Economic Archives | Page 423 of 708 | Digital Watch Observatory

ChatGPT adds one million users per hour with AI image tool

OpenAI’s ChatGPT is experiencing unprecedented growth following the release of its new AI image generation feature. According to CEO Sam Altman, the AI tool has been attracting one million new users per hour, spurred by what he described as ‘biblical demand.’

The GPT-4o model, now available to free users, has quickly become a sensation, drawing comparisons to the app’s initial launch 26 months ago.

The latest update allows users to generate highly detailed visuals, including logos, diagrams, and imagery with precise meaning. OpenAI has touted GPT-4o’s ability to accurately render text, follow prompts closely, and draw from its extensive knowledge base to produce tailored visuals.

Popular uses include crafting images in the style of Studio Ghibli, which has led to a flood of creative outputs shared across social media platforms.

However, the overwhelming popularity has strained OpenAI’s resources. Sam Altman acknowledged the situation by noting that their GPUs were ‘melting’ under the pressure.

To manage the surge, OpenAI implemented temporary rate limits to enhance efficiency and maintain service quality.

The company’s success has also attracted significant investment, with OpenAI securing $40 billion in funding, bringing its valuation to $300 billion.

Since launching in November 2022, ChatGPT has amassed 500 million users, solidifying its position as one of the most influential AI platforms globally.

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Dutch police struggle with cyberattacks and underfunding

A leaked report has revealed serious financial and digital failings within the Dutch police, including unchecked spending on IT and cybersecurity.

Auditors from Ernst & Young found that the force must cut €160 million, raising concerns over national security and officer safety.

The Dutch Police Union warns that chronic understaffing, daily cyberattacks and a lack of digital resilience have pushed the system to breaking point.

A September data breach affected nearly all officers, and experts say over €300 million is needed to restore proper infrastructure.

Police Chief Janny Knol acknowledged the force underestimated the costs of digital transformation.

Merged systems from 24 regional departments have caused spiralling maintenance issues, while key tech projects run over budget and behind schedule. Urgent reforms are now planned.

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MetaAI launches in Europe amid data concerns

Meta has resumed the roll-out of its MetaAI across Europe after halting the launch last year due to regulatory uncertainty.

The Irish Data Protection Commission (DPC) still has questions regarding Meta’s AI tool, particularly in relation to its use of personal data from Facebook and Instagram users to train large language models.

The company has been in discussions with the DPC, but instead of an agreement, it remains under review as the tool continues to roll out.

MetaAI was first introduced in the US in September 2023, followed by India in June 2024, and the UK in October. It enables users to interact with a chat function across Facebook, Instagram, Messenger, and WhatsApp.

However, its expansion in Europe faced delays last summer due to concerns raised by the Irish privacy watchdog.

The company has expressed confidence in its compliance with the EU’s data protection laws and has been transparent with the DPC about its launch. However, failure to comply with the General Data Protection Regulation (GDPR) could lead to significant fines.

Additionally, certain aspects of MetaAI fall under the scope of Europe’s Digital Services Act (DSA), which requires the company to meet specific standards on user safety and transparency.

The European Commission has indicated it is waiting for a risk assessment from Meta to ensure that the tool complies with DSA obligations. While initial elements may not be directly relevant to the DSA, the Commission will continue to monitor the deployment closely.

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CFTC removes crypto derivatives advisories to align with traditional finance

The Commodity Futures Trading Commission (CFTC) has withdrawn two key staff advisories. These advisories set distinct regulatory expectations for cryptocurrency derivatives.

The move aligns the oversight of crypto-based financial instruments with traditional financial products. It marks a significant step towards regulatory parity.

The CFTC decided to rescind Staff Advisory No. 18-14, which outlined guidance on virtual currency derivative product listings. Advisory No. 23-07, which addressed risks in expanded digital asset clearing, was also withdrawn as the digital asset market matures.

These withdrawals signal the agency’s growing confidence in the crypto market’s development. It also shows its readiness to treat crypto derivatives like traditional financial products.

By eliminating these advisory distinctions, the CFTC is aiming to foster greater institutional engagement with crypto derivatives markets. The agency’s shift toward harmonising regulatory practices is expected to reduce uncertainty. It is also likely to encourage broader market participation.

The decision aligns with broader regulatory trends in the US. Other agencies have also taken steps to reduce the regulatory gap between traditional finance and digital assets.

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Elon Musk denies the US government’s plans for Dogecoin use

Elon Musk has clarified that there are no plans for the US government to adopt Dogecoin. He addressed these concerns during a recent town hall in Green Bay, Wisconsin.

Speaking at the 30 March event, Musk denied any government involvement with the cryptocurrency. He stated ‘There are no plans for the government to use Dogecoin or anything as far as I know.’

Dogecoin was initially created in 2013 as a parody. It gained unexpected popularity, peaking at a market cap of $84 billion in 2021.

Despite the Shiba Inu-themed coin’s rise, Musk emphasised that Dogecoin’s mission is unrelated to any government agency. It includes Trump’s newly created agency, DOGE, aimed at reducing regulatory red tape.

Musk’s growing visibility in government initiatives has attracted scrutiny, particularly over the potential downsizing of federal workers. Musk’s involvement with the America PAC has also raised concerns among Tesla shareholders. The CEO acknowledged a significant drop in Tesla stock value.

Meanwhile, questions remain about how Musk’s political alignment could impact the future of Dogecoin and government efficiency efforts.

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Brazilians invest more in cryptocurrency than in stocks or gold

A recent survey commissioned by Coinbase and Hashdex has revealed that cryptocurrency has gained significant popularity in Brazil. It has surpassed traditional investment options like stocks and gold.

The survey found that savings accounts remain the most common investment tool for Brazilians. However, cryptocurrency has emerged as a strong contender, ranking ahead of both gold and the stock market.

Despite being the fifth most popular investment overall, cryptocurrency (16%) has outperformed other options such as dollars, foreign currency, and bonds.

Money under the mattress (24%) and investment funds (19%) are also ahead of crypto. The survey indicates that the growing acceptance of cryptocurrency is reshaping the Brazilian investment landscape.

Experts suggest that the high-risk, high-reward nature of cryptocurrency appeals to a significant portion of Brazilian investors. Many of them in Brazil are drawn to volatile assets, with 29% of participants viewing cryptocurrency similarly to betting.

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Runway expands AI video capabilities with Gen-4

Runway has unveiled Gen-4, its most advanced AI-powered video generator yet, promising superior character consistency, realistic motion, and world understanding.

The model is now available to individual and enterprise users, allowing them to generate dynamic videos using visual references and text-based instructions.

Backed by investors such as Google and Nvidia, Runway faces fierce competition from OpenAI and Google in the AI video space. The company has differentiated itself by securing Hollywood partnerships and investing heavily in AI-generated filmmaking.

However, it remains tight-lipped about its training data, raising concerns over copyright issues.

Runway is currently embroiled in a lawsuit from artists accusing the company of training its models on copyrighted works instead of getting permission. The company claims fair use as a defence.

Meanwhile, it is reportedly seeking new funding at a $4 billion valuation, with hopes of reaching $300 million in annual revenue. As AI video tools advance, concerns grow over their impact on jobs in the entertainment industry, with thousands of positions at risk.

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Gazprom launches digital financial assets worth 2 billion rubles

Gazprom, the majority state-owned Russian energy giant, has entered the growing market of digital financial assets (DFAs). The launch includes blockchain-powered DFAs, worth 2 billion rubles (around $23.5 million).

The tokens, issued by Gazprombank via the Moscow Exchange’s DFA platform, offer an annual yield of 21%. There are 2 million tokens in circulation, each worth 1,000 rubles ($11.77). They will mature in May 2025, exchanging for a fiat sum of 1024.74 rubles ($12.06).

Interestingly, these DFAs are open to non-qualified investors, allowing retail buyers to trade them. It is a rare feature in the DFA market, as many tokens are restricted to corporate or professional investors.

Gazprom’s move highlights the growing interest in digital assets within Russia’s energy sector. It joins other Russian giants such as Rostelecom, which recently launched its own DFAs.

The expansion of Russia’s DFA market is evident, with Sberbank reporting a cumulative trading volume of 684 billion rubles ($8 billion) in February. Gazprom is also investing heavily in the crypto space, with a subsidiary focused on crypto mining.

The company is building a mining centre in Veliky Novgorod, planning to invest around $500 million by 2028.

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OpenAI expands image generator access to all users

OpenAI has made its image generator, powered by the GPT-4o model, accessible to all users, CEO Sam Altman announced on X. Previously, this feature was available only to paying ChatGPT subscribers.

While there is no clear indication of how many images free-tier users can create, Altman previously mentioned a possible limit of three per day.

The tool has seen massive demand since its launch, with Altman joking that OpenAI’s GPUs were ‘melting’ under the pressure. However, it has also sparked controversy, particularly after users began generating images in the style of Studio Ghibli, raising copyright concerns.

Others have used the generator to create fake receipts, such as restaurant bills. OpenAI has responded by stating that all AI-generated images contain metadata identifying them and that the company takes action when violations occur.

In a major financial development, OpenAI has secured $40 billion in funding from SoftBank, valuing the company at $300 billion. The company also revealed that ChatGPT now boasts 500 million weekly active users and 700 million monthly active users, marking a significant milestone in its growth.

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Hut 8 launches American Bitcoin Corp. with Eric and Donald Trump Jr.

Hut 8 Corp. has unveiled the launch of American Bitcoin Corp., a new venture focused on large-scale Bitcoin mining. The venture is in collaboration with Eric and Donald Trump Jr.

The goal is to become the largest and most efficient pure-play Bitcoin miner, while also establishing a strategic Bitcoin reserve. It marks a significant shift in Hut 8’s operations as it transfers most of its ASIC miners to American Bitcoin.

American Bitcoin is now the sole operator of Hut 8’s Bitcoin mining activities. Hut 8 remains serving as the exclusive partner for infrastructure and operations. The reorganisation is designed to support long-term growth.

The leadership of American Bitcoin includes Mike Ho as Executive Chairman, Matt Prusak as CEO, and Eric Trump as Chief Strategy Officer. Hut 8 will provide critical services such as ASIC colocation and managed services.

The partnership aims to significantly strengthen both companies’ positions in the rapidly growing Bitcoin sector.

Mati Greenspan, CFO of Quantum Expeditions, highlighted the significance of the Trump family’s involvement. He noted that it signals strong potential for investment in Bitcoin infrastructure.

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