Economic

Mobile coverage from space may soon be reality

Satellite-based mobile coverage could arrive in the UK by the end of 2025, with Ofcom launching a consultation on licensing direct-to-smartphone services.

The move would allow users to stay connected in areas without mast coverage using an ordinary mobile phone.

The proposal favours mobile networks teaming up with satellite operators to share frequencies in unserved regions, offering limited services like text messaging at first, with voice and data to follow.

Ofcom plans strict interference controls, and Vodafone is among those preparing to roll out such technology.

If approved, the service would be available across the UK mainland and surrounding seas, but not yet in places like the Channel Islands.

The public has until May to respond, as Ofcom seeks to modernise mobile access and help close the digital divide.

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Custodia and Vantage launch first US bank-issued stablecoin

Custodia Bank and Vantage Bank have launched Avit, the first US bank-issued stablecoin deployed on a permissionless blockchain.

Tokenised US dollar demand deposits were issued on Ethereum using the ERC-20 standard, marking a significant development in the financial sector. Custodia described the initiative as a new payment rail within the US banking system.

Custodia CEO Caitlin Long emphasised that Avit represents a ‘real dollar’ stablecoin, backed by demand deposits rather than synthetic tokens. Vantage Bank CEO Jeff Sinnott highlighted the launch as a transformative payment moment. He emphasised the growing role of blockchain in traditional banking.

Ethereum supporters praised Custodia’s choice of blockchain, with industry figures pointing out its dominance in securing stablecoins and tokenised assets.

The network currently holds over $125.8 billion in stablecoins, significantly outpacing competitors. Additionally, Ethereum hosts more than $3.6 billion in tokenised US Treasury bills.

Stablecoin adoption has surged, with active wallets increasing by 53% over the past year. The total supply of stablecoins also jumped from $138 billion in February 2024 to $225 billion a year later.

Federal Reserve Governor Christopher Waller stated that they could strengthen the currency’s global dominance by facilitating faster payments and supporting financial inclusion.

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Brazilian authorities reaffirm the World crypto ban over privacy concerns

Brazil’s data protection agency, the National Data Protection Authority (ANDP), has upheld its ban on World, formerly known as Worldcoin, in the country.

The ban prevents the company from offering financial compensation to users who provide biometric data, specifically iris scans. ANDP rejected a petition from World ID developer, Tools For Humanity, to review the restriction.

The agency’s decision comes after concerns that providing financial rewards for biometric data could undermine users’ ability to consent.

The company now faces a daily fine of 50,000 Brazilian reais ($8,800) if it resumes data collection activities. Concerns over privacy violations tied to the project’s biometric data collection were mounting at the time.

While World ID has faced opposition in Brazil, the push for digital identity solutions continues in other regions. Some companies are finding ways to develop digital identity solutions without infringing on privacy or facing regulatory pushback.

Billions Network launched a platform using zero-knowledge verification technology. It has already been tested by major financial institutions.

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How to protect your business from infostealer malware and credential theft

Cybercriminals stole billions of login credentials last year using infostealer malware, putting businesses worldwide at serious risk.

These malicious tools quietly harvest passwords and session tokens from infected devices, often within minutes.

To fight back, companies must use strong multi-factor authentication, store passwords in dedicated managers, and protect devices with advanced endpoint security.

Simple browser-stored logins are no longer safe, and attackers are getting better at bypassing weak defences.

Reducing session lifespans, using hardware-backed logins, and training staff to spot phishing threats are all key to staying secure.

By combining tech with human vigilance, organisations can stay ahead of attackers and safeguard their systems and data.

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China’s AI industry is transforming with open-source models, challenging the OpenAI proprietary approach

China’s AI landscape is witnessing a profound transformation as it embraces open-source large language models (LLMs), largely propelled by the innovative efforts of DeepSeek. The startup’s R1 model, released under the highly permissive ‘MIT License,’ has sparked a significant shift away from proprietary approaches dominated by major American tech firms, paving the way for increased accessibility, collaboration, and innovation.

That transition is likened to an ‘Android moment’ for China’s AI industry, highlighting the sector’s move towards more available and flexible AI development. The ripple effects of this open-source movement are evident across China’s tech giants. Baidu, long a proponent of proprietary models, has announced its shift to open-source by making its AI models, Ernie 4.5 and Ernie X1, freely available and plans to release them as open-source.

The following strategic pivot reflects the competitive pressure of disruptors like DeepSeek, prompting companies to revise their business models to maintain market relevance. Alibaba and Tencent are also joining this trend by open-sourcing their AI offerings, while smaller firms like ManusAI are following suit, embracing the open-source ethos to drive innovation and market presence.

The shift towards open-source models in China starkly contrasts the OpenAI’s continued focus on proprietary strategies bolstered by hefty investments. The open-source trend underscores a growing discourse on the future of AI development, investment, and competitive dynamics, with open-source frameworks emerging as potential harbingers of sustainable growth and inclusive technological advancement.

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Anduril confident in Trump-era defence priorities

Anduril, the AI-powered defence start-up founded by Palmer Luckey, is optimistic about the Trump administration’s approach to defence reform.

Company president Christian Brose said the administration’s focus on innovation aligns with Anduril’s work in low-cost autonomous military systems. The firm recently partnered with OpenAI to integrate advanced artificial intelligence into national security missions.

Brose, a former adviser to Senator John McCain, has long criticised traditional defence procurement processes and believes the administration’s willingness to do things differently presents a major opportunity.

The company is expanding its global footprint, with plans to build manufacturing facilities outside the United States. Australia has emerged as a key market, with Anduril’s AI intrusion detection software being trialled at RAAF Base Darwin, where US Marines rotate annually.

The firm is also bidding to produce solid rocket motors for Australia’s Guided Weapons and Explosive Ordnance Enterprise.

Its Ghost Shark autonomous underwater system, developed in collaboration with the Australian Defence Force, is moving towards large-scale production, with a dedicated facility planned in New South Wales.

Autonomous military technology is a growing focus under the AUKUS treaty, which will see Australia invest heavily in nuclear-powered submarines with the support from the United States and the United Kingdom.

Brose emphasised that both crewed and autonomous systems will play a role in modern defence strategies, with the advantage of autonomous platforms being their faster production, larger deployment scale, and lower cost.

Anduril’s continued expansion highlights the increasing demand for AI-driven defence solutions in a rapidly evolving global security landscape.

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OpenAI unveils new image generator in ChatGPT

OpenAI has rolled out an image generator feature within ChatGPT, enabling users to create realistic images with improved accuracy. The new feature, available for all Plus, Pro, Team, and Free users, is powered by GPT-4o, which now offers distortion-free images and more accurate text generation.

OpenAI shared a sample image of a boarding pass, showcasing the advanced capabilities of the new tool.

Previously, image generation was available through DALL-E, but its results often contained errors and were easily identifiable as AI-generated. Now integrated into ChatGPT, the new tool allows users to describe images with specific details such as colours, aspect ratios, and transparent backgrounds.

The update aims to enhance creative freedom while maintaining a higher standard of image quality.

CEO Sam Altman praised the feature as a ‘new high-water mark’ for creative control, although he acknowledged the potential for some users to create offensive content.

OpenAI plans to monitor how users interact with this tool and adjust as needed, especially as the technology moves closer to artificial general intelligence (AGI).

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AI startups in Silicon Valley rethink VC funding with leaner teams and strategic growth

In Silicon Valley, a notable trend is emerging as AI startups achieve significant revenue with leaner teams, challenging traditional venture capital (VC) funding models. Companies, sometimes with as few as 20 employees, are reporting revenues reaching tens of millions, highlighted by their participation in the accelerator Y Combinator (YC).

That shift signifies a transformation in startup dynamics, as many founders desire to scale without relying heavily on VC funding. They use the analogy of summiting Mount Everest with minimal oxygen, comparing it to reducing VC dependency, even in oversubscribed rounds. Raising less capital allows founders to retain greater ownership and flexibility for future business decisions.

The following strategic move is partly informed by past experiences where inflated valuations forced companies to endure ‘down rounds’. Terrence Rohan of Otherwise Fund notes that it’s becoming more common for YC startups to accept less capital than is offered, reflecting a more nuanced understanding of the implications of equity dilution.

However, not everyone endorses this strategy. Parker Conrad, CEO of Rippling, argues that lower funding could hinder a startup’s ability to invest in crucial growth areas like R&D and marketing, which are vital for product development and competitive advantage.

Conrad stresses the importance of substantial funding to accelerate growth, suggesting that it plays a crucial role in market expansion. Despite differing viewpoints, the examples of AI startups like Anysphere and ElevenLabs, which achieved high revenue with minimal staff yet secured significant funding, illustrate the ongoing allure of venture capital.

Overall, a changing perception is taking hold among YC founders, who are now more aware of both the advantages and pitfalls of VC funding. Pursuing capital from elite VC firms is no longer the sole indicator of success.

Instead, these startups favour strategic fundraising, considering the risks of overvaluation and excessive dilution. That shift reflects a broader evolution in the startup ecosystem, balancing lean operations with the potential benefits of venture capital to shape growth and maintain control strategically.

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US tightens controls on China’s tech sector amid security fears

The United States has added six subsidiaries of China’s leading cloud computing firm, Inspur Group, along with dozens of other Chinese entities, to its export restriction list.

Washington accuses the companies of aiding China’s military by developing supercomputers and advanced AI technologies. The move is part of a broader strategy to curb China’s progress in high-performance computing, quantum technology, and hypersonic weapons development.

Other companies from Taiwan, Iran, Pakistan, South Africa, and the UAE were also included in the latest restrictions. China has strongly condemned the US decision, calling it an attempt to ‘weaponise trade and technology.’

The Chinese foreign ministry has vowed to take necessary measures to protect its firms, while the Beijing Academy of Artificial Intelligence, which was also targeted, called for the restrictions to be withdrawn.

Companies added to the US Entity List require special licences to access American technology, which are unlikely to be granted. The restrictions could impact major Chinese tech firms linked to AI and computing, such as Huawei and Sugon.

The United States Commerce Department argues that these measures are necessary to prevent China and other countries from using American technology for military applications. Officials insist they will not allow adversaries to strengthen their military capabilities with US-made components.

The latest crackdown follows a 2023 decision to blacklist Inspur Group, which led to scrutiny of its business ties with major US chipmakers such as Nvidia and AMD. Washington also aims to block Iran’s procurement of drone and missile technology as part of its broader national security efforts.

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China warns US against ‘hegemonic thinking’

China’s foreign ministry has criticised the US for viewing China through a ‘hegemonic mentality’ after Washington labelled it the top military and cyber threat.

Ministry spokesperson Guo Jiakun accused the US of pushing the ‘China threat’ narrative as a means to contain and suppress the country.

The latest exchange highlights ongoing tensions between the two global powers, particularly over security, technology, and military influence. Beijing has consistently rejected US claims regarding cyber espionage and military expansion, arguing that such accusations are politically motivated.

Relations between China and the US have remained strained, with disputes spanning trade, Taiwan, and cybersecurity.

Despite diplomatic efforts to stabilise ties, the two nations continue to challenge each other’s policies and strategic moves on the global stage.

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