Economic Archives | Page 446 of 709 | Digital Watch Observatory

Xpeng plans major investment in humanoid robots

Chinese electric vehicle maker Xpeng is making a long-term push into humanoid robots, with potential investments reaching up to 100 billion yuan ($13.8 billion), according to CEO He Xiaopeng. Speaking at the annual parliamentary session, He described the company’s current investment as conservative but signalled a willingness to scale up significantly over the next two decades. Xpeng, which entered the humanoid robotics sector in 2020, unveiled its Iron humanoid robot last November, positioning it as a rival to Tesla’s Bot.

Chinese automakers are increasingly venturing into robotics, encouraged by policymakers aiming for breakthroughs in the field. Stellantis-backed Leapmotor has also joined the race, forming a robotics team to develop machines for industrial applications such as factory assembly lines. CEO Zhu Jiangming stated that these robots are intended to enhance efficiency by replacing human labour in production processes.

Xpeng’s CEO suggested that automakers could invest between 1-2 billion yuan per year in developing and deploying humanoid robots in real-world scenarios. As the industry shifts towards automation, carmakers are betting that advanced robotics will play a crucial role in future manufacturing and mobility solutions.

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

Coinbase calls for a unified crypto scam reporting system

The reporting system for crypto scams in the US is fragmented and needs to be unified, according to Coinbase’s chief security officer, Philip Martin. Speaking at the SXSW conference, Martin explained that victims often struggle to know where to report scams, with different organisations handling cases in a disjointed manner. He called for a single reporting system that would help track the scale of the issue and improve coordination between organisations.

Martin pointed out that victims of crypto scams often feel frustrated, as many reports seem to go unnoticed, especially with platforms like the FBI’s Internet Crime Complaint Centre (IC3). He suggested that a more centralised approach would provide better visibility for victims and more effective resources to address the problem.

In addition, Martin noted that many crypto scams originate from outside the US, making it harder for law enforcement to take action. He advocated for stronger international cooperation to ensure scammers have no safe havens. Meanwhile, California’s financial regulator reported over 2,600 complaints last year, revealing new types of scams in the crypto space.

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

Poland pushes ahead with tech tax despite US criticism

Poland’s deputy prime minister reaffirmed plans to introduce a new tax on big tech firms despite warnings from the incoming US ambassador, intensifying tensions between Warsaw and Washington. Deputy Prime Minister Krzysztof Gawkowski dismissed Ambassador Thomas Rose’s remarks as interference, calling it ‘sick’ for another country to dictate Poland’s legislation.

The dispute adds to growing friction between the two allies, fueled by a recent online clash involving US Secretary of State Marco Rubio, Elon Musk, and Polish Foreign Minister Radoslaw Sikorski over Poland’s funding of Ukraine’s Starlink services. Polish Prime Minister Donald Tusk also weighed in, cautioning against ‘arrogance’ from Poland’s allies.

While Gawkowski has not provided specifics on the proposed tax, he suggested it would target the profits of major tech companies operating in Poland and support local tech development. However, some within Poland’s coalition government question the timing, warning of potential trade consequences. Meanwhile, the nationalist opposition party Law and Justice (PiS) argues that the move risks straining relations with Washington.

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

Allstate faces lawsuit for security failures in data breach

New York State has taken legal action against Allstate, accusing its National General unit of mishandling customer data security and failing to report a breach that exposed sensitive information.

The state’s Attorney General, Letitia James, filed the lawsuit in Manhattan, claiming that the breaches, which occurred in 2020 and 2021, resulted in hackers accessing the driver’s license numbers of over 360,000 people.

According to the lawsuit, National General did not notify affected drivers or state agencies about the first breach, which occurred between August and November 2020.

The second, larger breach, was discovered three months later in January 2021. James alleges that National General violated the state’s Stop Hacks and Improve Electronic Data Security Act by failing to protect customer information adequately.

In response, Allstate defended its actions, stating that it had resolved the issue years ago, secured its systems, and offered free credit monitoring to affected consumers.

The lawsuit seeks civil fines of $5,000 per violation, in addition to other remedies. This legal action follows similar penalties imposed on other US companies for data security lapses, including fines for Geico and Travelers.

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

US Senate to vote on updated stablecoin bill

The US Senate Banking Committee is set to vote on the updated GENIUS Act, a Republican-led stablecoin bill, on 13 March.

The bill, which aims to regulate US dollar stablecoin issuers with market caps over $10 billion, was updated following bipartisan discussions with Democrats.

The revised version includes significant improvements in areas such as consumer protection, risk mitigation, and transparency.

The bill, co-sponsored by Republican Senators Bill Hagerty, Cynthia Lummis, and Tim Scott, alongside Democrats Kirsten Gillibrand and Angela Alsobrooks, introduces higher standards for foreign stablecoin issuers, including stricter reserve requirements and anti-money laundering checks.

The changes are expected to give US-based stablecoins, such as Circle’s USDC, a competitive edge.

Although the bill has made significant progress, it still needs to pass the Senate Banking Committee vote before moving to the full Senate and then the House.

If it clears these hurdles, the bill will head to President Trump for approval or veto.

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

Kraken about to boost UK crypto services

Kraken has secured an Electronic Money Institution licence from the UK’s Financial Conduct Authority, allowing it to issue electronic money and offer faster deposits and withdrawals for British customers.

The move strengthens Kraken’s ability to partner with traditional financial institutions and expand its crypto services across the UK.

Bivu Das, Kraken’s UK General Manager, highlighted the growing demand for crypto-based financial services, stating that the UK is on the verge of mass adoption.

Recent research from the FCA shows that 12% of UK adults now hold crypto, with trading volumes in sterling continuing to rise.

The approval follows Kraken’s recent regulatory success in the EU, where it gained permission to offer regulated derivatives.

With compliance secured in both the UK and Europe, Kraken is positioning itself as a bridge between crypto and traditional finance, with plans to launch new products in the coming months.

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

Chinese investors turn to AI for stock market edge

Chinese retail investors are rapidly embracing AI tools like DeepSeek to navigate the stock market, marking a striking shift from last year’s government crackdown on computer-driven quantitative trading.

Online courses and packed training rooms reflect a growing eagerness among small-time traders to use AI-powered models, with many seeing them as essential in the digital age.

DeepSeek, developed by a hedge fund in Hangzhou, has not only boosted Chinese stocks but also reshaped perceptions of the country’s $700 billion hedge fund industry.

Despite the initial backlash against quant funds, which were previously blamed for market volatility, investors are now paying thousands of yuan to attend AI trading seminars.

Social media is flooded with courses teaching traders how to use DeepSeek to analyse companies, pick stocks, and even code their own trading strategies.

While major US funds like BlackRock and Renaissance Technologies have long used AI for investments, DeepSeek’s open-source model makes these tools accessible to China’s smaller asset managers and individual traders.

Financial institutions are also adapting to the AI-driven shift. Brokers are rushing to integrate AI models into their platforms, with industry leaders predicting a complete transformation in how Chinese investors make decisions.

Many now seek trading advice from DeepSeek instead of human wealth managers, reflecting a deep trust in the technology. However, experts warn that AI models still have limitations and could create market risks, especially if large numbers of traders act on the same signals.

While some remain cautious about AI’s role in investing, DeepSeek has undeniably changed public attitudes towards quant fund managers.

Many now view them as contributors to market efficiency rather than as culprits behind retail losses. As China’s stock market continues to evolve, AI looks set to play an increasingly dominant role in shaping investor behaviour.

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

US regulator backs away from stricter crypto oversight

The acting head of the US Securities and Exchange Commission (SEC) has directed staff to explore scrapping a plan that would have imposed stricter rules on cryptocurrency firms.

The proposal, introduced in 2022, aimed to classify certain crypto firms as alternative trading systems, subjecting them to increased oversight.

However, SEC Acting Chairman Mark Uyeda now considers this move a mistake, particularly as it was tied to Treasury market regulations.

Uyeda argued that linking government securities regulation with the crypto sector created unnecessary burdens. Speaking to bankers, he stressed the importance of separating the two and has asked SEC staff to revisit discussions with financial regulators about the original Treasury market plans.

The shift comes amid a broader change in the SEC’s approach to crypto under Republican leadership. In January, the agency formed a dedicated crypto task force and has begun pausing or dropping lawsuits against crypto firms, signalling a major policy shift towards a more industry-friendly stance.

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

Meta has developed an AI chip to cut reliance on Nvidia, Reuters reports

Meta, the owner of Facebook, Instagram, and WhatsApp, is testing its first in-house chip designed for training AI systems, sources told Reuters.

The social media giant has started a limited rollout of the chip, planning to scale up production if testing delivers positive results. The move represents a crucial step in Meta’s strategy to lessen dependence on external suppliers like Nvidia and lower substantial infrastructure costs.

The company has projected expenses between $114 billion and $119 billion for 2025, with up to $65 billion dedicated to AI infrastructure.

The chip, part of Meta’s Meta Training and Inference Accelerator (MTIA) series, is a dedicated AI accelerator, meaning it is specifically designed for AI tasks rather than general processing. This could make it more power-efficient than traditional GPUs.

Meta is collaborating with Taiwan-based chip manufacturer TSMC to produce the new hardware. The test phase follows Meta’s first ‘tape-out’ of the chip, a crucial milestone in silicon development where an initial design is sent to a chip factory.

However, this process is costly and time-consuming, with no guarantee of success, and any failure would require repeating the tape-out step.

Meta has previously faced setbacks in its custom chip development, including scrapping an earlier version of an inference chip after poor test results. However, the company has since used another MTIA chip for AI-powered recommendations on Facebook and Instagram.

The new training chip aims to first enhance recommendation systems before expanding to generative AI applications like the chatbot Meta AI.

Meta executives hope to implement their own chips for AI training by 2026, although the company continues to be one of Nvidia’s biggest customers, investing heavily in GPUs for its AI operations.

The development comes as AI researchers increasingly question whether scaling up large language models by adding more computing power will continue to drive progress. The recent emergence of more efficient AI models, such as those from Chinese startup DeepSeek, has intensified these debates.

While Nvidia remains a dominant force in AI hardware, fluctuating investor confidence and broader market concerns have caused turbulence in the company’s stock value.

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

Google revises AI team’s mission statement, removing equity focus

Google has quietly updated the webpage for its Responsible AI and Human-Centred Technology team, removing references to diversity and equity

Terms such as ‘marginalised communities’ and ‘underrepresented groups’ have been replaced with more neutral language. The changes were first spotted by watchdog group The Midas Project, which previously reported similar edits to Google’s Startups Founders Fund page.

The company’s move comes amid a broader rollback of diversity, equity, and inclusion (DEI) initiatives across the tech industry. Google announced in February that it would end its diversity hiring targets and reassess its DEI programmes.

Other companies, including Amazon and Meta, have also scaled back diversity policies in response to legal and political pressures from the Trump administration, which has criticised such initiatives.

Federal contracts could be influencing these decisions, as many of the affected companies, including Google, work closely with United States agencies.

While some firms, such as OpenAI, have removed diversity language from hiring pages, Apple recently rejected a shareholder proposal to eliminate its DEI programmes. The changes suggest a shifting landscape for corporate diversity efforts in the US tech sector.

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