Economic Archives | Page 397 of 708 | Digital Watch Observatory

Coinbase urges the SEC to allow staff to use cryptocurrencies

Coinbase has formally asked US regulators to lift the ban preventing Securities and Exchange Commission (SEC) staff from buying, selling, or using cryptocurrencies that are not considered securities.

Chief Legal Officer Paul Grewal sent letters to SEC Chair Paul Atkins and the US Office of Government Ethics on 22 April.

He argued that the restriction limits the regulators’ ability to oversee the crypto sector properly. Grewal emphasised that the ban is particularly damaging. The SEC is working under a presidential order to propose regulatory reforms supporting America’s leadership in digital finance.

Nearly half the given timeframe has already passed, yet SEC staff remain unable to engage with the technology they are meant to regulate. Coinbase warned that effective oversight requires hands-on experience with crypto assets.

The company also suggested allowing ownership of certain cryptocurrencies under conditions that would prevent conflicts of interest. According to Coinbase, the changes would align with the Office of the Inspector General’s call for regulators to adapt in a rapidly evolving market.

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Anthropic aims to decode AI ‘black box’ within two years

Anthropic CEO Dario Amodei has unveiled an ambitious plan to make AI systems more transparent by 2027. In a recent essay titled ‘The Urgency of Interpretability,’ Amodei highlighted the pressing need to understand the inner workings of AI models.

He expressed concern over deploying highly autonomous systems without a clear grasp of their decision-making processes, deeming it ‘basically unacceptable’ for humanity to remain ignorant of how these systems function.

Anthropic is at the forefront of mechanistic interpretability, a field dedicated to deciphering the decision-making pathways of AI models. Despite these advancements, Amodei emphasized that much more research is needed to fully decode these complex systems.

Looking ahead, Amodei envisions conducting ‘brain scans’ or ‘MRIs’ of advanced AI models to detect potential issues like tendencies to deceive or seek power. He believes that achieving this level of interpretability could take five to ten years but is essential for the safe deployment of future AI systems.

Amodei also called on industry peers, including OpenAI and Google DeepMind, to intensify their research efforts in this area and urged governments to implement ‘light-touch’ regulations to promote transparency and safety in AI development.

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YouTube is testing AI-generated video highlights

Google is expanding its AI Overviews feature to YouTube, bringing algorithmically generated video highlights and search suggestions to the platform. Initially rolled out to a limited number of YouTube Premium users in the US, the experimental tool uses AI to identify and surface the most relevant clips.

The AI-generated results are currently focused on shopping and travel content, offering viewers a new way to discover videos and related topics without watching entire clips.

Google says the feature is designed to streamline content discovery, though it arrives with some scepticism following the rocky debut of AI Overviews in Google Search last year. That version, introduced in May 2024, was widely criticised for factual errors and bizarre “hallucinations” in responses.

Despite its troubled track record, Google is pushing ahead with AI integration across its platforms. The company’s blog post emphasised that the YouTube trial remains limited in scope for now, while promising future refinements.

Whether the move improves user experience or adds confusion remains to be seen, as critics question the reliability of AI-generated summaries on such a massive and diverse video platform.

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Alphabet surpasses expectations with strong Q1 performance and major buyback plan

Google’s parent company, Alphabet, announ c ed a $70 billion share buyback after posting first-quarter profits that exceeded Wall Street forecasts. The company’s shares surged 4% after-hours trading, boosting its market value by around $75 billion. Alphabet reported $90.23 billion in revenue, mainly driven by steady growth in its core digital advertising business, which offset a slight slowdown in its cloud computing segment.

Despite concerns over economic uncertainty linked to US trade policies, Alphabet’s ad revenue, making up 75% of its total income, rose 8.5% to $66.89 billion, surpassing analyst expectations. CEO Sundar Pichai highlighted strong engagement in Google Search, particularly with AI-powered features, attracting 1.5 billion monthly users.

Meanwhile, Google Cloud saw a 28% revenue increase, narrowly missing projections but still reflecting solid growth. The tech giant also ramped up capital spending by 43% to $17.2 billion as part of its $75 billion annual investment plan, focusing on expanding data centres and AI infrastructure.

Despite rising costs and global competition in the AI sector, Pichai emphasised the need for heavy investment to enhance services like Search and develop AI tools. Alphabet’s positive results lifted other digital ad players, with Meta, Amazon, and Snap seeing gains in extended trading.

While Big Tech remains committed to AI spending, signs of caution emerge as some companies begin to scale back data centre expansions amid economic pressures.

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El Salvador proposes a tokenised real estate sandbox to the US SEC

El Salvador has proposed a regulatory sandbox to the US Securities and Exchange Commission (SEC). The sandbox could allow US firms to test tokenised real estate projects within the country.

The idea was discussed during a meeting between El Salvador’s National Commission on Digital Assets (CNAD) and the SEC’s Crypto Task Force. The initiative aims to enable projects like tokenised land shares or SEC-approved crowdfunding for small companies. It could potentially unlock a trillion-dollar asset class.

The proposal builds on El Salvador’s history of embracing cryptocurrency. With Bitcoin as legal tender and innovative approaches like using volcanic energy for mining, the nation has become a hub for Bitcoin enthusiasts.

El Salvador has also accumulated a significant Bitcoin reserve, mirroring US President Donald Trump’s Strategic Bitcoin Reserve.

Collaboration with the SEC may solidify El Salvador’s role in the global crypto space. Meanwhile, Sandbox marks key step toward regulation.

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Meta cuts jobs in Reality Labs

Meta has announced layoffs within its Reality Labs division, impacting Oculus Studios and hardware development teams. Among those affected is the team behind Supernatural, a popular VR fitness app that Meta acquired for over $400 million.

The company stated that these restructuring efforts aim to improve efficiency and focus on developing future mixed reality experiences, particularly in fitness and gaming. Despite reaffirming its commitment to VR and mixed reality, Meta’s moves reflect its Quest headset business challenges.

While its smart glasses partnership with Ray-Ban has exceeded sales expectations, Quest devices continue to underperform, with the latest Quest 3S already seeing discounts less than a year after release.

Why does it matter?

The layoffs signal Meta’s attempt to streamline operations as it navigates a shifting market for virtual and mixed reality. Although the company promises ongoing support for its VR communities, these changes highlight the pressures Meta faces in turning its ambitious metaverse and hardware ventures into sustainable success.

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AI investments lift Alphabet despite cloud slowdown

Alphabet’s shares climbed over 5% in premarket trading after the company reported strong earnings that reassured investors of its AI strategy.

Despite a slight deceleration in advertising and cloud growth, Google’s parent company beat expectations, signalling that its major bets on artificial intelligence are starting to pay off.

Advertising revenue, which forms the backbone of Alphabet’s business, rose 8.5% in the first quarter to $66.89 billion—outperforming analyst projections.

Although this marks a slowdown from the previous quarter’s growth, it reinforces investor confidence in Alphabet’s ability to monetise AI across its services. Meanwhile, Google Cloud revenue grew by 28%, falling just short of forecasts and indicating some cooling in the segment.

The company is pressing ahead with its ambitious infrastructure plans, reaffirming a $75 billion investment in expanding data centre capacity.

Alongside Microsoft’s even larger plans, these efforts contribute to Big Tech’s anticipated $320 billion AI investment in 2025. However, growing trade tensions and fears of an economic downturn have led to questions about the sustainability of such capital spending.

While Alphabet remains a key player in the AI race, legal challenges loom large. Ongoing antitrust actions in the United States could compel the company to divest core assets like Chrome, as regulators seek to limit Google’s market dominance.

Nevertheless, many analysts remain optimistic, with several brokerages raising their price targets, pointing to Alphabet’s ability to deliver GenAI-powered products at scale despite headwinds.

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Tariff pressure weakens demand for Intel’s AI chips

Intel is witnessing strong demand for its older Raptor Lake and Alder Lake processors, as buyers shy away from newer AI-enhanced chips like Meteor and Lunar Lake.

Economic concerns, particularly the threat of US tariffs, are prompting many to prioritise affordability over cutting-edge features, even in the fast-moving tech world.

Recent data suggests consumers remain unconvinced about paying extra for artificial intelligence in their devices. A survey of over 20,000 tech users found that 84% are unwilling to spend more for AI capabilities, reinforcing current market behaviour.

Intel has acknowledged that the pricing structure of its latest chips is less attractive to consumers and system manufacturers alike.

Adding to the challenge, Intel’s production of processors based on its Intel 7 process node is struggling to keep up with demand. Although its newer chips use TSMC’s advanced nodes, the surge in popularity of older-generation products is creating a supply strain.

Concerns over trade tensions and tariffs are fuelling inventory stockpiling, particularly for parts that help manufacturers keep costs low.

Meanwhile, Intel is undergoing significant internal changes. CEO Lip Bi-Tan confirmed workforce reductions, a major company restructure, and a push for employees on hybrid schedules to return to the office four days a week instead of three.

Combined with rising economic uncertainty and potential retaliatory tariffs from China, the company faces a complex and turbulent period ahead.

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Bitcoin whale moves 50 BTC after 15 years, making $4.67 million

A Bitcoin whale recently moved 50 BTC, worth approximately $4.67 million, after sitting dormant for 15 years. The transaction saw coins originally mined in July 2010, when Bitcoin was worth less than $0.10 per coin. At the time of the transfer, Bitcoin’s price stood at $93,455.

Address identified by code ’04ba30′ stayed inactive for more than 15 years after receiving coins in 2010. However, the transaction was first flagged on X by Bitcoin journalist and historian, Pete Rizzo.

The holder, whether an early miner or a long-term investor, achieved an unimaginable 93,460,500% return on their investment.

It is not the first time Bitcoin whales have resurfaced with remarkable returns. In November, another investor moved 2,000 BTC, initially purchased for a mere $120, now valued at a staggering $179 million.

Despite these extraordinary gains, the most prominent Bitcoin whale remains the pseudonymous creator, Satosh i Nakamoto, believed to hold 1.1 million BTC.

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Auto Shanghai 2025 showcases cutting-edge AI robots

At Auto Shanghai 2025, running from April 23 to May 2, nearly 1,000 companies from 26 countries showcase their innovations.

A major highlight of the event has been the introduction of AI humanoid robots.

Among the most talked-about innovations is Mornine Gen-1, an AI humanoid robot developed by Chinese automaker Chery.

Designed to resemble a young woman, Mornine is set for various roles, from auto sales consultation to retail guidance and entertainment performances.

Also drawing attention is AgiBot’s A2 interactive service robot. Serving as a ‘sales consultant,’ the A2’s smart, interactive features have made it a standout at the event.

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