Economic Archives | Page 377 of 708 | Digital Watch Observatory

Pi Network launches $100 million fund to back startups

Pi Network has launched a $100 million venture fund to boost its ecosystem and promote real-world adoption of its crypto. The fund, named Pi Network Ventures, aims to invest in startups that integrate Pi tokens or use Pi Network technology.

It targets a broad range of sectors including generative AI, gaming, fintech, ecommerce, payments, marketplaces, and social networks.

Operating like a traditional Silicon Valley venture capital firm, the fund will follow standard sourcing, selection, and vetting processes. Investments will cover startups at all stages, from early seed rounds to later Series B and beyond.

However, unlike most funds focused solely on profit, Pi Network Ventures emphasises value creation and ecosystem utility.

The initiative aims to drive demand for the Pi token by supporting projects that add real-world value and foster innovation. Pi Network hopes to expand its reach beyond purely crypto-native companies and grow adoption across multiple industries.

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TikTok adds AI tool to animate photos with realistic effects

TikTok has launched a new feature called AI Alive, allowing users to turn still images into dynamic, short videos. Instead of needing advanced editing skills, creators can now use AI to generate movement and effects with a few taps.

By accessing the Story Camera and selecting a static photo, users can simply type how they want the image to change — such as making the subject smile, dance, or tilt forward. AI Alive then animates the photo, using creative effects to produce a more engaging story.

TikTok says its moderation systems review the original image, the AI prompt, and the final video before it’s shown to the user. A second check occurs before a post is shared publicly, and every video made with AI Alive will include an ‘AI-generated’ label and C2PA metadata to ensure transparency.

The feature stands out as one of the first built-in AI image-to-video tools on a major platform. Snapchat and Instagram already offer AI image generation from text, and Snapchat is reportedly developing a similar image-to-video feature.

Meanwhile, TikTok is also said to be working on adding support for sending photos and voice messages via direct message — something rival apps have long supported.

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Tether unveils new AI platform to challenge Big Tech

Tether challenges Big Tech’s AI control with QVAC, a platform that runs AI agents on personal devices. Unlike traditional AI using centralised data centres, QVAC runs directly on devices like smartphones and brain-computer interfaces.

The company plans to release an open-source software development kit later this year to support developers.

Named after the AI in Isaac Asimov’s 1956 story The Last Question, QVAC aims to create a decentralised AI ecosystem. Tether’s CEO Paolo Ardoino said the platform gives users control over their data and computation, not large corporations.

The system can potentially support trillions of AI agents functioning autonomously and transacting in Bitcoin and USDT.

Tether positions QVAC as a framework to break the centralised dominance of tech giants such as Google and Meta.

The release date and price are unknown, but Ardoino says QVAC aims to be an ‘infinite intelligence platform’ that runs independently, boosts privacy, and ushers in a new AI era.

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Tencent sees strong Q1 growth as gaming rebounds, AI ads boost sales

Tencent Holdings, China’s largest tech company by market capitalisation, reported a 13% year-on-year revenue increase in the first quarter of 2025, driven by strong growth in gaming and AI-powered advertising.

The company posted revenue of 180 billion yuan ($24.97 billion) for the quarter ending March 31, surpassing analysts’ expectations of 174.6 billion yuan. Net profit reached 47.8 billion yuan, slightly below the forecast of 52.2 billion yuan, according to LSEG data.

Tencent’s domestic gaming revenue surged 24% to 42.9 billion yuan, while international gaming revenue rose 23% to 16.6 billion yuan. Key titles driving the growth included Dungeon & Fighter Mobile and Delta Force.

Advertising revenue climbed 22% year on year, helped by the rollout of AI-driven ad tech upgrades, delivering more targeted and efficient marketing tools across platforms.

The company’s Fintech and Business Services division, which covers cloud services, loans, and wealth management, also grew 16% to 27.6 billion yuan.

Tencent continues to invest heavily in AI. In March, the company said it would devote a low double-digit share of its 2025 revenue to AI-related capital expenditures. That follows 39 billion yuan spent on AI in Q4 2024.

Its proprietary large language model, Hunyuan, received a public release as version T1 in March. Tencent also became the first major Chinese firm to integrate technology from DeepSeek, a fast-rising AI startup.

DeepSeek’s models now power features within Tencent’s core services, including WeChat and its AI assistant, Yuanbao.

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NatWest hit by 100 million cyber attacks every month

NatWest is defending itself against an average of 100 million cyber attacks each month, according to the bank’s head of cybersecurity.

Speaking to Holyrood’s Criminal Justice Committee, Chris Ulliott outlined the ‘staggering’ scale of digital threats targeting the bank’s systems. Around a third of all incoming emails are blocked before reaching staff, as they are suspected to be the start of an attack.

Instead of relying on basic filters, NatWest analyses every email for malicious content and has a cybersecurity team of hundreds, supported by a multi-million-pound budget.

Mr Ulliott also warned of the growing use of AI by cyber criminals to make scams more convincing—such as altering their appearance during video calls to build trust with victims.

Police Scotland reported that cybercrime has more than doubled since 2020, with incidents rising from 7,710 to 18,280 in 2024. Officials highlighted the threat posed by groups like Scattered Spider, believed to consist of young hackers sharing techniques online.

MSP Rona Mackay called the figures ‘absolutely staggering,’ while Ben Macpherson said he had even been impersonated by fraudsters.

Law enforcement agencies, including the FBI, are now working together to tackle o n line crime. Meanwhile, Age Scotland warned that many older people lack confidence online, making them especially vulnerable to scams that can lead to financial ruin and emotional distress.

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BlackRock flags quantum computing risk in Bitcoin ETF filing

BlackRock has highlighted quantum computing as a potential risk to Bitcoin’s long-term security in its recent Bitcoin ETF filing. The inclusion marks a rare mention of quantum risk in mainstream finance.

Bitcoin has been trading strongly, recently surpassing $105,000 before a slight pullback to around $103,000.

Quantum computing could theoretically break the cryptography that protects Bitcoin wallets, but experts stress this threat remains decades away. Bitcoin developers have been preparing for quantum resistance with upgrades like Taproot, and emerging cryptographic alternatives are already under testing.

The risk disclosure by BlackRock mainly follows SEC filing requirements rather than signalling imminent danger.

Bitcoin’s price momentum remains robust after breaking key resistance levels near $97,700. However, technical indicators like the RSI suggest the asset is approaching overbought conditions, which might lead to a short-term correction.

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Netflix’s ad-supported tier hits 94M users with big upgrades on the way

At its May 14 Upfront presentation in New York, Netflix unveiled a major expansion of its advertising strategy, highlighting the growth of its ad-supported tier, which now reaches over 94 million monthly active users globally.

Amy Reinhard, Netflix’ president of advertising, introduced the Netflix Ads Suite, a proprietary advertising platform now live in the US and Canada, with rollout to EMEA next week and all 12 ad-supported markets by June.

‘By controlling our own ad tech, we’ll be able to deliver newer tools, better measurement, and more creative formats,’ said Reinhard.

The Ads Suite offers enhanced data integration, allowing advertisers to match their first-party data with Netflix audiences via LiveRamp or directly. Netflix also announced partnerships with Experian and Acxiom, as well as a ‘clean room’ environment for secure data collaboration.

Netflix is also launching its own first-party measurement tools, beginning with brand lift metrics that link ad exposure to shifts in consumer perception and behaviour.

Reinhard also previewed AI-driven ad formats coming in 2026, including interactive midrolls and pause screens. These new formats will allow for personalised overlays, calls to action, and second screen engagement tailored to individual viewers.

CMO Marian Lee announced new co-branded campaigns with Wendy’s, Cheetos, and Booking.com tied to the return of Wednesday, promising advertisers the same creative treatment Netflix gives its own shows.

‘It’s all about bringing stories to life in ways none of us can do on our own,’ Lee said.

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Seattle startup ElastixAI raises $16 million for AI inference tech

A stealthy new AI startup in Seattle, ElastixAI, has raised $16 million to build technology that aims to reduce the cost and complexity of running large language models.

Rather than focusing on training, the company is developing an AI inference platform to optimise how these models operate, whether on cloud servers or edge devices. The funding round is led by Bellevue-based venture capital firm FUSE, with support from several others.

ElastixAI is led by CEO Mohammad Rastegari, formerly CTO of Xnor, a startup acquired by Apple in 2020. He co-founded the company with Saman Naderiparizi, also ex-Apple and Xnor, and Mahyar Najibi, who worked at both Apple and Waymo.

The team’s background in AI hardware and software gives them a unique edge in addressing challenges at a stage where AI models generate responses from trained data.

Instead of building a one-size-fits-all solution, the startup’s platform is designed for flexibility, allowing customers to fine-tune infrastructure to specific needs. ‘We saw a gap in delivering scalable and low-cost inference,’ said Rastegari.

The company remains in stealth but says its platform could serve both hyperscalers and enterprises looking to integrate AI into everyday operations.

With other players like Nvidia and Fireworks.ai competing in the inference space, ElastixAI may even count some of them as future customers.

Rastegari and Naderiparizi are also affiliate assistant professors at the University of Washington, and their startup reflects Seattle’s growing reputation as a hub for advanced AI development — a trend Apple has helped shape with several acquisitions in the region.

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Russian power firms find new way to spot illegal crypto miners

Russian power engineers have found new ways to spot illegal cr ypto mining farms in areas with power shortages. In Dagestan, Rosseti and its local branch worked with internet providers to cut internet briefly and measure electricity drops.

The operation detected about 900 mining rigs using 3.2 MW—enough energy for 1,500 homes—even though fewer than 900 families live there.

Dagestan leads illegal crypto mining in the North Caucasus. Despite a winter ban until 2031, many miners operate year-round, avoiding proper electricity payments.

Officials estimate that illegal mining has cost the grid $5 million over three years, causing overloads and losses. Authorities want to expand mining bans and introduce harsher penalties, including possible criminal charges.

Some regions with spare power capacity may allow legal mining, but places like Irkutsk have banned it entirely until 2031. Experts say heavier fines and jail terms could be a stronger deterrent than current minor penalties.

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Valve denies Steam data breach

Valve has confirmed that a cache of old Steam two-factor authentication codes and phone numbers, recently circulated by a hacker known as ‘Machine1337’, is indeed real, but insists it did not suffer a data breach.

Instead of pointing to its own systems, Valve explained that the leak involves outdated SMS messages, which are typically sent unencrypted and routed through multiple providers. These codes, once valid for only 15 minutes, were not linked to specific Steam accounts, passwords, or payment information.

The leaked data sparked early speculation that third-party messaging provider Twilio was the source of the breach, especially after their name appeared in the dataset. However, both Valve and Twilio denied any direct involvement, with Valve stating it does not even use Twilio’s services.

The true origin of the breach remains uncertain, and Valve acknowledged that tracing it may be difficult, as SMS messages often pass through several intermediaries before reaching users.

While the leaked information may not immediately endanger Steam accounts, Valve advised users to remain cautious. Phone numbers, when combined with other data, could still be used for phishing attacks.

Instead of relying on SMS for security, users are encouraged to activate the Steam Mobile Authenticator, which offers a more secure alternative for account verification.

Despite the uncertainty surrounding the source of the breach, Valve reassured users there’s no need to change passwords or phone numbers. Still, it urged vigilance, recommending that users routinely review their security settings and remain wary of any unsolicited account notifications.

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