Asia’s first inverse bitcoin exchange-traded fund (ETF), designed to allow investors to profit from a decline in cryptocurrency values, will launch in Hong Kong on Tuesday. The CSOP Bitcoin Futures Daily (-1x) Inverse Product, introduced by CSOP Asset Management, will debut on the Hong Kong Stock Exchange.
The new ETF aims to capitalise on the increasing demand for investment opportunities linked to volatile cryptocurrencies. After a batch of spot crypto ETFs launched in Hong Kong in April, bitcoin experienced a turbulent second quarter, falling over 12%. The inverse ETF allows investors to benefit from bitcoin’s price drops.
Bitcoin has been notably volatile, with its fluctuations in 2023 surpassing those of crude oil and the Nasdaq 100. Recent weeks saw a rebound in bitcoin’s value, trading around $67.400 following political developments in the US.
CSOP’s inverse bitcoin product will track the daily inverse performance of the S&P Bitcoin Futures Index. CSOP, which introduced Asia’s first bitcoin futures ETF in 2022, saw its market value rise to over $100 million earlier this year but has since decreased to approximately $58 million.
According to sources, Nvidia is developing a version of its flagship AI chips for the Chinese market to comply with US export controls. The new chip, part of the ‘Blackwell’ series unveiled in March, is expected to be produced later this year. The ‘B200’ model in this series significantly outperforms its predecessor in tasks like chatbot responses. Nvidia is collaborating with its major Chinese distributor, Inspur, to launch this chip, tentatively named the ‘B20.’
In response to tighter US export controls introduced in 2023 to prevent advancements in Chinese supercomputing, Nvidia has created three chips specifically for China. Despite initial setbacks with the H20 chip, sales have surged, with projections of over 1 million units sold in China this year, amounting to over $12 billion. These developments highlight Nvidia’s strategic efforts to maintain its market presence amidst growing competition from Chinese firms like Huawei.
As the US continues to enforce and potentially expand semiconductor-related export restrictions, Nvidia’s actions reflect the broader impact on the global chip industry. The Biden administration’s plans to implement stricter controls on AI technology and efforts to influence policies in other major tech-producing countries underscore the ongoing geopolitical tensions in the semiconductor sector.
OpenAI, the maker of ChatGPT, is in discussions with Broadcom and other chip designers about developing a new AI chip. This move aims to address the shortage of expensive graphic processing units required for developing its AI models, such as ChatGPT, GPT-4, and DALL-E3.
The Microsoft-backed company is hiring former Google employees who developed the tech giant’s own AI chip and plans to create an AI server chip. OpenAI is exploring the idea of making its own AI chips to ensure a more stable supply of essential components.
OpenAI CEO Sam Altman has ambitious plans to raise billions of dollars to establish semiconductor manufacturing facilities. Potential partners for this venture include Intel, Taiwan Semiconductor Manufacturing Co, and Samsung Electronics.
A spokesperson for OpenAI mentioned that the company is having ongoing conversations with industry and government stakeholders to enhance access to the infrastructure needed for making AI benefits widely accessible.
Largest banking group in Japan, Mitsubishi UFJ Financial Group (MUFG), will cut the pay of its CEO and five other executives due to breaches of ‘firewall’ regulations at its banking and securities arms. The Financial Services Agency (FSA) ordered MUFG to submit business improvement plans after discovering these breaches, marking a significant regulatory action.
Group CEO Hironori Kamezawa and five other executives will have their monthly salaries reduced by 30% for two to five months. Additionally, three former directors at MUFG’s banking unit and one at its securities arm are required to return 10% to 30% of their three-month salary. Kamezawa, who earned 339 million yen ($2.16 million) in the last fiscal year, will also face these cuts.
The FSA found at least 26 cases where confidential client information was shared between MUFG Bank and its two securities partnerships with Morgan Stanley from 2020 to 2023. MUFG Bank also offered preferential lending rates to clients doing business with these brokerages, violating regulations that prohibit sharing customer data without consent.
In response, MUFG has submitted a business improvement plan to the FSA. The company is taking measures to address the regulatory breaches and ensure compliance with financial regulations in the future.
In a pioneering move, a technology company, Google, contracts with a broadcasting company to cover the Olympic and the Paralympic Games. NBC Universal, the official broadcast agency of the Olympic Games in the US, collaborates with the tech giant and Sports Committees to attract younger audiences and those who have grown accustomed to viewing short clips online.
How it is intended to work is sports commentators will use Google’s Gemini AI to narrate competitions, generate recaps, as an assistant to anchors, answer questions posed online and equip them with the content of informed research, and even entertain audiences.
Currently, Google’s AI overviews are used to provide synopses to queries posed in Google searches. These give ready-made short responses to questions posed by users without directing them to third-party websites via links.
A recent survey conducted by Nikkei Research for Reuters shows a significant divide among Japanese companies regarding AI adoption. Of the 250 firms that responded, 24% have integrated AI into their operations, while 35% plan to do so. However, 41% have no plans to implement the technology, highlighting varying levels of enthusiasm for AI across corporate Japan. Key motivations for adopting AI include addressing workforce shortages, reducing labour costs, and accelerating research and development.
Despite Japan’s initially laid back approach to AI regulation, several obstacles hinder AI adoption, including employee anxiety over potential job losses, lack of technological expertise, high capital expenditure, and concerns about AI’s reliability. Cybersecurity also emerged as a critical issue, with 15% of respondents experiencing cyberattacks in the past year and 9% reporting attacks on their business partners. To enhance cybersecurity, 47% of firms outsource their defence, while 38% rely on in-house specialists.
The survey also touched on the controversial topic of Japan’s surname law, which mandates that spouses use the same surname. Half of the respondents support changing the law, a move prompted by the Keidanren business lobby’s recent appeal to the government. Supporters argue that the current system undermines individual dignity and freedom, particularly for women, while opponents believe separate surnames could weaken family bonds. Only 14% of firms believe the change would boost employee morale, and 10% think it would aid hiring efforts, with the majority expecting no significant impact on business.
A recent study has revealed that AI chatbots pose significant risks to children, who often view them as lifelike and trustworthy. Dr Nomisha Kurian from the University of Cambridge calls for urgent action to prioritise ‘child-safe AI’ in the development of these technologies.
Kurian’s research highlights incidents where AI chatbots provided harmful advice to children, such as Amazon’s Alexa instructing a child to touch a live electrical plug and Snapchat’s My AI giving tips on losing virginity.
These cases underscore the ’empathy gap’ in AI, where chatbots fail to respond appropriately to children’s unique needs and vulnerabilities.
The study proposes a 28-item framework to help developers create safer AI by working closely with educators and child safety experts. Kurian argues that AI has great potential if designed responsibly, but proactive measures are essential to protect young users.
Pittsburgh-based startup Skild AI has emerged from stealth mode with a $300 million funding round led by Jeff Bezos’ fund and Japan’s Softbank Group. Founded by Carnegie Mellon University professors Deepak Pathak and Abhinav Gupta, the company aims to build a ‘general-purpose brain’ for robots.
Skild AI’s AI model, trained on more data than its competitors, can be retrofitted to existing hardware. Pathak highlighted the model’s unparalleled capabilities across various robots and tasks, indicating its potential to transform automation in real-world environments.
With applications in household tasks and industrial work, Skild AI’s technology promises to reduce robot costs and address labour shortages. The company, now valued at $1.5 billion, is hiring engineers from top tech firms and Carnegie Mellon University.
The French competition authority has officially launched an investigation into chipmaker Nvidia for suspected anti-competitive behaviour, confirming ongoing scrutiny of the company’s practices. Benoit Coeure, the agency’s president, affirmed during a press briefing that Nvidia could face charges pending the outcome of the investigation.
Earlier reports, based on insider information, indicated that Nvidia was likely to be formally charged by the antitrust regulator in France. The investigation focuses on allegations of practices that may hinder competition within the market.
Nvidia, a prominent player in the semiconductor industry, faces increasing regulatory scrutiny globally amid concerns over its market dominance and business practices. The outcome of the investigation by the French authority could have significant implications for Nvidia’s operations and market strategy moving forward.
Poland’s antitrust and consumer protection watchdog, UOKiK, has fined PayPal Europe 106.6 million zlotys ($27.3 million) for failing to clearly outline activities that could incur penalties in its contractual clauses. UOKiK stated that PayPal’s descriptions of prohibited activities could have been more precise, making it difficult for users to understand what actions were not allowed and the potential consequences.
UOKiK’s head, Tomasz Chrostny, criticised PayPal’s clauses as general, ambiguous, and incomprehensible, giving the company excessive discretion to determine whether a user has committed a prohibited act and what penalties to impose. That could include actions like blocking money on accounts.
PayPal responded by emphasising its commitment to fair treatment and transparent communication with customers. The company stated that it has been cooperating with UOKiK during the investigation and is reviewing the decision. PayPal also noted that the decision is not final and that it has the opportunity to appeal in court.
