Economic Archives | Page 386 of 708 | Digital Watch Observatory

Google boosts AI coding and video skills with Gemini 2.5 Pro

Google has unveiled Gemini 2.5 Pro Preview (I/O edition), its latest AI model update, ahead of the annual I/O developer conference.

The new version introduces upgrades designed to enhance coding assistance, video comprehension, and web development capabilities, further highlighting the company’s commitment to integrating generative AI across its products.

According to Google, Gemini 2.5 Pro delivers noticeable improvements in software development workflows. The AI model now ranks first on the WebArena leaderboard, which assesses the quality of AI-generated websites through human feedback.

Google reports a 147-point increase in Elo score compared to the previous version. Enhanced features also include better code interpretation and generation, real-time function calling, and lower rates of silent failures in tasks such as bug fixing and editing.

Video analysis is another key area of progress. Gemini 2.5 Pro achieved an 84.8% score on the VideoMMe benchmark, which evaluates AI performance in understanding and answering questions about visual content, particularly educational videos.

This marks another step in Google’s multimodal AI ambitions, which seek to unify text, images, code, audio, and video into cohesive AI systems. However, Google has not detailed how privacy and content safety are managed when processing video data.

Developers can now access Gemini 2.5 Pro via the Gemini API, Google AI Studio, and Vertex AI, as well as through Gemini’s mobile and web apps.

Currently released as a preview, the model will likely receive updates following developer feedback during and after the I/O event. Details about general availability or potential pricing changes have not been disclosed.

The release of Gemini 2.5 Pro comes as AI competition intensifies, with OpenAI, Anthropic, and Meta also advancing their foundation models. While Google highlights Gemini’s strong performance in coding and web development, broader comparisons between models remain limited for now.

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Chennai team wins ₹50 lakh at Agentforce Hackathon for AI hotel solution

AI took centre stage at the Agentforce Hackathon 2025 during TrailblazerDX in Bengaluru, where a Chennai-based team from Bounteous x Accolite Salesforce claimed the grand prize of ₹50 lakhs. Their AI-powered project impressed judges and attendees, standing out among 195 competing teams.

The team, calling themselves ‘Aichemist’, included Mayur Kinhekar, Rajaseeman PS, Yogeshwar Andi Sudhakaran, Sheetalraj Gangadhar, and Vijay Kalidasan. Together, they set out to revolutionise hospitality using Salesforce’s cloud platform.

Their Smart Hotel Agent uses data cloud, loyalty tiers, Slack, and service tablets to deliver seamless, personalised hotel experiences. ‘We are thrilled with this achievement,’ said senior consultant Mayur Kinhekar. ‘We are proud to be AI agents helping shape the future of AI.’

Team lead Rajaseeman PS explained that their goal was to reduce the need for human interaction in routine hotel tasks. By giving guests tablets, they created a solution that manages everything from check-in to check-out with ease.

In one example, Rajaseeman noted how a spill in a hotel room could be instantly reported and resolved through automated notifications sent to the appropriate department, bypassing traditional calls to the front desk.

By using AI to streamline services, the team not only improved guest experiences but also freed up hotel staff to focus on critical tasks. Their innovative approach captured the imagination of the hackathon’s judges and earned them the prestigious top spot and grand prize.

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Apple may replace Google with AI in Safari

Apple may soon reshape how users search the web on iPhones and other devices by integrating AI-powered search engines directly into Safari instead of relying solely on Google.

According to Bloomberg, the company is ‘actively looking at’ expanding options in its browser to include AI systems such as OpenAI’s ChatGPT and Perplexity, potentially disrupting Google’s long-held dominance in online search.

Currently, Google pays Apple around $20 billion a year to remain the default search engine in Safari — about 36% of the search ad revenue generated through Apple devices. But that relationship may be under pressure, especially as AI tools gain popularity.

Apple has already partnered with OpenAI to bring ChatGPT into Siri, while Google is now pushing to include its Gemini AI system in future Apple products.

Alphabet’s shares dropped 6% following the news, while Apple saw a 2% dip. Apple executive Eddy Cue, testifying in an ongoing antitrust case, noted a recent decline in Safari searches and said he expects AI search tools to eventually replace traditional engines like Google.

Apple, he added, plans to introduce these AI services as built-in alternatives in Safari in the near future.

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LockBit ransomware Bitcoin addresses exposed

Nearly 60,000 Bitcoin addresses linked to LockBit’s ransomware operations have been exposed following a major breach of the group’s dark web affiliate panel.

The leak, which included a MySQL database dump, was shared publicly online and could assist blockchain analysts in tracing LockBit’s financial activity instead of leaving such transactions untracked.

Despite the scale of the breach, no private keys were leaked. A LockBit representative reportedly confirmed the incident in a message, stating that no sensitive access data was compromised.

However, the exposed database included 20 tables, such as one labelled ‘builds’ that contained details about ransomware created by affiliates and their targeted companies.

Another table, ‘chats,’ revealed over 4,400 messages from negotiations between victims and LockBit operators, offering a rare glimpse into the inner workings of ransomware extortion tactics.

Analysts believe the hack may be connected to a separate breach of the Everest ransomware site, as both featured identical messages, hinting at a possible link.

The incident has again underscored the central role of cryptocurrency in the ransomware economy. Each victim is typically given a unique address for payments, making tracking difficult.

Instead of remaining hidden, these addresses now give law enforcement and blockchain experts a chance to trace payments and potentially link them to previously unidentified actors.

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Xapo Bank introduces Bitcoin-backed loans for long-term holders

Xapo Bank’s CEO, Seamus Rocca, sees Bitcoin-backed loans as the next logical step as investor confidence grows. As Bitcoin’s price hovers between $95,000 and $97,000, more investors are choosing to borrow against their BTC instead of selling it.

Xapo Bank’s lending product, launched in March, allows clients to borrow up to $1 million using Bitcoin as collateral.

The demand for such loans is fuelled by a shift in market sentiment, with investors moving from short-term speculation to a longer-term outlook.

Rocca highlighted that institutional adoption, including Bitcoin ETFs, is contributing to this change in attitude. The bank offers flexible loan-to-value (LTV) ratios, allowing borrowers to access liquidity while keeping their BTC.

With conservative LTV levels, Bitcoin prices would need to drop significantly for borrowers to face liquidation, making this an appealing option for long-term holders.

The product helps investors manage emergency expenses without selling their Bitcoin. It’s enabling them to continue benefiting from potential price appreciation while maintaining liquidity.

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Bitcoin scholarships launched at Lomond School

Lomond School has introduced the Satoshi Scholarships, offering 42 scholarships for students passionate about economics and innovation. These cover the prestigious International Baccalaureate (IB) programme, including 21 two-year day and 21 two-year boarding scholarships.

The initiative is backed by economist Dr. Saifedean Ammous, who will help develop a new Austrian economics curriculum. The curriculum will focus on sound money, decentralised finance, and the ethics of financial liberty.

Dr. Ammous expressed his enthusiasm for the project, emphasising the importance of teaching future generations about sound economics. In addition, students will engage with Bitcoin mining hardware and gain practical knowledge of monetary systems.

Lomond School is now seeking 43 founding benefactors to support the scholarships and help shape the next generation of economic thinkers. Interested parties can learn more by contacting the school directly.

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Netflix introduces AI chatbot to help you pick what to watch

Netflix is trialling an AI chatbot inside its iOS app, offering a new way for users to find content by simply typing natural phrases instead of relying on standard searches. In this small, opt-in beta, users might say things like ‘I want something funny and upbeat; to receive tailored recommendations.

The company believes the AI chatbot could soon become a core part of its app on both iOS and Android, and perhaps even land on TVs in future.

Alongside this, Netflix is reshaping the user experience by surfacing helpful labels like ‘Emmy Award Winner’ and ‘#1 in TV Shows’ to help viewers choose faster instead of scrolling endlessly.

Search and My List are moving to the top of TV screens for better visibility, and the homepage is getting a cleaner, more modern design.

Netflix says recommendations will also shift dynamically based on a viewer’s mood or interests, although it hasn’t explained exactly how this will work.

On mobile, Netflix plans to roll out a vertical feed of show and movie clips in the coming weeks. You’ll be able to tap to watch, save, or share immediately—turning content discovery into a quick and interactive experience instead of a chore.

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USD1 stablecoin becomes seventh-largest in just two months

The USD1 stablecoin, backed by Donald Trump’s World Liberty Financial (WLFI), has quickly become the seventh-largest stablecoin.

Launched just two months ago, it has grown from a market cap of $128 million to over $2 billion. The surge was boosted by Eric Trump’s announcement that MGX would use USD1 for a $2 billion investment in Binance.

Most of USD1’s issuance is on Binance’s BNB Chain, accounting for over 99% of its supply. A smaller portion is on Ethereum.

In late April, the coin’s market cap spiked 1,540%, growing from $128 million to $2.1 billion. The rapid rise led centralised exchanges, including HTX, to list USD1, with zero-fee withdrawals on the BEP-20 network.

Reports suggest that around 90% of USD1 investors are from outside the US, particularly Europe, Asia, and Latin America.

The coin’s growth aligns with Trump’s pro-stablecoin agenda, outlined in his January executive order to strengthen US leadership in digital financial technologies.

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Mistral AI unveils enterprise tools to rival Big Tech

French startup Mistral AI is making waves with the launch of its Medium 3 model family and a business chatbot called Le Chat Enterprise, aiming to disrupt a market long dominated by OpenAI, Google, Microsoft, and Anthropic.

The company claims its new models outperform rivals while needing fewer computational resources, giving businesses a more efficient and affordable AI alternative.

The Medium 3 family consists of Small, Standard and Large variants, with the Standard version described as the ideal balance between power and efficiency.

Capable of handling context windows up to 128,000 tokens, these models can process long documents and complex inputs without the costs typically associated with top-tier AI systems.

Meanwhile, Le Chat Enterprise offers companies a privacy-focused, ready-to-deploy chatbot tailored for business use instead of consumer settings.

Backed by €385 million in funding and a team of former DeepMind and Meta researchers, Mistral continues to set itself apart by combining open-source releases with commercial offerings.

If its performance claims hold in independent benchmarks, Mistral may force the AI industry to compete not only on raw capability but also on value—a shift that could benefit enterprises seeking practical, cost-effective AI solutions instead of hype-driven tools.

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US banks allowed to manage crypto on customers’ behalf

US banks are now allowed to manage crypto assets on behalf of their customers. The US Office of the Comptroller of the Currency (OCC) confirmed that banks can buy, sell, and hold crypto in custody. They can also outsource certain services, such as custody and execution, to third parties.

Acting Comptroller Rodney Hood stated that financial institutions could also provide tax reporting, record-keeping, and sub-custody services. These services must comply with legal and risk management guidelines.

The decision marks a shift towards integrating crypto into traditional banking systems, with over 50 million Americans now holding digital assets.

Industry experts have welcomed the OCC’s move. Katherine Kirkpatrick Bos of StarkWare said it signals a shift in the OCC’s stance, while Coinbase’s Faryar Shirzad praised the regulatory clarity.

The change comes amid the Trump administration’s more crypto-friendly approach, which includes reversing previous restrictions on banks’ crypto activities.

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