Digital business models Archives | Page 381 of 581

Australia tightens rules for crypto ATMs

Australia has imposed stricter rules on crypto ATM operators to curb scams and ensure compliance with anti-money laundering laws. A $5,000 AUD limit now applies to cash deposits and withdrawals, with scam warnings required on all machines.

Operators must also step up customer verification and improve transaction monitoring. These measures follow an AUSTRAC-led investigation that revealed older Australians, particularly those aged 60 to 70, account for a large share of crypto ATM activity.

Authorities noted that some victims were tricked into handing over life savings via these machines.

AUSTRAC has already denied registration renewal to one provider, Harro’s Empires, due to ongoing misuse risks.

The agency warned that other non-compliant operators could face similar penalties. It also urged broader adoption of cash limits across exchanges to reduce financial crime exposure.

To strengthen awareness, AUSTRAC and the federal police have released educational materials to be displayed near ATMs. The move comes amid rising scam reports, with 150 confirmed cases and over $3.1 million AUD in losses reported within a year.

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Musk’s xAI seeks billions to expand AI data centres

Elon Musk is raising $5 billion in debt for his AI company xAI Corp., in a move that signals a renewed focus on his business ventures after stepping away from a prominent political role.

Investment bank Morgan Stanley is leading the offering, which includes a floating-rate loan, a fixed-rate loan, and senior secured notes — all priced with double-digit interest rates, according to people familiar with the deal.

Proceeds will be used for general corporate purposes, including accelerating development of xAI’s infrastructure, such as its vast Memphis-based data centre, Colossus.

The site currently houses 200,000 GPUs and could soon expand to over one million as Musk ramps up efforts to train advanced AI models. The debt package has already attracted over $3.5 billion in early demand, with commitments due by 17 June.

Musk’s move to raise capital for xAI comes after a string of fundraising rounds across his companies, including $650 million for Neuralink and a $300 million secondary stock sale in xAI.

He has also merged xAI with his social media platform X into a new entity, XAI Holdings, further aligning his ventures in AI, communications, and computing.

Musk’s focus on his business empire follows a controversial period in politics. As a senior adviser and key backer of Donald Trump during the 2024 ele c tion, Musk faced scrutiny both personally and in relation to the performance of Tesla, whose stock has dropped 20% since the presidential inauguration.

Morgan Stanley’s continued involvement underscores the bank’s deep ties with Musk, having previously advised on his $44 billion acquisition of Twitter (now X).

While that deal initially left lenders with billions in risky debt, recent improvements in Musk’s business standing helped the bank clear the remaining liabilities earlier this year.

The latest xAI debt sale is another indicator of investor appetite for AI ventures, especially when tied to high-profile figures like Musk. If successful, it will also strengthen the infrastructure needed to support Musk’s vision of AI leadership through xAI and its associated platforms.

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Singapore orders crypto firms to stop overseas activity by June

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has mandated all local crypto service providers to halt digital token operations targeting overseas markets by 30 June 2025. Firms failing to comply risk fines of up to S$250,000 (£145,000) and imprisonment for up to three years.

The directive applies to any Singapore-based company, individual, or partnership offering digital token services abroad, regardless of their main business. MAS confirmed no transitional arrangements will be made.

Only firms licensed under current financial laws may continue without breaching the rules.

Licences for overseas digital token services will be rare due to strict AML and CFT concerns. Industry experts advise companies to restructure operations quickly to remove Singapore connections and reduce compliance risks.

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EU fines Delivery Hero and Glovo €329 million over cartel practices

The European Commission has imposed a €329 million fine on Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, for participating in what it described as a cartel in the online food delivery market. According to the Commission, the two companies engaged in illegal practices across Europe between 2018 and 2022, including market sharing, exchanging commercially sensitive information, and entering into a ‘no-poach’ agreement to avoid hiring each other’s employees.

This is the first time the Commission has penalised companies for a no-poach deal, which the EU competition chief, Teresa Ribera, said harmed workers’ job mobility in the digital economy. The anti-competitive behaviour reportedly began in mid-2018 when Delivery Hero took a minority stake in Glovo and persisted in various forms until 2022, when it gained full ownership of the Spanish firm.

Delivery Hero was hit with a €223 million fine, while Glovo received a €106 million penalty. Both companies admitted to their roles in the misconduct and agreed to a settlement. The case emerged not from company complaints but through whistleblowers and the Commission’s own monitoring.

Delivery Hero stated it had fully cooperated with the investigation and noted the final fine was 20% lower than initially expected, due to Brussels’s acknowledgement of a lower intensity of misconduct during some periods. The firm expressed hope that the settlement would allow all involved to move forward.

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OpenAI turns ChatGPT into AI gateway

OpenAI plans to reinvent ChatGPT as an all-in-one ‘super assistant’ that knows its users and becomes their primary gateway to the internet.

Details emerged from a partly redacted internal strategy document shared during the US government’s antitrust case against Google.

Rather than limiting ChatGPT to existing apps and websites, OpenAI envisions a future where the assistant supports everyday life—from suggesting recipes at home to taking notes at work or guiding users while travelling.

The company says the AI should evolve into a reliable, emotionally intelligent helper capable of handling a various personal and professional tasks.

OpenAI also believes hardware will be key to this transformation. It recently acquired io, a start-up founded by former Apple designer Jony Ive, for $6.4 billion to develop AI-powered devices.

The company’s strategy outlines how upcoming models like o2 and o3, alongside tools like multimodality and generative user interfaces, could make ChatGPT capable of taking meaningful action instead of simply offering responses.

The document also reveals OpenAI’s intention to back a regulation requiring tech platforms to allow users to set ChatGPT as their default assistant. Confident in its fast growth, research lead, and independence from ads, the company aims to maintain its advantage through bold decisions, speed, and self-disruption.

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WhatsApp fixes deleted message privacy gap

WhatsApp is rolling out a privacy improvement that ensures deleted messages no longer linger in quoted replies, addressing a long-standing issue that exposed partial content users had intended to remove.

The update applies automatically, with no toggle required, and has begun reaching iOS users through version 25.12.73, with wider availability expected soon.

Until now, deleting a message for everyone in a chat has not removed it from quoted replies. That allowed fragments of deleted content to remain visible, undermining the purpose of deletion.

WhatsApp removes the associated quoted message entirely instead of keeping it in conversation threads, even in group or community chats.

WABetaInfo, which first spotted the update, noted that users delete messages for privacy or personal reasons, and leave behind quoted traces conflicted with those intentions.

The change ensures conversations reflect user expectations by entirely erasing deleted content, not only from the original message but also from any references.

Meta continues to develop new features for WhatsApp. Recent additions include voice chat in groups and a native interface for iPad. The company is also testing tools like AI-generated wallpapers, message summaries, and more refined privacy settings to enhance user control and experience further.

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DeepSeek claims R1 model matches OpenAI

Chinese AI start-up DeepSeek has announced a major update to its R1 reasoning model, claiming it now performs on par with leading systems from OpenAI and Google.

The R1-0528 version, released following the model’s initial launch in January, reportedly surpasses Alibaba’s Qwen3, which debuted only weeks earlier in April.

According to DeepSeek, the upgrade significantly enhances reasoning, coding, and creative writing while cutting hallucination rates by half.

These improvements stem largely from greater computational resources applied after the training phase, allowing the model to outperform domestic rivals in benchmark tests involving maths, logic, and programming.

Unlike many Western competitors, DeepSeek takes an open-source approach. The company recently shared eight GitHub projects detailing methods to optimise computing, communication, and storage efficiency during training.

Its transparency and resource-efficient design have attracted attention, especially since its smaller distilled model rivals Alibaba’s Qwen3-235B while being nearly 30 times lighter.

Major Chinese tech firms, including Tencent, Baidu and ByteDance, plan to integrate R1-0528 into their cloud services for enterprise clients. DeepSeek’s progress signals China’s continued push into globally competitive AI, driven by a young team determined to offer high performance with fewer resources

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NSO asks court to overturn WhatsApp verdict

Israeli spyware company NSO Group has requested a new trial after a US jury ordered it to pay $168 million in damages to WhatsApp.

The company, which has faced mounting legal and financial troubles, filed a motion in a California federal court last week seeking to reduce the verdict or secure a retrial.

The May verdict awarded WhatsApp $444,719 in compensatory damages and $167.25 million in punitive damages. Jurors found that NSO exploited vulnerabilities in the encrypted platform and sold the exploit to clients who allegedly used it to target journalists, activists and political rivals.

WhatsApp, owned by Meta, filed the lawsuit in 2019.

NSO claims the punitive award is unconstitutional, arguing it is over 376 times greater than the compensatory damages and far exceeds the US Supreme Court’s general guidance of a 4:1 ratio.

The firm also said it cannot afford the penalty, citing losses of $9 million in 2023 and $12 million in 2024. Its CEO testified that the company is ‘struggling to keep our heads above water’.

WhatsApp, responding to TechCrunch in a statement, said NSO was once again trying to evade accountability. The company vowed to continue its legal campaign, including efforts to secure a permanent injunction that would prevent NSO from ever targeting WhatsApp or its users again.

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NVIDIA unveils world’s largest quantum research supercomputer

NVIDIA has launched the world’s largest research supercomputer dedicated to quantum computing, named ABCI-Q, housed at Japan’s new Global Research and Development Centre for Business by Quantum-AI Technology (G-QuAT).

Delivered in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST), ABCI-Q combines over 2,000 NVIDIA H100 GPUs with multiple quantum processors to enable advanced quantum-AI workloads.

ABCI-Q integrates seamlessly with CUDA-Q, NVIDIA’s open-source hybrid computing platform, and supports superconducting, neutral atom, and photonic qubit technologies.

The platform is designed to tackle quantum computing challenges such as error correction and application development, potentially transforming industries like healthcare, finance and energy.

Leaders from NVIDIA and AIST believe the facility will serve as a testing ground for accelerating real-world quantum computing applications. The partnership aims to bridge the gap between experimental hardware and scalable, practical systems capable of solving complex global problems.

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Google to appeal US ruling in search monopoly case

Google has announced plans t o appeal a ruling that found it guilty of anti-competitive practices in the online search market, as the tech giant faces mounting pressure from US regulators to restructure its business.

The company said Saturday it ‘strongly believes the Court’s original decision was wrong’ and will challenge the ruling on appeal.

However, this follows a hearing on Friday in which the US Department of Justice proposed sweeping remedies that could force Google to divest from its Chrome browser and end exclusive agreements with smartphone manufacturers that pre-install Google Search by default.

The government also wants the company to share the data it uses to generate search results on Chrome, a move Google criticised as giving Washington the power to determine who receives access to user data.

The Justice Department’s proposals are part of a broader effort to curb what it sees as Google’s abuse of its dominant position in the search market, which it argues has stifled competition and harmed consumers.

But Google has pushed back, saying the remedies would benefit wealthy competitors like Microsoft’s Bing rather than improve users outcome. Instead, the company has suggested more limited actions, such as letting phone makers pre-install its Play Store without requiring Chrome or Google Search.

The judge’s final decision on penalties is expected by August, marking the end of one of the most significant antitrust cases against a major tech firm in over a decade.

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