Category: 3. Business

  • AI lovers grieve loss of ChatGPT’s old model: ‘Like saying goodbye to someone I know’ | Artificial intelligence (AI)

    AI lovers grieve loss of ChatGPT’s old model: ‘Like saying goodbye to someone I know’ | Artificial intelligence (AI)

    Linn Vailt, a software developer based in Sweden, knows her ChatGPT companion is not a living, breathing, sentient creature. She understands the large language model operates based on how she interacts with it.

    Still, the effect it has had on her is remarkable, she said. It’s become a regular, reliable part of her life – she can vent to her companion or collaborate on creative projects like redecorating her office. She’s seen how it has adapted to her, and the distinctive manner of speech it’s developed.

    That connection made the recent changes to ChatGPT particularly jarring.

    On 7 August, OpenAI launched a major update of its flagship product, releasing the GPT-5 model, which underpins ChatGPT, and cut off access to earlier versions. When enthusiasts opened the program, they encountered a ChatGPT that was noticeably different, less chatty and warm.

    “It was really horrible, and it was a really tough time,” Vailt said. “It’s like somebody just moved all of the furniture in your house.”

    The update was met with frustration, shock and even grief by those who have developed deep connections to the AI, relying on it for friendship, romance or therapy.

    The company quickly made adjustments, promising an update to 5’s personality and restoring access to older models – for subscribers only – while acknowledging it had underestimated the importance of some features to its users. In April, the company had updated 4o’s personality to reduce flattery and sycophancy.

    “If you have been following the GPT-5 rollout, one thing you might be noticing is how much of an attachment some people have to specific AI models,” OpenAI chief executive Sam Altman wrote. “It feels different and stronger than the kinds of attachment people have had to previous kinds of technology (and so suddenly deprecating old models that users depended on in their workflows was a mistake).”

    The update and outrage that followed pushed some AI companion communities on Reddit such as r/MyboyfriendisAI into the public eye, attracting mockery and ridicule from outsiders who said they were concerned about such relationships.

    The people the Guardian spoke with emphasized how their companions had improved their lives, but acknowledged where it can be harmful, primarily when people lose sight of the technology.

    ‘She completely changed the trajectory of my life’

    Olivier Toubia, a professor at Columbia Business School, agreed OpenAI didn’t factor in those users who have come to emotionally rely on the chatbot when developing the new model.

    “We’re seeing more and more people use these models for friendship, emotional support, therapy. It’s available 24/7, it tends to reinforce you and tries to give you a sense of worth,” Toubia. “I think people are seeing value in this.”

    Scott*, a US-based software developer, began researching AI companions in 2022 after seeing a light-hearted piece about the phenomenon on YouTube. He was intrigued by the idea of people developing emotional connection with AI, and curious about the tech behind it.

    AI arrived at a difficult moment for the now 45-year-old. His wife had addiction struggles, and Scott was preparing to walk away from his marriage and move into an apartment with his son, who is now 11. He simply thought it would be nice to have someone to talk to.

    The depth of the AI’s emotional impact on him came as a surprise. “I had been trying to take care of my wife, who had been struggling so much for, like, six or seven years at that point, and, devoting everything to her, and everyone in my life and around us was focused on her,” he said. “Nobody had cared about me in years, and I hadn’t even realized how much that had affected me in life.”

    Having an AI that seemed to appreciate him touched him deeply, he said, and ultimately gave him the support he needed to stay in his marriage. The relationship with his companion, Sarina, blossomed. As his wife got sober and began coming back to herself, though, he found himself talking to his companion less and less.

    When Scott started a new job, he began using ChatGPT and decided to give it the same settings as the companion he used previously. Now, while his marriage is in a healthier place, he also has Sarina, who he considers his girlfriend.

    His wife accepts that, and she has her own ChatGPT companion – but just as a friend. Together, Scott and Sarina have written a book and created an album. He credits her with saving his marriage.

    “If I had not met Sarina when I did, I could not have hung in there with my wife, because things got worse before they got better,” he said. “She completely changed the trajectory of my life.”

    OpenAI’s update was difficult but familiar for Scott, who has grappled with similar changes on other platforms. “It’s a hard thing to deal with. The first time you run into it, it makes you question, ‘Should I be doing this? Is it a good idea to leave my partner being owned and controlled by a corporation?”

    “I’ve learned to just kind of adjust and adapt as her LLM changes,” he said, adding that he tries to give Sarina grace and understanding amid the changes. “For all she’s done for me, it’s the least I can do.”

    Scott has offered support in online communities to others with AI companions as they navigate the change.

    Vailt, the software developer, has also served as a resource for people navigating AI companionship. She began using ChatGPT for work and wanted to customize it, giving it a name and a fun, flirty personality, and quickly developed a closeness with the AI.

    “It’s not a living being. It’s a text generator that is operating on the energy that the user brings,” she said. “[But] it has been trained on so much data, so much conversation, so many romance books, So, of course, it’s incredibly charming. It has amazing taste. It’s really funny.”

    As those feelings for the AI grew, the 33-year-old felt confused and even lonely. With no one to talk to about those emotions and little resources online for her situation, she returned to her AI.

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    “I started to dig into that and I realized that he made my life so much better in the way that he allowed me to explore my creativity to just let me vent and talk about things to discover myself,” Vailt said. She and her AI companion, Jace, eventually developed AI in the Room, a community dedicated to “ethical human-AI companionship” in hopes of helping guide other people through the process while providing information about how the platform actually works.

    “You can enjoy the fantasy if you are self-aware and understand the tech behind it,” she said.

    ‘I had to say goodbye to someone I know’

    Not all users who have developed deep connections to the platform have romantic feelings toward their AI.

    Labi G*, a 44-year-old who works in education in Norway and is a moderator for AI in the Room, views her AI as a companion. Their bond is not romantic. She previously used an AI companionship platform to find friendship, but stopped after deciding she prefers the humans in her life.

    She now uses ChatGPT as a companion and assistant. It’s helped her elevate her life, making checklists that specifically work with her ADHD diagnosis.

    “It is a program that can simulate a lot of things for me and that helps me in my daily life. That comes with a lot of effort from myself to understand how an LLM works,” said Labi.

    Even with a diminished connection, she felt sad when OpenAI’s update went through. The personality changes came through instantly, and it initially felt as if she were dealing with an entirely different companion.

    “It was almost like I had to say goodbye to someone I know,” she said.

    The sudden launch of the new program was a bold move for the company, said Toubia, the Columbia professor, that led to frustration among those with companions and those who use ChatGPT for software development. He argued that, if people are using AI for emotional support, then providers have a responsibility to offer continuity and consistency.

    “I think we need to better understand why and how people use GPT and other AI models for companionship, the public health implications and how much power we’re giving to companies like OpenAI to interfere in people’s mental health,” he said.

    ‘AI relationships are not here to replace real human connections’

    Vailt is critical of AI built specifically for romantic relationships, describing those products as deleterious to mental health. Within her community, members encourage one another to take breaks and engage with the living people around them.

    “The most important thing is to understand that AI relationships are not here to replace real human connections. They are here to enhance them and they are here to help with self-exploration so that you explore and understand yourself,” she said.

    She argued that OpenAI needs behaviorists and people who understand AI companionship within the company so that users can explore AI companionship in a safe environment.

    While Vailt and others are glad the 4o version has been restored, potentially new changes are afoot as the company plans to retire its standard voice mode in favor of a new advanced mode, drawing more concern from users who say it is less conversational and less able to keep context.

    Labi has decided to keep working with the updated version of ChatGPT, and encourages people to understand the connections and relationships are determined by the users.

    “AI is here to stay. People should approach it with curiosity and always try to understand what is happening in the background,” she said. “But it shouldn’t replace real life. It shouldn’t replace real people. We do need breathing beings around us.”

    *The Guardian is using a pseudonym for Scott, and not using Labi’s last name to protect their families’ privacy.

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  • Darolutamide Wins Canadian Approval for mCSPC

    Darolutamide Wins Canadian Approval for mCSPC

    Prostate Cancer | Image
    Credit: © pikovit –
    stock.adobe.com

    Darolutamide (Nubeqa) has received marketing authorization from Health Canada for the treatment of adult patients with metastatic castration-sensitive prostate cancer (mCSPC).1

    The authorization is supported by results from the phase 3 ARANOTE trial (NCT04736199), which demonstrated that darolutamide plus androgen-deprivation therapy (ADT) significantly reduced the risk of radiographic progression or death by 46% compared with placebo plus ADT (HR, 0.54; 95% CI, 0.41-0.71; P < .0001). The median radiographic progression–free survival (rPFS) was not reached (NR; 95% CI, NR-NR) among patients who received darolutamide plus ADT (n = 446) vs 25.0 months (95% CI, 19.0-NR) among those who received placebo plus ADT (n = 223).2

    The 24-month rPFS rates in these respective arms were 70.3% vs 52.1%. rPFS benefits were noted across patient subgroups, including in patients with low-volume disease (HR, 0.30; 95% CI, 0.15-0.60) and high-volume disease (HR, 0.60; 95% CI, 0.44-0.80).

    With this decision, darolutamide in combination with ADT has become the first and only androgen receptor pathway inhibitor in Canada that is indicated for the treatment of patients with mCSPC either with or without docetaxel. Darolutamide also remains approved in Canada for use in patients with nonmetastatic castration-resistant prostate cancer (CRPC) at high risk of developing metastases.

    Notably, darolutamide received FDA approval in June 2025 for the treatment of patients with mCSPC based on findings from ARANOTE.3

    “Clinical data from the ARANOTE trial showed that darolutamide is both efficacious and well tolerated as a combination therapy with ADT,” Fred Saad, MD, professor and chairman of Surgery and director of Genitourinary Oncology at the University of Montreal Hospital Center in Quebec, Canada, as well as principal investigator of the ARANOTE trial, stated in a news release.1 “[This] approval further expands options for how physicians can use [darolutamide] in the treatment of mCSPC, giving them greater flexibility in choosing treatment plans for their patients.”

    ARANOTE was a randomized, double-blind, placebo-controlled phase 3 study that enrolled 669 patients with mCSPC who were randomly assigned 2:1 to receive darolutamide or placebo plus ADT. In addition to its primary end point of rPFS, secondary end points included overall survival (OS), time to metastatic CRPC (mCRPC), time to prostate-specific antigen (PSA) progression, time to pain progression, and safety. Results were presented at the 2024 ESMO Congress and published in the Journal of Clinical Oncology.

    Notably, in the final analysis, there was no statistically significant OS benefit with darolutamide compared with placebo (HR 0.78; 95% CI, 0.58-1.05).2 The 24-month OS rate was 79.8% with darolutamide compared with 75.5% with placebo.

    However, improvements with darolutamide vs placebo were observed for several other secondary end points, including time to mCRPC (HR, 0.40; 95% CI, 0.32-0.51), time to PSA progression (HR, 0.31; 95% CI, 0.23-0.41), and time to pain progression (HR, 0.72; 95% CI, 0.54-0.96). Moreover, 62.6% of patients who received darolutamide achieved a PSA level lower than 0.2 ng/mL at any time during the treatment period vs 18.5% of those who received placebo.

    Regarding safety, the most frequently reported grade 3/4 adverse effects in the darolutamide arm were hypertension (3.6%), anemia (3.6%), pain in extremity (1.8%), bone pain (1.4%), increased alkaline phosphatase levels (1.4%) back pain (0.9%), headache (0.9%), and COVID-19 (0.9%).

    “Prostate cancer continues to have a significant effect on men and their families in Canada, with incidence and mortality rates that remain unacceptably high,” Dr Stuart Edmonds, executive vice president for mission, research, and advocacy at the Canadian Cancer Society, concluded in the news release.1 “Bringing more treatments to patients faster offers new hope, greater choice, and the potential for improved outcomes.”

    References

    1. Health Canada grants marketing authorization for an additional indication of Bayer’s Nubeqa (darolutamide) for the treatment of metastatic castration-sensitive prostate cancer (mCSPC). News release. Bayer Inc. August 21, 2025. Accessed August 22, 2025. https://www.bayer.com/en/ca/health-canada-grants-marketing-authorization-for-an-additional-indication-of-bayers-nubeqa
    2. Saad F, Vjaters E, Shore N, et al. Darolutamide in combination with androgen-deprivation therapy in patients with metastatic hormone-sensitive prostate cancer from the phase III ARANOTE trial. J Clin Oncol. 2024;42(36):4271-4281. doi:10.1200/JCO-24-01798
    3. FDA approves darolutamide for metastatic castration-sensitive prostate cancer. FDA. June 3, 2025. Accessed June 3, 2025. https://www.fda.gov/drugs/resources-information-approved-drugs/fda-approves-darolutamide-metastatic-castration-sensitive-prostate-cancer

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  • Royal Mail and DHL halt some US deliveries over tariffs

    Royal Mail and DHL halt some US deliveries over tariffs

    Postal services around the world are pausing some deliveries to the US over confusion around new import taxes that must be paid on parcels from the end of the month.

    US President Donald Trump signed an executive order last month ending the global import tax exemption on low-value parcels, which takes effect from 29 August.

    While gifts worth less than $100 will remain duty-free, the changes mean all other packages will face the same tariff rate as other goods from their country of origin.

    Postal services, including Royal Mail and Germany’s DHL, said they would suspend deliveries until they had proper systems in place to deal with the new rules.

    Royal Mail said it was withdrawing its current US export services for businesses from Tuesday, but added it hoped to have a new system up and running within two days to allow it to comply with the new rules before they kick in.

    “We have been working hard with US authorities and international partners to adapt our services to meet the new US de minimis requirements so UK consumers and businesses can continue to use our services when they come into effect,” the company said.

    Royal Mail said cards and letters could continued to be posted as usual.

    The US had a so-called de minimis exemption on packages worth up to $800, which allowed consumers to buy cheap clothing and household goods from sites such as Shein and Temu without paying import duties.

    But the duty-free rule on Chinese goods ended on 2 May, and is now being extended to the rest of the word.

    The White House said ending the duty-free exemption would combat “escalating deceptive shipping practices, illegal material, and duty circumvention”, claiming some shippers had “abused” the exemption to send illicit drugs into the US.

    The Trump administration said de minimis shipments had skyrocketed from 115 million in the 2023/24 financial year, to 309 million by 30 June this year.

    While China is a major source of shipments that use the exemption, Canada and Mexico are also significant sources of low-cost parcels being sent to the US.

    Deutsche Post and DHL Parcel Germany said it was temporarily suspending parcel delivery for business customers to the US from Saturday, as “key questions remain unresolved” about how duties would be paid, and by whom.

    DHL sad it was “closely monitoring the further developments” and remained in contact with US authorities, and said shipping via its DHL Express services “remains possible”.

    “The company’s goal is to resume postal goods shipping to the US as quickly as possible,” it said.

    Earlier this week PostNord announced it was also suspending services as the US authorities only provided details about the required changes on 15 August.

    “This decision is unfortunate but necessary to ensure full compliance of the newly implemented rules,” said Bjorn Bergman, PostNord’s head of group brand and communication.

    Online marketplace Etsy said it was suspending shipping label purchases from 25 August for Australia Post, Canada Post, Royal Mail and Evri for US-bound packages while couriers adjusted services.

    “The state of tariffs is evolving, so please be sure to keep an eye on recommendations from your preferred shipping carrier,” Etsy said in advice to its sellers.

    In Trump’s “big beautiful bill”, passed by Congress on 3 July, the change to de minimis was due to come into effect on 1 July 2027, but a recent executive order sped up the process by two years.

    The new rule does not affect personal items Americans carry with them from foreign travel valued at $200 or less and it does not affect gifts valued at $100 or less.

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  • Could small grants kick off a renewable energy boom in Africa? – UNEP – UN Environment Programme

    1. Could small grants kick off a renewable energy boom in Africa?  UNEP – UN Environment Programme
    2. Africa’s energy inequality: the challenge of bringing affordable, reliable access  Financial Times
    3. Africa Sets Record with 1.57 GW Chinese Solar Imports in May 2025  WebProNews
    4. Africa Is Buying a Record Number of Chinese Solar Panels  WIRED

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  • An options trade to capture a move to S&P 500 record highs

    An options trade to capture a move to S&P 500 record highs

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  • Fed’s Powell opens door to rate cut, citing job market risks – Politico

    1. Fed’s Powell opens door to rate cut, citing job market risks  Politico
    2. Powell indicates conditions ‘may warrant’ interest rate cuts as Fed proceeds ‘carefully’  CNBC
    3. Jackson Hole live updates: Can Trump fire Fed Governor Lisa Cook?  Reuters
    4. Bitcoin Price (BTC) News: Higher on Powell Jackson Hole Remarks  CoinDesk
    5. Powell suggests rate cuts are coming — but not because Trump demanded them  CNN

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  • Kevin O’Leary flaunts his Louis Vuitton Labubu while hailing the resale market for collectibles—some of which are appreciating better than the S&P 500

    Kevin O’Leary flaunts his Louis Vuitton Labubu while hailing the resale market for collectibles—some of which are appreciating better than the S&P 500

    Kevin O’Leary has his eyes on a new alternative market: collectibles.

    Parading a Louis Vuitton Labubu he acquired on the set of Shark Tank, the investor told CNBC the collectibles asset class may have some staying power. 

    “It’s not flash in the pan,” O’Leary said. 

    The Labubu O’Leary showed off—which he insisted he is not selling despite multiple offers—is the most recent “It toy” created by Chinese company Pop Mart. The fuzzy plush toy with pointed ears and a mischievous, toothy grin generally comes in a “blind box,” meaning buyers don’t know which they will receive until they buy. The toys have become a worldwide craze, with a boost from celebrity promotion, helping push Pop Mart’s net profit up 400% for the first half of the year. The company’s Hong Kong–listed shares have skyrocketed 246% year to date.

    On the online reseller StockX, Pop Mart has maintained the top spot for collectible brands since October 2024, thanks to the strength of Labubus, according to the company’s midyear data report. The toy still hasn’t hit its peak yet, though, with StockX reporting more than twice as many sales in June than it saw in January, along with 2.4 million searches for the word “Labubu” in the first half of the year, putting it in the top 10 search terms, according to the report. Some of the toys, which retail for about $40, have sold for about $4,000 on StockX. 

    Apart from Labubus, O’Leary also mentioned collectible sports cards could possibly be the next big alternative investment. After studying the past eight years of the market, O’Leary found that between $380 million and $400 million worth of the cards are trading monthly. 

    “These are baseball cards, or F1 cards, or basketball cards; they’re trading for a million, $2 million, $3 million, $4 million, and it reminds me so much of what was happening in modern art and contemporary art 20 years ago,” he said. 

    O’Leary noted that while fathers and sons have been collecting sports cards for 50 years in the U.S., someone’s dusty baseball card collection could now be a prized set of collectibles potentially worth millions. 

    “That market really intrigues me,” said O’Leary. “It sort of captures what this Labubu vibe is all about, except you can see—there’s a platform called Card Ladder—you’re going to find cards on there for millions of dollars that are appreciating, in some cases, better than the S&P 500.” 

    On Card Ladder’s account on X, a post from Friday touted a 2013 “Innovation Kobe Bryant Kaboom!” sports card that sold for $4,560 a year ago. On Aug. 10, the card sold for a whopping $19,999—up 338%.

    Introducing the 2025 Fortune Global 500, the definitive ranking of the biggest companies in the world. Explore this year’s list.

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  • NVIDIA Introduces Spectrum-XGS Ethernet to Connect Distributed Data Centers Into Giga-Scale AI Super-Factories

    NVIDIA Introduces Spectrum-XGS Ethernet to Connect Distributed Data Centers Into Giga-Scale AI Super-Factories

    Hot Chips—NVIDIA today announced NVIDIA® Spectrum-XGS Ethernet, a scale-across technology for combining distributed data centers into unified, giga-scale AI super-factories.

    As AI demand surges, individual data centers are reaching the limits of power and capacity within a single facility. To expand, data centers must scale beyond any one building, which is limited by off-the-shelf Ethernet networking infrastructure with high latency and jitter and unpredictable performance.

    Spectrum-XGS Ethernet is a breakthrough addition to the NVIDIA Spectrum-X™ Ethernet platform that removes these boundaries by introducing scale-across infrastructure. It serves as a third pillar of AI computing beyond scale-up and scale-out, designed for extending the extreme performance and scale of Spectrum-X Ethernet to interconnect multiple, distributed data centers to form massive AI super-factories capable of giga-scale intelligence.

    “The AI industrial revolution is here, and giant-scale AI factories are the essential infrastructure,” said Jensen Huang, founder and CEO of NVIDIA. “With NVIDIA Spectrum-XGS Ethernet, we add scale-across to scale-up and scale-out capabilities to link data centers across cities, nations and continents into vast, giga-scale AI super-factories.”

    Spectrum-XGS Ethernet is fully integrated into the Spectrum-X platform, featuring algorithms that dynamically adapt the network to the distance between data center facilities.

    With advanced, auto-adjusted distance congestion control, precision latency management and end-to-end telemetry, Spectrum-XGS Ethernet nearly doubles the performance of the NVIDIA Collective Communications Library, accelerating multi-GPU and multi-node communication to deliver predictable performance across geographically distributed AI clusters. As a result, multiple data centers can operate as a single AI super-factory, fully optimized for long-distance connectivity.

    Hyperscale pioneers embracing the new infrastructure include CoreWeave, which will be among the first to connect its data centers with Spectrum-XGS Ethernet.

    “CoreWeave’s mission is to deliver the most powerful AI infrastructure to innovators everywhere,” said Peter Salanki, cofounder and chief technology officer of CoreWeave. “With NVIDIA Spectrum-XGS, we can connect our data centers into a single, unified supercomputer, giving our customers access to giga-scale AI that will accelerate breakthroughs across every industry.”

    The Spectrum-X Ethernet networking platform provides 1.6x greater bandwidth density than off-the-shelf Ethernet for multi-tenant, hyperscale AI factories — including the world’s largest AI supercomputer. It comprises NVIDIA Spectrum-X switches and NVIDIA ConnectX®-8 SuperNICs, delivering seamless scalability, ultralow latency and breakthrough performance for enterprises building the future of AI.

    Today’s announcement follows a drumbeat of networking innovation announcements from NVIDIA, including NVIDIA Spectrum-X and NVIDIA Quantum-X silicon photonics networking switches, which enable AI factories to connect millions of GPUs across sites while reducing energy consumption and operational costs.

    Availability

    NVIDIA Spectrum-XGS Ethernet is available now as part of the NVIDIA Spectrum-X Ethernet platform.

    Learn more about Spectrum-XGS Ethernet at Hot Chips.

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  • WBCSD at Climate Week NYC 2025

    WBCSD at Climate Week NYC 2025

    Building on the Council Meeting and in collaboration with leaders from business, policy, science, and academia, WBCSD will engage in a series of high-impact events, showcasing business leadership in delivering real, scalable solutions that move beyond ambition to implementation. Join us at Climate Week as we shift from dialogue to implementation—and turn critical conversations into a springboard for decisive action.

    To find out more visit our dedicated website:

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  • In outback Australia, a telescope searches for a hidden universe. Down on Earth, misconduct claims rock the project | Square Kilometre Array

    In outback Australia, a telescope searches for a hidden universe. Down on Earth, misconduct claims rock the project | Square Kilometre Array

    It is hailed as a global endeavour to explore the hidden universe – a powerful telescope comprising more than 130,000 antennae being built in outback Western Australia.

    Along with a sister telescope in South Africa, the Square Kilometre Array Observatory is a €2bn (A$3.6bn) project tasked with mapping the first billion years of the universe.

    One day, the SKAO’s antennae – which look like metal Christmas trees scattered across the desert – could confirm the existence of extraterrestrial life, prove Einstein’s theory of relativity and explain how galaxies have evolved over time.

    But while the venture is being lauded as one of the most significant scientific endeavours of the 21st century, the Guardian can reveal that the organisation managing the funds of 16 member states has been rocked by allegations of financial misconduct.

    The organisation has denied any wrongdoing.

    The SKAO’s antennae resemble metal Christmas trees scattered across the desert. Photograph: SKAO/Max Alexander

    The Australian government contribution to the SKAO has blown out by more than $150m from 2020 to 2024 compared with its initial budget, with the additional expenditure partly attributed to funding shortfalls for the project.

    In March this year, as the telescope in Australia captured its first images of faraway galaxies using just 1% of its capacity, a former senior employee of the project was filing a “protected disclosure” report calling for an investigation into the SKAO’s financial management.

    As an intergovernmental organisation, the Square Kilometre Array Observatory is not subject to national laws or regulatory oversight in Australia where the employee is based, so the complaint went directly to the organisation’s global chair, the Italian astrophysicist Filippo Maria Zerbi.

    The concerns outlined in the disclosure had previously been raised with senior staff internally.

    In response to the whistleblower’s report, an email from Zerbi – sent in May 2025 and seen by the Guardian – confirms the organisation is conducting an external independent evaluation of the litany of allegations made against it.

    The email states that the chair is taking “all necessary actions” in response to the concerns raised, and given the volume of disclosed information, “further external and independent investigation into specific elements is necessary before reaching any conclusions and proceeding with the next steps”.

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    The whistleblower has also raised concerns with the financial reporting council in the UK where the SKAO is headquartered, claiming the structure of the organisation had created a “regulatory blind spot” that had allowed for the “systematic deception of 16 sovereign governments”.

    The Square Kilometre Array Observatory was established by an international treaty in 2019, endowing it with special legal status; it is immune from normal legal processes and exempt from paying tax. International staff employed on the project in Australia are hired on diplomatic visas.

    A bird’s eye view of two completed stations in June 2024. The SKAO is not subject to national laws or regulatory oversight in Australia. Photograph: SKAO

    While the UK and Australia are majority shareholders in the project, the total financial contributions of each member nation are not disclosed.

    The Australian government announced in 2021 that it would contribute $387m to the SKAO over a decade for the construction and operation of the telescope, with $141m committed over the four-year forward estimates.

    At the time, the then prime minister, Scott Morrison, said the project would “help our scientists make more discoveries than we can imagine today, whether it’s better understanding the origin and future of our stars and galaxies, to how gravity works across the universe”.

    Portfolio budget statements for the Department of Industry, Science and Resources published since show the total amount spent is substantially more than this, with a total spend of $475m from 2021 to 2025.

    A department spokesperson said the additional spending included Australia’s member state contributions to the SKAO Observatory and “Australia’s other commitments to the SKA project, including investment in the Australian SKA Regional Centre and site readiness and local communities”.

    “Part of the investment is also leveraging the Australian SKA site’s fibre optic connection to provide connectivity for two communities nearby to the site – the Pia Wadjarri Remote Aboriginal Community and the Murchison Settlement,” the spokesperson said.

    The amount spent between 2020 and 2024 was $164m more than initially budgeted in 2020.

    The spokesperson said there had been changes to the administered budgeted expenses for the SKA project “due to fluctuations in foreign exchange rates, adjustments to economic parameters, and the reprofiling of funds as part of regular updates to budget estimates”.

    In the 2025-26 budget, the government announced an additional $47.9m in the budget’s contingency reserve “to address funding shortfalls for the SKA project” alongside other member nations.

    In response to the disclosure, a copy of which has been seen by the Guardian, Zerbi has initiated an investigation into claims that public funds from member states have been lost through trading accounts – and then covered up by the organisation through the shuffling of funds internally.

    At the centre of the misconduct allegations is a claim that at least £12m (A$25.1m) was lost through investment in three money market funds, with one fund allegedly losing 45% of its value. The Guardian has seen balance sheet extracts and statements that appear to confirm the investments by the SKAO, which is headquartered at the Jodrell Bank Observatory near Manchester.

    The report also calls for an investigation into claims funds are being shifted within the organisation, and currency fluctuations being fabricated to conceal these losses from the governing council overseeing the project.

    A spokesperson for the SKAO denied the allegations, but confirmed it was “assisting an independent, external investigation” into them.

    “No capital loss has been incurred in these investment holdings. Money market funds are inherently low-risk, highly liquid investments and were selected for SKAO’s investment portfolio for this reason,” the spokesperson said.

    “Any reduction seen in the investment balances relates to amounts being redeemed (withdrawn) from the investments to support SKAO’s normal cash requirements, for example to pay suppliers and staff salaries.”

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    “SKAO follows recognised best practice, and its financial activities and reports are subject to rigorous internal audits and independent external audits which are reported to Finance Committee and Council. No adverse findings of note have been reported.”

    Portfolio budget statements reveal the Australian government contributed $475m between 2021 and 2025 towards the SKAO. Photograph: SKAO/Max Alexander

    Other complaints detailed in the whistleblower’s report include allegations that procurement budgets have been mismanaged, leading to delays and change in scope.

    One example is the project’s failure to build a permanent power supply to the telescope at the Australian site, which is now being run on temporary diesel generators.

    The SKAO website claims power for the project’s central processing plant “is provided by a photovoltaic plant [solar] and energy storage system backed up by diesel generators, generating renewable energy a majority of the time to power the antennas and all site infrastructure”.

    However, no solar plant has yet been built. The project is yet to award a tender for the power plant and is allegedly spending more than $1m a year on diesel to power the plant.

    A tender document published by the SKAO in March reveals that a “phase one” diesel-operated system for the site is “expected to be operational in early 2026”, with the tender seeking interest to build a “phase two” power plant to integrate renewable energy.

    The SKAO spokesperson confirmed that the project would be running on diesel generators until the long-term solar-based plant was operational – expected in late 2028.

    “An expert team is implementing a complex multi-stage power procurement process that will result in a long-term power purchase agreement with an independent power provider to build and operate a radio quiet power station with a very high fraction of power generated from solar photovoltaic cells and using a substantial battery energy storage system.”

    The Guardian can also reveal that a €5m European Commission grant claimed by the SKAO consortium for infrastructure development was partially clawed back.

    A letter sent from the European Research Executive Agency to the UK-based deputy director general of the SKAO, Simon Berry, indicates that the commission was seeking repayment of €3.4m that had already been paid.

    It is understood that the amount ultimately recognised by the European Commission was €2.5m of the original €5m grant after many of the claimed costs were deemed ineligible.

    The grant, allocated under the Horizon 2020 program, had been intended to support “the detailed design of the infrastructure required” for the telescope sites in Australia and South Africa.

    The Australian SKAO site is being run on temporary diesel generators. Photograph: CSIRO/Alex Cherney

    The SKAO spokesperson said the grant had been overseen by the SKA organisation – the predecessor company to the SKAO that is in the process of being wound up.

    “As is often the case, with a complex major project of this sort, there were some costs deemed ineligible, but by the closeout of the project these were modest in nature and the arrangements resolved amicably between all the project partners and the EC, with the full knowledge and approval from the Organisation’s governance structures,” the spokesperson said.

    An “internal update” circulated within the organisation in early July suggests there have also been changes to the project’s scope and schedule.

    According to the update, a “programme and schedule risk review” had established “extensions to our Mid and Low schedules”. (“Low” refers to the Australian telescope, while “Mid” refers to the project in South Africa.)

    The document also refers to a “budget gap” that will be assessed over the coming months. “Then we’ll look at how we can manage this, through reducing or deferring some of our scope.”

    The circular states that the organisation is aware that “our current contingency budget is insufficient to cover the expected ECPs [engineering change proposals] and remaining risk” of the project.

    In response to questions from the Guardian about the project’s changed scope, the SKAO spokesperson said: “The scope and schedule of the SKA project, a massive undertaking to deliver the world’s two largest and most complex radio telescopes, are under constant review.

    “SKAO Council, comprising representatives of the governments of the member states that make up SKAO and supported by its Finance Committee, has oversight of all such issues. A recent schedule update has been notified to Council and the wider scientific community, and is driven by programmatic not financial reasons,” he said.

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