Economic Archives | Page 451 of 709 | Digital Watch Observatory

Google acknowledges AI being used for harmful content

Google has reported receiving over 250 complaints globally about its AI software being used to create deepfake terrorist content, according to Australia’s eSafety Commission.

The tech giant also acknowledged dozens of user reports alleging that its AI program, Gemini, was being exploited to generate child abuse material. Under Australian law, companies must provide regular updates on their efforts to minimise harm or risk hefty fines.

The eSafety Commission described Google’s disclosure as a ‘world-first insight’ into how AI tools may be misused to produce harmful and illegal content.

Between April 2023 and February 2024, Google received 258 reports of suspected AI-generated extremist material and 86 related to child exploitation. However, the company did not specify how many of these reports were verified.

A Google spokesperson stated that the company strictly prohibits AI-generated content related to terrorism, child abuse, and other illegal activities.

While it uses automated detection to remove AI-generated child exploitation material, the same system is not applied to extremist content.

Meanwhile, the regulator has previously fined platforms like X (formerly Twitter) and Telegram for failing to meet reporting requirements, with both companies planning to appeal.

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Singapore expands charges in server fraud case

Singapore authorities have filed additional charges against three men in a widening investigation into server fraud, which may involve AI chips, court documents revealed on Thursday.

The suspects are accused of deceiving tech firms Dell and Super Micro by falsely representing the final destination of the servers they purchased.

Officials have stated the servers could contain Nvidia chips but have not confirmed whether they fall under US export controls.

The case is part of a broader probe involving 22 individuals and companies suspected of fraudulent transactions. US authorities are also investigating whether Chinese AI firm DeepSeek has been using restricted American chips.

Singapore has confirmed that some servers were sent to Malaysia, where authorities are now examining if any laws were violated.

Two suspects, Aaron Woon and Alan Wei, face additional fraud charges, while a third, Li Ming, had his earlier charge updated to include an alleged offence dating back to 2023.

Lawyers representing the men have either declined to comment or stated that the case is complex due to its international scope.

Meanwhile, Singapore police have seized 42 electronic devices and are analysing bank statements as they work with foreign law enforcement to trace the movement of funds.

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Microsoft drops parts of CoreWeave partnership

Microsoft has reportedly scaled back parts of its agreements with cloud computing provider CoreWeave due to delivery issues and missed deadlines, according to the Financial Times.

Despite maintaining several contracts worth billions, the tech giant has moved away from certain deals, though the decision is said to be unrelated to any broader changes in its data centre strategy.

CoreWeave, backed by Nvidia, specialises in providing high-powered AI computing resources and competes with major cloud providers like Microsoft Azure and Amazon AWS.

The company is preparing for a major initial public offering (IPO) in New York, aiming for a valuation exceeding $35 billion and seeking to raise over $3 billion.

The cloud provider recently expanded its capabilities by acquiring AI developer platform Weights & Biases for an undisclosed sum.

Neither Microsoft, CoreWeave, nor Nvidia have responded to requests for comment regarding the report.

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Alibaba unveils new AI model boosting shares by 8%

Alibaba Group’s latest AI breakthrough sent its Hong Kong-listed shares soaring more than 8% on Thursday.

The e-commerce giant announced its new AI reasoning model, QwQ-32B, which it claims performs on par with DeepSeek’s R1 model despite having far fewer parameters—32 billion compared to 671 billion.

The unveiling comes as China pushes for advancements in AI, humanoid robots, and 6G technology, with government support pledged on Wednesday.

Alibaba’s new model is available through its chatbot service, Qwen Chat, which offers various AI models, including the high-powered Qwen2.5-Max.

The company said QwQ-32B demonstrated strong performance in areas such as mathematical reasoning, coding, and problem-solving, competing closely with top global models like OpenAI’s o1 mini and DeepSeek’s R1.

DeepSeek has gained recognition in China for producing highly efficient AI models at a fraction of the cost of its Western rivals.

Meanwhile, another Chinese AI innovation also made headlines on Thursday. A startup called Monica introduced an AI agent named Manus, which reportedly outperformed OpenAI’s Deep Research on an AI assistant benchmark.

Unlike traditional chatbots, AI agents are designed for more complex tasks, with Manus capable of creating travel itineraries and comparing insurance policies.

Currently available by invitation only, the agent gained significant attention online, with a demonstration video amassing over 280,000 views and users eager to gain access.

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Google unveils experimental AI search for premium users

Google has introduced an experimental version of its search engine that removes the traditional 10 blue links in favour of AI-generated summaries.

The new ‘AI Mode’ is available to subscribers of Google One AI Premium, a $19.99 per month plan, and can be accessed through a tab alongside existing options like Images and Maps.

Users will see a detailed AI summary with hyperlinks to cited sources, replacing standard search results with a search bar for follow-up questions.

The feature is powered by a customised version of Google’s Gemini 2.0 model, designed to handle complex queries more effectively.

AI Overviews, which provide summaries atop search results, are already available in over 100 countries, with advertisements integrated into them since last May. Google says the new AI-driven approach responds to demand from “power users” seeking more AI-generated responses.

As Google pushes deeper into AI-powered search, it faces competition from Microsoft-backed OpenAI, which introduced search capabilities to ChatGPT last October.

The shift has raised concerns among content creators, with edtech company Chegg suing Google in February, alleging that AI previews are reducing demand for original content and hurting publishers’ ability to compete.

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Singapore minister warns against crypto investments amid rising fraud

Singapore’s Minister of State for Home Affairs, Sun Xueling, has issued a strong warning about the risks of investing in cryptocurrency, citing an alarming rise in fraud cases.

During a parliamentary debate on 4 March, she explained that the anonymous nature of digital assets makes them easy targets for criminals, contributing to a sharp increase in financial losses. Fraud linked to cryptocurrency scams now accounts for a quarter of the $1.1 billion in fraud cases reported in the country.

Scammers increasingly use digital assets to evade traditional banking security checks, often instructing victims to convert their money into cryptocurrency.

Hacking, phishing, and fraudulent investment schemes have become more common, with one of the largest scams last year resulting in a loss of $125 million. Sun urged the public to avoid cryptocurrencies, stressing the high risk and slim chances of recovering stolen funds.

Despite the rise in scams, Singapore’s regulatory landscape continues to evolve. The Monetary Authority of Singapore oversees local cryptocurrency operations under the Payment Services Act, but many foreign exchanges remain outside its jurisdiction.

To combat rising fraud, the country recently passed the Anti-Fraud Protection Bill, which allows authorities to block transactions from suspected victims who ignore warnings.

As Singapore balances crypto adoption and consumer protection, businesses are increasingly embracing digital payments, particularly stablecoins. The entry of major players, such as Robinhood, into Singapore’s crypto market is set to boost the adoption of blockchain-based transactions.

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Cryptocurrency adoption surges with over 824 million people owning digital assets

A new report from venture capital firm Epoch reveals that over 824 million people globally now own some form of cryptocurrency, marking a significant surge in adoption.

Rapid growth is largely fuelled by strong price performance, increasing institutional interest, and the rise of accessible investment options such as Bitcoin ETFs. Bitcoin continues to lead the charge, with an estimated 422 to 455 million owners, or roughly 5% of the world’s population.

While cryptocurrency ownership has traditionally been dominated by younger men, the study notes a shift in demographics, with more women now entering the space.

Approximately 13% of women aged 26 to 45 report owning Bitcoin, a figure influenced by ‘ownership by association’ through spouses or partners. The shift highlights the growing legitimacy and accessibility of digital assets, especially with traditional financial institutions backing crypto ETFs.

Institutional and corporate investments are further accelerating crypto adoption. The launch of Bitcoin ETFs has provided a regulated pathway for large investors, while corporations like Microsoft and Amazon are exploring Bitcoin as a reserve asset.

The report predicts that if the top ten US companies allocated just 5% of their cash reserves to Bitcoin, it would result in a $40 billion inflow into the market.

Looking ahead, the study suggests that nation-states are also considering Bitcoin as part of their reserves. With Bitcoin’s unique characteristics, such as liquidity, scarcity, and independent custody, it could potentially surpass gold as a sovereign reserve asset in the coming decade.

The continued growth in adoption signals a promising future for cryptocurrencies, bolstered by increasing awareness and new use cases.

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US hits Chinese hackers with indictments and sanctions over cyber espionage

The United States has indicted ten individuals, including employees of the Chinese tech company i-Soon, for their involvement in a years-long cyber espionage campaign that targeted various US government agencies and organisations worldwide.

The campaign allegedly stole sensitive data from entities such as the US Defense Intelligence Agency, the Department of Commerce, and foreign ministry of Taiwan. The hackers, associated with i-Soon, were reportedly hired by Chinese intelligence agencies to breach email systems for substantial payments.

Along with the indictments, the US Treasury Department has imposed sanctions on Shanghai-based Heiying Information Technology and its founder, Zhou Shuai, accusing them of selling stolen data and providing access to compromised networks.

The data reportedly included information from US critical infrastructure networks. Some of this stolen data was later acquired by a previously sanctioned Chinese hacker, Yin Kecheng.

The Chinese embassy in Washington responded by condemning the sanctions and stating that it would take necessary actions to protect Chinese companies and citizens.

The US government’s aggressive stance is part of an ongoing effort to curb Chinese cyber espionage activities and defend its digital infrastructure.

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Northumberland approves Blackstone’s data centre project

Blackstone’s ambitious $13 billion ‘hyperscale’ data centre project in North East England has been given the green light by Northumberland County Council. The plan, which spans 540,000 square metres, was approved after a unanimous vote and is expected to represent an investment of up to £10 billion. The data centre will provide essential data storage and cloud computing services to businesses, addressing the rising demand in sectors such as AI.

The development is expected to generate substantial economic benefits, including up to 1,200 long-term construction jobs and hundreds of operational roles once the centre is running. Additionally, it could support up to 2,700 indirect jobs. As part of the agreement, Blackstone will contribute to a £110 million fund that will help drive growth along the Northumberland Line, a new railway route opened in December 2024.

This development follows the collapse of a previous plan to use the site for a Britishvolt facility, after the UK startup’s failure last year. With demand for data centres escalating, particularly due to AI advancements, this project is poised to play a crucial role in meeting growing technological needs across Europe.

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New Hampshire moves closer to allowing Bitcoin investments

New Hampshire’s Bitcoin bill has cleared a major hurdle, passing the House Commerce and Consumer Affairs Committee with a 16-1 vote. The bill now moves to the House floor, where lawmakers will decide whether to allow the state treasurer to invest up to 5% of certain state funds in Bitcoin. While the bill does not mention Bitcoin by name, it limits investments to digital assets with a $500 billion market cap, making Bitcoin the only eligible cryptocurrency.

Introduced by Republican Keith Ammon and co-sponsored by Democrats Chris McAleer and Carry Spier, the bill originally proposed a 10% allocation but was later amended to 5%. It also permits investments in gold, silver, and platinum while removing provisions for stablecoins and staking. Treasurer Monica Mezzapelle has expressed interest in using the bill’s framework if it becomes law.

New Hampshire joins several US states, including North Carolina, Oklahoma, and Texas, in advancing Bitcoin-related legislation. Meanwhile, at the federal level, former President Donald Trump has proposed a Crypto Strategic Reserve, which is expected to be composed primarily of Bitcoin.

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