OpenAI’s latest version of ChatGPT, GPT o1, a nomenclature indicative of resetting the counter clock to 1, and its less costly mini version, represents a watershed moment in the company’s LLM stockpile. Designed to replicate superhuman-level intelligence, the models can already answer questions a lot faster than humans. This series of models will be unlike previous ones. In responding to queries, they utilise a human-like ‘chain of thought’ processing combined with reinforcement learning on specialised datasets and optimisation algorithms.
The model outperforms older models by a significant margin. For example, when tested against GPT-4o at the International Mathematics Olympiad, it scored 83 percent to GPT-4o’s 13 percent. What’s unique about the model is its ability to not only provide step-by-step reasoning for outputs but to show human-like patterns of hesitation during the process, ‘I’m curious about…’ and ‘Ok, let me see’ or ‘Oh, I’m running out of time, let me get to an answer quickly’. The new design has also resulted in a reduced occurrence of hallucinations. Yet, despite their many pros, the models have limitations. For instance, they cannot browse the internet, lack world knowledge, and cannot process files and images.
According to the lead researcher on the project, Jerry Tworek, the next level is for the models to perform similarly to PhD students on challenging benchmark tasks in areas such as physics, chemistry and biology. He assures that the intention here is not to equate AI with human thinking but rather to illustrate the model’s ability to dive cognitively deep. For the company, reasoning is a step up from pattern recognition, which is the design model used with previous versions. Ultimately, OpenAI aims to develop a product that can make decisions and take action on behalf of humans, a venture estimated to cost a further $USD 150 billion. Removing the current kinks in the system will mean that the models can work on complex global problems we face today in areas such as engineering and medicine.
More breakthroughs will also mean reduced access costs for developers and users. According to Chief Research Officer Bob McGrew, developer access to o1-preview is currently $15 per 1 million input tokens (chunks of text parsed by the model) and $60 per 1 million output tokens. GPT -o4 costs $5 per 1 million input tokens and $15 per 1 million output tokens.
Former US President Donald Trump has announced the launch of his cryptocurrency project, World Liberty Financial, set to go live on 16 September. In a video posted on X, Trump described the project as a move towards decentralised finance (DeFi) to move away from traditional banking systems. Trump’s sons, Donald Trump Jr. and Eric Trump, will be in charge of the project, which promises to offer services such as digital wallets, lending, and investing in crypto assets.
World Liberty Financial is also exploring the use of US dollar-pegged stablecoins and has hinted at a collaboration with the DeFi platform Aave, suggesting it may operate on the Ethereum blockchain. Despite Trump’s support for the crypto sector, some in the industry have expressed concerns about the launch timing, which comes just 50 days before the US presidential election, where Trump is a candidate.
The project has faced significant challenges, including attempts by hackers and scammers to exploit its hype. Accounts linked to Trump’s family were recently compromised, and false advertisements and giveaways have been circulating online. Despite these issues, Trump’s crypto venture continues to generate a mix of excitement and scepticism within the crypto community.
India has maintained its position as the global leader in cryptocurrency adoption for the second consecutive year, despite facing stringent regulations and high trading taxes. A report by blockchain analytics firm Chainalysis revealed that India performed strongly in both centralised and decentralised finance usage from June 2023 to July 2024.
India‘s cryptocurrency landscape has been marked by regulatory hurdles, including show-cause notices issued by the Financial Intelligence Unit to offshore exchanges for non-compliance. However, adoption remains widespread, with new participants entering the market through services that have avoided outright bans.
Binance, the world’s largest crypto exchange, faced significant regulatory challenges, including a fine of 188.2 million rupees, but its registration with Indian authorities could boost future adoption. Other South and Central Asian countries, such as Indonesia, Vietnam, and the Philippines, also ranked high in the global crypto adoption index.
Indonesia, despite banning cryptocurrencies as a means of payment, saw substantial digital asset investments, with $157.1 billion in inflows over the past year. The report highlighted a strong correlation between high decentralised transaction volumes and countries with lower purchasing power.
Connectly, a startup specialising in conversational commerce through AI-driven personalised messaging has secured $20 million in a Series B funding round. The round was led by Alibaba and included participation from several notable investors, such as Unusual Ventures and Volpe Capital. This new investment boosts Connectly’s total funding to $37.2 million and brings its valuation close to $100 million.
The funds will be used to advance AI research and support Connectly’s expansion into the US and European markets. Additionally, the company plans to strengthen its engineering presence in Greece, aiming to make it a key hub alongside San Francisco. Connectly, a company that uses AI models to help retailers enhance customer engagement and drive sales, has experienced significant growth in the past year.
The successful funding round follows Connectly’s launch of its advanced AI recommendation tool, ‘Sofia AI,’ and its expansion into the US market. The partnership with Alibaba is expected to accelerate Connectly’s global reach further, integrating its AI solutions into Alibaba’s international e-commerce platforms. With plans to grow its workforce to 80 by year-end and a current client base of 300, Connectly is well-positioned to continue its impactful growth in the retail industry.
The US government is reportedly considering allowing Nvidia to export advanced AI chips to Saudi Arabia. These chips would assist the kingdom in developing and operating cutting-edge models. The move could play a crucial role in Saudi Arabia’s AI strategy, which was a key focus at the recent GAIN summit.
Efforts are underway in Saudi Arabia to meet US security requirements, which could expedite the acquisition of Nvidia’s H200 chips. These chips are expected to boost Saudi Arabia’s capabilities, as they are also used in advanced platforms like OpenAI’s GPT-4. Saudi officials have expressed their intention to comply with US regulations.
The Biden administration had imposed restrictions on AI chip exports, particularly targeting China, but also extending to the UAE and other Middle Eastern countries. However, Saudi Arabia has been careful to manage its relationship with both the US and China, ensuring access to key technologies remains open.
Nvidia and the US Department of Commerce declined to comment on the potential chip sales. The Department of Commerce noted that export control decisions involve multiple government departments, including Defense, State, and Energy.
The Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) are taking significant steps to enhance the security and quality of telecom services. To combat spam and cyber fraud, TRAI has implemented measures to disconnect and blacklist entities involved in bulk spam operations, resulting in the removal of over 3.5 lakh spam numbers and the blacklisting of 50 entities.
Additionally, the DoT’s Sanchar Saathi platform allows citizens of India to report suspicious activity, leading to the disconnection of over one crore fraudulent connections and the blocking of 2.27 lakh handsets involved in cybercrime. Concurrently, TRAI has updated its Quality of Service (QoS) regulations to enforce stricter benchmarks for network performance metrics such as call drop rates, packet drop rates, and latency. Effective 1 October 2024, these regulations will introduce monthly monitoring from April 2025, enhancing oversight and accountability to improve network quality.
DoT and TRAI are also implementing proactive measures to tackle the issue of unregistered telemarketers. For that, TRAI is considering immediate service suspensions for telemarketers not registered, based on a predefined threshold of complaints, and is working on proactive detection of suspected spammers.
These initiatives are part of a broader strategy to create a more secure and user-friendly telecom environment. Through these collaborative efforts, the DoT and TRAI ensure ongoing enhancements in telecom services, infrastructure, and quality assurance, aiming to provide users with a more reliable and customer-centric experience.
Stakeholders are urging a concerted effort to close Africa’s digital infrastructure gap, which is seen as a critical factor for the continent’s economic growth and prosperity. Specifically, the disparity between Africa’s large population and its small contribution to global GDP underscores the need for enhanced digital connectivity.
Stakeholders believe that Africa can unlock its economic potential and improve its overall quality of life by addressing infrastructure deficiencies, such as the significant fibre network gaps. Therefore, they advocate for increased investment in broadband services and expanded fibre networks to drive sustainable development and technological advancement.
Industry leaders call on governments and private sector entities to collaborate more effectively in creating supportive regulatory frameworks for digital infrastructure. In particular, such regulations are essential for fostering investment and ensuring that digital growth is rapid and sustainable. Governments, regulatory bodies, and businesses can develop policies that promote fair competition and infrastructure expansion by working together. Consequently, this collaborative approach is crucial for overcoming existing barriers and enabling Africa to leverage digital technology for enhanced innovation and economic opportunities.
The UK government has introduced a new Property Bill aimed at clarifying the legal status of digital assets such as cryptocurrencies, non-fungible tokens (NFTs), and carbon credits. The proposed legislation would create an additional property category under UK law, recognising digital assets as ‘things’ and providing a clear legal framework for handling them in cases like divorce settlements. It is seen as essential to ensure the law keeps pace with evolving technologies, according to Labour MP and Minister of State Heidi Alexander.
The bill also seeks to protect digital asset owners and businesses from fraud and scams, while giving judges clearer guidance in complex property disputes involving digital holdings. The proposal stems from a 2023 report commissioned by the Ministry of Justice, which highlighted the unique nature of digital assets and their need for distinct legal recognition under personal property law.
This legislation forms part of the Labour government’s broader efforts to address blockchain and digital asset regulation, following their recent victory in the July election. It reflects a growing trend of governments worldwide reassessing their stance on digital assets, with similar discussions taking place in the United States ahead of the 2024 election.
Nigeria’s Economic and Financial Crimes Commission (EFCC) has frozen bank accounts totalling over $330,000, accusing cryptocurrency traders of manipulating the naira. Traders using global platforms like Kucoin and Bybit are suspected of contributing to the local currency’s depreciation through illegal foreign exchange trading. EFCC claims these platforms have failed to comply with anti-money laundering regulations, worsening the situation.
EFCC investigator Okoro Philip directly blamed these traders for the naira’s sharp decline, which has dropped by around 70% since the start of the year. He criticised Kucoin and Bybit for allowing USDT, a digital dollar, to be exchanged for naira at rates that artificially lower the currency’s value. The EFCC has expressed concerns that such platforms are being used to trade proceeds from criminal activities.
These actions follow recent intervention by the Central Bank of Nigeria, which sold US dollars at a lower rate to bureaux de change in a bid to stabilise the naira. Despite these efforts, the currency continues to struggle, and experts warn that further depreciation is likely unless demand for US dollars is curbed.
Ethereum has seen a notable shift in ownership, with large holders, known as ‘whales,’ now controlling 43% of all ETH. This surge in whale supply comes during a tough period for the cryptocurrency, which has struggled to gain momentum. Despite becoming the second crypto-based ETF to be approved in the United States earlier this year, Ethereum’s price has dropped by more than 15% in the last month, currently at $2,288.
The increasing whale dominance is largely due to the Shanghai upgrade, with large holders accelerating their accumulation of ETH since 2019. According to data from IntoTheBlock, whales now hold nearly 45% of the circulating Ether supply, while retail investors—those holding less than 0.1%—control around 48%. This creates a clear divide between everyday investors and large holders.
The implications for Ethereum’s price remain uncertain. While some hope that the whale interest could drive the value upwards, others are concerned that having two dominant extremes—whales and retail—could limit flexibility in the market, leaving Ethereum vulnerable to price swings.
