German drone maker Helsing has enlisted Japanese e-commerce and finance firm Rakuten to help finalize a deal to sell its unmanned systems to Japan's army, a spokesperson for Rakuten said on Monday. Japan's Ground Self-Defense Force is currently testing Helsing's HX-2 strike drone, as Tokyo looks to modernize its military and counter an increasingly assertive China. The field tests will run until the end of September, the spokesperson said. Helsing struck an "initial agreement" for the Japanese government to use its systems earlier this year, a spokesperson for the Munich-based company said, adding that the move was made possible by an unnamed "local brokerage partner." Japan's Ground Self-Defense Force did not immediately respond to a request for comment.

Cursor, the startup that became famous for its AI coding tool, is now officially owned by SpaceX. The companies announced the acquisition in June, but the process apparently started in April, when they teamed up for Cursor's model training efforts. In its announcement, Cursor said that it will now have access to "the largest fleet of GPUs in the world," which will give it the computing capacity to build and train better models that it can offer its customers at a lower cost. SpaceX, which merged with Elon Musk's AI company xAI earlier this year, paid 60 billion for the purchase. In July, xAI officially became SpaceXAI.

Taiwan's tech titan Foxconn has reported a forecast-busting second-quarter net profit, as exploding demand for artificial intelligence servers needed in data centres powers the company's growth. The world's largest contract electronics maker said on Wednesday that net income rose 35 percent to $59.97 billion New Taiwan dollars ($1.86bn) in the April-June period. "AI infrastructure is driving growth," Foxconn said in its earnings announcement. In an earnings release, Foxconn, Nvidia's biggest server maker and Apple's top iPhone assembler, stuck to its previous forecast of "strong" growth for revenue this year. Governments and tech giants are pouring huge sums into building data centres that can train and run AI tools such as chatbots, image generators and agents that can execute tasks.

Plus: Nvidia has secured $500 billion from Wall Street for AI infrastructure. Nine years after Google researchers introduced the transformer, this family of neural networks has become the engine inside every major large language model. But transformers are starting to show their age. As LLMs get bigger and better, transformers have become a bottleneck. Their dense attention mechanism becomes increasingly expensive as the amount of text grows, and they're not great at keeping track of a lot of information at once. Here are four new ideas for how to solve the transformer problem --innovations that could change LLMs for good, making them faster, far more efficient, and (maybe) even smarter.

Why $370bn tech group Palantir pays 1.4 percent tax rate: Report Palantir Technologies, the United States data analytics and artificial intelligence company which has contracts with the country's military and intelligence apparatus, has "engineered its corporate structure" to pay no US federal corporate income tax, according to a new report. The study by the Centre for International Corporate Tax Accountability and Research (CICTAR) comes as Palantir reports soaring revenues, driven partly by government contracts, while it faces continued criticism for providing technology to the Israeli military amid the genocide in Gaza. What does the report show? Earlier this week, Palantir reported second-quarter revenue of $1.94bn, up 93 percent from a year earlier. But despite its rapid growth, CICTAR said its global effective tax rate was just 1.4 percent in 2025.

Chevron and Williams are big winners in the race to power artificial intelligence as they build out gas-fired power plants and pipelines. It's been a banner year for oil and gas companies. Some of the world's biggest oil giants have announced billions of dollars in quarterly profits over the past two weeks, boosted largely by the soaring price of oil thanks to the conflict in the Middle East. But the artificial intelligence boom is also giving fossil fuel companies a new industry to sell their gas, pipelines, and power plants to: data centers . Two American oil and gas companies, Williams and Chevron, are presenting that demand to investors as a huge win.

For the three months to June, SoftBank booked gains from its bets on Intel, whose shares more than tripled during the quarter. SoftBank Group has reported a smaller-than-expected decline in quarterly net income, helped by a rally in its chip-stock holdings while it awaits further gains from its bets on OpenAI. The Tokyo-based technology investor's net income fell 18% to ¥347.3 billion ($2.2 billion) in its fiscal first quarter after unrealized gains on its bets on chipmakers countered startup valuation declines. That compares with a market estimate of about ¥166 billion, based on the average of four analysts polled. OpenAI's Japanese backer is in the spotlight alongside concerns about the climbing debt levels artificial intelligence service providers are taking on so they can spend hundreds of billions of dollars on data centers and other infrastructure.

Paramount Skydance and rival Warner Bros Discovery have agreed to pause their $110bn (£82.8bn) The pause follows lawsuits from 12 US states and the Writers Guild of America (WGA), who argue the deal would harm competition and lead to higher prices for consumers. The decision comes just days after European regulators approved the deal, on the condition Paramount would end a major film distribution partnership with Universal Pictures in the region. With the deal on hold in the US, emergency court hearings have now been cancelled. Despite the court freeze, Paramount and Warner Bros insist that combining their operations is essential to compete with digital streaming giants and tech conglomerates.

Image caption, Google and its paranet company Alphabet have spent huge amounts on AI. Google parent Alphabet saw its business continue to grow in recent months, yet growing spending on artificial intelligence (AI) infrastructure put its leftover cash into negative territory. The company's free cash flow, the cash it maintained after paying for operations and investments, came in at negative $5.9bn (£4.3bn) for the first time in at least a decade, according to its past financial records. Alphabet's spending on AI is now expected to hit as much as $205bn this year, an increase from $190bn, as major tech companies race to build around a new wave of the technology. Meanwhile, Alphabet's combined quarterly revenue hit $119.8bn, up 23% compared with the same time last year. But the company's stock fell 4% in after hours trading.

Tesla reported its second-quarter earnings on Wednesday, disclosing far lower profits than expected. The company's already beleaguered stock, which had fallen about 14% this year to date, dipped further following the earnings report. Elon Musk's automaker, once the pinnacle of his tech empire, has taken a back seat to SpaceX. Musk's rocket and AI company held the largest stock market debut in history last month, turning the richest man on Earth into the world's first trillionaire, though his net worth has since fallen from its peak. Tesla revealed earnings of 31 cents per share, a measurement of profits divided by the number of outstanding shares, less than the 51 cents per share Wall Street predicted.