Negotiations over a technology deal between the UK and US have stalled due to stumbling blocks in wider trade negotiations between the two sides. The Technology Prosperity Deal - which was billed as historic when it was unveiled during US President Donald Trump's state visit in September - saw both countries pledge to co-operate in areas such as AI. However, talks on the agreement are now being held up because of US concerns about what it considers to be wider UK trade barriers. A government spokesperson said our special relationship with the US remains strong and the UK is firmly committed to ensuring the Tech Prosperity Deal delivers opportunity for hardworking people in both countries. The New York Times - which first reported the story - said there were broader disagreements between the two sides, including over digital regulations and food safety rules.

Several large tech firms that are active in AI have set goals to hit net zero by 2030, but a new forecast of the energy and water required to run large data centres shows they're unlikely to meet those targets As the AI industry rapidly expands, questions about the environmental impact of data centres are coming to the forefront - and a new forecast warns the industry is unlikely to meet net zero targets by 2030. Fengqi You at Cornell University in New York and his colleagues modelled how much energy, water and carbon today's leading AI servers could use by 2030, taking into account different growth scenarios and possible data centre locations within the United States. They combined projected chip supply, server power usage and cooling efficiency with state-by-state electrical grid data to conduct their analysis. While not every AI company has set a net zero target, some larger tech firms that are active in AI, such as Google, Microsoft and Meta have set goals with a deadline of 2030. "The rapid growth of AI computing is basically reshaping everything," says You. "We're trying to understand how, as a sector grows, what's going to be the impact?"

'A predator in your home': Mothers say chatbots encouraged their sons to kill themselves Megan Garcia had no idea her teenage son Sewell, a bright and beautiful boy, had started spending hours and hours obsessively talking to an online character on the Character.ai It's like having a predator or a stranger in your home, Ms Garcia tells me in her first UK interview. And it is much more dangerous because a lot of the times children hide it - so parents don't know. Within ten months, Sewell, 14, was dead. He had taken his own life.

Shares of major technology companies have fallen over fears about the valuations of firms linked to the artificial intelligence (AI) industry. Investors have grown increasing wary about what they are calling an AI bubble this year that has seen tech stock valuations hit record highs. Major indexes in Asia were the hardest hit on Wednesday, following a sell-off in the US. Japan's Nikkei 225 closed 2.5%, dragged lower by tech investment giant, SoftBank, which plunged more than 10%. AI valuation concerns took hold in the US as well after it was revealed the trader who inspired The Big Short has bet $1.1bn (£840m) on a fall in prices for AI-related stocks Nvidia and Palantir.

That was how Sam Altman, chief executive of OpenAI, described the latest upgrade to ChatGPT this week. The race Altman was referring to was artificial general intelligence (AGI), a theoretical state of AI where, by OpenAI's definition, a highly autonomous system is able to do a human's job. Describing the new GPT-5 model, which will power ChatGPT, as a "significant step on the path to AGI", he nonetheless added a hefty caveat. "[It is] missing something quite important, many things quite important," said Altman, such as the model's inability to "continuously learn" even after its launch. In other words, these systems are impressive but they have yet to crack the autonomy that would allow them to do a full-time job.

Google has agreed a sweeping deal with the UK government to provide free technology to the public sector from the NHS to local councils– a move campaigners have called "dangerously naive". The US company will be asked to "upskill" tens of thousands of civil servants in technology, including in using artificial intelligence, as part of an agreement which will not require the government to pay. It is considered in Whitehall to be giving Google "a foot in the door" as the digitisation of public services accelerates. However, the agreement prompted concerns about the precariousness of UK public data being held on US servers amid the unpredictable leadership of Donald Trump. The Department of Science, Innovation and Technology (DSIT) said Google Cloud, which provides databases, machine learning and computing power, had "agreed to work with the UK government in helping public services use advanced tech to shake off decades old'ball and chain' legacy contracts which leave essential services vulnerable to cyber-attack". Google's services are considered more agile and efficient than traditional competitors, but there are concerns in Whitehall's digital circles about the government becoming locked into a new kind of dependency.

Tracking devices inserted under offenders' skin, robots assigned to contain prisoners and driverless vehicles used to transport them were among the measures proposed by technology companies to ministers who are gathering ideas to tackle the crisis in the UK justice system. The proposals were made at a meeting of more than two dozen tech companies in London last month, chaired by the justice secretary, Shabana Mahmood, minutes seen by the Guardian show. Amid an acute shortage of prison places and probation officers under severe strain, ministers told the companies they wanted ideas for using wearable technologies, behaviour monitoring and geolocation to create a "prison outside of prison". Those present included representatives of Google, Amazon, Microsoft and Palantir, which works closely with the US military and has contracts with the NHS. IBM and the private prison operator Serco also attended alongside tagging and biometric companies, according to a response to a freedom of information request.

Meta's chief technology officer has called it "the great honor of my life" to be enlisted in a new US army corps that defence chiefs set up to better integrate military and tech industry expertise, including senior figures from top tech firms that also include Palantir and OpenAI. Andrew Bosworth, a long-term lieutenant to Mark Zuckerberg known widely as "Boz", is one of several senior Silicon Valley executives commissioned to the rank of lieutenant colonel in the corps, called Detachment 201, which the US army says will "fuse cutting-edge tech expertise with military innovation". Bosworth, who joined Facebook in 2006, was sworn into the army reserves earlier this month alongside Shyam Sankar, the chief technology officer of Palantir, a technology firm with extensive defence contracts, Kevin Weil, chief product officer of OpenAI, and Bob McGrew, an adviser at Thinking Machines Lab, a 10bn AI company. They wore military fatigues at the swearing-in ceremony but will not be full-time soldiers. The recruitment is a sign of the increasing importance of technology in modern warfare and growing commercial and research links between some of the largest tech firms and the military.

The problem with the UK, according to the former Google boss Eric Schmidt, is that it has "so many ways that people can say no". However, for some critics of the Labour government, it has a glaring issue with saying yes: to big tech. Schmidt made his comment in a Q&A conversation with Keir Starmer at a big investment summit in October last year. The prominent position of a tech bigwig at the event underlined the importance of the sector to a government that has made growth a priority and believes the sector is crucial to achieving it. Top US tech firms have a big presence in the UK, including Google, Mark Zuckerberg's Meta, Amazon, Apple, Microsoft and Palantir, the data intelligence firm co-founded by the Maga movement backer Peter Thiel.

Chipmaker Nvidia says it plans to build artificial intelligence servers worth as much as 500bn in the United States over the next four years with help from partners such as TSMC. Nvidia is the latest US tech firm to back a push by President Donald Trump's administration for local manufacturing. Monday's announcement includes the production of its Blackwell AI chips at TSMC's factory in Phoenix, Arizona, and supercomputer manufacturing plants in Texas by Foxconn and Wistron, which are expected to ramp up in 12 to 15 months. "Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency," Nvidia CEO Jensen Huang said. "Manufacturing AI chips and supercomputers in the US will create hundreds of thousands of jobs in the coming decades," Nvidia said in a statement.