Economic

Morgan Stanley files to launch Bitcoin and Solana ETFs as Wall Street embraces crypto

In the US, Morgan Stanley has moved to launch exchange-traded funds linked to Bitcoin and Solana, signalling that major banks are no longer prepared to watch the crypto market from the sidelines.

Filings submitted to the Securities and Exchange Commission show the bank intends to offer funds tied to the prices of both crypto assets, making it the first of the ten biggest US banks by assets to pursue crypto ETFs directly.

Interest from Wall Street has been strengthened by regulatory changes introduced under the Trump administration, which created clearer rules for stablecoins and crypto-related investment products.

BlackRock’s Bitcoin ETFs have already become a major source of revenue, encouraging banks to seek a more active role instead of limiting themselves to custody services.

The trend is expected to have implications for European investors. US-listed crypto ETFs cannot normally be sold to retail investors in the EU because they do not comply with UCITS requirements.

However, Morgan Stanley has been developing an EU-compliant ETF platform and is working with partners to align with both UCITS and the EU’s Markets in Crypto-Assets framework.

The shift suggests crypto has become too commercially significant for Wall Street institutions to ignore, with banks increasingly treating digital assets as part of mainstream financial services rather than a peripheral experiment.

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Samsung puts AI trust and security at the centre of CES 2026

The South Korean tech giant, Samsung, used CES 2026 to foreground a cross-industry debate about trust, privacy and security in the age of AI.

During its Tech Forum session in Las Vegas, senior figures from AI research and industry argued that people will only fully accept AI when systems behave predictably, and users retain clear control instead of feeling locked inside opaque technologies.

Samsung outlined a trust-by-design philosophy centred on transparency, clarity and accountability. On-device AI was presented as a way to keep personal data local wherever possible, while cloud processing can be used selectively when scale is required.

Speakers said users increasingly want to know when AI is in operation, where their data is processed and how securely it is protected.

Security remained the core theme. Samsung highlighted its Knox platform and Knox Matrix to show how devices can authenticate one another and operate as a shared layer of protection.

Partnerships with companies such as Google and Microsoft were framed as essential for ecosystem-wide resilience. Although misinformation and misuse were recognised as real risks, the panel suggested that technological counter-measures will continue to develop alongside AI systems.

Consumer behaviour formed a final point of discussion. Amy Webb noted that people usually buy products for convenience rather than trust alone, meaning that AI will gain acceptance when it genuinely improves daily life.

The panel concluded that AI systems which embed transparency, robust security and meaningful user choice from the outset are most likely to earn long-term public confidence.

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Chatbots under scrutiny in China over AI ‘boyfriend’ and ‘girlfriend’ services

China’s cyberspace regulator has proposed new limits on AI ‘boyfriend’ and ‘girlfriend’ chatbots, tightening oversight of emotionally interactive artificial intelligence services.

Draft rules released on 27 December would require platforms to intervene when users express suicidal or self-harm tendencies, while strengthening protections for minors and restricting harmful content.

The regulator defines the services as AI systems that simulate human personality traits and emotional interaction. The proposals are open for public consultation until 25 January.

The draft bans chatbots from encouraging suicide, engaging in emotional manipulation, or producing obscene, violent, or gambling-related content. Minors would need guardian consent to access AI companionship.

Platforms would also be required to disclose clearly that users are interacting with AI rather than humans. Legal experts in China warn that enforcement may be challenging, particularly in identifying suicidal intent through language cues alone.

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Grok misuse prompts UK scrutiny of Elon Musk’s X

UK Technology Secretary Liz Kendall has urged Elon Musk’s X to act urgently after reports that its AI chatbot Grok was used to generate non-consensual sexualised deepfake images of women and girls.

The BBC identified multiple examples on X where users prompted Grok to digitally alter images, including requests to make people appear undressed or place them in sexualised scenarios without consent.

Kendall described the content as ‘absolutely appalling’ and said the government would not allow the spread of degrading images. She added that Ofcom had her full backing to take enforcement action where necessary.

The UK media regulator confirmed it had made urgent contact with xAI and was investigating concerns that Grok had produced undressed images of individuals. X has been approached for comment.

Kendall said the issue was about enforcing the law rather than limiting speech, noting that intimate image abuse, including AI-generated content, is now a priority offence under the Online Safety Act.

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Wimbledon and IBM expand collaboration to deepen global fan engagement

IBM and the All England Lawn Tennis Club have renewed their long-standing technology partnership under a new multi-year agreement to expand digital fan engagement at Wimbledon.

The collaboration, which dates back 36 years, has supported milestones ranging from the launch of the Wimbledon website in 1995 to the introduction of AI-powered features across digital platforms in recent seasons.

Teams from both organisations work year-round to develop fan-facing tools, such as Live Likelihood to Win and Match Chat, that combine tournament data with IBM Watsonx capabilities. Engagement across Wimbledon’s app and website rose 16 per cent year on year in 2025.

The partnership has also received industry recognition, including the All England Club being named Sports Organisation of the Year at the 2025 Sports Technology Awards for its use of AI.

Both organisations said the renewed agreement will focus on delivering more personalised and immersive experiences, as research shows strong demand among tennis fans for AI-driven insights and real-time content.

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UAE deploys AI ecosystem to support climate-vulnerable agriculture

The United Arab Emirates has launched an AI-driven ecosystem to help climate-vulnerable agricultural regions adapt to increasingly volatile weather. The initiative reinforces the country’s ambition to position itself as a global hub for applied AI in climate resilience and food security.

Unveiled in Abu Dhabi, the programme builds on a US$200m partnership with the Gates Foundation announced during COP28. It reflects a shift from climate pledges toward deployable technology as droughts, floods and heat stress intensify pressure on agriculture, particularly in the Global South.

At the core is an integrated ecosystem linking scientific research, AI model development and digital advisory tools with large-scale deployment. Rather than isolated pilots, the programmes are designed to translate data into practical tools used directly by governments, NGOs and farmers.

Abu Dhabi is positioning itself as a hub for agricultural AI through the CGIAR AI Hub and a new institute at Mohamed bin Zayed University of Artificial Intelligence. The ecosystem also includes AgriLLM, an open-source model trained on agricultural and climate data.

Delivery is supported by AIM for Scale, a joint UAE–Gates Foundation initiative expanding AI-powered weather forecasting in data-scarce regions. In India, AI-enabled monsoon forecasts reached an estimated 38 million farmers in 2025, with further deployments planned.

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Energy efficiency becomes a priority as Nvidia unveils next AI chip

Nvidia used CES in Las Vegas to signal its next push in AI hardware, with chief executive Jensen Huang unveiling a new AI chip designed to deliver more computing power with lower energy use. The chip, named Vera Rubin, is scheduled to ship in the second half of the year.

Huang said the Rubin platform would let companies train AI models with far fewer chips than earlier generations. The redesign is also intended to lower the cost and energy demands of running AI services.

The move comes as demand for AI infrastructure accelerates, straining power supplies and intensifying competition. Rivals and major customers developing their own chips are putting pressure on Nvidia to improve efficiency.

Alongside chips, Nvidia highlighted its growing focus on autonomous vehicles. The company said new AI software would support self-driving development for carmakers and mobility firms, with vehicles using the chipmaker’s technology expected to ship later this year.

Huang said AI, robotics, and autonomy are central to the company’s long-term strategy, as the company seeks to expand beyond data centres. Rising competition and geopolitical scrutiny remain challenges, but Nvidia is betting that more efficient chips will keep it at the centre of the AI boom.

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CES 2026 shows AMD betting on on-device AI at scale

AMD used CES 2026 to position AI as a default feature of personal and commercial computing. The company said AI is no longer limited to premium systems. Instead, it is being built directly into processors for consumer PCs, business laptops, compact desktops, and embedded platforms.

Executives described the shift as a new phase in AI adoption. CEO Lisa Su said usage has grown from early experimentation to more than one billion active users worldwide. Senior vice president Jack Huynh added that AI is redefining the PC by embedding intelligence, performance, and efficiency across devices.

The strategy centres on the Ryzen AI 400 Series and Ryzen AI PRO 400 Series processors. These chips integrate neural processing units delivering up to 60 TOPS of local AI compute. Built on Zen 5 architecture and XDNA 2 NPUs, they target Copilot+ PCs and enterprise deployments.

AMD also expanded its Ryzen AI Max+ portfolio for ultra-thin laptops, mini-PCs, and small workstations. The processors combine CPU, GPU, and NPU resources in a unified memory design. Desktop users saw the launch of the Ryzen 7 9850X3D, while developers were offered the Ryzen AI Halo platform.

Beyond PCs, AMD introduced a new Ryzen AI Embedded processor lineup for edge deployments. The chips are aimed at vehicles, factories, and autonomous systems. AMD said single-chip designs will support real-time AI workloads in robotics, digital twins, smart cameras, and industrial automation.

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California launches DROP tool to erase data broker records

Residents in California now have a simpler way to force data brokers to delete their personal information.

The state has launched the Delete Requests and Opt-Out Platform, known as DROP, allowing residents to submit one verified deletion request that applies to every registered data broker instead of contacting each company individually.

A system that follows the Delete Act, passed in 2023, and is intended to create a single control point for consumer data removal.

Once a resident submits a request, the data brokers must begin processing it from August 2026 and will have 90 days to act. If data is not deleted, residents may need to provide extra identifying details.

First-party data collected directly by companies can still be retained, while data from public records, such as voter rolls, remains exempt. Highly sensitive data may fall under separate legal protections such as HIPAA.

The California Privacy Protection Agency argues that broader data deletion could reduce identity theft, AI-driven impersonation, fraud risk and unwanted marketing contact.

Penalties for non-compliance include daily fines for brokers who fail to register or ignore deletion orders. The state hopes the tool will make data rights meaningful instead of purely theoretical.

A launch that comes as regulators worldwide examine how personal data is used, traded and exploited.

California is positioning itself as a leader in consumer privacy enforcement, while questions continue about how effectively DROP will operate when the deadline arrives in 2026.

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Cloud and AI growth fuels EU push for greener data centres

Europe’s growing demand for cloud and AI services is driving a rapid expansion of data centres across the EU.

Policymakers now face the difficulty of supporting digital growth instead of undermining climate targets, yet reliable sustainability data remains scarce.

Operators are required to report on energy consumption, water usage, renewable sourcing and heat reuse, but only around one-third have submitted complete data so far.

Brussels plans to introduce a rating scheme from 2026 that grades data centres on environmental performance, potentially rewarding the most sustainable new facilities with faster approvals under the upcoming Cloud and AI Development Act.

Industry groups want the rules adjusted so operators using excess server heat to warm nearby homes are not penalised. Experts also argue that stronger auditing and stricter application of standards are essential so reported data becomes more transparent and credible.

Smaller data centres remain largely untracked even though they are often less efficient, while colocation facilities complicate oversight because customers manage their own servers. Idle machines also waste vast amounts of energy yet remain largely unmeasured.

Meanwhile, replacing old hardware may improve efficiency but comes with its own environmental cost.

Even if future centres run on cleaner power and reuse heat, the manufacturing footprint of the equipment inside them remains a major unanswered sustainability challenge.

Policymakers say better reporting is essential if the EU is to balance digital expansion with climate responsibility rather than allowing environmental blind spots to grow.

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