Interdisciplinary approaches

New FDIC system targets fintech risks

The Federal Deposit Insurance Corporation (FDIC) has begun directly monitoring financial technology (fintech) companies partnering with banks across the United States. New system like this one aims to enhance oversight by identifying risks associated with these partnerships before they threaten banking stability. The monitoring system also allows regulators to maintain consistent supervision, even if fintech firms change their banking partners.

The move comes amid heightened scrutiny of bank-fintech collaborations, following the collapse of Synapse Financial Technologies in April. The startup, backed by Andreessen Horowitz, had provided critical services enabling fintech firms to offer financial products via FDIC-insured banks. Its failure left thousands of users without access to their funds and brought significant regulatory attention to the sector.

In response, the FDIC has proposed strengthening bank record-keeping requirements and expanding the definition of brokered deposits to include fintech-related funds. While these rules are not expected to take effect before 2025, the new monitoring framework provides examiners with an additional tool to safeguard financial stability without waiting for legislative approval.

FDIC Chairman Martin Gruenberg, who is stepping down in January, has played a central role in developing this regulatory approach. His leadership has been pivotal in navigating the challenges posed by the evolving relationship between traditional banking and fintech startups.

Open source (still) means innovations

There is no need to explain the importance of the global network innovation we enjoy today. Many lines have been written on the possibilities and the marvels the network delivers daily. After an initial couple of decades of admiration, the same thing happened with many other wonders of the world we witnessed throughout civilization. We took it for granted. We do not discuss its structure, backbone, and the incentive structure behind it. Unless it interferes with our daily life and freedom.

This is true for any network user, being a state actor, cloud computing company, or everyday end user. When we look at the backbone of the internet, almost everything is open source. What does this mean? Basic protocols and ways we connect over the internet are documented and open for everyone to observe, copy, and build upon. They are agreed upon as a set of transparent public instructions that are free of proprietary obligations. 

Industry and innovation 

To distinguish innovation from the industry (which might be important to go forward), we can introduce a simple correlation: The industry is an ecosystem that emerged on the need to make the invention more available. The vision of utility is in the industry, and the value of innovation is proven with every iteration of utility. Following this correlation, we can indeed say that the more transparent innovation, the greater its value (or we tend to give it such a position).

When we look at the internet industry, we observe that companies and strategies that followed openness have benefited massively from the invention. This system of benefits from the open source approach can work in depth for both the invention and the consequential industry. To name a couple of the greatest examples: Alphabet (Google, YouTube, or Maps), Linux (used to run almost the entire internet backbone infrastructure), Android (revolutionising the app market, levelling the entry field, and reducing the digital divide). All of them are open source, built on the open-source innovation of the internet.

Architecture, Building, Diagram, CAD Diagram

A closer look at resiliency

Let’s look at one example that may illustrate this precisely: bitcoin. It started as an open-source project and is still one of the most maintained public databases on the internet. Bitcoin brings back the idea of private money after 100 years of the nation’s monopoly on money. Although it is pointed out as a danger to the international financial system, there is no possible coordinated action by such entities to take down this system and/or ban it permanently. Why? The simple answer is in the trade-off. 

Stopping bitcoin (or any digital information online) is not impossible per se but would require massive resources. This would require full control of all communication channels towards the internet, including banning satellites from orbiting above your geolocation and persistent efforts to ensure no one is breaching the ban. But in 2024, such a ban would create a tear in the fabric of society. Societal consequences would widely overcome the possible benefits.

Instead, as long as it is neutral, bitcoin does not present a threat but rather an opportunity for all. All other competitors built on bitcoin principles are not the same for that particular reason: they are not open source and transparent. No Central Bank Digital Currency (CBDC), privately issued stablecoin, or any of the thousand cryptocurrency impersonators have proven to hold any of the bitcoin’s value. Following the earlier distinction, innovation is open source, but the industry around it is not so much.

Open source is the right way, not the easy one

Does the above mean that when an industry is not based on open source, it cannot make great discoveries and innovate further? No, not at all. Intellectual property is a large part of the portfolio of the biggest tech companies. For example, Apple’s IP revenues culminated in around USD 22.6 billion in research and development expenditures (in 2022) The proprietary industry moves the needle in the economy and creates wealth, while open source creates opportunities. We need both for a healthy future. All of our opportunities may not result in imminent wealth, but rather in inspiration to move forward rather than oppose the change. 

In simple terms, open source empowers the bottom-up approach to building for the future. It helps expand the base of possible contributors, and maybe most importantly, reduces the possibility of ending up in ‘knowledge slavery’. It can create a healthy, neutral, starting point. The one most will perceive as a chance rather than a threat. 

If all of you had one particular innovation in mind while reading all this, you are right!

Artificial intelligence (AI) is a new frontier. AI is actually a bit more than just a technology, it is an agent. Anyhow, it is an invention, so chances are high it will follow the path we described above, enabling an entirely new industry of utility providers.

No need to be afraid

We hear all the (reasonable) concerns about AI development. Uncertainties on whether AI should be developed beyond human reach and concerns regarding AI in executive positions, all are based on fear of systems with no overview.  

In the past, the carriers of the open source (openness and transparency) approach were mostly in academia. Universities and other research institutions contributed the most to the open source approach. It is a bit different in the AI field. For that, companies are leading the way.  

The power to preserve common knowledge is still in the hands of states, and under the set of business and political circumstances, the private sector is also the biggest proponent of the open source approach. With the emergence of large language models and generative AI, the biggest open source initiatives came from Meta (LLaMa) and Alphabet (T5). They align with the incentive to statute open source as a standard for the future. We might be in an equilibrium moment in which both sides agree on the architecture for the future. Nations, international organisations, and the private sector should seize this opportunity. This new race toward more efficient technology of the future should evoke optimism, but there cannot be one without the bottom- up and open source approach to innovation. 

The open source approach is still the way forward for innovation. and can build neutral ground, or at least will not be perceived as a threat.

Read more of our ideas about the way forward in AI governance on the humAInism page. 

South Korea plans to open crypto trading to universities by 2025

South Korea is preparing to introduce a major shift in cryptocurrency regulations, with plans to allow universities and public institutions to trade crypto by 2025. According to reports, the Financial Services Commission (FSC) aims to roll out a roadmap enabling government bodies, universities, and eventually corporations to participate in the crypto market. The move reflects growing interest in aligning with global trends as South Korea seeks to catch up with nations like the US and Japan, where corporate crypto investments are already common.

The first phase of the FSC’s plan would permit universities and non-profit organisations to sell and trade cryptocurrencies they have received as donations. For example, Seoul National University has been unable to sell WEMIX tokens donated by a gaming firm due to regulatory barriers. Critics argue that this cautious approach has held back South Korean firms from benefiting from strategies that have boosted asset values abroad.

Long-term plans include allowing private companies and financial institutions to trade crypto, with safeguards to prevent excessive market risks. Regulators aim to limit the percentage of company capital held in crypto, ensuring stability while fostering growth in the virtual asset industry. This cautious yet progressive framework signals South Korea’s intent to balance innovation with financial security in the evolving crypto landscape.

Meta eyes nuclear energy to power AI and data centres

Meta has announced plans to harness nuclear energy to meet rising power demands and environmental goals. The company is soliciting proposals for up to 4 gigawatts of US nuclear generation capacity, with projects set to commence in the early 2030s. By doing so, it aims to support the energy-intensive requirements of AI and data centre operations.

Nuclear energy, according to Meta, offers a cleaner, more reliable solution for diversifying the energy grid. Power usage by US data centres is projected to triple by 2030, necessitating about 47 gigawatts of new capacity. However, challenges such as regulatory hurdles, uranium supply issues, and community resistance may slow progress.

The tech giant is open to both small modular reactors and traditional large-scale designs. Proposals are being accepted until February 2025, with a focus on developers skilled in community engagement and navigating complex permitting processes. An official statement highlighted nuclear’s capital-intensive nature, which demands a thorough request-for-proposals process.

Interest in nuclear power among tech firms is growing. Earlier agreements by Microsoft and Amazon have set precedents for nuclear-powered data centres. Meta’s latest initiative underscores a broader shift towards innovative energy solutions within the industry.

Surreal Elderhood fuses creativity and AI

Photographer Eugenio Marongiu has harnessed the power of OpenAI’s unreleased text-to-video model, Sora, to create Surreal Elderhood, a project blending absurdity and vivid realism. As an alpha tester for the model, Marongiu explored its potential to transform his artistic workflow, which traditionally involved animating images manually after creating them.

The Sora model enabled Marongiu to accelerate this process, although the bulk of his time remained devoted to conceptualising, testing, and editing. The project took about two days to complete, showcasing Sora’s potential to streamline complex creative tasks. Despite its promise, the technology remains challenging to use and has drawn controversy for its broader implications.

While critics highlight the limitations and ethical concerns of such AI tools, artists like Marongiu continue to push creative boundaries, exploring the intersections of technology and imagination. The ongoing experimentation with AI like Sora hints at its transformative possibilities in art and beyond.

Fei-Fei Li’s world labs debuts groundbreaking 3D AI

World Labs, the startup co-founded by AI pioneer Fei-Fei Li, has introduced groundbreaking technology that transforms single images into interactive 3D environments. Unlike existing tools, these AI-generated scenes can be explored and modified directly within a browser, offering a dynamic and engaging experience.

The startup’s system leverages a category of AI known as ‘world models,’ which simulate 3D environments with improved consistency and physical realism. While the technology is still in its early stages, it aims to revolutionise industries like gaming, filmmaking, and design by providing accessible and cost-effective tools for creating virtual worlds.

Backed by $230M in funding from prominent investors, including Andreessen Horowitz and Intel Capital, World Labs is valued at over $1B. The company plans to refine its system further and release its first product in 2025, marking a significant step in the evolution of interactive AI applications.

Orakl Oncology aims to transform cancer drug development

Cancer drug development faces a pressing challenge: most new compounds fail to advance through clinical trials, despite rising cancer rates, particularly among younger adults. French entrepreneur Fanny Jaulin believes the root cause lies in outdated trial designs, not the drugs themselves. Her startup, Orakl Oncology, founded in 2023 as a spinoff from the Gustave Roussy Institute of Oncology, aims to revolutionise this process by blending data analysis with biological insights.

Unlike competitors focusing solely on AI or biology, Orakl combines the two to tackle cancer’s complexity. The approach leverages organoids—miniature, simplified organ versions—to test drug responses, supplemented by patient avatars that integrate tissue samples with extensive datasets. These datasets, though smaller than those of some competitors, contain 40 variables per patient, allowing a focus on hard-to-treat cancers like colorectal and pancreatic.

Orakl plans to commercialise two products: O-Predict, which forecasts how patients might respond to drug candidates, and O-Validate, designed to match drugs to biological data. These innovations cater to pharmaceutical developers and biotech firms alike, supported by nearly €15 million in funding, including a recent seed round led by Singular.

Jaulin’s mission goes beyond business success. She seeks to address the therapeutic gaps in precision medicine, making drug discovery faster and more effective. With cancer increasingly becoming a chronic condition, Orakl’s ultimate goal is to bring more life-saving treatments to patients.

Cate Blanchett critiques AI’s societal risks

Cate Blanchett has voiced her concerns about the societal implications of AI, describing the threat as ‘very real.’ In an interview with the BBC, the Australian actress shared her scepticism about advancements like driverless cars and AI‘s potential to replicate human voices, noting the broader risks for humanity. Blanchett emphasised that AI could replace anyone, not just actors, and criticised some technological advancements as ‘experimentation for its own sake.’

While promoting Rumours, her new apocalyptic comedy film, Blanchett described the plot as reflective of modern anxieties. The film, directed by Guy Maddin, portrays world leaders navigating absurd situations, offering both satire and a critique of detachment from reality. Blanchett highlighted how the story reveals the vulnerability and artificiality of political figures once removed from their structures of power.

Maddin shared that his characters emerged from initial disdain but evolved into figures of empathy as the narrative unfolds. Blanchett added that both actors and politicians face infantilisation within their respective systems, highlighting parallels in their perceived disconnection from the real world.

TikTok kicks off UK awards to celebrate creators

TikTok is stepping beyond the digital screen with its first UK and Ireland Awards, celebrating 72 creators across 12 categories. From travel influencers to comedy sketch stars, these creators, with over 101 million combined followers, will be recognised in a London ceremony, highlighting the growing cultural impact of short-form content.

The platform’s nominees range from lifestyle influencers to niche creators like fossil hunters and ASMR pool cleaners. TikTok’s Melissa McFarlane emphasised that the awards showcase creators’ influence on everything from literature to cooking, proving that TikTok communities are shaping trends well beyond the app.

Nominees like Ayamé Ponder, known for her comedy sketches, are also using their platforms for broader causes. Meanwhile, creators Jade Beaty and Ryan Losasso hope the awards will inspire others to try content creation, a process they say takes considerable effort despite misconceptions.

With millions of European users and global awards spanning 20 regions, TikTok aims to underline the value of its creators’ work. As the app continues to define social media culture, these UK awards celebrate the diverse talents driving its viral success.

AI brings robots closer to autonomous surgery

A team from Johns Hopkins and Stanford has trained robotic systems to perform surgical tasks with human-like precision. Using a da Vinci Surgical System, the researchers applied ‘imitation learning,’ where robots observe recorded surgical videos to replicate complex movements like suturing and tissue manipulation. This innovative method eliminates the need for manual programming and allows robots to learn from the combined expertise of skilled surgeons.

The AI-powered system combines imitation learning with advanced machine learning techniques, enabling it to convert visual data into precise robotic actions. Not only does it perform surgical tasks proficiently, but it can also self-correct in real time, such as retrieving a dropped needle without human intervention. Such adaptability could reduce complications and enhance patient outcomes.

This breakthrough accelerates the path toward autonomous robotic surgery. Researchers believe robots can now learn new procedures in days rather than months. While full autonomy in surgery remains a future goal, this advancement marks a significant step toward safer and more accessible healthcare worldwide.