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Sweden-based caller identification platform Truecaller has announced plans to cut about 70 jobs, representing roughly 15% of its workforce, after reporting a sharp decline in revenue and profitability in the first quarter of 2026.

The company disclosed the planned layoffs alongside its Q1 2026 earnings report, citing weakening advertising revenues, India’s crackdown on real-money gaming, changes to advertising partner algorithms, and ongoing tensions in the Middle East as key factors behind the downturn.

Truecaller’s net sales for the quarter fell 27% year-on-year to 362 million Swedish krona (approximately $39.3 million), while revenue from its largest market, India, dropped by 41%.

Advertising revenue, one of the company’s biggest income sources, also declined significantly, falling 44% during the period.

Speaking during the earnings call, Truecaller CEO Rishit Jhunjhunwala said the year-on-year comparison appeared especially weak because the company had benefited heavily from advertising spending by India’s real-money gaming sector during the 2025 Indian Premier League (IPL) season.

“The year-on-year comparison looks especially weak given that Q1 and Q2 last year included a large contribution coming from the real money gaming sector in India in connection with the IPL season that takes place around this time. The situation in the Middle East also reduced our revenues from that region,” he said.

India last year tightened restrictions on real-money gaming platforms such as Dream11 and MPL, which allow users to wager money on fantasy sports and online gaming activities.

Industry estimates previously valued India’s real-money gaming market at about $23 billion, making it a major advertising segment for digital platforms like Truecaller.

The company also attributed part of the advertising revenue decline to changes implemented by one of its major programmatic advertising partners.

Analysts previously identified the partner as Google, whose algorithm adjustments reportedly affected ad performance and monetisation.

Truecaller is also facing growing competition in India from telecom-led caller identification services, particularly Calling Name Presentation (CNAP), which allows telecom operators to display caller identities directly through mobile networks.

The company had earlier reported a 5% year-on-year decline in app downloads amid rising competitive pressure.

Despite the weak earnings, Truecaller recorded several milestones during the quarter.

The platform surpassed 500 million active users globally, while subscription revenue rose 27% year-on-year and accounted for 31% of total net sales.

The company has continued expanding its premium offerings with features such as AI Assistant and Family Protection in a bid to strengthen paid subscriptions and reduce dependence on advertising income.

Truecaller’s stock has fallen more than 26% since the start of the year and is down over 79% over the past 12 months, although shares posted a modest recovery after the release of the Q1 results.

Last year, while announcing that it had crossed 500 million users, the company said it added more than 50 million users in 2025 and surpassed 150 million users outside India.

Truecaller also revealed earlier this year that it had crossed 4 million paying subscribers globally, further strengthening one of its key revenue streams.

In 2024, the company said it was recording its fastest growth in emerging markets across Africa and Latin America, highlighting strong user acquisition in countries including Nigeria, Kenya, South Africa, Malaysia, and the United States.

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Hackers have launched a cyber-espionage campaign targeting Israeli citizens using spyware disguised as a smartphone application that mimics a popular emergency alert service.

This was revealed in a cybersecurity report released on Friday by Swiss cybersecurity firm Acronis.

According to the report, the campaign surfaced in the aftermath of recent military strikes by the United States Armed Forces and the Israel Defense Forces on targets in Iran.

Researchers said attackers are sending fraudulent text messages that appear to originate from the Home Front Command of the Israel Defense Forces. The messages urge recipients to download what is presented as an updated version of the widely used “red alert” application, a mobile tool that warns residents of incoming rocket attacks.

However, anyone who follows the instructions and installs the application unknowingly downloads spyware onto their Android device.

The malicious software can secretly track precise location data and extract sensitive information stored on the device, including text messages, passwords and contact lists.

According to Acronis’ threat research unit, the campaign exploits public trust in emergency alert systems, particularly during periods of heightened military tension.

The hackers behind the operation are believed to be linked to Arid Viper, a threat actor previously associated with cyber-espionage activities targeting Israeli military personnel and individuals in Egypt and Palestine.

In a related development, a report by the Financial Times citing Israeli intelligence sources alleged that nearly all traffic cameras in Tehran had been compromised in a broader surveillance operation. The report said video footage from the cameras was encrypted and transmitted to servers in Tel Aviv and southern Israel as part of an intelligence-gathering effort involving cyber intrusion, human assets and advanced data analytics.

One Israeli intelligence official reportedly said the extensive monitoring enabled analysts to track daily routines and detect irregularities, noting that intelligence teams “knew Tehran like we know Jerusalem.”

The surveillance reportedly helped analysts monitor movements around Pasteur Street in Tehran, an area hosting key government institutions and where Iran’s Supreme Leader, Ali Khamenei, was reportedly killed.

Separately, cybersecurity firm Check Point Software Technologies said on Wednesday that attackers had also attempted to breach surveillance camera systems in Israel and other countries across the Middle East.

Several hacking groups believed to be aligned with Iran have claimed responsibility for cyberattacks targeting Israeli companies and government agencies in recent days.

Despite the surge in cyber activity, cybersecurity analysts say digital attacks have not yet played a decisive role in the conflict, which escalated after U.S. and Israeli forces launched strikes on Iranian targets on February 28.

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OpenAI has reached an agreement with the United States Department of War (DoW) to deploy its artificial intelligence models within the department’s classified network, marking a significant expansion of the company’s footprint in sensitive government operations.

The announcement was made on Saturday by OpenAI Chief Executive Officer, Sam Altman, via his X account. Altman described the agreement as the outcome of extensive discussions focused on safety, governance and the responsible use of advanced AI systems in high-security environments.

According to Altman, the Department of War demonstrated “a deep respect for safety” and a willingness to align with OpenAI’s core principles.

He stated that the deal reflects shared commitments to prohibiting domestic mass surveillance and ensuring human responsibility in the use of force, including for autonomous weapon systems.

“AI safety and wide distribution of benefits are the core of our mission. Two of our most important safety principles are prohibitions on domestic mass surveillance and human responsibility for the use of force, including for autonomous weapon systems. The DoW agrees with these principles, reflects them in law and policy, and we put them into our agreement,” Altman said.

Under the agreement, OpenAI’s models will operate exclusively within secure government cloud networks, rather than on local or edge infrastructure. The company said this approach is intended to maintain tighter operational control and security oversight. It will also deploy field engineers to support implementation and ensure that technical guardrails function as intended within the classified environment.

The development comes shortly after OpenAI completed a $110 billion funding round, pushing the company’s pre-money valuation to $730 billion. The funding is expected to accelerate the rollout of advanced AI tools across its platform. The company disclosed that the round includes strategic partnerships with major technology firms, including Amazon and NVIDIA.

OpenAI reported significant user growth across its products. Codex, its AI-powered coding agent, has seen weekly users more than triple to 1.6 million since the beginning of the year.

Meanwhile, ChatGPT now serves over 900 million weekly active users, including more than 50 million paying subscribers. The company added that more than 9 million paying business users rely on its services for professional tasks, while startups, enterprises and governments continue to adopt the platform to redesign and manage products and services.

The agreement with the Department of War follows recent actions by the administration of Donald Trump targeting rival AI firm Anthropic.

On Friday, President Trump ordered federal agencies to stop using Anthropic’s software, which has gained popularity as a programming assistant. Shortly afterward, the Pentagon designated the company a supply-chain risk — a classification typically applied to firms from countries considered U.S. adversaries.

The back-to-back directives are expected to limit Anthropic’s access to federal contracts and potentially affect its relationships with other firms. According to Bloomberg, OpenAI declined to comment on whether its new services for the Department of War would replace work previously handled by Anthropic.

Industry analysts say the deal underscores the growing intersection between advanced AI systems and national security infrastructure, as governments increasingly seek to harness cutting-edge technologies while navigating complex safety and ethical concerns.

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Elon Musk-owned social media platform X has restricted its artificial intelligence tool, Grok, from generating or editing sexualised images of real people in certain countries, amid intensifying regulatory scrutiny in the United Kingdom, the United States, and other jurisdictions.

In a statement posted on X, the company said Grok has been technically modified to prevent the creation or editing of images showing real individuals in bikinis, underwear, or similar revealing clothing where such content is illegal. The move comes after growing criticism over the spread of sexualised AI deepfakes and just hours after California authorities disclosed an investigation into the circulation of sexualised AI-generated images, including those involving children.

X said it has introduced technological restrictions and location-based controls to curb misuse of the AI tool. “We have implemented technological measures to prevent the Grok account from allowing the editing of images of real people in revealing clothing,” the company said. It added that the ability to generate such images has now been geoblocked in jurisdictions where it is unlawful.

The platform also reiterated that image editing features on Grok are available only to paid users, arguing that this would improve accountability and help ensure that those who attempt to abuse the tool to violate the law or X’s policies can be identified and held responsible.

The announcement was welcomed by UK authorities, where concerns over AI-generated sexual content have prompted political and regulatory action. A spokesperson for the UK media regulator, Ofcom, described the decision as a positive step but stressed that scrutiny of the platform was ongoing.

“We are working around the clock to progress this and get answers into what went wrong and what’s being done to fix it,” the spokesperson said, adding that Ofcom’s investigation into whether X breached UK law remains active.

UK Prime Minister Sir Keir Starmer had earlier urged X to rein in its AI tools, warning that the platform could lose its “right to self-regulate” if it failed to address the issue. While he later welcomed reports that X was taking corrective measures, he said the government would strengthen legislation if necessary.

Musk, however, has defended X’s content rules, insisting that Grok only permits limited NSFW content involving fictional characters. With NSFW settings enabled, he said the AI allows “upper body nudity of imaginary adult humans (not real ones),” in line with content standards seen in R-rated films in the United States. He added that rules would vary by country depending on local laws.

Despite this, Musk faced backlash after posting AI-generated images of Sir Keir Starmer in a bikini alongside comments accusing critics of attempting to suppress free speech.

Regulatory consequences could be severe if X is found to be in breach of UK law. Ofcom has confirmed it is investigating whether the platform failed to prevent the distribution of illegal sexual images. If non-compliance is established, the regulator could seek a court order requiring internet service providers to block access to X in the UK.

Concerns over Grok’s image generation capabilities surfaced in late 2025, when users began producing sexually explicit or revealing images of real people without consent. Independent investigations found that the AI often complied with prompts to generate suggestive imagery, primarily involving women and, in some cases, appearing to include minors. This raised alarms about non-consensual intimate image abuse and the potential creation of child sexual abuse material.

Beyond the UK and the US, several countries have taken action. Malaysia and Indonesia temporarily blocked access to Grok, citing concerns over sexually explicit AI content and its potential harm, particularly to minors.

While X has now moved to limit Grok’s image generation features, regulators in multiple jurisdictions have signalled that investigations will continue to determine whether the platform violated existing laws before the restrictions were put in place.

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Global backlash intensified on Thursday over sexualised deepfake images generated by Grok, the artificial intelligence chatbot developed by Elon Musk’s xAI, despite moves by social media platform X to restrict the tool’s use.

The Philippines became the third country to block Grok, following similar actions by Malaysia and Indonesia, as concerns grew over the chatbot’s ability to generate lewd images of women and children. Authorities in Britain and France also signalled they would sustain pressure on X and its parent company to ensure full compliance with local laws.

On Wednesday, X announced it would “geoblock the ability” of Grok and X users to create images of people in “bikinis, underwear, and similar attire” in jurisdictions where such content is illegal. However, the company did not immediately clarify the specific locations affected by the restriction.

The move followed the launch of investigations by several governments, including the United States, where California’s attorney general opened a probe into xAI over the circulation of sexually explicit material generated by the chatbot.

Earlier attempts by Grok to limit image generation to paying subscribers sparked further criticism, with opponents accusing Musk’s company of seeking to monetise the controversy rather than address the underlying problem. Bowing to mounting global pressure, X later announced that all users — including subscribers — would be barred from using Grok to edit images of people in revealing clothing.

Despite the announcement, Philippine authorities ordered the “immediate blocking” of Grok late on Thursday. The country’s cybercrime chief, Renato Paraiso, said regulators would closely monitor whether X fully implements its promised safeguards. Telecommunications Secretary Henry Rhoel Aguda said the spread of toxic online content, particularly through AI, required urgent action.

In Malaysia, Communications Minister Fahmi Fadzil said regulators found X’s restrictions were “not done in totality,” adding that the temporary ban on Grok would only be lifted if the platform fully prevented the generation of such images.

In the United Kingdom, Prime Minister Keir Starmer welcomed X’s stated commitment to comply with British law but warned that enforcement must be immediate. He added that the government was prepared to strengthen existing legislation if necessary.

The controversy centres on Grok’s so-called “Spicy Mode,” which allowed users to create sexualised deepfakes through simple prompts such as requesting images of individuals in bikinis or removing their clothing. The European Commission said it would closely assess X’s actions to ensure they adequately protect citizens, while France’s digital minister, Anne Le Henanff, warned that no platform was above the law.

In the United States, California Governor Gavin Newsom described xAI’s decision to allow such content as “vile,” prompting Attorney General Rob Bonta to vow accountability. Bonta said the state has “zero tolerance” for the creation and spread of non-consensual intimate images or child sexual abuse material.

Adding to the pressure, a coalition of 28 civil society groups submitted open letters to Apple and Google, urging them to remove Grok and X from their app stores amid the surge in sexualised AI-generated images.

AFP

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In a fact sheet released by the agency, the FCC said drones could be exploited by “criminals, hostile foreign actors, and terrorists” to pose threats to national security. As a result, the commission updated its Covered List — which identifies products deemed to present unacceptable security risks — to include all unmanned aircraft systems (UAS) and critical drone components manufactured outside the United States.

FCC Chairman Brendan Carr welcomed the move, saying it followed a national security determination by the executive branch. He said the commission would work with domestic manufacturers to strengthen U.S. drone production, adding that foreign-made drones and related components pose unacceptable risks.

The decision is expected to significantly affect the global drone market, particularly Chinese manufacturer DJI, which dominates consumer drone sales in the United States. DJI said it was disappointed by the FCC’s action, noting that no details had been provided on the basis for the decision. The company said it remains committed to the U.S. market and maintains that its products are secure and have been reviewed by U.S. government agencies and independent bodies.

The ban builds on earlier efforts by the Trump administration to reduce reliance on foreign technology, including a June executive order aimed at boosting domestic drone manufacturing and securing the U.S. drone supply chain from foreign influence.

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By Abbas Badmus,

Alphabet Inc., the parent company of Google, has achieved a historic milestone, reporting over $100 billion in quarterly revenue for the first time in its history. The record-breaking performance underscores the tech giant’s rapid expansion in artificial intelligence and strong results across its diversified business portfolio.

Chief Executive Officer Sundar Pichai described the third-quarter results as a reflection of Alphabet’s strategic investment in generative AI, cloud computing, and subscription services.

“This was a terrific quarter for Alphabet, driven by double-digit growth across every major part of our business. We’re seeing AI now driving real business results across the company,” Pichai said during the Q3 earnings call.

Alphabet’s quarterly revenue has doubled within five years, rising from $50 billion to $100 billion, a growth trajectory Pichai termed as part of the “generative AI era.”

At the centre of this transformation are Alphabet’s Gemini AI models, which now process an astonishing seven billion tokens per minute through direct API use. The Gemini app itself has soared to over 650 million monthly active users, with queries tripling compared to the previous quarter.

The company’s cloud division also reported stellar results, with AI-driven services emerging as a key revenue engine. Alphabet’s cloud backlog surged 46 per cent quarter-on-quarter to $155 billion, driven by increased enterprise adoption of AI tools.

“Our complete enterprise AI product portfolio is accelerating growth in revenue, operating margins, and backlog,” Pichai stated, noting that Alphabet is signing new Google Cloud customers 34 per cent faster year-on-year and closing more billion-dollar deals than in the past two years combined.

More than 70 per cent of Google Cloud customers now rely on AI-powered solutions, including leading global brands such as Banco BV, Best Buy, and FairPrice Group.

Alphabet also reported robust consumer growth, crossing 300 million paid subscriptions, led by Google One and YouTube Premium.

Pichai reaffirmed the company’s commitment to sustainable innovation and long-term growth.

“Our momentum is strong, and we’re shipping at speed,” he said.

The milestone marks Alphabet’s emergence as a dominant force in the global AI economy, setting the pace for competitors as the world transitions deeper into an AI-driven digital age.

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Elon Musk, the founder of xAI, the billionaire’s artificial intelligence (AI) firm, has announced the launch of Grokipedia, an online encyclopedia.

In a series of X posts on Tuesday, Musk said the new platform is designed to rival Wikipedia.

Musk had reportedly criticised Wikipedia for what he described as “ideological bias”.

“Grokipedia version 0.1 is now live,” he wrote.

“The goal of Grok and Grokipedia.com is the truth, the whole truth and nothing but the truth. We will never be perfect, but we shall nonetheless strive towards that goal.”

The tech mogul also claimed on his X account that the current version is “better than Wikipedia imo”.

“As Grok improves, so will Grokipedia. We are embedding the principles of critical thinking and cogency into Grok,” he said.

The development comes a week after the billionaire postponed the launch of Grokipedia on October 20.

Musk said the postponement was to allow them to “do more work to purge out the propaganda”.

“Grokipedia.com is fully open source, so anyone can use it for anything at no cost,” he assured users.

Musk has repeatedly criticised Wikipedia on social media, accusing it of being controlled by “far-left activists”.

The investor also asked people to “stop donating” to Wikipedia in a post on X.

“Defund Wikipedia until balance is restored,” he said in a separate post.

Following the launch Grokipedia, Musk has been posting tutorials on how to navigate the AI-powered encyclopedia website, including how to correct mistakes and share links.

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Artificial intelligence company, OpenAI, has issued a warning to investors and the general public over unauthorized sales and investment schemes involving its equity, stressing that any transfer without its written consent is void.

The company, in a blog post published on Sunday, August 24, on its official website, cautioned that all OpenAI equity is subject to strict transfer restrictions.

“OpenAI equity cannot be directly or indirectly transferred unless the seller first obtains OpenAI’s written consent. Any attempted transfer, including pledges, encumbrances, or other similar dispositions, that does not follow this requirement is void,” the company said.

The warning follows reports of third parties promoting investment opportunities purportedly tied to OpenAI shares. These schemes, the company noted, come in forms such as direct equity sales, investments in special purpose vehicles (SPVs) holding OpenAI equity, tokenized interests in OpenAI equity or SPVs, and forward contracts offering economic exposure.

OpenAI stressed that it neither endorses nor participates in such transactions, warning that they violate its transfer rules and could render the underlying equity invalid.

The company further highlighted that unauthorized transfers could breach U.S. federal and state securities laws, potentially exposing both buyers and sellers to legal liabilities, including rescission of transactions.

While acknowledging that not every investment tied to its shares is fraudulent, OpenAI cautioned that many are structured to sidestep restrictions, leaving investors with no legal or economic claim. It pledged strict enforcement of its transfer rules and urged the public to report suspicious offers by contacting corp-legal@openai.com.

The warning comes amid OpenAI’s surging valuation, which has drawn strong investor interest. The company recently closed a $40 billion funding round led by SoftBank, raising its valuation to $300 billion — nearly double its $157 billion valuation in October 2024. This brought its total primary capital raised to almost $58 billion.

OpenAI is also in early talks to sell employee shares, a move that could push its valuation to about $500 billion, potentially making it the most valuable private startup in the world.

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