Economic Archives | Page 419 of 708 | Digital Watch Observatory

Kyrgyzstan teams up with Binance founder to boost crypto

The President of Kyrgyzstan, Sadyr Zhaparov, announced a new collaboration between the National Investment Agency and Changpeng Zhao (CZ), the founder of Binance. The agreement focuses on developing the cryptocurrency and blockchain technology ecosystem within the Kyrgyz Republic.

The partnership will see CZ provide infrastructural and technological support. It will also include consultancy on crypto and blockchain initiatives. Additionally, educational programmes will be implemented to support the country’s development in these fields.

Zhao expressed his excitement about advising Kyrgyzstan, emphasising the importance of expanding crypto adoption globally. In a post on X, he highlighted his role in advising several governments on crypto regulatory frameworks and blockchain solutions.

He also clarified that his involvement is strictly related to cryptocurrency and does not extend to politics. The advisory role forms part of CZ’s broader strategy to enhance blockchain’s reach beyond just trading.

President Zhaparov views this collaboration as a significant step towards strengthening the country’s technological capabilities. The partnership aims to drive innovation, build expertise, and boost economic growth and security.

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Deutsche Telekom expands partnership with Google Cloud

Deutsche Telekom has strengthened its collaboration with Google, moving more of its services to the Google Cloud platform as part of its transformation into an ‘AI-first company.’ The expanded partnership aims to improve the agility and efficiency of Deutsche Telekom’s operations through AI-driven solutions.

Stefan Schloter, Chief Infrastructure Officer for Europe at Deutsche Telekom, highlighted how leveraging data and AI will enhance digital solutions across business entities, software engineering, and customer interfaces.

The MyMagenta app, for example, will integrate Google’s AI-powered Gemini assistant, further improving customer experience.

Google Cloud will also serve as the technical foundation of Deutsche Telekom’s new AI platform, the ‘One Data Ecosystem.’ However, this platform consolidates data systems and enhances data processing speed while ensuring compliance with privacy and data-sharing regulations.

Marianne Janik, Vice President of Google Cloud for Northern Europe, expressed excitement about the partnership, noting how cloud technology is pivotal for communications providers in driving innovation, flexibility, and growth for enhanced user experiences.

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National Crime Agency responds to AI crime warning

The National Crime Agency (NCA) has pledged to ‘closely examine’ recommendations from the Alan Turing Institute after a recent report highlighted the UK’s insufficient preparedness for AI-enabled crime.

The report, from the Centre for Emerging Technology and Security (CETaS), urges the NCA to create a task force to address AI crime within the next five years.

Despite AI-enabled crime being in its early stages, the report warns that criminals are rapidly advancing their use of AI, outpacing law enforcement’s ability to respond.

CETaS claims that UK police forces have been slow to adopt AI themselves, which could leave them vulnerable to increasingly sophisticated crimes, such as child sexual abuse, cybercrime, and fraud.

The Alan Turing Institute emphasises that although AI-specific legislation may be needed eventually, the immediate priority is for law enforcement to integrate AI into their crime-fighting efforts.

An initiative like this would involve using AI tools to combat AI-enabled crimes effectively, as fraudsters and criminals exploit AI’s potential to deceive.

While AI crime remains a relatively new phenomenon, recent examples such as the $25 million Deepfake CFO fraud show the growing threat.

The report also highlights the role of AI in phishing scams, romance fraud, and other deceptive practices, warning that future AI-driven crimes may become harder to detect as technology evolves.

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Genius Group forced to sell Bitcoin after US court order

Genius Group, an AI-focused education firm based in Singapore, has been compelled to sell part of its Bitcoin holdings after a US court blocked it from raising funds or investing.

The Southern District of New York issued the injunction on 13 March. It halted the company’s $150 million at-the-market financing and disrupted its Bitcoin-first treasury strategy. As a result, Genius Group has trimmed its Bitcoin reserves from 440 to 430 to cover operational costs.

The dispute centres on Genius Group’s attempt to exit an Asset Purchase Agreement (APA) with Fatbrain AI. Fatbrain shareholders and the SEC accused the firm’s executives of fraud linked to the APA.

In response, Michael Moe and Peter Ritz, associated with Fatbrain AI, successfully sought a restraining order against Genius Group. The company claims the order is based on falsehoods.

A transcript allegedly detailing a plan to leverage the court system for financial gain was presented as evidence. Both parties have used it in different legal actions.

The injunction has had far-reaching effects, forcing Genius Group to shut down divisions and pause investments. It has also caused the company to violate Singaporean labour laws by being unable to issue share-based compensation.

CEO Roger James Hamilton voiced frustration, stating the situation undermines corporate autonomy. Despite setbacks, the company remains committed to Bitcoin and is appealing to overturn the court’s decision.

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Microsoft rethinks AI data centre strategy amid market shifts

Microsoft has reportedly scaled back or delayed several major data centre projects, just three months after announcing plans to invest $80 billion in AI infrastructure through the current fiscal year.

According to Bloomberg, the company has paused developments in multiple locations, including Australia, Indonesia, the United Kingdom, and US states such as Illinois, North Dakota, and Wisconsin.

Instead of denying the report, Microsoft confirmed adjustments to its plans, citing the need for long-term flexibility. A spokesperson said the company continuously reviews future infrastructure needs to ensure alignment with growing AI demand, adding that the changes reflect Microsoft’s adaptable strategy.

The halted projects include negotiations for high-performance AI chip facilities in the UK and a site near Chicago, along with construction delays in Jakarta and Wisconsin.

These moves come amid growing scrutiny over whether the AI sector is entering a bubble, especially as emerging models challenge the assumption that vast computing power is always necessary for innovation.

Instead of sticking to high-cost development, Microsoft may be responding to a new trend: efficient, lower-cost AI models from Chinese firms that rival those of Western tech giants.

With AI development costs dropping and access expanding, Microsoft’s strategic pause could reflect a shift towards a more sustainable and agile future in AI infrastructure.

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Law firm investigates potential fraud in Libra meme coin launch

The Treanor Law Firm is investigating potential fraud, market manipulation, and racketeering. These issues are related to the controversial launch of the Libra meme coin (LIBRA).

The token, which was heavily promoted by Argentine President Javier Milei, quickly soared to a market cap of $1.17 billion. It crashed 97% after Milei distanced himself from the project. The firm is seeking victims to support a potential lawsuit against those behind the token’s creation and promotion.

The Libra token was marketed as a project designed to boost the Argentine economy and fund small businesses. However, its rapid collapse has raised questions about the validity of the claims made to investors.

The Treanor Law Firm’s investigation is focused on whether investors were misled during the sale and whether market manipulation occurred. Over 75,000 wallets have reportedly lost money, with total losses exceeding $280 million.

In addition to investigating fraud and market manipulation, the firm is considering whether racketeering violations are involved. If racketeering is proven, victims could be entitled to triple damages.

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India among few developing nations with strong AI investment

India and China were the only developing nations to attract notable private investment in AI in 2023, according to the UN’s Technology and Innovation Report 2025. Instead of the US simply leading the field, it dominated with $67 billion in AI investment, accounting for 70 per cent of the global total.

China followed with $7.8 billion, while India ranked tenth worldwide with $1.4 billion. Instead of being evenly distributed, access to AI infrastructure and research remains heavily concentrated in a handful of countries, mainly the US and China.

India’s rise in the AI space stems from policy-driven innovation and education rather than organic growth alone. It climbed to 36th place out of 170 on the UNCTAD Frontier Technologies Readiness Index in 2024, improving from 48th in 2022.

Instead of only focusing on economic size, the index measures readiness through ICT availability, skills, R&D, industrial capacity, and financing. India performed well in R&D and industrial capacity but fell behind in ICT access and skill development.

India has supported its AI ecosystem through collaboration between the government, academia, and the private sector. The country hosts a large developer base, around 13 million, and contributes actively to generative AI projects on platforms like GitHub.

Programmes such as the India AI Mission aim to boost AI education and innovation in smaller cities, instead of keeping progress limited to major urban centres. Institutes like IIT Hyderabad and IIT Kharagpur were named among the country’s key centres of AI excellence.

Still, India faces challenges in expanding its AI capabilities across all sectors. Instead of allowing AI to widen inequalities, the report urges investment in workforce reskilling and inclusion. While AI can boost productivity, it may also displace jobs unless paired with supportive policies.

The technology, if harnessed wisely, could create new industries and strengthen employment rather than replace it.

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Apple and Samsung brace for impact as US tariffs take effect

US President Donald Trump has announced new import tariffs that could significantly impact smartphone prices and the profit margins of leading manufacturers.

Apple and Samsung, which dominate United States smartphone sales, are particularly vulnerable due to their heavy reliance on production in China and Vietnam. Under the new tariff scheme, China faces a 34 per cent import levy, while Vietnam is subject to a 46 per cent fee.

Industry analysts warn that if the tariffs remain unchanged, consumers will likely see higher prices on smartphones and other electronic devices.

Ben Wood, chief analyst at CCS Insight, noted that Apple and Samsung may attempt to cushion some of the added costs, but this would put pressure on their profit margins.

Foxconn, Apple’s primary manufacturing partner, has been shifting production to India in an effort to reduce reliance on China. However, India is also affected by the tariffs, facing a 26 per cent reciprocal rate.

Samsung faces similar challenges, with limited options to offset the impact of the new tariffs. Even if the company moved all production back to South Korea, it would still be subject to a 25 per cent import duty.

The new tariff measures are expected to have broad implications for the consumer electronics industry, potentially reshaping global supply chains and pricing structures.

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Lumai raises $10 million to revolutionise AI with optical technology

AI accelerator startup Lumai has secured over $10 million in funding to advance its optical computing technology.

The investment round was led by Constructor Capital, with support from IP Group and new investors including PhotonVentures, Journey Ventures, and State Farm Ventures. The funding will be used to expand Lumai’s workforce, develop new products, and establish a stronger presence in the United States market.

Spun out of the University of Oxford, Lumai aims to tackle the growing energy demands of AI by replacing traditional silicon-based computing with optical processing.

Its technology processes AI’s core arithmetic operations using beams of light in 3D space, bypassing the limitations of conventional GPUs.

By using low-cost optical components, Lumai claims its accelerators can cut AI inference costs to a tenth of current solutions while delivering 50 times the performance and consuming just 10% of the power.

The demand for AI computing power is increasing rapidly, with US data centres expected to triple their energy consumption by 2028.

Lumai’s CEO, Tim Weil, believes optical computing is the key to unlocking the future of AI, enabling more sustainable and cost-effective advancements in large language models and next-generation AI.

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Siemens buys Dotmatics to boost AI drug research

Siemens announced on Wednesday its acquisition of US software firm Dotmatics for $5.1 billion, aiming to enhance its AI capabilities for drug discovery.

The German company described the deal as complementary to its expansion into Life Sciences, positioning itself in a market increasingly reliant on digital transformation to meet growing medical needs.

Siemens expects Dotmatics to generate $100 million annually in the mid-term, rising to $500 million in the long run, and said the acquisition would be immediately profitable. The transaction is set to be completed in the first half of next year.

Founded in 2005, Dotmatics employs 800 people and specialises in AI-driven R&D software designed to accelerate drug research. This move follows Siemens’ recent $10 billion purchase of another AI-powered US software firm, Altair Engineering.

As Siemens’ industrial software faces slowing demand, its digital division has been driving revenue growth instead of its traditional factory automation products. The company, Germany’s second-largest by market value, continues expanding its software portfolio to capitalise on AI-driven innovations.

For more information on these topics, visit diplomacy.edu.