction is individually recorded onto the blockchain by a huge network of volunteers verifying its authenticity by using computer programmes.

The incentive to do this for Bitcoin's network is that the first person to validate transactions is rewarded in Bitcoin. This potentially lucrative process, known as mining, is also controversial because of the incredible amount of energy, external used as people the world over race to be the first to successfully update the blockchain.

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Are cryptocurrencies the future of money?

Crypto Exchange

A crypto exchange is the digital platform where investors can buy, sell and trade cryptocurrencies.

Similar to traditional investing, a crypto exchange acts as a brokerage where people can transfer traditional money, like pounds or dollars, in exchange for cryptocurrencies like Bitcoin or Ethereum. Most transactions are accompanied by fees.

Binance is the world's biggest, which is part of what makes the hack so monumental.

Crypto Wallet

A crypto wallet is a place where investors hold their cryptocurrency. There are two types, a hot wallet and a cold wallet.

Hot wallets are connected to the internet, and thus more accessible for quick transfers and easy access.

Cold wallets are physical devices like specially designed USB sticks that store crypto offline typically for safer and longer term storage.

Man told he can't recover £598m of Bitcoin from landfill site

Ethereum

Ethereum is used to describe both the second largest cryptocurrency after Bitcoin, represented by the Ether token, and the blockchain underpinning it. This supports an array of different applications and digital assets, such as non-fungible tokens.

It functions in a similar way to Bitcoin and other cryptocurrencies, but in 2022 switched to a greener operating system requiring less computers and energy.

What are NFTs and why are some worth millions?

Exchange-traded funds (ETFs)

ETFs are portfolios that let investors bet on multiple assets without having to buy any themselves. Traded on stock exchanges like shares, their value depends on how the overall portfolio performs in real time. They can comprise a combination of gold and silver bullion, for example, or a mix of shares in both technology and insurance companies.

A spot Bitcoin ETF buys the cryptocurrency directly, "on the spot", at its current price, throughout the day.

While some ETFs already contained Bitcoin indirectly, the US approved several spot Bitcoin ETFs in January 2024. This allowed new investors, such as investment management firms like Blackrock and Fidelity, to enter the speculative world of Bitcoin without having to worry about digital wallets or navigating crypto exchanges.

How big banks are becoming 'Bitcoin whales'

Meme coins

Meme coins are a form of cryptocurrency used for fun and speculation.

They are typically created to capitalise on social media trends or viral memes - such as for internet-famous pygmy hippo Moo Deng.

But meme coins are heavily criticised for their speculative nature and the risk involved for investors, as they often have little prospect of accumulating value over time.

They can also be susceptible to "rug pulls" - where promoters of a cryptocurrency draw in buyers to raise the price of their coin, only to stop trading activity and make off with the money raised from sales.

Some celebrities have faced backlash after launching meme coins.

Stablecoins

"Stable" is the key word here - this cryptocurrency differs from others as it is intends to be less volatile in value.

This typically works by the price being linked to an existing asset, for instance currencies like the US dollar or pound sterling, which in theory should make them more stable in price than cryptocurrencies that are not backed by assets.

Stablecoins themselves are usually controlled by companies that provide them, with transactions recorded on digital ledgers. While held up by some as the future of finance, high profile price collapses of stablecoins have alerted regulators to risks for investors and prompted scrutiny over their supposed stability.

Cryptocurrency firm Terraform, behind the crashed TerraUSD and Luna tokens, files for bankruptcy

XRP

XRP is a cryptocurrency used by a platform called the XRP Ledger. It was created by the co-founders of financial services company Ripple Labs in 2012 as a cheaper, faster alternative to Bitcoin.

The cryptocurrency has a fixed supply of 100 billion coins, which were created when it launched. Much of it is held by Ripple and periodically released into circulation.

Unlike cryptocurrencies such as Bitcoin, transactions made using XRP are verified through consensus - whereby the majority of validators on its peer-to-peer network must agree whether or not a transaction is valid before it is added to its blockchain.

This has been credited with allowing many transactions to take place simultaneously, at high speed and low cost - making it appealing to financial institutions or for processes like cross-border payments. But as with other cryptocurrencies, XRP has received regulatory scrutiny and seen sudden, sharp declines in value.

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Crypto giant Binance hit by $6.3bn hack suspected to be largest in history

Fri, 30 Oct 2026 09:33:51 GMT

Reuters

Osmond ChiaBusiness reporter and Angus Thompson

30 October 2026, 00:37 GMT

Updated 4 hours ago

Cryptocurrency giant Binance said on Thursday that $6.3bn (£4.7bn) of digital assets have been impacted by what is thought to be the biggest crypto hack on record.

The world's biggest crypto exchange said about half of those assets had been frozen but that many remained in the hands of the hackers, adding that it will "cover all losses".

The company said while initial checks suggested an engineer's laptop had been compromised, allowing an attacker to make unauthorised withdrawals, "our subsequent investigation has uncovered additional points of breach".

Two analytics firms have attributed the incident, which eclipses a record-setting $1.5bn hack on the Bybit exchange in 2025, to a North Korean hacking unit called TraderTraitor.

Cyber-security firm Check Point said the unit is also known in the industry as Lazarus Group, which has been blamed for the 2025 hack.

Check Point's chief information security officer Jayant Dave said the losses estimated by Binance made it "the largest crypto theft on record".

AI-powered investigations company TRM Labs said in a report that several elements of the Binance attack resemble earlier North Korean-linked incidents, including the Bybit hack.

The lab's global head of policy Ari Redbord told the BBC the Binance hack is a "watershed moment" that is unlike anything the industry has seen.

The attacker still holds an enormous sum of stolen assets, meaning efforts to trace and recover the funds are far from over, Redbord added.

Binance, which was founded in China in 2017, allows users to trade digital assets and is estimated to have more than 300 million registered users worldwide.

The company said in 2024 that it has more than $160bn in assets under its custody.

The exchange has been subject of regulatory scrutiny around the world.

Chainalysis, a crypto analytics firm, also said it has "high confidence" that the North Korean group are linked to the hack.

For the last few years North Korea-linked operatives have focussed on attacking cryptocurrency companies for large thefts of digital tokens.

Western security agencies have previously said stolen funds are used to finance North Korea's nuclear weapons and missile development programs.

The regime has denied any involvement in hacks in the past.

Eric Jardine, Chainalysis' Head of Research, urged every exchange to remain vigilant as the platforms are attractive targets for hackers due to the sheer value of assets.

Binance did not directly respond to BBC questions about the incident's potential links to North Korea but said: "We are working closely with our law enforcement partners to confirm the identity of these criminals and bring them to justice."

The incident concerns Binance.com - while much smaller crypto platform Binance.US, which provides trading services specifically for American residents - said its platform is not affected by the issue.

Binance co-CEO Richard Teng said the company's initial investigation suggested the hack started with a compromised engineer's laptop.

"That gave an attacker access to a service container, where they submitted unauthorized withdrawal transactions," he said in a statement.

"To be clear: the attacker did not simply use one engineer's permissions, and this was not a single 'one-click' action. It involved a more complex attack process. Our investigation has not attributed responsibility to any individual. So far, we have found no evidence of any wallet private key leak."

He said a detailed "post-mortem" would be shared once the investigation was complete.

In an update, the company said in a statement on X that another investigation found there had been other breach points: "We are still gathering the facts, and will share more directly as we have them."

Check Point's Dave said this attack also resembled a hack on crypto exchange platform Bitget in September in which $388m (£289m) was lost: "This implies that attackers no longer need the vault keys. They target the systems and people with authority to use them."

In a series of posts, Yi He, Binance's co-chief executive, thanked various cryptocurrency issuers for freezing the assets.

"Safety first: withdrawals are currently disabled until the environment is confirmed to be secure," she said.

Two other major crypto platforms, Tether and Circle, said they had frozen a total of about $2.4bn of assets in response to the potential Binance hack.

World Liberty Financial, a crypto company linked to US President Donald Trump and his family, said it has worked with its partners to freeze stolen funds.

Crypto exchange Coinbase said it was unaffected by the incident and was monitoring the situation.

Several crypto industry observers had flagged concerns about a potential hack on Binance hours before the exchange confirmed the security issue.

Bitcoin dropped by more than 4% following the alerts. The price of other major cryptocurrencies including Ethereum and Solana also fell sharply.

How video game remakes tap the power of nostalgia

Fri, 30 Oct 2026 07:45:00 GMT

Nintendo

The Legend of Zelda: Ocarina of Time is often rated as one of the greatest video games

Chris Baraniuk

Technology reporter

6 hours ago

The moment she saw footage from the remake of The Legend of Zelda: Ocarina of Time, Kacey Doran picked up her phone. She had to tell her sister.

"Have you seen this?" messaged Doran, excitedly.

Nearly 30 years ago, a 10-year-old Doran had sat in front of her family's TV, reading out the dialogue on screen to her sister, a year younger, as they inched their way through the original Nintendo 64 game's sprawling, puzzle-filled dungeons. Ocarina's fantasy-like story, and beautiful music, enthralled them both.

It was also the first game Doran ever completed. Now, countless memories rushed back to her as she devoured clips of the fully redesigned version, due to arrive on the Switch 2 later this year.

Doran's sister messaged back: "I'm not tearing up… YOU'RE tearing up."

Kacey Doran

News of a video game remake bought back happy memories for Kacey Doran

This is the power of nostalgia – and a perfect example of how video games can trigger it. Doran now teaches an esports course at Rowan University in New Jersey. She says the original Ocarina of Time, released in 1998, had a "magical" quality that she hopes to rediscover, and also share with her sister's children.

The video games industry has long leaned on remakes. From Mario Kart to the Final Fantasy series, or even Pac-Man, some games just keep coming back in updated forms, as new generations of gamers emerge and as computer hardware improves, enabling more detailed graphics and increasingly expansive game worlds.

While the emotional hook may be the most significant draw, putting out a remake can be a double-edged sword. Some gamers are very protective of their favourite titles and new versions don't always meet certain fans' astronomically high expectations.

Nostalgia is an important but mixed emotion, says Tim Wulf, at the Centre for Advanced Internet Studies in Bochum, Germany. It has positive aspects but also a kind of sadness, too. Happiness in remembering things that were important to us, and also an awareness that that time is now gone.

"It's a social emotion because memories that induce nostalgia for us are connected to other people," he explains, adding that nostalgia can boost our self-esteem while highlighting key social bonds.

Video games, says Wulf, are notoriously good at triggering nostalgia because gamers can "jump into the same environment". In other words, games are like time machines for our emotions, and returning to fondly remembered places can feel stabilising or reassuring in an ever-changing world.

Doran, for one, notes that when you return to a favourite old game, there's something satisfying about deploying previously learned skills. You know what to do here, you're winning again. Just like the old days.

Tim Wulf

Video games are good at triggering nostalgic feelings says Tim Wulf

Putting out remasters and remakes has been a "really successful" strategy for the games industry, says Piers Harding-Rolls, head of games research at Ampere Analysis.

"Tying in with established audiences and building on existing content is quite a safe route for a lot of companies," he adds. In many cases, it is cheaper to update an existing game rather than create a new title from scratch.

Among other remakes that have found big audiences recently are those of Resident Evil 4 and Assassin's Creed Black Flag.

But Ocarina of Time perhaps stands out because, ever since its original release, it has been considered by many as one of the greatest games ever made. "The interest from all the Gen Zs that I work with is really high," says Harding-Rolls. The legend of The Legend of Zelda, as it were.

Ubisoft

Since 2007 there have been 14 main releases of Assassin's Creed

Clearly, nostalgia is not the only driver of interest in the remake, and today's audiences will expect a game that plays to today's standards.

Games companies must keep innovating when linking contemporary audiences to the past, says Wulf, in order satisfy their desire for fresh experiences. And although Wulf himself was a big fan of the original, he has no personal interest in the Ocarina of Time remake. "I want a new game – I don't want to play an old game," he says. Nostalgia isn't always enough for some.

Plus, critics often highlight a tension between originals and remakes. Which is the definitive version? In 2021, Square Enix released the bizarrely titled Nier Replicant ver.1.22474487139... – a remaster of a game first published in 2010. One reviewer wrote, external, "What we're left with is two nearly identical Niers each vying to be the true Nier."

Fans may react badly should a remaster or remake fail to do justice to the source material. And, in the gaming world, angry fan reactions can be serious.

"There's always going to be that fan base or group of people that are going to nit-pick," says Stephanie Ijoma, chief executive and founder of NNESAGA, a consultancy and creative agency.

Ultimately, games developers working on remakes have to "find the right balance" between appealing to fans and allowing themselves to be creative with the material, she adds. "You can't make art in fear, you can't create in fear."

Ijoma gives the example of Final Fantasy VII. First released in 1997, it got a highly anticipated remake in 2020.

This was a game Ijoma played back in the late 1990s and she was thrilled to be able to share it with younger players today.

Square Enix

First released in 1997, Final Fantasy VII got a remake in 2020

Remakes enable this sharing of experiences because getting old computer hardware or video games consoles to work, while a pastime loved by some, is not possible for everyone.

"I've tried multiple times to play Silent Hill 2 because I'm interested in older games but it's such a difficult game to come into nowadays," says Niklas Hallin, a solo indie game developer who runs the studio Neckbolt. "They made a remake and it's so smooth, it just works. It works on your modern hardware."

Hallin did not play many games as a child so he says nostalgia isn't much of a motivator for him. However, in his own games, he likes to include subtle stylistic references to classic games because he knows that this appeals to gamers.

Indie developers often lean on retro games aesthetics not just because people respond well to them – but also because they are easier to achieve. "You can't compete with billion dollar budgets, super high-fidelity, Triple A graphics," he says.

One question remains. The visual difference, today, between games released years apart is, arguably, negligible. So will there be any point in remaking a game from 2026 in, say, 2038? Will technology have moved on so much by then that it's actually worth it?

Harding-Rolls predicts that games companies will still seek to connect new audiences with classic titles by offering updates.

Remakes might become less about graphical improvements and more about editorial adjustments. "Reinterpretations," he says. "Or versions with additional content."

It's never really "game over", is it?

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Ofcom outlines age check methods ahead of social media ban for under-16s

Thu, 29 Oct 2026 09:31:44 GMT

Getty Images

Zoe Kleinman

Technology & AI editor

29 October 2026

Ofcom has set out its recommendations for the most effective ways to identify which of the UK's millions of social media users are aged over 16.

Under the UK's social media ban - which is due to come into force in March next year - those under that age will be prevented from accessing ten of the biggest platforms, including Instagram, TikTok and Snapchat.

Many UK adults are also likely to have to confirm that they are not under-age by using one of the proposed measures, which are subject to government approval.

A similar ban was introduced in Australia last year but many children there have found ways to get round it. The UK says it intends to take a tougher approach.

Age verification below 18 is challenging because 16 and 17 year olds don't have credit cards or full driving licences, and may not have passports either. They can also look significantly older or younger than they are.

To address that challenge, Ofcom has - in addition to traditional forms of ID - recommended four methods that it says would be "highly effective" at gauging people's ages:

photo ID matching, where relevant information on a photo ID document such as a passport is checked against a live image taken during an age check
banking-based checks, which involves using the information a financial institution has on record regarding a user's age
face age estimation technology (which the regulator argues has recently improved)
digital ID services, which enable people to digitally prove who they are or provide information about themselves, such as their age

The BBC has asked three of the UK's biggest banks whether they would have a process for assisting with social media requests for age verification if it did become an official measure.

However, ultimately it will be up to the tech companies to figure out how to implement the checks: the onus is on social network providers to come up with their own solutions and comply.

Ofcom CEO Dame Melanie Dawes said the regulator was drawing on its experience in introducing tougher age checks for porn sites last year:

"What we've learned in introducing age checks across the porn industry is that actually what a lot of countries did before us was say you need to do it this way and they were very prescriptive and it didn't work," she told the BBC.

"So what we've said all along is here are things that can work, they must preserve privacy, they must protect people's data, but it's on you to put in place what you think works for you."

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How age checks could work under upcoming UK social media ban

Some of the tech companies, including Meta, have called for age verification to be applied at device level, so that someone under-age would be automatically blocked from installing social media apps via app stores.

Meta told the BBC it already applies some methods recommended by Ofcom to enforce its user age requirements or place users in Teen Accounts settings.

But it said applying age checks at device-level, via app stores, could reduce the burden on people to have to repeatedly verify their age across multiple platforms.

This would place responsibility with Apple and Google, who between them operate most of the world's smartphones. Apple has already introduced age verification in the UK.

However Ofcom says that would not absolve the social network providers from doing their own checks as well.

The regulator said it didn't have a firm number for how many adults would need to prove they were not under age, but conceded that it would be a "large number of accounts" that social media companies would need to "deal with."

It has also acknowledged that "the risk of circumvention cannot be entirely eliminated", and some children would succeed in bypassing the age checks.

Dawes said making the ban work would be a joint effort.

"At Ofcom, what we will do is make sure that the services that the social media companies put in the checks that they need to," she told BBC News.

"That's our job, but the wider question about how everybody engages with this, it is for everybody, really.

"I actually think the real prize here is going to be for today's eight to 10-year-olds entering secondary school without it being the norm to go on Snap in your class group chat, without it being the norm to have all your sports fixtures organised on Instagram."

Ofcom's age verification report will now be considered by the government, with a decision due by the end of the year.

Australia ban lessons

Child safety campaigners including the Molly Rose Foundation and NSPCC welcomed Ofcom's guidance.

But both said there were lessons to be learned from how Australia's social media ban had been implemented, after it was found many under-16s could still access social platforms.

"That's why, as we prepare to embark on our own social media ban in the UK, we need to make sure we accurately know the age of child users," said Rani Govender, head of child safety online at the NSPCC.

She said the government and Ofcom must ensure tech firms are held accountable for meeting age check standards "to help keep children safe online and ensure the ban delivers change in practice".

But Andy Burrows, the Molly Rose Foundation's chief executive, said Ofcom had shown a "dire track record" of enforcing the Online Safety Act - raising questions over how effectively it would help deliver a social media ban.

"Andy Burnham must deliver a ban that learns the lessons from Australia and that incentivises safety-by-design as the price of admission to the UK market, with a ban as the starting point in a proper plan to give children a safe and happy online life," he said.

Jonny Blunt, corporate affairs director of BT's consumer division, said families should "prepare children for life online after the ban and highlight the risks of trying to dodge the restrictions".

"Having those conversations now and giving young people time to prepare for the changes in March will be crucial in helping them adapt to a significant change for a whole generation," he said.

"The restrictions have the potential to change the way young people interact with the digital world for the better, but only if regulators, tech companies, families, and educators come together to make it a success."

Additional reporting by Liv McMahon and Chris Vallance

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Details of thousands of US immigration agents leaked in major hack

Thu, 29 Oct 2026 01:30:43 GMT

Reuters

US immigration agents often work with their faces covered and do not wear identification.

Kali Hays

Technology reporter

28 October 2026

Updated 29 October 2026

Details of more than 41,000 personnel working for the US Department of Homeland Security (DHS), including thousands involved in immigration enforcement, have been leaked to the public.

The leak includes names, work addresses and phone numbers of DHS staff, including agents working with Immigration and Customs Enforcement (ICE) and Customs and Border Protection, along with descriptions of the work they do for each agency.

Wednesday's leak marks the third time in recent weeks that a government agency has been targeted by leaks or hacks.

A DHS spokesperson said the agency is "aware of a potential breach and is actively working to address the situation swiftly and effectively."

"We take all security threats against our employees and officers seriously and will work to ensure all are properly protected," the spokesperson added.

"We will update the public when more information is available."

The seemingly unprecedented breach of employee information was made public online. A group called the Department of Peace accessed the information from DHS, while journalist and cybersecurity researcher maia crimew alongside the website Distributed Denial of Secrets put it online.

The information was put in a database named Icepick.

Most of the agents included, more than 21,000 of them, work for CBP, according to the data. Nearly 6,600 work for ICE.

Other records show agents with Homeland Security Investigations, the Federal Protective Service and even people working for the Cybersecurity and Infrastructure Security Agency.

The leaked information also included dozens of previously unknown operation names, the agents that led and worked on those operations, and some of the technology they used in their work, including tech provided by Cellbrite and Palantir.

The groups wrote in an online statement that the the leak was not meant to be a directory of every DHS agent. Rather the aim was to replace "anonymity with accountability", according to Emma Best, a co founder of DDoSecrets.

"The leak is extraordinary but deceptive in its simplicity as it identifies the officials responsible for overseeing covert and undercover operations, the government's hunt for leakers and the failed BlueLeaks investigation - along with key personnel in DHS's ever-escalating rendition and deportation programs," Best added.

BlueLeaks refers to a massive leak of US police data in 2020, data from which DDoSecrets also hosted.

A spokesperson for the Department of Peace pointed directly at actions by ICE agents for the group's work to hack DHS records.

"On July 17th, Markwayne Mullin said he was 'turning up the heat'. This is what happens to ICE when you do that," the spokesperson wrote on Wednesday.

Mullin in March became Secretary of Homeland Security.

The Department of Peace said it accessed the DHS agent profiles through a single sign-on service called Okta.

Okta is a popular online security tool that organisations use to ensure that only people with access to internal platforms are logging on to them.

A spokeswoman for Okta said the company is aware of the claims being made, but said: "Okta is secure, and we have no evidence our data or systems were compromised."

Last month, the FBI was hacked by a group called ShinyHunters, which took personal information about thousands of agents.

In recent days, the Federal Election Commission, which makes public political campaign donation data, was taken offline because of a suspected hacking attempt.

Public backlash to US immigration enforcement has been building as the Trump Administration has pushed a huge increase in arrests and deportations of people suspected of being in the country illegally.

Immigration operations this year have repeatedly turned violent, external, with ICE agents shooting at more than two dozen people and killing at least nine people.

Those killings include the high profile deaths of Alex Pretti and Renee Good, both of whom were shot and killed by ICE agents this year in Minnesota, despite not being the targets of arrests.

Often, ICE agents carry out enforcement actions while their faces are covered by masks and sunglasses. Immigration agents rarely identify themselves, despite being required by law to do so, and US politicians have publicly demanded, external DHS enforces the requirement.

Since President Donald Trump returned to office in 2025, the US has enacted nearly 1 million deportations, external, according to data from the Migration Policy Institute. More than 70% of the deportations have been of people with no criminal record.

Follow the twists and turns of Trump's second term with North America correspondent Anthony Zurcher's US Politics Unspun newsletter. Readers in the UK can sign up here. Those outside the UK can sign up here.

Microsoft profits soar days after announcing thousands of layoffs

Thu, 29 Oct 2026 01:27:40 GMT

Getty Images

Microsoft boss Satya Nadella

Osmond Chia

Business reporter

29 October 2026

Technology giant Microsoft says its profits for the three months to the end of September jumped to more than $36.6bn (£27.5bn), just days after announcing plans to cut its workforce by more than a quarter.

On Monday, the Windows developer said it would offer buyouts to around 60,000 of its workers to cut costs as it pours billions of dollars into artificial intelligence (AI).

Like many other major tech firms, Microsoft is investing heavily in the infrastructure that powers AI even as questions remain over whether such huge spending will pay off.

Microsoft shares rose by almost 2.9% in after hours trading in New York on Wednesday.

The recent financial results of tech companies have been closely watched by investors as they gauge whether the heavy spending on AI is sustainable.

Big tech companies like Amazon, Meta and Alphabet are expected to spend more than $700bn this year on AI chips and infrastructure like data centres.

Microsoft said on Wednesday that its quarterly revenue rose to $92.3bn - up 19% from a year earlier - driven by strong growth in its cloud computing business.

Its earnings were lifted by a 30% increase in revenue for Microsoft Cloud - its range of enterprise technology services.

The firm also flagged risks, including "substantial investments" in AI, among other uncertainties that could impact its finances.

The firm's chief executive Satya Nadella said AI development has helped grow the adoption of the technology and has delivered "real-world impact across every industry."

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Anthropic's blockbuster share listing - 5 surprising things we now know

This week, the company said it would extend a voluntary redundancy offer to eligible employees in teams across Canada, India, the UK and US to adapt its workforce to "changing needs".

It will create "greater flexibility" for the firm and allow workers to leave with financial support and career planning resources, Microsoft said.

The company currently employs more than 220,000 people around the world.

Microsoft's stronger-than-expected earnings contrasted with Alphabet, as the owner of Google disappointed investors with its financial results on Wednesday.

The firm's shares fell by 9.75% after it reported a 25% drop in quarterly net profit from a year earlier and said it will continue to spend heavily on AI.

Elon Musk is a 'real genius', Putin says after satellite talks with SpaceX boss

Wed, 28 Oct 2026 19:15:58 GMT

Reuters

Russian President Vladimir Putin has promoted the country's own satellite internet project.

Kali HaysTechnology reporter and Laura Gozzi

28 October 2026

Elon Musk is a "real genius", Russian President Vladimir Putin said on Wednesday after revealing the two are in "close" contact about satellite technology.

The remarks came during the Russia-Africa Summit in Moscow, during which Putin discussed Russia's own satellite internet project Rassvet, which provides internet connections to people from satellites.

"He's a genius, a real genius," Putin said of Musk, according to a translation of his remarks by the BBC. "We are in close contact with our American partners, including Mr. Musk."

Starlink is part of Musk's company SpaceX. The company did not respond to a request for comment.

Putin added that it was important for Russia to be in contact with Musk so Rassvet and Starlink satellites do not "interfere with each other in orbit".

"We and our American partners value this mutually, and despite all the political questions, we are working hard," he said.

Starlink has launched roughly 13,000 of its satellites, according to the company. By contrast there are only a couple of dozen Rassvet satellites currently in orbit, according to online satellite trackers.

The Russian Embassy in South Africa said on Wednesday Rassvet is "Russia's Starlink alternative" and "marks only the country's first steps in this field".

"Russia maintains close contacts with the US on space, including with Elon Musk," the embassy wrote.

Putin's comments about Rassvet and Starlink were made as the US and Russia appear to be growing closer, even as it approaches five years since Putin's full-scale invasion of Ukraine.

Ukraine relied on Starlink internet in its efforts to keep Russia's forces at bay. But its military last week suddenly suffered Starlink connectivity problems, something Musk has admitted SpaceX did intentionally.

US President Donald Trump earlier this month said he'd struck a deal with Russia to import diesel in an effort to lower gas prices that have skyrocketed due to the US war with Iran.

Then Trump waived certain sanctions against Russia that were set to take effect.

Not long after, a US citizen was released from Russian custody, with US envoy Steve Witkoff referring to Putin as a "humanitarian".

Musk was born in South Africa and then immigrated to Canada before settling in the US. All of his business ventures, including Tesla, SpaceX and Starlink, are based in America, with most operating out of California and Texas.

The billionaire, and off and on again trillionaire, has been one of the biggest political allies and financiers of Trump and other Republican US politicians.

'An annoying buzz': The search for stealthier drones

Wed, 28 Oct 2026 00:01:10 GMT

Amazon

Amazon Prime Air is expanding to 500 US towns and cities

Chris Marshall

Technology reporter

28 October 2026

Nature lover Ashley Schmidt no longer spends much time in her garden, in the Dallas suburb of North Garland.

She's also given up on cycling to the local parks where she previously enjoyed taking close-up photos of the bugs, lizards and toads.

It's all because she can't stand the sound of the delivery drones that fly overhead, depositing her neighbours' online orders.

"They emit this very annoying buzz. It triggers my fight or flight response," says the 44-year-old administrative assistant.

"You can hear the drones on approach and you can hear them inside your home when they pass directly overhead and then you hear them as they leave," she says.

Amazon

Amazon says it is working to reduce the noise of its drone fleet

Schmidt is one of a growing number of people living with the noise of drones dispatched by companies including Amazon and Walmart as they seek to speed up home deliveries.

Delivery drone services, not long ago a novelty, are becoming part of everyday life for many people in the US.

Among them, Amazon Prime Air is in the process of expanding deliveries to nearly 500 cities and towns, delivering items that fit into a space the size of a shoe box. It has also launched to customers in and around Darlington in the north of England.

Smaller drone delivery services are popping up too: in some US cities, customers can order flying treats from their local pizza joint or ice cream parlour.

Even in cities where noise is already a steady part of life, the sound of drones seems to irk in a particular way.

While the steady passing of traffic might blend into the background, the sudden whine of a drone's rotors can pierce the everyday hum.

The sound tends to be "particularly noticeable, even when overall sound levels are relatively low," says Antonio Torija Martinez, professor in acoustic engineering and psychoacoustics at the University of Salford.

Unlike planes, drones operate at low altitudes and may fly directly over residential areas.

"They can expose communities that have not previously experienced significant aircraft noise, and who may therefore be more sensitive to changes in their local soundscape," says Torija Martinez.

He points to research showing that people respond strongly to a noise when they consider the source to be "novel, intrusive or frequent". People who benefit from a drone delivery service, for example, may be less bothered by the noise.

However, complaints about the sound of drones are likely to grow, he warns: "At the moment we are seeing some of these problems localised in some areas, but… as the drone sector expands, more and more of these complaints will happen."

In the US, the Federal Aviation Administration (FAA) regulates commercial drones, but it has come under fire for allowing noisy drone delivery operations. The FAA says operators and local community leaders have primary responsibility for addressing any community concerns.

Greenjets

Greenjets encloses some of the blades on its drone inside a pod

Might better technology muffle the irritating buzz?

One startup, Greenjets, set out to tackle both "noise level and the frequency of that noise," as Darren James, future technologies lead at the company, puts it.

The London-based business has designed a propulsion system it claims can reduce drone noise by at least two thirds.

While standard drones use spinning propellers that slice through open air, creating that high-pitched buzz, Greenjets encloses spinning blades inside a pod, to muffle the sound and direct the noise away from the ground.

Its system also quietens things down through slower rotor speed and by using materials that reduce vibration noise.

Making quieter drones isn't just about keeping the noise down for neighbours who are already sick of airborne deliveries.

Greenjets' low-noise tech has been used by police and harbour security teams in Germany. It has also helped conservationists in Africa, who are seeking to track poachers from above without being detected.

Battlefield drone operators also have good reason to keep the noise down, to avoid alerting the enemy of the approach of their unmanned vehicles.

"There are some efforts to reduce the sound of drones. The US Special Forces are interested, at an experimental stage," says Robert Tollast, a research fellow at Whitehall think tank The Royal United Services Institute (RUSI).

But he stresses that drone speed, rather than stealthiness, tends to come first for larger drones used in the war between Russia and Ukraine. "Make it faster, not less quiet, seems to be the approach," says Tollast.

Sharrow Engineering

Sharrow Engineering developed twisted propellers that reduce noise

For Detroit-based entrepreneur, Greg Sharrow, it was the challenge of broadcasting a classical music performance back in 2012 that set him on the path to quieter drone design.

He needed to film a violinist from a tricky angle and a drone seemed the only solution – except that it would be far too noisy.

As a starting point, "I knew that most of the noise from the drone was coming from the propeller, not the motor," he says. Specifically, it was the tips of the blades that he realised were creating the noise as they swiped through the air.

"I asked myself a very simple question, what would a tipless propeller look like and how would it function?"

The result was to create a propeller with twisted loop-shaped blades with no points.

It turned out it was easier to test his propeller in water than it was to repeatedly fly a drone, which led Sharrow to initially develop a less noisy boat propeller. Now, however, his company, Sharrow Engineering, is focusing on developing "ultra-quiet" drone rotors.

"We have validated that the technology works in drone applications and that it is dramatically quieter," says Sharrow.

Companies at the forefront of drone deliveries say they are also working to reduce the noise of their fleets. A spokesperson for Amazon says it has made "measurable sound improvements" to its drones and its latest designs use custom-designed propellers "that produce almost half the perceived sound of the prior generation, with a milder tone".

Drone maker Wing, which provides its vehicles for Walmart deliveries, says its propellers are designed to minimise noise. It also varies its flight paths to prevent repeated overflights over any single home or neighbourhood.

For Schmidt, fed up with the noise of drones, the only truly satisfactory solution would be to halt drone deliveries in her area. "I would like them to completely stop until they figure out how their services stop being a nuisance," she says.

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Tue, 27 Oct 2026 20:30:00 GMT

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Apple to replace iPhone Duos affected by screen problem

Tue, 27 Oct 2026 09:37:55 GMT

Justin Lokos/X

One user said Apple had helped him to replace his faulty iPhone Duo

Osmond ChiaBusiness reporter and Liv McMahonTechnology reporter

27 October 2026

Apple has acknowledged some of its iPhone Duo handsets have developed problems with their screens, just days after the highly-anticipated smartphone went on sale.

Photos posted on social media show lines that appeared on the screens of the technology giant's first ever foldable device, which has a starting price of £1,999 ($2,668) in the UK.

Apple said it was aware of "an issue impacting the inner display on a small number" of the phones and urged affected users to contact the company for a replacement.

The Duo's launch, which attracted crowds at Apple stores around the world last week, is an attempt to reinvigorate the brand's device range and challenge the foldable phones made by rivals.

Some Duo owners also posted photos online showing cracks along the screen's centre crease, while others reported a crunching noise when opening the device.

An iPhone Duo user, Justin Lokos, posted an image of a device with lines across the right side of the display and later uploaded a picture of a new handset alongside the broken one, thanking an Apple store in New York for its help.

The extent of the issue remains unclear. Apple did not say how many devices were affected, while some images showing faulty devices may have been created using AI.

Francisco Jeronimo, technology analyst at market research firm IDC, said that meant some caution was needed before drawing conclusions about the whole production run.

But he added the early reports of issues also showed "that even a company with Apple's engineering resources and supply chain discipline faces a steep learning curve in foldables".

Premium product

The Duo's 7.6-inch (19.3cm) inner display is held together by a central hinge - a complex piece of engineering that has resulted in similar flaws in folding devices made by some of Apple's competitors.

Samsung's first foldable phone, the Galaxy Fold, suffered an early setback in 2019 when reviewers reported broken screens on the devices.

AFP via Getty Image

Apple boss John Ternus showing off the new iPhone Duo

Android users already have a broad selection of foldable phones to choose from, technology that Apple spent years developing before the Duo's release.

It is Apple's most expensive iPhone ever, costing up to £3,199 for the most well-equipped models.

Jeronimo said because Apple had positioned the Duo as a "premium alternative" to established foldables, "how it handles this first-generation issue will shape buyer confidence in the category well beyond its own sales".

"Apple has a loyal customer base and a retail network that can swap devices on the spot, but with a further 28 markets launching on 30 October, it needs to clarify its warranty position quickly," he said.

The Duo marks Apple's first major iPhone redesign in almost two decades and was unveiled by new chief executive John Ternus, who took over from Tim Cook in September.

When closed, the Duo looks like a wider version of an iPhone, then opens up to a device resembling a small tablet computer.

"Others have created foldables that just feel like two phones awkwardly stuck together", Ternus told an audience at Apple's California headquarters last month.

The Duo, he said, would "redefine the experience of using a foldable phone".

Anthropic's blockbuster share listing - 5 surprising things we now know

Mon, 26 Oct 2026 19:57:23 GMT

EPA

Anthropic CEO Dario Amodei has become a key figure in the current AI era.

Kali Hays

Technology reporter

26 October 2026

Artificial intelligence (AI) firm Anthropic just released the required paperwork ahead of its long-anticipated debut on the US stock market.

The 335-page document included fresh details of how the Claude chatbot owner makes money, what it spends that money on and who it is controlled by.

Anthropic also detailed some of the risks it claimed AI technology poses, including how it could take human lives. That information sat alongside the many purported benefits of the technology.

Here are five key points worth highlighting from the filing.

1. Armageddon is an occupational hazard

Every public company has to tell potential investors how things could go wrong.

Anthropic's "risk factors" were unique, also disclosing how the AI technology it is developing could doom humanity as a whole.

"Sufficiently advanced AI systems could, if not developed, deployed, and operated with appropriate safeguards, oversight, and security measures, pose catastrophic or existential risks to humanity," Anthropic said.

It noted that less than a year ago, a hacking group Anthropic believed to be sponsored by China "manipulated" Claude to successfully intrude on a number of institutions, including large technology companies, financial institutions, chemical manufacturing companies and government agencies.

But Anthropic said its success is dependent on its ability to constantly "develop, improve, and deploy the most advanced, capable, and useful AI models".

One of the most significant risks to that ability is Anthropic's access to infrastructure it needs, including computer chips and data centres, to build, train and operate the models that underpin its technology.

2. The company is haemorrhaging cash

Anthropic has yet to disclose a target share price for its stock listing.

The company is widely expected to debut with a market valuation of $2 trillion or more, making it the largest stock listing in history. But the figure will be heavily influenced by its financial performance.

Anthropic lost $80.7bn (£60bn) in the first half of this year, double what it lost across 2025 altogether.

The company's overall revenue was $16.2bn for the six-month period. Revenues are rising rapidly, but the firm has a long way to go before it breaks even.

Troy Hooper, co-head of equity capital markets at Mergermarket, said Anthropic's revenue growth is "exceptional". But investors are "less forgiving" of tech companies promising huge future returns than they were even months ago, he added.

Anthropic's debt picture is also unclear given it has a huge amount of accounting charges related to certain forms of investment.

"As a result, investors do not yet have a clear view of Anthropic's underlying profitability or whether its rate of cash generation is sufficient to support the business as it scales," Hooper added.

3. But luckily it has plenty of cash on hand

Despite losing money, Anthropic has heaps of cash lying about.

At $131.6bn, almost all of its cash in hand is defined as "working capital", meaning it can use the money to fund its operations day-to-day.

Currently, Anthropic has more cash on hand than Meta and Google combined.

Anthropic's costs could rise as it faces fierce competition for top staff and computing power from other AI giants.

The leasing of data centres alone is set to cost the company $321.4bn through agreements struck so far this year.

Hooper said such large costs are expected to grow. Even with this kind of cash, it won't be enough to maintain its business growth.

Any investors in Anthropic "will be paying for future dominance, not present-day economics", he said.

4. Anthropic relies on a few big customers

Anthropic sees boundless ways it can sell its technology to customers.

A large portion of its current business comes from just 250 major enterprise customers, which it says have paid it at least $10m in the past year.

An even smaller number, just five enterprise customers, make up a quarter of its current business.

Michael Monaghan, portfolio manager of Founder ETF, pointed out that "many top Anthropic customers have no long-term contract".

The company's level of business concentration leaves Anthropic dependent on a small fraction of its paying customers to support its growth, with no guarantee it will continue.

Anthropic also has enterprise relationships with the likes of Google and Amazon, both of which are also investors in the company "and competitors", creating potential business conflicts in the future, Monaghan noted.

Anthropic said its overall enterprise customer base has grown rapidly, going from roughly 1,500 customers last year to almost 12,000 this year.

Part of its growth strategy is offering Claude tools for free before working to "convert these users into paying customers over time".

The strategy has led to Claude seeing "the fastest enterprise adoption of any technology in history", the company claimed.

5. AI promises 'extraordinary' benefits to the world

For all of the risks Anthropic has said AI poses, it also reiterated its claim AI will produce an "extraordinary" amount of good.

"Achieving our mission means the world gains the enormous benefits of frontier AI while mitigating the most significant risks," the company said.

That mission is defined as: "The responsible development and maintenance of advanced AI for the long-term benefit of humanity."

"We do not pursue projects based on commercial opportunity or research novelty alone; our efforts must advance our mission."

Such hypothetical benefits include progress in healthcare, like the development of bespoke treatments for illnesses and improved disease detection, tailored education and legal advice, and making more efficient power grids and batteries.

Anthropic said AI could one day provide individually tailored education and expert financial and legal advice, advance power grids and battery design for greater efficiency and reliability and help the "developing world" build more technological capabilities.

"Ultimately, we believe frontier AI will help drive global economic growth," the company said.

Anthropic warns of 'catastrophic risk' to humankind ahead of blockbuster share listing

Mon, 26 Oct 2026 16:27:17 GMT

Getty Images

Rachel ClunBusiness reporterLiv McMahonTechnology reporter and Kali HaysTechnology reporter

26 October 2026

Anthropic has warned artificial intelligence (AI) could pose "catastrophic or existential risks to humanity" as it unveiled details of its planned blockbuster stock market listing in the US.

The firm's valuation is expected to exceed that of SpaceX, which was the biggest-ever listing at an initial valuation of about $1.8 trillion in the summer.

Anthropic has not yet disclosed the number of shares to be released, their price range, or a date for the listing.

The Claude chatbot developer reported $16.3bn (£12.2bn) of revenue in the first half of the year, with losses of more than $80.7bn.

Anthropic, which said it will list on the Nasdaq under the symbol ANT, will be the first fully AI-focused company to go public, making it a test case for the future of the technology.

In a filing ahead of its listing, Anthropic said concerns had been raised by policymakers, regulators and researchers as well as by people within its organisation that AI systems posed a significant risk to humanity.

It said advanced AI systems "could, if not developed, deployed, and operated with appropriate safeguards, oversight, and security measures, pose catastrophic or existential risks to humanity, particularly if such systems were misused, replicated, weaponised, or allowed to operate with a high degree of autonomy".

Anthropic was founded five years ago by chief executive Dario Amodei, his sister Daniela Amodei and five others, and announced its intention to go public in June.

Its main rival, OpenAI, quickly followed suit. That listing is now expected to occur early next year, according to a person familiar with OpenAI's plans.

Those announcements were followed by a wave of cyber-security and other technological breaches involving their AI agents - bots designed to operate somewhat autonomously.

Current and former staff of both companies also warned AI technology was being developed without the ability to protect humanity from possible future harms enacted by AI tools.

As Anthropic revealed its stock debut plans on Monday, the owners of the rights to Elvis Presley's music sued the AI firm accusing it of using hundreds of the rock-and-roll star's songs to train its chatbot Claude.

Anthropic's blockbuster share listing - 5 surprising things we now know

'Bold but sane'

In Anthropic's new documents, it reiterated promises it has made in the past to develop AI in a way that is beneficial to people, while at the same time warning investors of its dangers.

Anthropic detailed losses in its financial filings that exceeded its revenue for the first half of the year, but said it would often make forward investments "that may seem irresponsibly large at first glance".

"In general, we will aim to be bold but sane, and to win trust with a track record of successful bets," the tech giant said.

Its success depends largely on its ability to develop the most advanced AI models, Anthropic said, adding, "any failure to do so could adversely affect our business".

Across about 90 pages detailing possible risk factors, Anthropic set out the potential threats to its ability to safely and competitively develop AI.

Anthropic warned it relies on a cluster of cloud computing providers, Taiwanese chipmakers already facing huge demand and data centres concentrated in the US.

It also warned of "regulatory action arising from harms associated with our AI models" - citing concerns over AI being used by children or individuals at risk of suicide - and uncertainty about where and how it might be held liable for actions taken by its systems.

However, Anthropic also used the filing to laud the potential benefits of the tech itself, envisioning it unlocking "millions of virtual agents with the ability to revolutionise every area of human endeavour" across a range of fields.

"We believe that AI is one of the most consequential technologies in human history," the firm said.

Anthropic said AI would also "profoundly accelerate the rate of progress in biology and medicine", potentially finding cures to diseases including cancer and Alzheimer's.

The firm added it could also establish "sustained acceleration in economic growth" by boosting productivity.

'Significant milestone'

Matt Orton, chief market strategist at investment management firm Raymond James Investment, said investors expected to see rapid growth as well as rapid financial losses in Anthropic's finances, so Monday's filing would not come as a surprise.

"Getting the details from this filing, I think will help provide the market with more visibility, because we need to know where its revenue growth is coming from," he told the BBC.

Peter Andersen, founder of Andersen Capital Management, told Reuters that Anthropic's plans to list was "a significant milestone in the development of artificial intelligence".

He added that the outcome of its stock market debut would be "fairly indicative of the sentiment" among investors to continue ploughing cash into AI development.

Why are there concerns AI could threaten humanity, and how real are they?
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