Chinese startup DeepSeek has claimed to build an advanced AI model at a fraction of the cost and time required by US tech giants, raising questions about the industry’s spending. The company stated it developed its V3 AI model in just two months for under $6 million, using Nvidia’s less-advanced H800 chips. An app powered by this model became the most downloaded app on the US iPhone store on Monday.
Founded in 2023, DeepSeek claims its AI models rival or outperform top competitors despite significantly lower costs, challenging the notion that scaling AI demands massive resources. This comes as US tech firms, part of the “Magnificent Seven,” have collectively added $10 trillion in market value since the AI boom sparked by ChatGPT in late 2022.
Industry analysts, however, remain sceptical of DeepSeek’s claims. Bernstein‘s Stacy Rasgon questioned whether the startup’s advancements could outpace those from established global AI labs, suggesting the company’s narrative might be overstated. The developments have drawn attention as investors scrutinise AI spending ahead of earnings reports from key industry players.
Metaplanet, a Tokyo-listed company, has unveiled a bold corporate treasury plan aiming to accumulate 10,000 Bitcoins by the end of 2025 and 21,000 by 2026. The initiative is designed to position the company as one of the world’s largest corporate holders of Bitcoin, with over $180 million worth of assets already in place.
The strategy dubbed the ’21 Million Plan’, involves issuing 21 million shares through moving strike warrants to raise nearly $740 million. This capital raise is set to be one of Asia’s largest bitcoin-focused equity raises. The plan aims to protect shareholder value by setting an exercise price at 100% of the previous day’s closing price, thus avoiding dilution.
Metaplanet has achieved impressive BTC yields, including a 309.82% return for Q4 2024, reinforcing the success of its strategy. The company’s Director of Bitcoin Strategy, Dylan LeClair, emphasised that the firm measures success by bitcoin yield, not fiat currencies. The company’s ultimate goal is to maximise Bitcoin per share for its shareholders, positioning Bitcoin not only as an asset but as an exit strategy.
Microsoft’s ambitious push into artificial intelligence is facing growing investor doubts as the company prepares to release its latest earnings report. Despite heavy investment in OpenAI and plans to spend $80 billion on AI infrastructure this fiscal year, its Azure cloud business has shown slowing growth for two consecutive quarters. Analysts now question whether AI-driven demand will be enough to reignite momentum.
The tech giant’s stock has underperformed many of its peers, with further pressure mounting after Chinese startup DeepSeek introduced a cost-effective AI model, sparking concerns about US dominance in the sector. Meanwhile, Microsoft’s AI-powered Copilot assistant has struggled to gain widespread traction beyond pilot programmes, forcing the company to adjust pricing strategies in an attempt to drive adoption.
While Microsoft still handles most of OpenAI’s cloud traffic, competition in AI infrastructure is intensifying. With investor sentiment turning cautious, the upcoming earnings report will be a key test of whether AI investments can translate into sustainable revenue growth.
A Californian company Nuvve, focused on vehicle-to-grid technology, has announced plans to invest up to 30% of its excess cash into Bitcoin. The move is part of the company’s broader strategy to diversify its treasury holdings. The actual amount of Bitcoin purchased will depend on market conditions and the company’s financial needs, according to a press release from 28 January.
In addition to holding Bitcoin, Nuvve intends to accept it as a payment method for both customers and suppliers. It is part of the company’s mission to promote grid electrification and offer more payment options with potentially lower transactional friction.
Nuvve’s decision to incorporate Bitcoin follows a growing trend among public companies, such as Oxbridge Re Holdings, which have added Bitcoin to their treasury reserves. Following the announcement, Nuvve’s shares saw a slight increase of 1.42% in pre-market trading.
Smiths Group, the British engineering firm known for its baggage-screening and explosive detection equipment, is addressing a cybersecurity breach involving unauthorised access to its systems. The company confirmed on Tuesday that it had isolated the affected systems as soon as the incident was detected.
Efforts are underway with cybersecurity experts to recover impacted systems and assess the broader implications of the breach. Smiths Group assured it is adhering to all regulatory requirements and promised to provide updates as necessary.
The incident, disclosed in the morning, sent the company’s shares down by as much as 2.3% in early trading. No further details have been provided about the breach or its potential consequences.
Figure AI has announced the creation of the Centre for the Advancement of Humanoid Safety, a new initiative aimed at ensuring humanoid robots can operate safely in workplaces. Led by former Amazon Robotics safety engineer Rob Gruendel, the centre will focus on testing AI-controlled robots for stability, human detection, and navigation to minimise accidents.
The rise of humanoid robots in warehouses and factories has sparked concerns about their potential risks. Unlike traditional industrial robots, which were confined to cages, these machines move freely among workers, raising safety questions. Existing solutions, such as Amazon’s wearable safety vest and Veo Robotics’ vision-based systems, have helped, but regulation remains largely absent.
Figure AI plans to release regular safety reports detailing its progress, testing methods, and solutions for potential hazards. As companies push to integrate humanoid robots into daily operations, and eventually, into homes, the need for clear safety standards is becoming increasingly urgent.
Hugging Face has introduced Inference Providers, a new feature that allows developers to run AI models on third-party cloud services. Partnering with companies like SambaNova, Fal, Replicate, and Together AI, the platform now offers users the flexibility to deploy models on different infrastructures directly from their project pages.
Previously, Hugging Face primarily focused on its in-house AI hosting solutions, but the company is shifting towards a more collaborative approach. By integrating with external serverless providers, developers can now scale their models without managing hardware, making deployment easier and more cost-efficient. Users will pay standard provider rates, and Hugging Face Pro subscribers will receive additional free credits.
Since its founding in 2016, Hugging Face has grown into a leading AI model hub, backed by major investors like Google, Amazon, and Nvidia. With its latest move, the company continues to expand its ecosystem, making AI more accessible for developers worldwide.
Donald Trump’s decision to ban the development of a United States Central Bank digital currency (CBDC) has shifted global momentum in the race to establish digital currencies. While the Federal Reserve has never shown strong interest in creating a digital dollar, the move sends a powerful signal internationally, leaving Europe and China as frontrunners in shaping global standards for CBDCs. Experts believe the US ban could enhance China’s influence, enabling it to push its digital yuan in developing countries while Europe advances plans for a digital euro.
Trump’s executive order prohibits US agencies from engaging in any CBDC-related activities, citing concerns over privacy, financial stability, and national sovereignty. Critics, including former allies of the CBDC concept, have raised fears about potential government surveillance through digital currencies. Meanwhile, some argue that stablecoins—private digital tokens pegged to the dollar—could serve as a temporary substitute, though this would require significant adjustments to existing financial systems.
The geopolitical implications of the US withdrawal are already emerging. Analysts see the move as a signal of “de-dollarisation,” with countries like Brazil continuing to develop their CBDCs despite the lack of US participation. The decision also puts collaborative international projects, such as those under the Bank for International Settlements, in jeopardy as they lose American involvement. Experts warn that without US engagement, the global CBDC landscape could shift in favour of China and Europe.
Italy’s data protection authority, the Garante, has ordered the Chinese AI startup DeepSeek to block its chatbot in the country, citing insufficient responses to queries about its privacy policy. The watchdog had requested detailed information on data collection practices, sources, purposes, and storage, particularly concerning whether user data is stored in China. DeepSeek’s failure to adequately address these concerns prompted the Garante to impose an immediate ban and launch an investigation.
DeepSeek had removed its AI assistant from Italian app stores earlier this week but claimed it was not subject to local regulation. Agostino Ghiglia, a member of the Garante’s board, stated that the company’s stance worsened its position. Italian users who had already downloaded the app still reported access to the chatbot, while the web version remains operational. The Garante emphasised that European citizens must have clear consent and data protection guarantees, especially regarding servers located in China.
The Garante’s action highlights growing scrutiny of AI platforms in Europe, with data regulators in Ireland and France also questioning DeepSeek’s privacy practices. Italy‘s proactive approach has drawn attention; the country temporarily banned ChatGPT in 2023 over similar concerns. DeepSeek has positioned its AI as a cost-effective alternative to US models, surpassing ChatGPT as the top-rated app on Apple’s US App Store. However, its refusal to cooperate with European regulators may jeopardise its expansion.
The digital revolution has brought in remarkable innovations, and quantum computing is emerging as one of its brightest stars. As this technology begins to showcase its immense potential, questions are being raised about its impact on blockchain and cryptocurrency. With its ability to tackle problems thought to be unsolvable, quantum computing is redefining the limits of computational power.
At the same time, its rapid advancements leave many wondering whether it will bolster the crypto ecosystem or undermine its security and decentralised nature. Can this computing breakthrough empower crypto, or does it pose a threat to its very foundations? Let’s dive deeper.
What is quantum computing?
Quantum computing represents a groundbreaking leap in technology. Unlike classical computers that process data in binary (0s and 1s), quantum computers use qubits, capable of existing in multiple states simultaneously due to quantum phenomena such as superposition and entanglement.
For example, Google’s new chip, Willow, is claimed to solve a problem in just five minutes—a task that would take the world’s fastest supercomputers approximately ten septillion years—highlighting the extraordinary power of quantum computing and fuelling further debate about its implications.
These advancements enable quantum machines to handle problems with countless variables, benefiting fields such as electric vehicles, climate research, and logistics optimisation. While quantum computing promises faster, more efficient processing, its intersection with blockchain technology adds a layer of complexity so the story takes an interesting twist.
How does quantum computing relate to blockchain?
Blockchain technology relies on cryptographic protocols to secure transactions and ensure decentralisation. Cryptocurrencies like Bitcoin and Ethereum use elliptic curve cryptography (ECC)to safeguard wallets and transactions through mathematical puzzles that classical computers cannot solve quickly.
Quantum computers pose a significant challenge to these cryptographic foundations. Their advanced processing power could potentially expose private keys or alter transaction records, threatening the trustless environment that blockchain depends upon.
Opportunities: Can crypto benefit from quantum computing?
While the risks are concerning, quantum computing offers several opportunities to revolutionise blockchain:
Enhanced security: Developers can leverage quantum principles to create stronger, quantum-secure algorithms.
Smarter decentralisation: Quantum-powered computations could enhance the functionality of smart contracts and decentralised apps (DApps).
By embracing quantum advancements, the blockchain industry could evolve to become more robust and scalable— hopefully great news for the crypto community, which is optimistic about the potential for progress.
How does quantum computing threaten cryptocurrency?
Despite its potential benefits, quantum computing poses significant risks to the cryptocurrency ecosystem, depending on how it is used and who controls it:
Breaking public key cryptography Quantum computers equipped with Shor’s algorithm can decrypt ECC and RSA encryption. Tasks that would take classical computers millennia could be accomplished by a quantum computer in mere hours. This capability threatens to expose private keys, allowing hackers to access wallets and steal funds.
Mining oligopoly The mining process, vital for cryptocurrency creation and transaction validation, depends on computational difficulty. Quantum computers could dominate mining activities, disrupting the decentralisation and fairness fundamental to blockchain systems.
Dormant wallet risks Wallets with exposed public keys, particularly older ones, are at heightened risk. A quantum attack could compromise these funds before users can adopt protective measures.
With projections suggesting that quantum computers capable of breaking current encryption standards could emerge within 10–20 years—or perhaps even sooner—the urgency to address these threats is intensifying.
Solutions: Quantum-resistant tokens and cryptography
Where there is a challenge, there is a solution. The crypto industry is proactively addressing quantum threats with quantum-resistant tokens and post-quantum cryptography. Lattice-based cryptography, for example, creates puzzles too complex for quantum computers, with projects like CRYSTALS-Kyber leading the charge. Hash-based methods, such as QRL’s XMSS, ensure data integrity, while code-based cryptography, like the McEliece system, uses noisy signals to protect messages. Multivariate polynomial cryptography also adds robust defences through complex equations.
As we can see, promising solutions are already actively working to uphold blockchain principles. These innovations are crucial not only for securing crypto assets but also for maintaining the integrity of blockchain networks. Quantum-resistant measures ensure that transaction records remain immutable, safeguarding the trust and transparency that decentralised systems are built upon.
The quantum future for crypto
Quantum computing holds tremendous promise for humanity, but it also brings challenges, particularly for blockchain and cryptocurrency. As its capabilities grow, the risks to existing cryptographic protocols become more apparent. However, the crypto community has shown remarkable resilience, with quantum-resistant technologies already being developed to secure the ecosystem. This cycle of threats and solutions is a perpetual motion—each technological advancement introduces new vulnerabilities, met with equally innovative defences. It is the inevitable price to pay for embracing the modern decentralised finance era and the transformative potential it brings.
The future of crypto does not have to be at odds with quantum advancements. With proactive innovation, collaboration, and the implementation of quantum-safe solutions, blockchain can survive and thrive in the quantum era. So, is quantum computing a threat to cryptocurrency? The answer lies in our ability to adapt. After all, with great power comes great responsibility—and opportunity.
