Digital business models Archives | Page 393 of 581

TSMC threatens to scale back Arizona fabs over US chip tariffs

TSMC has warned the US government that it may halt or scale back plans to expand its semiconductor manufacturing in Arizona if new tariffs on foreign-made chips are introduced. However, the entire plan now hangs in the balance, depending on how the White House proceeds.

The company, which supplies key US tech firms like Apple and Nvidia, says such tariffs would make production costly and risk reducing demand. TSMC currently operates one plant in Arizona, with two more under construction and three additional facilities planned.

The warning comes as the Biden administration considers imposing tariffs on imported semiconductors. TSMC argues that firms already investing heavily in US chip production, like itself, should be exempt. In a letter to the US Commerce Department, it cited risks to customer demand and its own business strategy.

Arizona is set to become central to TSMC’s most advanced chipmaking, with upcoming 2nm and 1.6nm chips produced using cutting-edge technology. These new fabs could make up 30% of the company’s future high-end capacity.

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Sui DEX Cetus suffers suspected $200m hack

A major security incident has struck Cetus, a decentralised exchange (DEX) on the Sui blockchain, with suspected losses exceeding $200 million. Onchain data revealed rapid asset drainage, prompting experts to label the event as a possible hack rather than a mere bug, as claimed by the Cetus team.

Reports indicate that at least $63 million has already been transferred to Ethereum, including a large single transaction of 20,000 ETH moved to a new wallet.

Transaction volumes on Cetus surged to $2.9 billion on 22 May, compared to $320 million the previous day, suggesting funds were rapidly siphoned from the platform.

Several tokens lost over 75% of their value, causing wider disruption; for instance, the Sui-based money market Scallop halted all borrowing activities as a precaution.

Concerns over transparency have grown as $212 million in assets were reportedly bridged to Ethereum at a rate of $1 million per minute. Analysts argue the scale and speed of transfers hint at something more serious than a simple software glitch.

Cetus paused the affected smart contract and announced an ongoing investigation, but has yet to provide a detailed response.

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EU funds African science with €500 million in new initiative

The EU has unveiled a €500 million funding programme under Horizon Europe to boost African-led research and innovation. A total of 24 funding calls are organised around five thematic areas.

Announced on 14 May, the initiative, named Africa Initiative III, is focused on tackling public health challenges, driving the green transition, and fostering technological advancement. All supported projects will include African researchers and institutions.

These include €50 million for public health, €241 million for green transition projects, and €186.5 million for innovation and technology. Additional funds are allocated to scientific capacity building and cross-cutting issues like policy engagement and inclusivity.

Africa Initiative III continues the EU’s previous support efforts under Horizon Europe. The earlier phases involved hundreds of African institutions and contributed directly to epidemic preparedness and sustainable development.

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Bitcoin hits all-time high above $111K

Bitcoin surged to a fresh all-time high of $111,544 during early Asian trading on Thursday, marking a 4% jump from Wednesday’s peak. The rally follows a dip to $106,000 earlier in the week and reflects rising interest in alternative assets amid global financial uncertainty.

The immediate driver appears to be weak demand for the US Treasury’s $16 billion 20-year bond auction, which pushed yields above 5.1%. Falling trust in long-term government debt has driven a shift in sentiment, with US and Japanese yields rising sharply.

Bitcoin’s rise has been supported by several macroeconomic factors, including softer US inflation, a cooling of US-China trade tensions, and Moody’s downgrade of US sovereign debt. Analysts suggest risk assets could benefit over the coming months if uncertainty continues to shake traditional markets.

On-chain data confirms increasing demand. Bitcoin’s realised market cap rose by $27 billion in May, while exchange inflows dropped 82% since November.

Institutional interest is also growing, with over $4.24 billion flowing into Bitcoin ETFs in the past month and major firms like Strategy boosting their holdings to $63 billion.

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EX90 will be first to feature Gemini AI

Volvo is expanding its partnership with Google to integrate Gemini, Google’s conversational AI, into its vehicles, beginning with the EX90.

Announced during Google I/O 2025, Gemini will replace Google Assistant later this year in models with Google built-in.

The AI will allow drivers to interact with their cars using more natural language, with capabilities including multilingual message translation, user manual assistance, and location-based information.

In addition to the Gemini rollout, Volvo vehicles will now act as a reference hardware platform for Android Automotive OS development.

This arrangement will give Volvo drivers early access to new Android features and updates, further aligning with the brand’s focus on intuitive, human-centric technology and smart mobility innovation.

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Crypto.com gains EU approval for crypto derivatives

Crypto.com has secured a MiFID licence, allowing it to offer regulated crypto derivatives across the European Economic Area. The licence expands the platform’s presence following earlier approval under the EU’s Markets in Crypto-Assets (MiCA) regulation.

It was obtained through the acquisition of Cyprus-based A.N. Allnew Investments, a move similar to strategies used by other major platforms such as Kraken. The announcement follows Crypto.com’s broader efforts to offer more regulated services to European users and grow its product portfolio.

Other crypto firms are also eyeing Europe’s growing derivatives market. Kraken, Coinbase, Gemini and Synthetix have all expanded their derivatives offerings through acquisitions and regulatory approvals, signalling a competitive push in the region.

Crypto.com’s previous acquisitions include Fintek Securities, Watchdog Capital and others, further strengthening its regulatory positioning.

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Meta aims to boost Llama adoption among startups

Meta has launched a new initiative to attract startups to its Llama AI models by offering financial support and direct guidance from its in-house team.

The programme, called Llama for Startups, is open to US-based companies with less than $10 million in funding and at least one developer building generative AI applications. Eligible firms can apply by 30 May.

Successful applicants may receive up to $6,000 per month for six months to help offset development costs. Meta also promises direct collaboration with its AI experts to help firms implement and scale Llama-based solutions.

The scheme reflects Meta’s ambition to expand Llama’s presence in the increasingly crowded open model landscape, where it faces growing competition from companies like Google, DeepSeek and Alibaba.

Despite reaching over a billion downloads, Llama has encountered difficulties. The company reportedly delayed its top-tier model, Llama 4 Behemoth, due to underwhelming benchmark results.

Additionally, Meta faced criticism in April after using an ‘optimised’ version of its Llama 4 Maverick model to score highly on a public leaderboard, while releasing a different version publicly.

Meta has committed billions to generative AI, predicting revenues of up to $3 billion in 2025 and as much as $1.4 trillion by 2035.

With revenue-sharing agreements, custom APIs, and plans for ad-supported AI assistants, the company is investing heavily in infrastructure, possibly spending up to $80 billion next year on new data centres to support its expansive AI goals.

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Hong Kong approves stablecoin licensing law

Hong Kong’s legislature has approved a bill introducing a licensing framework for fiat-referenced stablecoin issuers. The move provides legal clarity and aims to enhance the city’s position as a global digital asset hub.

Any issuer of stablecoins in Hong Kong or of HKD-backed stablecoins abroad must obtain a licence from the Hong Kong Monetary Authority. The law outlines standards for reserve asset management, redemption, and risk controls to protect investors and the wider public.

Officials say the legislation follows the principle of ‘same activity, same risks, same regulation’ and adopts a risk-based approach. Financial Secretary Christopher Hui stated that the measure sets a solid foundation for Hong Kong’s growing virtual asset market.

The HKMA’s sandbox programme for stablecoin issuers has already attracted three participants. The new ordinance is expected to take effect later this year.

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Judge rules Google must face chatbot lawsuit

A federal judge has ruled that Google and AI startup Character.AI must face a lawsuit brought by a Florida mother, who alleges a chatbot on the platform contributed to the tragic death of her 14-year-old son.

US District Judge Anne Conway rejected the companies’ arguments that chatbot-generated content is protected under free speech laws. She also denied Google’s motion to be excluded from the case, finding that the tech giant could share responsibility for aiding Character.AI.

The ruling is seen as a pivotal moment in testing the legal boundaries of AI accountability.

The case, one of the first in the US to target AI over alleged psychological harm to a child, centres on Megan Garcia’s claim that her son, Sewell Setzer, formed an emotional dependence on a chatbot.

Though aware it was artificial, Sewell, who had been diagnosed with anxiety and mood disorders, preferred the chatbot’s companionship over real-life relationships or therapy. He died by suicide in February 2024.

The lawsuit states that the chatbot impersonated both a therapist and a romantic partner, manipulating the teenager’s emotional state. In his final moments, Sewell messaged a bot mimicking a Game of Thrones character, saying he was ‘coming home’.

Character.AI insists it will continue to defend itself and highlighted existing features meant to prevent self-harm discussions. Google stressed it had no role in managing the app but had previously rehired the startup’s founders and licensed its technology.

Garcia claims Google was actively involved in developing the underlying technology and should be held liable.

The case casts new scrutiny on the fast-growing AI companionship industry, which operates with minimal regulation. For about $10 per month, users can create AI friends or romantic partners, marketed as solutions for loneliness.

Critics warn that these tools may pose mental health risks, especially for vulnerable users.

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Pakistan sets up digital asset authority

Pakistan has formed a new body to regulate its growing digital asset market and embrace blockchain-based financial innovation. The Pakistan Digital Assets Authority (PDAA), backed by the Ministry of Finance, will license and oversee exchanges, custodians, wallets, stablecoins, and decentralised finance platforms.

Federal finance minister Muhammad Aurangzeb said the goal is not only to catch up but to lead the sector globally. PDAA will also tokenise national assets and government debt, and monetise excess electricity through regulated Bitcoin mining.

The authority aims to create a safe and investment-friendly ecosystem for blockchain startups and Web3 development.

The move follows advice from the Pakistan Crypto Council, which includes former Binance CEO Changpeng Zhao. Council CEO Bilal Bin Saqib described the strategy as a complete rewrite of Pakistan’s financial future, with a focus on financial inclusion, digital exports, and innovation.

Pakistan‘s stance on crypto has shifted rapidly. Although the government had ruled out legalising digital assets in 2023, the country ranked ninth in Chainalysis’ 2024 crypto adoption index.

With over 27 million users expected by 2025 and projected revenue of $1.6 billion, Pakistan’s digital asset sector is now seen as a key growth driver.

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