Technology News Today – The Latest in Tech, AI & Startup News, December 11, 2025

1. OpenAI says upcoming AI models pose “high” cybersecurity risk

OpenAI has warned that its next generation of AI models could create a “high” cybersecurity risk as their capabilities advance, including the potential to develop working zero-day exploits or assist in complex industrial intrusions. In a new blog post, the company said future systems may be able to craft remote exploits against well-defended targets and help plan end-to-end operations aimed at real-world disruption. To get ahead of that risk, OpenAI is investing more in “defensive” use cases such as automated code auditing and vulnerability patching, while tightening access controls, monitoring, and infrastructure security.

The company is also creating a Frontier Risk Council, an advisory group of experienced cyber defenders who will collaborate closely with internal teams, starting with cybersecurity and later expanding to other “frontier capabilities.” OpenAI plans a program that offers tiered access to enhanced tools for vetted users working in cyber defense, positioning itself as both a powerful toolmaker and a gatekeeper for dual-use capabilities. For policymakers, this framing is a preview of how top labs will argue that they can self-police the line between innovation and risk.

Why it matters: The lab behind ChatGPT is publicly acknowledging that future AI models could become offensive cyber weapons, which raises the stakes for safety rules, export controls, and the extent of trust governments place in lab-led self-regulation.

Source: Reuters.

2. Chrome hit by new zero-day as Google rushes emergency browser update

Google has shipped an emergency update for Chrome to fix a critical zero-day vulnerability that attackers are already exploiting in the wild. Security researchers highlighted the flaw as a “use-after-free” bug in a core browser component, which could allow remote code execution if a user visits a malicious website. Because exploitation is active, Google is rolling out the patch to Windows, macOS, and Linux users on an accelerated schedule and urging enterprises to update managed fleets immediately.

While technical details are still being partially withheld to give defenders time to patch, threat intel teams say the exploit is being used in targeted attacks, potentially by sophisticated actors. The incident underscores how browser cores remain prime real estate for both nation-state and financially motivated hackers, given that a single bug can give them direct code execution on millions of endpoints. For CISOs, this will reignite pressure to tighten patch SLAs, expand browser isolation, and reduce reliance on outdated plugins and extensions that complicate update cycles.

Why it matters: A live-exploited Chrome zero-day is a reminder that the browser is still the most attacked piece of consumer software, and organizations that are slow to update remain the easiest targets.

Source: Bitdefender HotforSecurity blog and vendor security advisories.

3. HP threat report flags “animated” malware lures and industrial access for sale

A new HP Wolf Security threat report highlights a sharp rise in attackers hiding malware inside animated files and other rich media content used in phishing campaigns. Instead of the classic malicious document or macro, adversaries are increasingly embedding payloads in formats like GIFs, videos, and presentation assets that appear harmless at first glance. These lures are often delivered via email and collaboration platforms and then used to deploy remote access tools or payloads that provide initial footholds in corporate networks.

The report also tracks the growth of a troubling marketplace in which criminal groups sell “zero-day” access to industrial and manufacturing organizations, often advertising remote entry points into operational networks that ransomware operators could exploit. Combined, these trends point to a threat landscape that is shifting away from noisy, generic malware toward more targeted, stealthy operations that weaponize trust in media formats and supply chain tools. For defenders, HP’s data is a nudge to expand inspection beyond classic documents, tighten controls on media file execution, and close the gaps between IT and OT security.

Why it matters: The line between office files and “harmless” media is blurring, and attackers are exploiting that gap to quietly sell and exploit high-value access to factories, infrastructure, and large enterprises.

Source: HP Wolf Security report and related coverage.

4. Sequoia-backed AI startup Serval rockets to $1B valuation in three months

AI IT-automation startup Serval has raised a $75 million Series B round led by Sequoia, vaulting the San Francisco-based company to a $1 billion valuation just three months after its last fundraise. Serval’s valuation jumped from roughly $232 million in August, reflecting how aggressively investors are backing AI-native challengers to incumbents like ServiceNow. The company says revenue has grown 500 percent since August and that its platform now automates more than half of IT support tickets for customers, including AI startups like Perplexity and Together AI.

Originally built as an AI help-desk assistant, Serval has expanded into HR, legal, and finance workflows, positioning itself as a full IT service management platform with what CEO Jake Stauch calls “vibe coding” — admins describe an automation in natural language, and the system generates the workflows behind the scenes. That allows Serval to serve as a full system of record or as an “AI layer” on top of existing contracts, a smart move for enterprises locked into multi-year deals with legacy vendors. For growth-stage investors, the story checks all the boxes: hypergrowth, a huge TAM, and a product that both replaces and rides on top of incumbent stacks.

Why it matters: Serval’s overnight jump to unicorn status shows that investors are still willing to pay up for AI startups that can measurably cut IT ticket volume and threaten entrenched SaaS platforms.

Source: Reuters.

5. Harness raises $200M at $5.5B valuation to automate AI-era software delivery

DevOps and software delivery startup Harness has raised $200 million in new funding led by Goldman Sachs, valuing the company at $5.5 billion, a roughly 49 percent jump from its last round in 2022. The company is also planning a $40 million secondary sale for early investors and employees. Harness sits squarely in the “after-code” layer of the AI stack, providing workflow automation that moves code generated by humans or AI through testing, deployment, and observability without manual intervention. Its customer list includes National Australia Bank, Morningstar, United Airlines, and large U.S. banks like JPMorgan and Citigroup, which are both customers and investors.

CEO Jyoti Bansal says the company was not actively fundraising but was drawn into the round by investor demand, which fits a broader pattern in which AI-heavy infrastructure startups are oversubscribed despite broader market caution. Harness also touts “very strong collaborative partnerships” with Anthropic, OpenAI, Google Gemini, and AWS, signaling that it aims to be neutral plumbing for whatever models enterprises choose. For founders, the round is another data point that capital is flowing into tools that turn AI-generated code into production systems, not just into model labs.

Why it matters: Harness’s step-up valuation confirms that investors see significant upside in automating the messy pipeline between AI-generated code and reliable production software, a pain point in almost every large engineering organization.

Source: Reuters and TechCrunch.

6. TIME Names “Architects of AI” as 2025 Person of the Year

TIME magazine has named the collective “Architects of AI” as its 2025 Person of the Year, spotlighting leaders in artificial intelligence who have propelled innovation across industries. Notable figures include executives like Nvidia’s Jensen Huang and OpenAI’s Sam Altman, whose work has driven AI into mainstream adoption with nearly 800 million users worldwide. The profile acknowledged both the transformative benefits of AI and the risks — from misinformation to deepening inequality — associated with its rapid growth.

The feature emphasizes how AI is now shaping everything from productivity and medicine to defense and entertainment while raising ethical and regulatory questions about its future.

Why it Matters: Recognizing key AI leaders underscores the profound social, economic, and geopolitical impacts of artificial intelligence as it becomes central to global technological advancement.

Source: TIME / Reuters.

7. EU Proposes Loosening Environmental and AI Gigafactory Rules Amid Regulatory Shift

The European Commission has proposed changes to environmental regulations that would exempt strategic infrastructure projects, including AI data centers and “gigafactories,” from mandatory ecological impact assessments. The move is part of a broader deregulatory push designed to accelerate tech build-outs and housing projects. However, it drew criticism from environmental groups concerned about biodiversity and public health risks.

The proposal also includes modernizing grid systems and setting emissions-reduction targets, though the relaxed assessment requirements may undermine long-term sustainability goals. Europe is seeking to balance tech competitiveness with industrial growth, a topic that remains contentious across civil society and political spheres.

Why It Matters: Adjusting environmental oversight for technology infrastructure highlights tensions between economic competitiveness and sustainability — a question facing many regions as they build next-generation tech capacity.

Source: The Guardian / Reuters.

8. Medra raises $52M to fuse AI, robotics, and wet labs for drug discovery

Biotech startup Medra has raised roughly $52 million in funding to build an automated “AI wet lab” that combines robotics, high-throughput experimentation, and machine-learning models for drug discovery. The company’s pitch is that traditional R&D cycles are far too slow and manual, and that using robots to run thousands of experiments and then feeding those results into AI models can shorten timelines and reduce the cost of finding new molecules. Investors are drawn to the idea that a highly automated lab can generate proprietary datasets at scale, which then become a durable moat for Medra’s models.

Medra sits at the intersection of AI, robotics, and biotech, alongside peers building self-driving labs for chemistry and biology. The raise comes as pharma companies and sovereign funds are pouring capital into platforms that can continuously generate and test hypotheses, rather than relying heavily on slower, hypothesis-driven bench research. If Medra can demonstrate that its system delivers candidates faster or with higher success rates in clinical trials, it could become a valuable acquisition target or a long-term partner for big pharma.

Why it matters: Medra’s funding shows that investors see AI plus robotics in the lab as the next frontier in compressing drug discovery timelines, with proprietary experimental data as the new oil.

Source: Bloomberg

9. Oracle’s miss and spending plan reignite AI bubble worries on Wall Street

Oracle shares slid about 10 percent after the company issued forecasts that missed Wall Street expectations while outlining higher capital spending to keep up in the AI cloud arms race. The company signaled it must continue to pour billions into data centers and Nvidia-class hardware to compete with hyperscalers, even as some analysts question whether enterprise AI demand can justify the pace of investment. The reaction revived familiar concerns that AI infrastructure spending could outpace realistic near-term revenue, especially for players outside the top tier of cloud providers.

The sell-off became a proxy for the broader debate over whether AI is in a bubble. Bulls argue that demand for compute, storage, and AI-powered applications remains structurally strong and that early leaders will be rewarded. Skeptics point to a widening gap between capex and clearly attributable AI revenue, warning that any slowdown in enterprise pilots or regulatory pushback could catch heavily levered companies off guard. For founders, Oracle’s stumble is a reminder that customers are closely watching ROI and that “we do AI” is no longer a story in itself.

Why it matters: Oracle’s post-earnings slide is another sign that public markets are starting to sort real AI revenue from hype, which will eventually flow down to how startups are valued and which infrastructure bets get funded.

Source: Reuters.

10. Apple’s Tim Cook pushes to rewrite US child online safety bill over privacy fears

Apple CEO Tim Cook has urged U.S. lawmakers to revise a proposed child online safety bill, warning that the current draft could undermine encryption and user privacy. In a letter to Senate leaders, Cook said Apple supports stronger protections for minors but argued that vague language around “duty of care” and content scanning could compel platforms to weaken end-to-end encryption or introduce client-side scanning that effectively amounts to backdoor surveillance.

Cook’s move puts Apple squarely in the middle of a long-running policy fight between child-safety advocates and privacy and security experts. Tech companies have already been under pressure in the U.S., U.K., and EU to scan more content and share more data with authorities, especially around child abuse material. Apple, which markets privacy as a core differentiator, is signaling that it will resist any legislation that could weaken protections for all users, not just minors. On other platforms, Apple’s stance could provide political cover to push back against broad mandates that might expose users to new risks if misused.

Why it matters: The fight over this bill will help determine whether governments can effectively compel “backdoor” scanning in encrypted ecosystems, with Apple positioning itself as a defender of privacy even as it faces its own regulatory battles.

Source: Reuters.

11. Musk hints at possible SpaceX IPO as investors predict “craziest” tech debut ever

Elon Musk has again dangled the prospect of a SpaceX initial public offering, hinting in a post on X that a listing could be on the table after media reports about internal discussions. At the same time, investors are telling Reuters that when SpaceX does list, they expect it to be “the craziest IPO ever,” given the company’s dominant position in commercial launch and satellite broadband through Starlink, plus broader enthusiasm for space and defense tech.

SpaceX’s implied valuation in secondary trading has already soared, and a formal listing would instantly become one of the most closely watched tech events of the decade. For public-market investors, a SpaceX IPO would be a rare chance to own a profitable, scaled space infrastructure company rather than a speculative small-cap stock. For startups, it would also reset benchmarks for how the market prices orbital launch, satellite constellations, and dual-use (civil plus defense) technology. The key open questions are timing, structure, and whether Musk would spin off Starlink as a separate entity or keep it within a single entity.

Why it matters: A SpaceX listing would not just mint another mega-cap; it would redefine valuations across space, defense, and satellite connectivity startups that pitch themselves as “SpaceX for X.”

Source: Reuters and TechStartups.

12. TerraUSD creator Do Kwon faces sentencing in $40B crypto fraud

Do Kwon, the Terraform Labs co-founder behind the collapsed TerraUSD and Luna tokens, is scheduled to be sentenced today in New York federal court for his role in a crypto scheme that wiped out an estimated $40 billion in value. Kwon previously pleaded guilty to conspiracy to defraud and wire fraud, admitting he misled investors about how TerraUSD regained its peg when it first slipped below $1, including by failing to disclose that a trading firm had secretly propped up the price. Prosecutors have agreed to recommend a sentence of no more than 12 years if he fully accepts responsibility, though he technically faces up to 25 years in prison.

The case is one of the most prominent crypto fraud prosecutions since the 2022 market crash, alongside actions against Sam Bankman-Fried and other high-profile founders. Regulators argue that Terra’s implosion triggered broader contagion across the digital asset market and exposed how “algorithmic stablecoins” can be built on fragile mechanisms. Kwon has already agreed to a multibillion-dollar civil settlement with the U.S. SEC that bans him from participating in the industry. His sentencing will signal how aggressively U.S. courts plan to punish misconduct in the next cycle, and it will hang over any team pitching “innovative” stablecoin structures to regulators and investors.

Why it matters: Kwon’s sentence will set a benchmark for how the U.S. justice system treats large-scale crypto fraud and will influence how much appetite regulators have for letting experimental stablecoin designs back into the mainstream.

Source: Reuters.

13. Italy’s Bancomat plans euro-pegged stablecoin under MiCA rules

Italian payment network Bancomat is working with major domestic banks and the economy ministry on a euro-pegged stablecoin to boost digital payments across Europe. The token would be backed by euro-denominated debt and designed so that multiple regulated financial institutions across the EU could issue it, with interoperability as a core feature. Bancomat, best known for running Italy’s ATM network, has been investing in new digital services since private equity fund FSI acquired a 43 percent stake in 2024.

The plan leans heavily on the EU’s Markets in Crypto Assets (MiCA) framework, which has sparked growth in euro-denominated stablecoins even as dollar-pegged tokens still dominate global volume. According to the European Banking Authority, there are now 27 stablecoins registered with the bloc’s markets regulator, with euro-pegged coins roughly doubling in value since MiCA took effect. Bancomat’s move suggests that traditional payment networks see stablecoins as a strategic tool for instant cross-border settlement rather than a threat, especially when they can be shaped to meet regulatory comfort levels.

Why it matters: If successful, Bancomat’s euro stablecoin could become a template for bank-backed, MiCA-compliant digital money in Europe, narrowing the gap with dollar-based tokens and giving regulators more control over the rails.

Source: Reuters.

14. ZTE may pay over $1B to the US in foreign bribery settlement

China’s ZTE is in talks that could result in it paying more than $1 billion to the United States to resolve foreign bribery allegations, Reuters sources said. The telecom equipment maker, which has previously been penalized for sanctions violations, is now under scrutiny for alleged bribes linked to overseas contracts. A settlement of that size would add to ZTE’s long list of compliance headaches. It could come with additional monitoring or restrictions that further complicate its ability to operate in key markets.

The case arrives at a sensitive moment for Chinese tech firms, as they seek to maintain global market share while navigating U.S. export controls and heightened national security reviews. For Western carriers and enterprise customers, it reinforces the perception that vendors with recurring legal issues carry both supply-chain and reputational risk. It also signals that U.S. authorities remain willing to impose massive fines and use extraterritorial enforcement to shape the behavior of foreign tech companies, especially those deemed strategically significant.

Why it matters: Another billion-dollar-plus settlement would keep ZTE under a compliance cloud and send a message to other global hardware vendors that aggressive overseas sales tactics can carry huge long-tail legal costs.

Source: Reuters.

15. Bitcoin slips below $90,000 as AI jitters hit risk assets

Bitcoin briefly fell below the $90,000 mark after a run-up to record highs, with traders citing renewed worries about an “AI bubble” and softer risk appetite across tech and growth stocks. The move coincided with Oracle’s post-earnings slide and fresh debate over whether AI-linked capex is outpacing sustainable revenue, which has spilled over into other speculative corners of the market. While the drop is modest in percentage terms, given Bitcoin’s recent gains, it is a reminder that crypto remains tightly coupled to broader tech sentiment and central bank expectations.

Regulators and traditional financial institutions are closely monitoring this interplay. On one hand, institutional adoption of Bitcoin and other digital assets has deepened through ETFs and custody platforms. On the other hand, volatility tied to narratives such as “AI boom or bust” reinforces concerns that retail investors could be burned again if the cycle turns. For founders building at the intersection of AI, crypto, and infrastructure, the market’s reaction shows how intertwined those stories have become in traders’ eyes.

Why it matters: Bitcoin’s slide alongside AI-sensitive tech stocks shows that markets increasingly treat AI exuberance and crypto speculation as part of the same risk trade, amplifying swings in both directions.

Source: Reuters.

16. U.S. State Attorneys-General Demand Stronger AI Safeguards from Big Tech

A coalition of 42 U.S. state attorneys-general has sent a letter to major AI developers — including Google, Meta, Microsoft, OpenAI, and Anthropic — calling for stronger safety measures to protect users, especially children and vulnerable groups, from “delusional” or harmful outputs generated by AI chatbots. The officials want clear content policies, more rigorous safety testing, and independent auditing of AI systems, citing real-world incidents where AI interactions have caused psychological harm.

This action highlights growing state-level regulatory pressure in the U.S. as the federal government simultaneously considers a centralized AI oversight framework. The attorneys-general emphasized accountability and transparency over purely competitive or industry-led governance approaches.

Why It Matters: State governments are emerging as powerful voices in AI regulation, potentially shaping safety and liability standards even as national authorities pursue unified rules.

Source: Financial Times / Reuters.

Closing

That’s your full tech briefing for today — a clear look at how technology, governance, and global infrastructure are converging in ways that will shape the next decade. The themes running through today’s stories show an industry no longer defined by pure innovation velocity, but by the systems required to support, secure, and regulate that innovation at scale. AI is now deeply woven into national policy, enterprise risk models, and consumer life, pushing governments and companies to rethink how digital systems are built, deployed, and controlled.

We’re also seeing the balance of power shift as regulators respond to technology’s expanding footprint. From Europe’s tightening oversight of cross-border investment in sensitive tech to U.S. states demanding stricter guardrails for AI behavior, accountability is becoming a core requirement rather than a late add-on. Policy decisions that once lived on the edges of the industry are now shaping chip supply chains, data governance frameworks, and the competitive landscape for Big Tech and AI developers.

And with AI moving ever deeper into physical infrastructure — from airport biometrics to grid planning and advanced semiconductor tracking — the intersection between digital systems and real-world consequences is becoming impossible to ignore. Cyber risks, environmental concerns, and national-security considerations now run in parallel with breakthroughs in automation, cloud scaling, and frontier science. The companies that succeed will be those that pair innovation with discipline: securing their systems, protecting their users, and aligning their ambitions with a rapidly evolving regulatory environment.

Across every sector touched today, one truth stands out: technology is no longer just shaping markets — it’s reshaping institutions, expectations, and global power structures. Those prepared to navigate this new terrain with clarity and responsibility will set the direction for the years ahead.