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Human-level AI still a decade away, Meta scientist warns

Achieving human-level AI may be at least a decade away, according to Meta’s AI scientist, Yann LeCun. Current AI systems, like large language models, fall short of true reasoning, memory, and planning, even though companies like OpenAI market their technologies with terms like ‘memory’ and ‘thinking’. LeCun cautions against the hype, saying these systems lack the deeper understanding required for complex human tasks.

LeCun argues that the limitations stem from how these AI models function. LLMs predict words, while image and video models predict pixels, making them capable of only single or two-dimensional predictions. In contrast, humans operate in a three-dimensional world, able to plan and adapt intuitively. Even the most advanced AI struggles with everyday actions, such as cleaning a room or driving a car, tasks children and teenagers can learn with ease.

The key to more advanced AI, according to LeCun, lies in ‘world models’ – systems capable of perceiving and predicting outcomes within a three-dimensional environment. These models would allow AI to form action plans without trial and error, similar to how humans quickly solve problems by envisioning the results of their actions. However, building these systems requires massive computational power, driving cloud providers to partner with AI companies.

FAIR, Meta’s research arm, has shifted its focus towards developing world models and objective-driven AI. Other labs are also pursuing this approach, with researchers such as Fei-Fei Li raising significant funding to explore the potential of world models. Despite growing interest, LeCun emphasises that significant technical challenges remain, and achieving human-level AI will likely take many years, if not a full decade.

AI platform aims to ease electrician shortage with faster tech installations

With the US facing a growing shortage of electricians, Treehouse, a startup, is using AI to help make installations of electric vehicle (EV) chargers, heat pumps, and other tech more efficient and affordable. As the demand for renewable energy and electrification surges, Treehouse has developed AI models to predict job times, materials needed, and to eliminate unnecessary site visits, which typically slow down the process. By gathering data and asking customers key questions, Treehouse can streamline quoting and installation processes, especially for simpler jobs like EV chargers.

Treehouse uses its AI-driven platform to design installations and assist in permitting, often completing jobs with minimal visits from electricians. For more complex installations, like heat pumps, the company may require additional photos or virtual visits. Treehouse works in 40 states, hiring independent electricians for many of the jobs, and plans to expand its operations across all 50 states by the end of the year. With a recent $16 million Series A funding round, the company aims to improve its AI tools and grow its team.

Founder and CEO Eric Owski believes the electrification trend will continue to reshape how consumers think about home energy, with EV chargers being just the starting point. Treehouse’s partnerships with companies like CarMax and ChargePoint also help boost its reach as it tackles the ongoing electrician shortage.

EU decision gives X flexibility amid big tech regulations

The European Commission has determined that X, Elon Musk’s social media platform, does not qualify as a ‘gatekeeper’ under the Digital Markets Act (DMA), exempting it from additional compliance obligations. The Commission’s decision follows a May investigation initiated after X asserted it was not a key intermediary between businesses and consumers. While X meets user thresholds and turnover criteria, the Commission clarified that it does not significantly connect business users with end consumers.

Under the DMA, which took effect in 2023, companies must have at least 45 million end users and 10,000 business users in Europe, along with an annual turnover of €7.5 billion over the last three years, to be classified as gatekeepers. Major tech firms like Google, Amazon, Apple, Meta, Microsoft, and TikTok’s parent company ByteDance have already received gatekeeper status, imposing on them strict regulations to ensure fair competition and consumer choice.

Apple has faced penalties under the DMA, with the European Commission ruling in June that its App Store practices violated the regulations. While several companies, including Apple and Meta, have appealed their gatekeeper designations, X remains unaffected by these rules for now. This decision allows X more operational flexibility compared to its competitors, although it indicates that the Commission is closely monitoring the interactions between large platforms, businesses, and consumers in the digital marketplace.

EU member states face cybersecurity directive deadline challenges

Many EU member states are set to miss the October 17 deadline to implement the Network and Information Security Directive (N I S 2), aimed at enhancing cybersecurity for critical sectors. Only Belgium, Croatia, Italy, and Lithuania have made partial progress, while others like Germany and the Netherlands have pending legislation, and countries such as Ireland and Spain lag further behind. The directive, approved in 2022, expands protections for sectors like energy, transport, banking, and water, and replaces the previous NIS1 directive, which failed to boost cyber resilience.

Businesses are concerned about the fragmented implementation and compliance challenges, particularly for companies operating across multiple markets. The European Federation of National Associations of Water Services (EurEau) warned that delays create uncertainty for water operators, who may need financial support to meet cybersecurity requirements. Similarly, the software lobby group BSA criticised the lack of guidance on incident reporting, a key aspect of NIS 2.

The European DIGITAL SME Alliance expressed worries for small and medium enterprises that might be impacted if they are part of larger companies’ supply chains under NIS 2. The directive mandates penalties for non-compliance, including fines of up to €10 million or 2% of global revenue, and holds senior management accountable for security breaches, signaling a shift in responsibility beyond IT departments.

Alchemy Pay and Yellow Card bring easier crypto access to millions across Africa

Alchemy Pay has formed a new partnership with Yellow Card, a fintech company that operates in 20 African countries. The collaboration aims to simplify the process for African users to buy cryptocurrency using familiar local payment methods like bank transfers and mobile money, making crypto more accessible to people in countries such as South Africa, Uganda, and Rwanda.

Yellow Card’s existing payment infrastructure, which processes over $3 billion in transactions, will now support Alchemy Pay’s service, enabling users to easily convert local currencies into cryptocurrency. This move is expected to open up new financial opportunities for millions of people across Africa, promoting participation in decentralised finance (DeFi) and stablecoins.

Additionally, Alchemy Pay has integrated Samsung Pay into its Virtual Card service, alongside Google Pay, providing users with more options for making crypto payments. The company continues to expand its services, including partnerships with Scroll, to improve access to digital assets like Tether and USDC for global users.

Wolfspeed’s shares surge following grant announcement

Wolfspeed is set to receive $750 million in government grants for its new silicon carbide wafer manufacturing plant in North Carolina, as announced by the US Commerce Department. This funding news caused the US chipmaker’s shares to surge over 30%. The preliminary agreement requires Wolfspeed to strengthen its balance sheet to safeguard taxpayer funds.

Investment firms, led by Apollo Global Management, have pledged an additional $750 million in financing for Wolfspeed. The company produces energy-efficient chips using silicon carbide, crucial for applications like electric vehicles and renewable energy systems. As part of a larger $6 billion expansion plan, Wolfspeed aims to increase its manufacturing capacity in Marcy, New York.

Wolfspeed anticipates up to $1 billion in cash tax refunds from the advanced manufacturing tax credit under the Chips and Science Act. CEO Gregg Lowe highlighted the significance of Wolfspeed’s products to the US economy and national security. However, the company has encountered difficulties this year, with its stock plummeting nearly 75% due to a decline in electric vehicle demand. The grant remains subject to due diligence and is not yet finalised.

ASML forecast triggers semiconductor market concerns

ASML’s lowered 2025 sales forecast has triggered a significant sell-off in semiconductor stocks, reflecting concerns over global chip demand. While the Dutch company’s revised forecast indicated €30 billion to €35 billion in net sales, this figure sits near the bottom of previous projections. Its stock plunged to record its biggest one-day drop in 25 years, sending shockwaves throughout the chipmaking sector.

The shift in outlook suggests that factory overcapacity, rather than weak demand, is affecting orders. Many manufacturers, including Intel, Samsung, and TSMC, had stocked up on ASML’s advanced tools during the pandemic. As production efficiency improved, fewer new machines were needed to keep up with stabilising demand. Analysts noted that chip factories have become better at maximising output with existing equipment.

Chip usage at production facilities remains around 81%, far from the 95% threshold where manufacturers typically invest in new tools. Industry experts also reported that new technology could reduce the reliance on ASML’s machines. Samsung, for example, is exploring advanced chip-etching techniques to minimise the use of ASML’s extreme ultraviolet lithography machines, potentially creating excess capacity.

Despite challenges, analysts maintain an optimistic long-term outlook for the semiconductor industry. AI-related chips and memory solutions remain in high demand, though the broader market continues to experience some volatility. Experts believe the current slowdown is a temporary phase before the sector resumes growth.

US FCC investigates telecom firms over data cap policies

The Federal Communications Commission (FCC) has announced a formal inquiry into the use of data caps by telecom companies. The investigation aims to assess how these caps impact consumers and market competition, particularly in an increasingly connected world.

FCC Chair Jessica Rosenworcel expressed concerns about the effects of limiting internet usage. She pointed out that data caps could harm small businesses by cutting off access to customers, penalise low-income families with additional fees, and limit essential communication tools for people with disabilities.

Rosenworcel noted that, for many Americans, rationing internet use would be unthinkable. However, millions of people across the country constantly face limitations on their data usage, which may hinder their ability to stay connected.

The inquiry is expected to explore whether these caps unfairly limit consumer choice and what impact they have on competition among telecom providers.

Grayscale seeks to convert its crypto fund into an ETF

Grayscale, a prominent crypto asset manager, has officially filed with the United States Securities and Exchange Commission (SEC) to convert its $520 million Digital Large Cap Fund into an exchange-traded fund (ETF). The New York Stock Exchange (NYSE) submitted the request on Grayscale’s behalf in a 14 October filing. This move aims to simplify the buying and selling of shares for investors by creating a spot ETF that holds the underlying assets rather than relying on futures contracts.

Currently managing over $524 million in assets, the fund is heavily weighted in Bitcoin, accounting for 76% of its portfolio, with Ether making up 18%. The conversion comes on the heels of the SEC’s changing stance on crypto ETFs, following a favourable court ruling for Grayscale earlier this year. Previously, the SEC had rejected all applications for spot crypto ETFs, but the new developments indicate a shift in regulatory approach.

Investors have been offloading shares following the ETF conversions of Grayscale’s Bitcoin Trust and Ethereum Trust, with notable outflows recorded. Since the conversion to ETFs, Grayscale’s Bitcoin fund has seen $21 billion in outflows, while its Ethereum ETF has recorded $3 billion. Meanwhile, Grayscale continues to expand its offerings, recently adding 35 altcoins to its consideration list for future investment products.

DOJ issues warning on trade association Information exchanges

The US Department of Justice (DOJ) has released a significant Statement of Interest, urging scrutiny of surveys and information exchanges managed by trade associations. The DOJ expressed concerns that such exchanges may create unique risks to competition, particularly when competitors share sensitive information exclusively among themselves.

According to the DOJ, antitrust laws will evaluate the context of any information exchange to determine its potential impact on competition. Sharing competitively sensitive information could disproportionately benefit participating companies at the expense of consumers, workers, and other stakeholders. The department noted that advancements in AI technology have intensified these concerns, allowing large amounts of detailed information to be exchanged quickly, potentially heightening the risk of anticompetitive behaviour.

This guidance follows the DOJ’s withdrawal of long-standing rules that established “safety zones” for information exchanges, which previously indicated that certain types of sharing were presumed lawful. By retracting this guidance, the DOJ signals a shift toward a more cautious, case-by-case approach, urging businesses to prioritise proactive risk management.

The DOJ’s statement, made in relation to an antitrust case in the pork industry, has wider implications for various sectors, including real estate. It highlights the need for organisations, such as Multiple Listing Services (MLS) and trade associations, to evaluate their practices and avoid environments that could lead to price-fixing or other anticompetitive behaviours. The DOJ encourages trade association executives to review their information-sharing protocols, educate members on legal risks, and monitor practices to ensure compliance with antitrust laws.