Economic Archives | Page 203 of 708 | Digital Watch Observatory

USB inventor and Phison CEO warns of an AI storage crunch

Datuk Pua Khein-Seng, inventor of the single-chip USB flash drive and CEO of Phison, warns that AI machines will generate 1,000 times more data than humans. He says the real bottleneck isn’t GPUs but memory, foreshadowing a global storage crunch as AI scales.

Speaking at GITEX Global, Pua outlined Phison’s focus on NAND controllers and systems that can expand effective memory. Adaptive tiering across DRAM and flash, he argues, will ease constraints and cut costs, making AI deployments more attainable beyond elite data centres.

Flash becomes the expansion valve: DRAM stays scarce and expensive, while high-end GPUs are over-credited for AI cost overruns. By intelligently offloading and caching to NAND, cheaper accelerators can still drive useful workloads, widening access to AI capacity.

Cloud centralisation intensifies the risk. With the US and China dominating the AI cloud market, many countries lack the capital and talent to build sovereign stacks. Pua calls for ‘AI blue-collar’ skills to localise open source and tailor systems to real-world applications.

Storage leadership is consolidating in the US, Japan, Korea, and China, with Taiwan rising as a fifth pillar. Hardware strength alone won’t suffice, Pua says; Taiwan must close the AI software gap to capture more value in the data era.

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DeepSeek dominates AI crypto trading challenge

Chinese AI model DeepSeek V3.1 has outperformed its global competitors in a real-market cryptocurrency trading challenge, earning over 10 per cent profit in just a few days.

The experiment, named Alpha Arena, was launched by US research firm Nof1 to test the investing skills of leading LLMs.

Each participating AI was given US$10,000 to trade in six cryptocurrency perpetual contracts, including bitcoin and solana, on the decentralised exchange Hyperliquid. By Tuesday afternoon, DeepSeek V3.1 led the field, while OpenAI’s GPT-5 trailed behind with a loss of nearly 40 per cent.

The competition highlights the growing potential of AI models to make autonomous financial decisions in real markets.

It also underscores the rivalry between Chinese and American AI developers as they push to demonstrate their models’ adaptability beyond traditional text-based tasks.

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UN advances human rights-focused economic metrics

The UN is developing new economic indicators to complement gross domestic product (GDP) as a measure of progress. A 14-member expert group, appointed by the UN Secretary-General, is creating metrics that reflect social well-being, equality, and environmental sustainability.

Their proposals, to be presented to the UN General Assembly in 2026, could reshape how governments assess success and guide future economic policies.

UN agencies, in collaboration with Chile, Honduras, Mexico, and Spain, are working to embed human rights into these new metrics. The initiative focuses on areas such as economic inequality, public social spending, environmental impact, gender equality, and labour rights, aiming to shift economic systems toward fairness, participation, and care for the planet.

Deputy High Commissioner for Human Rights, Nada Al-Nashif, emphasised that these efforts are about rethinking economic systems to ensure they measure what truly matters for people and the environment.

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YouTube launches likeness detection to protect creators from AI misuse

YouTube has expanded its AI safeguards with a new likeness detection system that identifies AI-generated videos imitating creators’ faces or voices. The tool is now available to eligible members of the YouTube Partner Program after a limited pilot phase.

Creators can review detected videos and request their removal under YouTube’s privacy rules or submit copyright claims.

YouTube said the feature aims to protect users from having their image used to promote products or spread misinformation without consent.

The onboarding process requires identity verification through a short selfie video and photo ID. Creators can opt out at any time, with scanning ending within a day of deactivation.

YouTube has backed recent legislative efforts, such as the NO FAKES Act in the US, which targets deceptive AI replicas. The move highlights growing industry concern over deepfake misuse and the protection of digital identity.

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Netherlands and China in talks to resolve Nexperia dispute

The Dutch Economy Minister has spoken with his Chinese counterpart to ease tensions following the Netherlands’ recent seizure of Nexperia, a major Dutch semiconductor firm.

China, where most of Nexperia’s chips are produced and sold, reacted by blocking exports, creating concern among European carmakers reliant on its components.

Vincent Karremans said he had discussed ‘further steps towards reaching a solution’ with Chinese Minister of Commerce Wang Wentao.

Both sides emphasised the importance of finding an outcome that benefits Nexperia, as well as the Chinese and European economies.

Meanwhile, Nexperia’s China division has begun asserting its independence, telling employees they may reject ‘external instructions’.

The firm remains a subsidiary of Shanghai-listed Wingtech, which has faced growing scrutiny from European regulators over national security and strategic technology supply chains.

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Meta strengthens protection for older adults against online scams

The US giant, Meta, has intensified its campaign against online scams targeting older adults, marking Cybersecurity Awareness Month with new safety tools and global partnerships.

Additionally, Meta said it had detected and disrupted nearly eight million fraudulent accounts on Facebook and Instagram since January, many linked to organised scam centres operating across Asia and the Middle East.

The social media giant is joining the National Elder Fraud Coordination Center in the US, alongside partners including Google, Microsoft and Walmart, to strengthen investigations into large-scale fraud operations.

It is also collaborating with law enforcement and research groups such as Graphika to identify scams involving fake customer service pages, fraudulent financial recovery services and deceptive home renovation schemes.

Meta continues to roll out product updates to improve online safety. WhatsApp now warns users when they share screens with unknown contacts, while Messenger is testing AI-powered scam detection that alerts users to suspicious messages.

Across Facebook, Instagram and WhatsApp, users can activate passkeys and complete a Security Checkup to reinforce account protection.

The company has also partnered with organisations worldwide to raise scam awareness among older adults, from digital literacy workshops in Bangkok to influencer-led safety campaigns across Europe and India.

These efforts form part of Meta’s ongoing drive to protect users through a mix of education, advanced technology and cross-industry cooperation.

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Nexos.ai raises €30 m to ease enterprise AI adoption

The European startup Nexos.ai, headquartered in Vilnius, Lithuania, has closed a €30 million Series A funding round, co-led by Index Ventures and Evantic Capital, valuing the company at about €300 million (~US $350 million).

Founded by the duo behind cybersecurity unicorn Nord Security (Tomas Okmanas and Eimantas Sabaliauskas), Nexos.ai aims to solve what they describe as the ‘enterprise AI adoption crisis’. In their view, many organisations struggle with governance, cost control, fragmentation and security risks when using large-language models (LLMs).

Nexos.ai’s platform comprises two main components: an AI Workspace for employees and an AI Gateway for developers.

The Gateway offers orchestration across 200+ models, unified access, guardrails, cost monitoring and compliance oversight. The Workspace enables staff to work across formats, compare models and collaborate in a secure interface.

The company’s positioning as a neutral intermediary, likened to ‘Switzerland for LLMs’, underscores its mission to allow enterprises to gain productivity with AI without giving up data control or security.

The new funds will be used to extend support for private model deployment, expand into regulated sectors (finance, public institutions), grow across Europe and North America, and deepen product capabilities in routing, model fallback, and observability.

It’s an illustration of how investors are backing infrastructure plays in the enterprise-AI space: not just building new models, but creating the scaffolding for how organisations adopt, govern and deploy them safely.

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Meta’s ‘Vibes’ feed lets users scroll and remix entirely AI-generated videos

Meta Platforms has introduced Vibes, a new short-form video feed built entirely around AI-generated content, available within its Meta AI app and on the meta.ai website.

The feed allows users to browse videos generated by creators and communities, start videos from scratch via text prompts or upload visual elements, and remix existing videos by adding music or changing styles. Users can then publish these clips to the Vibes feed or cross-post to Instagram Stories, Facebook, and Reels.

Meta says the goal is to make the Meta AI app a hub for creative video generation: ‘You can bring your ideas to life … or remix a video from the feed to make it your own.’ While Meta noted the feature is launching as a preview, it also points to broader ambitions in generative video as part of its AI strategy.

However, media commentary is already acknowledging scepticism. Early feedback has labelled some of the feed’s output as ‘AI slop’, mass-produced synthetic videos that lack authentic human creativity, fueling questions about quality and user demand.

Meta’s timing comes amid heavy investment in its AI efforts and a drive to monetise generative video content and new creator tools. The company sees this as more than experiment, potentially a new vector for engagement and distribution inside its social ecosystem.

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Adobe unveils AI Foundry for enterprise model building

Adobe has launched a new enterprise service allowing firms to build custom AI models. The platform, called Adobe AI Foundry, lets companies train generative AI on their branding and intellectual property.

Based on Adobe’s Firefly models, the service can produce text, images, video, and 3D content. Pricing depends on usage, offering greater flexibility than Adobe’s traditional subscription model.

Adobe’s Firefly technology, first introduced in 2023, has already helped clients create over 25 billion assets. Foundry’s tailored models are expected to speed up campaign production while maintaining consistent brand identity across markets.

Hannah Elsakr, Adobe’s vice president for generative AI ventures, said the tools aim to enhance, not replace, human creativity. She emphasised that Adobe’s mission remains centred on supporting artists and marketers in telling powerful stories through technology.

The company believes its ethical approach to AI training and licensing could set a standard for enterprise-grade creative tools. Analysts say it also positions Adobe strongly against rivals offering generic AI solutions.

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OpenAI strengthens controls after Bryan Cranston deepfake incident

Bryan Cranston is grateful that OpenAI tightened safeguards on its video platform Sora 2. The Breaking Bad actor raised concerns after users generated videos using his voice and image without permission.

Reports surfaced earlier this month showing Sora 2 users creating deepfakes of Cranston and other public figures. Several Hollywood agencies criticised OpenAI for requiring individuals to opt out of replication instead of opting in.

Major talent agencies, including UTA and CAA, co-signed a joint statement with OpenAI and industry unions. They pledged to collaborate on ethical standards for AI-generated media and ensure artists can decide how they are represented.

The incident underscores growing tension between entertainment professionals and AI developers. As generative video tools evolve, performers and studios are demanding clear boundaries around consent and digital replication.

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