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OpenAI has delayed its Stargate UK project, which was a planned major investment in Britain's AI infrastructure as part of a larger UK-US deal announced last September. The company cited high energy costs and regulatory concerns as reasons for the delay, disappointing the British government which had positioned AI development as central to its economic growth strategy.

OpenAI has paused its UK data centre project called Stargate UK, which would have built a large computing facility in Northumberland to support AI development, citing concerns about high energy costs and regulatory uncertainty. The company stated it will only move forward when conditions improve, though critics note that energy prices and UK AI regulation have not recently changed significantly. This pause is a setback for the UK government's goal to position the country as an AI leader and boost economic growth through tech investment.

Researchers at RSAC found a way to bypass Apple Intelligence's guardrails (safety measures that prevent the AI from doing harmful tasks) using two techniques: the Neural Exect method and Unicode manipulation (using special characters to confuse the system). This means attackers could potentially trick Apple's AI into ignoring its safety restrictions.

This newsletter covers multiple topics including geopolitical tensions, AI regulation, and market movements, with a focus on Iran's ceasefire allegations against the U.S., Anthropic's court loss regarding Pentagon blacklisting over AI safeguard disagreements, and Federal Reserve expectations for interest rate cuts in 2026.

In March 2026, organizations faced an average of nearly 2,000 cyber-attacks per week, showing a slight 4-5% decrease but remaining at historically high levels. The threat landscape continues to be driven by automation, expanded attack surfaces from cloud adoption, and risks related to GenAI (generative AI, where systems create new content from training data) usage.

OpenAI has paused its Stargate project in the U.K., which was planned to deploy up to 8,000 graphics processing units (GPUs, the specialized hardware used to train and run AI models) for AI infrastructure. The company cited two main reasons: the U.K.'s high industrial energy costs and concerns about the country's regulatory environment, particularly new rules being developed around how AI models can use copyrighted work.

Shadow AI refers to AI tools that employees use without approval from their organization's IT and security teams, operating outside security oversight and creating hidden risks. Unlike shadow IT (unapproved software), shadow AI is particularly dangerous because it processes and stores sensitive data beyond security teams' visibility, leading to potential data leaks, expanded attack surfaces (new entry points for hackers), and bypassed security controls. The problem is spreading because AI tools are easy to use, instantly helpful, and many organizations lack clear policies on their use.

Trail of Bits released a new Testing Handbook chapter focused on security code review for C and C++, covering common bug classes like memory safety issues, integer errors, and type confusion across Linux, Windows, and seccomp (secure computing mode, a Linux feature that restricts system calls) environments. They are also developing a Claude skill that uses an LLM (large language model) to automatically find bugs by running checklist-based prompts against codebases. The handbook emphasizes manual code review techniques and includes platform-specific vulnerabilities like DLL planting on Windows and sandbox bypasses in Linux seccomp filters.

Researchers developed new data augmentation strategies (techniques for artificially expanding training datasets) to improve website fingerprinting, which is a method to identify which websites users visit by analyzing their network traffic patterns. The study, published in August 2026, demonstrates how combining multiple augmentation approaches can make these fingerprinting techniques more effective.