Economic Archives | Page 345 of 707 | Digital Watch Observatory

AI video tool Veo 3 Fast rolls out for Gemini and Flow users

Google has introduced Veo 3 Fast, a speedier version of its AI video-generation tool that promises to cut production time in half.

Now available to Gemini Pro and Flow Pro users, the updated model creates 720p videos more than twice as fast as its predecessor—marking a step forward in scaling Google’s video AI infrastructure.

Gemini Pro subscribers can now generate three Veo 3 Fast videos daily as part of their plan. Meanwhile, Flow Pro users can create videos using 20 credits per clip, significantly reducing costs compared to previous models. Gemini Ultra subscribers enjoy even more generous limits under their premium tier.

The upgrade is more than a performance boost. According to Google’s Josh Woodward, the improved infrastructure also paves the way for smoother playback and better subtitles—enhancements that aim to make video creation more seamless and accessible.

Google also tests voice prompt capabilities, allowing users to express video ideas and watch them materialise on-screen.

Although Veo 3 Fast is currently limited to 720p resolution, it encourages creativity through rapid iteration. Users can experiment with prompts and edits without perfecting their first try.

While the results won’t rival Hollywood, the model opens up new possibilities for businesses, creators, and filmmakers looking to prototype video ideas or produce content without traditional filming quickly.

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Czechia bids to host major EU AI computing centre

Czechia is positioning itself to host one of the European Union’s planned AI ‘gigafactories’—large-scale computing centres designed to strengthen Europe’s AI capabilities and reduce dependence on global powers like the United States.

Jan Kavalírek, the Czech government’s AI envoy, confirmed to the Czech News Agency that talks with a private investor are progressing well and potential locations have already been identified.

While the application for the EU funding is not yet final, Kavalírek said, ‘We are very close.’ The EU has allocated around €20 billion for these AI infrastructure projects, with significant contributions also expected from private sources.

Germany and Denmark are also vying to host similar facilities. If successful, the bid made by Czechia could transform the country into a key AI infrastructure hub for Europe, offering powerful computational resources for sectors such as public administration, healthcare, and finance.

Lukáš Benzl, director of the Czech Association of Artificial Intelligence, described the initiative as a potential ‘motor for the AI economy’ across the continent.

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Nvidia and Samsung invest in Skild AI, boosting robotics innovation

Nvidia and Samsung are joining a major Series B funding round for Skild AI, a robotics software start-up, with investments of $25 million and $10 million, respectively.

According to Bloomberg, the round, led by SoftBank with a $100 million commitment, is expected to value the company at approximately $4.5 billion.

Skild AI develops foundation models and software designed for various robotic systems, from consumer devices to industrial machines. The company previously raised $300 million in Series A funding in 2023, when it was valued at $1.5 billion.

Samsung’s latest investment reinforces its growing focus on robotics. Earlier this year, it became the largest shareholder in South Korea-based Rainbow Robotics, which is known for its collaborative robots. The company also operates a Future Robotics Office to steer strategic innovation.

For Nvidia, the investment aligns with broader efforts in AI and automation. In March, the chipmaker partnered with General Motors to co-develop AI systems that train next-generation manufacturing models for use in vehicles, factories, and robotics.

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Meta hires top AI talent from Google and Sesame

Meta is assembling a new elite AI research team aimed at developing artificial general intelligence (AGI), luring top talent from rivals including Google and AI voice startup Sesame.

Among the high-profile recruits is Jack Rae, a principal researcher from Google DeepMind, and Johan Schalkwyk, a machine learning lead from Sesame.

Meta is also close to finalising a multibillion-dollar investment in Scale AI, a data-labelling startup led by CEO Alexandr Wang, who is also expected to join the new initiative.

The new group, referred to internally as the ‘superintelligence’ team, is central to CEO Mark Zuckerberg’s plan to close the gap with competitors like Google and OpenAI.

Following disappointment over Meta’s recent AI model, Llama 4, Zuckerberg hopes the newly acquired expertise will help improve future models and expand AI capabilities in areas like voice and personalisation.

Zuckerberg has taken a hands-on approach, personally recruiting engineers and researchers, sometimes meeting with them at his homes in California. Meta is reportedly offering compensation packages worth tens of millions of dollars, including equity, to attract leading AI talent.

The company aims to hire around 50 people for the team and is also seeking a chief scientist to help lead the effort.

The broader strategy involves investing heavily in data, chips, and human expertise — three pillars of advanced AI development. By partnering with Scale AI and recruiting high-profile researchers, Meta is trying to strengthen its position in the AI race.

Meanwhile, rivals like Google are reinforcing their defences, with Koray Kavukcuoglu named as chief AI architect in a new senior leadership role to ensure DeepMind’s technologies are more tightly integrated into Google’s products.

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National Bank of Ukraine could hold Bitcoin

Ukraine’s parliament has introduced a bill proposing to allow the National Bank of Ukraine (NBU) to include Bitcoin as part of the country’s state reserves, alongside gold and foreign currencies. The bill 13356 gives the NBU full discretion to buy and manage cryptocurrencies without any obligation.

Supporters argue that incorporating digital assets into national reserves could enhance Ukraine’s macroeconomic stability and boost the digital economy.

Lawmaker Yaroslav Zhelezniak said the flexible framework lets the NBU decide when, how, and how much cryptocurrency to acquire independently.

Several countries, including the US, El Salvador, Switzerland, and Brazil, are exploring or already hold cryptocurrencies in their reserves. Ukraine’s move aligns with this global trend and signals an openness to financial innovation, potentially improving its attractiveness to investors and fintech firms.

While cautious, the bill represents a step towards modernising Ukraine’s economic policy and integrating emerging financial technologies.

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Turing Institute urges stronger AI research security

The Alan Turing Institute has warned that urgent action is needed to protect the UK’s AI research from espionage, intellectual property theft and risky international collaborations.

Its Centre for Emerging Technology and Security (CETaS) has published a report calling for a culture shift across academia to better recognise and mitigate these risks.

The report highlights inconsistencies in how security risks are understood within universities and a lack of incentives for researchers to follow government guidelines. Sensitive data, the dual-use potential of AI, and the risk of reverse engineering make the field particularly vulnerable to foreign interference.

Lead author Megan Hughes stressed the need for a coordinated response, urging government and academia to find the right balance between academic freedom and security.

The report outlines 13 recommendations, including expanding support for academic due diligence and issuing clearer guidance on high-risk international partnerships.

Further proposals call for compulsory research security training, better threat communication from national agencies, and standardised risk assessments before publishing AI research.

The aim is to build a more resilient research ecosystem as global interest in UK-led AI innovation continues to grow.

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Meta launches AI to teach machines physical reasoning

Meta Platforms has unveiled V-JEPA 2, an open-source AI model designed to help machines understand and interact with the physical world more like humans do.

The technology allows AI agents, including delivery robots and autonomous vehicles, to observe object movement and predict how those objects may behave in response to actions.

The company explained that just as people intuitively understand that a ball tossed into the air will fall due to gravity, AI systems using V-JEPA 2 gain a similar ability to reason about cause and effect in the real world.

Trained using video data, the model recognises patterns in how humans and objects move and interact, helping machines learn to reach, grasp, and reposition items more naturally.

Meta described the tool as a step forward in building AI that can think ahead, plan actions and respond intelligently to dynamic environments. In lab tests, robots powered by V-JEPA 2 performed simple tasks that relied on spatial awareness and object handling.

The company, led by CEO Mark Zuckerberg, is ramping up its AI initiatives to compete with rivals like Microsoft, Google, and OpenAI. By improving machine reasoning through world models such as V-JEPA 2, Meta aims to accelerate its progress toward more advanced AI.

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Binance opens to Syrian users after sanctions ease

Binance has announced it will now allow Syrian residents to access its cryptocurrency services, following the recent suspension of US sanctions on Syria. The platform had previously barred Syrian users due to longstanding international restrictions.

With Syria no longer classified as a prohibited country, local users can now register and engage in spot and futures trading, staking, cross-border payments via Binance Pay, and educational tools in Arabic.

The exchange stated that it aims to contribute to Syria’s economic recovery and digital growth, in line with international compliance.

The shift follows the rise of Syria’s new leadership under President Ahmed al-Sharaa, who came to power in December 2024 after overthrowing Bashar al-Assad. In response, US President Donald Trump declared an end to sanctions in May 2025, offering Syria ‘a chance at greatness’.

Due to persistent inflation and currency instability, Syrians have increasingly turned to crypto. Despite sanctions, Syria has ranked among the top 10 countries for crypto-related search activity since 2021, highlighting the region’s demand for financial alternatives.

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Meta and TikTok contest the EU’s compliance charges

Meta and TikTok have taken their fight against an the EU supervisory fee to Europe’s second-highest court, arguing that the charges are disproportionate and based on flawed calculations.

The fee, introduced under the Digital Services Act (DSA), requires major online platforms to pay 0.05% of their annual global net income to cover the European Commission’s oversight costs.

Meta questioned the Commission’s methodology, claiming the levy was based on the entire group’s revenue instead of the specific EU-based subsidiary.

The company’s lawyer told judges it still lacked clarity on how the fee was calculated, describing the process as opaque and inconsistent with the spirit of the law.

TikTok also criticised the charge, alleging inaccurate and discriminatory data inflated its payment.

Its legal team argued that user numbers were double-counted when people switched between devices. The Commission had wrongly calculated fees based on group profits rather than platform-specific earnings.

The Commission defended its approach, saying group resources should bear the cost when consolidated accounts are used. A ruling is expected from the General Court sometime next year.

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AI tools are not enough without basic cybersecurity

At London Tech Week, Darktrace and UK officials warned that many firms are over-relying on AI tools while failing to implement basic cybersecurity practices.

Despite the hype around AI, essential measures like user access control and system segmentation remain missing in many organisations.

Cybercriminals are already exploiting AI to automate phishing and accelerate intrusions in the UK, while outdated infrastructure and short-term thinking leave companies vulnerable.

Boards often struggle to assess AI tools properly, buying into trends rather than addressing real threats.

Experts stressed that AI is not a silver bullet and must be used alongside human expertise and solid security foundations.

Domain-specific AI models, built with transparency and interpretability, are needed to avoid the dangers of overconfidence and misapplication in high-risk areas.

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