The White House Office of Science and Technology Policy accused China of “industrial-scale” AI technology theft in a scathing Thursday memorandum just weeks before President Donald Trump is set to meet with Chinese President Xi Jingping in Beijing, China.

“The U.S. has evidence that foreign entities, primarily in China, are running industrial-scale distillation campaigns to steal American AI. We will be taking action to protect American innovation,” OSTP Director Michael Kratsios wrote in a Thursday morning X post.

Kratsios accused China and other foreign entities of using tens of thousands of proxies in a coordinated effort to siphon American AI innovation.

“Foreign entities who build on such fragile foundations should have little confidence in the integrity and reliability of the models they produce,” Kratsios wrote.

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Models built on such innovation theft cannot replicate the efficacy and innovation of the technologies they’re ripping off, an OTSP memo stated. They can, however, simulate select benchmarks at a fraction of the cost.

President Donald Trump speaks with Director of White House Office of Science and Technology Policy Michael Kratsios during a meeting in Washington, DC, on March 4, 2026. (ANDREW CABALLERO-REYNOLDS / AFP via Getty Images / Getty Images)

“These distillation campaigns also allow those actors to deliberately strip security protocols from the resulting models and undo mechanisms that ensure those AI models are ideologically neutral and truth-seeking,” the memo read.

The accusation precedes the historic Trump-Xi summit by just three weeks. Originally scheduled for the end of March, the Beijing talks were postponed to May 14.

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The pair is expected to discuss the ongoing war in Iran, with Trump telling reporters on Air Force One that China’s reliance on oil from the Strait of Hormuz means they should be open to joining a coalition to put pressure on Iran to keep the strategic waterway open.

President Donald Trump shakes hands with Chinese President Xi Jinping as they hold a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan, South Korea, on Oct. 30, 2025. (Evelyn Hockstein/Reuters / Reuters)

Technology was already on the docket before the OTSP announcement, as China will likely seek Washington to loosen technology controls on semiconductors and AI.

The OTSP announcement also comes one day after the House Judiciary Committee held a hearing named “Stealth Stealing: China’s Ongoing Theft of U.S. Innovation.” During the review, Sen. Chuck Grassley, R-Iowa, presented evidence showing Chinese technology theft cost the U.S. economy between $400-600 billion yearly.

China grabbed headlines in 2025 with its AI “Sputnik moment,” touting a cost-efficient breakthrough with its DeepSeek AI model.

But Anthropic, the company responsible for the increasingly-popular Claude model, accused China of stealing from Anthropic to build DeepSeek.

Anthropic CEO Dario Amodei, Chief Product Officer Mike Krieger and Head of Communications Sasha de Marigny give a press conference during Anthropic’s first developer conference in San Francisco, California, on May 22, 2025.  (JULIE JAMMOT/AFP / Getty Images)

Anthropic claimed that China used a mass-proxy distillation process to siphon key data. The proxy strategy is the same one that OTSP outlined in the Wednesday memo.

“Foreign labs that distill American models can then feed these unprotected capabilities into military, intelligence, and surveillance systems — enabling authoritarian governments to deploy frontier AI for offensive cyber operations, disinformation campaigns, and mass surveillance,” Anthropic said at the time.

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After a public split between Anthropic and Washington that saw the Pentagon label it as a supply chain risk, Anthropic’s leaders were back in the White House on Friday, reportedly to discuss cybersecurity.

“Anthropic CEO Dario Amodei today met with senior administration officials for a productive discussion on how Anthropic and the U.S. government can work together on key shared priorities such as cybersecurity, America’s lead in the AI race, and AI safety. The meeting reflected Anthropic’s ongoing commitment to engaging with the U.S. government on the development of responsible AI. We are grateful for their time and are looking forward to continuing these discussions,” an Anthropic spokesperson previously told Fox News Digital. 

Fox News Digital contacted the White House, OTSP, Anthropic and the Chinese Embassy to the U.S. for further comment but did not immediately receive a response.

Fox News Digital’s Morgan Phillips contributed to this report.

The future of American defense is undergoing a high-tech revolution as the Pentagon has awarded a multimillion-dollar contract to test heavy-duty humanoid robots.

Foundation Future Industries recently secured the $24 million contract for its “Phantom” robots, designed to breach enemy sites and spare American lives. CEO Sankaet Pathak and chief strategy advisor Eric Trump argue the technology will help maintain America’s edge on the battlefield.

“We are America First. We have to win this race,” Trump said Thursday on “Mornings with Maria.” 

“The uses are unlimited, and I think it’s a very beautiful thing, but we must win this race,” he added. 

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A humanoid robot model known as Phantom, developed by Foundation Futures Industries, was shown undergoing testing. (Screenshot/Foundation Futures Industries website / Unknown)

Pathak noted that China has also been working on similar technology, making strides in both land- and air-based autonomy. He said that while the U.S. remains competitive in air warfare, this contract aims to strengthen its readiness on land.

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“You cannot build a utopia and then not defend it. That just doesn’t make any sense,” Pathak said, adding, “There are a lot of people who want to destroy what exists in America.”

Eric Trump, executive vice president of the Trump Organization, attended the Bitcoin Asia conference on Aug. 29, 2025, in Hong Kong, China. (Chan Long Hei/Bloomberg via Getty Images / Getty Images)

Trump said he decided to invest in the company and the Phantom robot because of the pressure to surpass China. He noted that he’s seen the robots in action and believes they could reshape military operations.

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The robots themselves are designed for strength and fluid motion. The Foundation website says  the latest version of the technology has eliminated the “robotic” feel, allowing them to better integrate into “human environments.”

A humanoid robot from Team Honor crossed the finish line during the Beijing E-Town Humanoid Robot Half Marathon on April 19, 2026, in Beijing, China. (Lintao Zhang/Getty Images / Getty Images)

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The bot featured on the company’s website weighs 176 pounds and can move at 1.7 meters per second. Pathak said more technology is on the way, including Phantom 2. He also noted the company believes the robots can serve industries beyond defense, including construction and disaster relief. 

“I think what we’re about to unveil the next couple of months, I don’t think anything like that exists,” Pathak told Fox Business. “I think it’s going to be the strongest humanoid robot that exists anywhere in the world, including China.” 

BONITA SPRINGS, Fla. — Herc Holdings Inc. shares exploded higher by more than 17% in midday trading Thursday, climbing to around $126.69 as investors piled into equipment rental names amid broader sector momentum and positive positioning ahead of the company’s first-quarter 2026 earnings next week.

The stock (NYSE: HRI) opened sharply higher and sustained strong gains throughout the session on April 23, with trading volume surging well above average. The dramatic move comes as the equipment rental industry benefits from optimism around infrastructure spending, construction activity and improving market fundamentals following last year’s major acquisition.

Herc is scheduled to report Q1 results before the market opens on Tuesday, April 28, followed by a conference call at 8:30 a.m. ET. Analysts expect a challenging quarter with potential adjusted losses due to seasonality and integration costs, but Wall Street appears focused on full-year guidance and progress from the transformative H&E Equipment Services deal completed in 2025.

The company’s 2026 outlook remains constructive. Management guided for equipment rental revenue between $4.275 billion and $4.4 billion, with adjusted EBITDA of $2.0 billion to $2.1 billion. Net rental capital expenditures are projected at $500 million to $800 million, supporting fleet expansion and market share gains.

Herc’s acquisition of H&E significantly expanded its footprint, adding over 160 branches and substantial fleet capacity. Integration efforts are advancing, with realized synergies helping offset some near-term pressures. CEO Larry Silber has highlighted the combined platform’s ability to capture scale benefits, cross-sell specialty equipment and participate in large infrastructure projects.

Sector tailwinds amplified Thursday’s rally. Peer United Rentals reported strong results and raised its full-year revenue outlook, sparking gains across rental names. The American Rental Association forecasts 2.8% industry growth in 2026, driven by higher construction spending, specialty equipment demand and record rental penetration rates.

Analysts view Herc as attractively valued despite recent volatility. The stock had pulled back earlier in the year amid macro concerns and integration noise, creating what some called a compelling entry point. Consensus price targets hover around $160-$175, implying substantial upside from current levels even after Thursday’s surge.

Herc operates one of North America’s largest equipment rental fleets, serving construction, industrial and specialty markets. The company maintains a diversified portfolio that includes general tools, heavy machinery and technology-enabled solutions. Its greenfield expansion strategy and focus on urban density have strengthened competitive positioning.

Financially, 2025 marked a pivotal year. Total revenues reached a record $4.376 billion, up 23%, while equipment rental revenue grew 18% to $3.77 billion. Adjusted EBITDA rose 15% to $1.818 billion despite acquisition-related costs. Net leverage stood at approximately 3.95x pro forma at year-end.

Investors appear to be betting on a strong spring and summer construction season. Favorable secular trends in specialty rentals, mega-project participation and post-acquisition synergies provide multiple growth levers. Analysts expect Herc to gain share in a consolidating industry where scale increasingly matters.

Challenges remain. Q1 typically represents the slowest period due to weather and seasonality. Consensus forecasts point to revenue around $1.07-$1.08 billion with potential per-share losses reflecting integration expenses and higher interest costs. However, historical patterns show Herc often outperforms expectations, and any positive commentary on 2026 trends could further boost sentiment.

The stock’s 52-week range reflects significant swings, from lows near $100 to highs above $180. Thursday’s move pushes it toward recent resistance levels and underscores the sector’s sensitivity to macroeconomic signals and earnings anticipation. Options activity suggests traders expect continued volatility around the April 28 print.

Broader market context supports the rally. Optimism around infrastructure legislation, lower interest rate expectations and resilient U.S. construction activity have lifted industrial stocks. Equipment rental penetration continues hitting records, with more contractors choosing to rent rather than own fleets amid capital constraints.

Herc’s leadership team has emphasized disciplined capital allocation, technology investments and customer-centric innovation. The company’s Herc Rentals platform leverages data analytics for fleet optimization and predictive maintenance, differentiating it in a competitive landscape dominated by United Rentals.

Shareholder returns include a quarterly dividend of $0.70 per share. While modest, it signals confidence in cash flow generation as integration matures and utilization rates improve. Buyback authorization provides additional flexibility.

Looking ahead, the April 28 earnings will offer key insights into integration progress, same-store growth, pricing power and regional performance. Management is expected to provide color on mega-project exposure and specialty rental momentum, areas seen as key to above-market growth.

Industry observers note that Herc’s post-acquisition scale positions it well for long-term outperformance. With a larger network, enhanced purchasing power and broader service offerings, the company can better serve national customers while maintaining strong local presence.

As trading continued Thursday afternoon, HRI shares held most of their gains amid elevated volume. The surge stands out in an otherwise mixed market session, highlighting investor appetite for cyclical recovery plays with clear catalysts.

For a company that has transformed through acquisition and strategic expansion, Herc Holdings appears at an inflection point. Thursday’s sharp rally reflects growing belief that 2026 could mark the beginning of sustained earnings power and margin expansion. Whether fundamentals confirm that optimism next week will likely set the tone for the stock through the rest of the year.

Britain’s sole traders and small business owners can now generate an indicative insurance quote without ever leaving ChatGPT, after digital broker Simply Business became the first in the UK to plug its pricing engine directly into OpenAI’s chatbot.

The London-headquartered insurer, which counts more than one million customers across the UK and United States, has switched on a dedicated app inside ChatGPT’s App Directory. A parallel launch has gone live in the US market on the same day.

For the estimated 5.5 million small businesses across the UK, the pitch is one of speed. Users are asked for just four details , their trade, annual turnover, years trading and UK postcode – and the app returns an indicative price in seconds. Those who wish to proceed are routed to the Simply Business website to complete underwriting and purchase a policy in the conventional way.

The company says the integration has been built with the privacy, security and reliability safeguards that brokers are expected to uphold, a point likely to matter to regulators watching the rapid encroachment of generative AI into regulated financial services.

The move is the latest plank in a global technology strategy that has been gathering pace at Simply Business. In October last year, the firm rolled out a hyper-personalised AI advisor in the US, designed to strip friction out of a purchase journey that has long been a source of frustration for time-poor entrepreneurs.

Group chief executive David Summers said the launch was a natural extension of the company’s founding ambition. “In 2005, we set out to change the way small businesses purchase insurance,” he said. “More than two decades later, we have over one million customers worldwide and we are continuing to evolve our capabilities to simplify the way they research and buy insurance. Launching this insurance app in the UK and the US for small businesses in ChatGPT is our latest step in meeting our customers where they are and making the insurance-buying process an easier, better and fairer experience for them.”

Group chief technology officer Dana Edwards argued that the broker was simply following its customers. “Small business owners are already using platforms like ChatGPT to research, plan and make decisions,” she said. “By safely bringing insurance pricing into that environment, we’re removing one more barrier between them and the coverage they need. We designed the app with the safeguards that customers have come to expect, this kind of rapid, responsible innovation is precisely what our global technology platform is built for.”

The launch underscores a broader shift in how UK SMEs are expected to transact with financial services providers. As conversational AI becomes the first port of call for research on everything from tax to staffing, insurers, accountants and lenders are under growing pressure to meet customers inside those platforms rather than waiting for them to arrive on a branded website.

The Simply Business app will appear as a recommendation when ChatGPT users ask questions related to business risk and insurance cover, or it can be summoned directly from the App Directory.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Q1: 2026-04-22 Earnings Summary

EPS of $0.39 beats by $0.01

 | Revenue of $286.95M (7.87% Y/Y) misses by $3.63M

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Tesla has staged a dramatic comeback in Europe, posting an 84 per cent surge in March sales as electric vehicles cemented their position as a mainstream choice for the continent’s motorists, new industry figures reveal.

The resurgence of Elon Musk’s car maker, which endured a bruising 2025, comes against the backdrop of a broader electric boom across Europe, where zero-emission models now account for more than one in five new registrations. For small and medium-sized businesses operating fleets, the shift marks a turning point in the economics of going electric.

Data from the European Automobile Manufacturers’ Association (ACEA) shows total new car sales across the continent, including non-EU markets, climbed 11 per cent year-on-year in March to 1.42 million units. First-quarter volumes reached 3.52 million, up 4 per cent on the same period in 2025.

Battery-electric vehicles were the standout performer. March sales leapt 41 per cent to 344,000 units, taking the quarterly tally to 723,000, a 36 per cent increase. EVs commanded 24 per cent of the March market and more than 20 per cent across the full quarter.

Tesla’s own March tally rose 84 per cent, albeit against a weak comparator, with quarterly volumes up 45 per cent to 78,300 units. The American marque’s return to growth comes as Chinese rival BYD continues its aggressive European push. The Shenzhen-based manufacturer, which sells both pure-electric and hybrid models, saw its first-quarter deliveries leap more than 150 per cent to 73,800 units, narrowing the gap on Tesla significantly.

The ACEA credited the boom to consumer-friendly fiscal measures. “The market was supported by robust consumer activity bolstered by new and revised tax benefits and incentive schemes across major European countries,” the trade body said. Rising forecourt prices, driven by the ongoing Iran conflict, are also thought to be nudging buyers towards battery power.

For Britain, however, the figures make sobering reading. The UK’s 22.3 per cent electric share has now been overtaken by Germany, where EVs accounted for 22.7 per cent of the first-quarter market. Germany and France have posted electric growth roughly three times the British rate, raising fresh questions about whether Westminster is doing enough to support SME adoption and the charging infrastructure small firms rely on.

Eastern Europe, long regarded as the region the electric revolution forgot, is finally catching up. Poland, the continent’s sixth-largest car market, reported a near 50 per cent rise in EV sales, though penetration remains below 6 per cent. From admittedly low bases, Croatia recorded a 442 per cent jump in March, with Romania up 148 per cent and Slovenia 142 per cent.

Italy and Spain, traditional laggards among the larger Western European economies, also showed signs of life with EV volumes rising 72 per cent and 46 per cent respectively.

The figures will encourage UK SME owners weighing whether to electrify vans and company cars, but they also underscore a widening gulf between British uptake and that of its major European competitors, a gap that policymakers and business leaders will be watching closely in the months ahead.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Furniture manufacturer Westbridge has entered administration

Nearly 300 workers have lost their jobs at a Welsh furniture firm following its collapse into administration. Westbridge had been a respected furniture designer and manufacturer, providing sofas and other upholstered items to several high street and premium independent retailers.

The company employed just under 300 people at its facility in Holywell, Flintshire. Chris Pole and Will Wright from Interpath were last month appointed joint administrators to Westbridge Furniture Limited and Belfield Leisure Limited, based in Derbyshire.

They had kept the businesses running while evaluating market interest in buying them and preserving the jobs and sites.

However, the joint administrators have now confirmed that 297 staff had been made redundant

They said: “Chris Pole and Will Wright from Interpath were appointed joint administrators following operational disruption, weak trading and the loss of a key customer.

“Since their last update the joint administrators had maintained operations at Westbridge Furniture, while they completed outstanding work in progress and assessed interest in the business.

“Without any viable offers for the business, production ceased on April 2 and the business progressed with a wind-up process. It is with regret that the majority of the business’ 297 remaining staff have since been made redundant.

“The administrators will continue to provide support to those impacted, including supporting them with claims to the Redundancy Payments Service. A small number of staff have been retained to assist the joint administrators in their duties.”

Chris Pole, managing director at Interpath and joint administrator of Westbridge Furniture Limited, said: “The team at Westbridge has shown exceptional professionalism in maintaining production while we explored options.

“Regrettably, as no viable offers for the business were received, it was no longer possible to continue trading and we have had to take the difficult decision to close the business. We recognise this has been a challenging period for staff and I’d like to express my sincere thanks for their commitment.”

The joint administrators have since agreed the sale of the exclusive intellectual property and design rights to the full Westbridge independent product catalogue to sofa and upholstery manufacturer, Whitemeadow. The buyer intends to engage with stockists of Westbridge products to ensure continuity where possible.

Chris Pole added: “The agreement to sell the IP and design rights to Whitemeadow preserves Westbridge’s range for retailers. We wish the Whitemeadow team all the best as it embarks on a development programme to reintroduce those designs to the market.”

The joint administrators are continuing to operate and assess possibilities for Belfield Leisure Limited, which also forms part of The Belfield Group.