El Salvador has signed a mutual agreement with Argentina to advance their digital asset industries through collaboration and training. The partnership, announced by Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets, pairs Argentina’s innovative blockchain sector with El Salvador’s expertise in digital regulation.
The agreement focuses on sharing knowledge and refining regulatory frameworks, with Reyes highlighting the benefits of cooperation. He noted El Salvador’s early adoption of digital asset regulations and its ongoing discussions with over 25 other nations for similar collaborations.
Reyes urged global regulators to act swiftly in creating effective crypto rules, warning against delays that could expose the industry to scams and financial crimes. El Salvador’s commitment to cross-border partnerships aims to foster global progress in the digital asset market.
The United Nations has established a dedicated body to safeguard submarine cables, which transmit over 99% of global data, including emails, video streams, and government communications. The initiative aims to address the vulnerability of this critical infrastructure to natural disasters, accidents, and suspected acts of sabotage. Around 200 cable failures are reported annually, with incidents such as a 2022 tsunami cutting off the Pacific island of Tonga for a month.
The new body, comprising 40 experts from public and private sectors, will focus on ensuring cables are built and maintained with greater resilience. While its mandate does not extend to investigating potential sabotage, it seeks to expedite repairs and minimise disruptions. ITU Deputy Secretary-General Tomas Lamanauskas emphasised the importance of this effort, citing the impact cable failures have on economies and societies worldwide.
As cable disruptions become increasingly common, experts believe the UN’s efforts will help stabilise a crucial global network. A follow-up summit in Nigeria is planned for February, continuing discussions on enhancing undersea cable resilience and safeguarding international data flow.
Autonomous agents and profitability are predicted to define the AI landscape in 2025, according to industry experts. These agents, designed to perform tasks like scheduling or making purchases without direct user input, are gaining momentum due to advancements in reasoning techniques. OpenAI CFO Sarah Friar anticipates rapid progress in this area, emphasising their potential to simplify everyday activities.
The emergence of step-by-step reasoning methods, exemplified by OpenAI’s recent models, has paved the way for this evolution. Friar, who joined the Microsoft-backed company earlier this year, also highlighted the approaching milestone of AGI, predicting its arrival in the near term. Such developments promise to reshape the capabilities of AI, enabling it to surpass human efficiency in economically valuable tasks.
Industry leaders are already witnessing the transformative impact of AI. George Mathew from Insight Partners cited significant productivity gains, such as digital sales teams that operate at a fraction of traditional labour costs. Similarly, Molly Alter of Northzone forecasted 2025 as a turning point for AI profitability, shifting the focus from growth to improved profit margins through streamlined processes.
Beyond startups, established firms are integrating AI into their workflows. For example, BNY Mellon has equipped thousands of employees with tools to create AI-powered agents. CEO Robin Vince highlighted these tools’ ability to deliver insights and solutions that were previously unattainable, underscoring AI’s growing role in enhancing business efficiency and client services.
Singaporean asset manager Keppel and Vietnam’s Sovico Group are in discussions to develop undersea fibre-optic cables aimed at boosting Southeast Asia’s data centre industry. The potential $150 million project would directly link Vietnam with Singapore, a critical regional hub for data infrastructure. However, talks remain fluid, with Keppel reportedly favouring a larger consortium-led project extending from Singapore to Japan, while Sovico supports a direct connection.
The discussions highlight Southeast Asia’s growing demand for AI services and internet capacity, with Vietnam planning 10 new submarine cables by 2030. These cables are also a focal point in the ongoing US-China tech rivalry, with the United States lobbying against the involvement of Chinese contractors, citing security concerns. US officials have reportedly briefed Sovico and other stakeholders on the risks of working with China’s HMN Technologies.
Vietnam, with a rapidly growing digital economy and a population nearing 100 million, currently relies on five undersea cable branches for global connectivity. Expanding its cable infrastructure is seen as key to establishing itself as a regional data hub, despite challenges like power shortages and stringent data regulations. Keppel and Sovico’s efforts, along with other planned projects, signal significant investment in the region’s digital future.
Meta has announced the release of a new AI model, Meta Motivo, designed to enhance the realism of human-like digital agents in the Metaverse. This innovation promises more lifelike movements for avatars, addressing longstanding issues with digital body control. The company believes these advancements will revolutionise character animation and create immersive experiences with highly interactive non-playable characters (NPCs).
Meta’s focus on AI and Metaverse technologies has led to record-breaking investment forecasts for 2024, with capital expenditures projected to reach up to $40 billion. The company has also embraced an open-source approach by making its AI models available for free to developers, fostering innovation across its platforms.
In addition to Meta Motivo, the company introduced the Large Concept Model (LCM), an AI system designed to reimagine language modelling by focusing on high-level concepts rather than predicting text tokens. This system processes entire sentences in multilingual and multimodal contexts, aiming to enhance reasoning capabilities. Meta also unveiled Video Seal, a tool that embeds invisible, traceable watermarks into videos, signalling its commitment to both innovation and security in digital content creation.
These releases reflect Meta’s vision of advancing AI to shape the future of digital interaction and the Metaverse, aiming to establish itself as a leader in cutting-edge virtual and augmented reality technologies.
The US Securities and Exchange Commission (SEC) has reopened its investigation into Neuralink, Elon Musk’s brain-chip startup, according to a letter shared by Musk on X, formerly known as Twitter. The letter, dated Dec. 12 and written by Musk’s attorney Alex Spiro, also revealed that the SEC issued Musk a 48-hour deadline to settle a probe into his $44 billion takeover of Twitter or face charges. The settlement amount remains undisclosed.
Musk’s tumultuous relationship with the SEC has resurfaced amid allegations that he misled investors about Neuralink’s brain implant safety. Despite ongoing investigations, the extent to which the SEC can take action against Musk is uncertain. Musk, who also leads Tesla and SpaceX, is positioned to gain significant political leverage after investing heavily in supporting Donald Trump’s presidential campaign. Trump, in turn, has appointed Musk to a government reform task force, raising questions about potential regulatory leniency toward his ventures.
In the letter, Spiro criticised the SEC’s actions, stating Musk would not be “intimidated” and reserving his legal rights. This marks the latest in a series of clashes between Musk and the SEC, including a 2018 lawsuit over misleading Tesla-related tweets, which Musk settled by paying $20 million and stepping down as Tesla chairman. Both the SEC and Neuralink have yet to comment on the reopened investigation.
Google’s latest quantum chip, Willow, has stirred discussions in the cryptocurrency world. Capable of completing a computation in minutes that would take supercomputers billions of years, Willow raised concerns over its potential to breach Bitcoin’s encryption, which secures the $2 trillion blockchain. Bitcoin’s price briefly dipped after the announcement but quickly recovered.
While the crypto community acknowledges the theoretical risks of quantum computing, panic remains subdued. Developers, including Ethereum’s founder Vitalik Buterin, suggest that blockchains can be updated to resist quantum threats, just as Bitcoin was improved with the Taproot upgrade in 2021.
For now, the threat seems distant. Willow’s achievement, though impressive, lacks immediate commercial applications. Experts agree the crypto industry has time to adapt before quantum computing poses a genuine risk.
Russia has the potential to improve its global AI standing by 2030, bolstered by local talent and the development of its own generative AI models, according to Alexander Vedyakhin, the first deputy CEO of Sberbank. Speaking at the bank’s AI Journey conference, Vedyakhin highlighted the resilience of Russian developers in navigating Western sanctions, which aimed to limit the country’s computing resources. He emphasised the importance of fostering experimentation to maintain progress in AI.
Although Russia currently trails the US and China in AI innovation by six to nine months, Vedyakhin is optimistic about closing the gap. Instead of building massive data centres, Russia is focusing on smart AI models tailored to its market, similar to Meta’s Llama. These efforts, he said, will ensure technological sovereignty, especially as generative AI gains global importance. For example, Russian language models address local cultural contexts better than English-trained systems, avoiding misunderstandings like misinterpreting cultural dishes.
President Vladimir Putin also underscored the strategic significance of AI, announcing plans to collaborate with BRICS countries to challenge US dominance. Vedyakhin added that while Europe and China face setbacks due to overregulation, Russia’s supportive regulatory environment could be a competitive advantage. Encouraging investment in AI startups and allowing for innovation without severe penalties for mistakes are key to advancing the sector.
Despite a broader decline in venture capital investment in Russia, funding for AI startups continues to grow, hinting at a more diversified market. Vedyakhin also suggested that decentralised autonomous organizations (DAOs), powered by blockchain, could address labour shortages, paving the way for Russia to strengthen its AI ecosystem in the years ahead.
Casa, a crypto custody company, has unveiled a new self-custody option called Praetorian, aimed at helping sovereign nations securely manage their Bitcoin reserves. The service uses multi-signature vaults spread across various jurisdictions, ensuring high levels of security and autonomy. Casa’s CEO, Nick Neuman, stated that self-custody gives nations complete control over their reserves, offering peace of mind even if the company ceases to operate.
The idea of Bitcoin as a strategic reserve is gaining traction. Investor Anthony Pompliano highlighted the global race for Bitcoin, noting how its scarcity could drive nations to secure their share. Recently, US Senator Cynthia Lummis proposed converting some gold holdings into Bitcoin, while Vancouver Mayor Ken Sim suggested Bitcoin could serve as a treasury asset to protect against inflation.
At the Bitcoin MENA 2024 conference, former Binance CEO Changpeng Zhao predicted that China would establish a Bitcoin reserve if the US moves forward with such plans under the incoming administration.
Nvidia has added around 200 employees in China this year, boosting its research capabilities and focusing on autonomous driving technologies, Bloomberg News reports. The company now employs nearly 600 people in Beijing, with a recently opened office in the Zhongguancun tech hub, according to sources familiar with the matter.
Despite its expansion, Nvidia faces headwinds in China, including an ongoing investigation into alleged violations of the country’s anti-monopoly laws. This probe is widely interpreted as a response to US restrictions on China’s chip sector. Nvidia declined to comment on the situation.
China contributed about 17% of Nvidia’s revenue in the year ending January, down from 26% two years earlier. Globally, Nvidia employs around 29,600 people across 36 countries, as detailed in its February 2024 filing.
