The UK government is investing £100 million in an effort to strengthen its foothold in the global AI chip market. This initiative is geared towards creating a robust AI infrastructure in the UK, akin to developments in the US and other nations. The allocated funds will be channeled towards purchasing essential components from top chip manufacturers, including Nvidia, AMD, and Intel.
According to The Guardian, the UK’s £100 million allocation may fall short when juxtaposed with the financial commitments of the EU, US, and China. Sources indicate that the government is on the verge of ordering 5,000 GPUs from Nvidia, a firm that has witnessed a surge in its valuation amidst the growing AI competition. These GPUs, commonly referred to as graphics cards, are integral to the chip’s processing power, crucial for executing advanced AI operations.
Yet, apprehensions are mounting in the tech sector and within Whitehall. There’s a growing sentiment that the UK might be lagging behind. Presently, the UK’s share in global semiconductor sales stands at just 0.5%. In a related development this past May, the government, under Rishi Sunak, announced a ten-year plan to channel £1bn into semiconductor R&D. However, this sum seems modest when contrasted with the US’s $52bn Chips Act and the EU’s hefty €43bn in subsidies.
Amidst these developments, geopolitical tensions surrounding AI chip technology are intensifying. The White House recently prohibited US investments in advanced Chinese microconductors, a move that followed China’s declaration that chips from US manufacturer Micron posed a security risk.
To address these challenges and establish shared standards for technology, the UK is planning an AI summit this autumn. UK Research and Innovation, along with the Department for Science, Innovation and Technology, is spearheading the effort to finalize orders with major chip manufacturers.
A government spokesperson stated, “We are committed to supporting a thriving environment for compute in the UK which maintains our position as a global leader across science, innovation and technology. The additional money being delivered through UKRI will complement the separate £100m investment to establish the Foundation Model Taskforce.”
In related news, on 24 April 2023, the Prime Minister and the Technology Secretary announced an initial funding of £100 million for a taskforce. This taskforce is tasked with enhancing the UK’s expertise in a rapidly evolving AI domain. This allocation is on top of a £900 million investment in computing technology. The primary goal of the taskforce is to bolster the UK’s global standing in this pivotal technology, emphasizing the secure and dependable application of AI across different industries.
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The Friend.tech project, which has recently garnered significant attention in the crypto community due to its rapid financial growth, is now facing scrutiny over data leak and security concerns. A tweet from Cos raised alarms by suggesting that over 100,000 Twitter accounts corresponding to certain wallet addresses have been compromised. This breach poses a significant privacy threat, as these addresses could potentially be linked to unveil more private information about users.
Further adding to the security concerns, Spot On Chain highlighted potential vulnerabilities with the Friend.tech platform. Despite generating an impressive 2,953 ETH (approximately $5M) in fees within just 11 days and the current value of all shares standing at 4,435 ETH (around $7.4M), the project has issues such as potential “data leaks via API” and the unsettling ability for users to “buy/sell shares without an invitation code from the contract.”
Amid these concerns, the platform has also seen an influx of bot activity. DeFiyst pointed out the ongoing Miner Extractable Value (MEV) war on Friend.tech‘s Base, with bots improving exponentially since the open-sourcing of the first snipers last week.
Since its launch, Friend.tech has become a buzzword in the crypto community. High-profile figures, such as Garry Tan, President & CEO of Y Combinator, have announced their association with Friend.tech. However, in light of emerging security and data leak concerns, potential investors and users are advised to exercise caution and conduct thorough research before engaging with the project.
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Coinbase Advanced, a renowned cryptocurrency exchange, has partnered with Coinrule, a leading automated trading platform. This collaboration aims to provide over a million retail traders with advanced AI automation tools.
Coinrule’s integration with Coinbase Advanced is marked by a unique two-week campaign initiated by Coinbase. This campaign is designed to encourage automated trading by presenting attractive rewards and exclusive offers to its clientele.
Retail traders using Coinbase can now leverage Coinrule’s state-of-the-art trading tools to optimize their investment portfolios. Some of the standout features available to Coinbase users include:
Profitable Bots: Users have the flexibility to design trading rules, ranging from straightforward to intricate, based on diverse factors like price, technical indicators, and other conditions. With this integration, traders can now formulate over 100,000 distinct trading strategies on Coinrule tailored for Coinbase Advanced.
Live Market Scanner: Coinrule’s unique ‘any coin’ scanner can monitor price trends across more than 2,000 cryptocurrencies. This feature offers traders the advantage of tracking any cryptocurrency listed on Coinbase Advanced simultaneously, enabling them to trade multiple coins at once.
Extensive Collection of Pre-Built AI Strategies: Coinrule’s Strategies Marketplace boasts an extensive array of strategies, crafted by seasoned traders with the assistance of generative AI tools. This ensures that traders of all risk appetites and investment styles find a strategy that aligns with their goals.
Earlier this month, on Aug 11, 2023, Coinrule unveiled its revolutionary Marketplace powered by Generative Models like GPT. This addition has further enhanced their platform, offering traders a plethora of pre-built trading strategies and the capability to customize and automate their trades. The Marketplace is designed to cater to both seasoned traders and beginners, eliminating the need for extensive coding or technical expertise. It fosters a community-driven environment where traders can share, discuss, and discover strategies, benefiting from the collective intelligence of the community.
Gabriele Musella, CEO of Coinrule, expressed his enthusiasm about the collaboration, stating, “We are immensely proud to be among the first trading strategies platforms to start working together with Coinbase Advanced. Our primary objective is to equip retail investors with potent AI tools, leveling the playing field with professional traders. This integration with Coinbase marks a significant milestone in our mission.”
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In a landmark decision on August 18, 2023, US District Judge Beryl A. Howell ruled that artwork generated solely by artificial intelligence (AI) cannot be copyrighted. The ruling was made in response to a lawsuit against the US Copyright Office, which had previously denied a copyright request by Stephen Thaler for an image produced using his Creativity Machine algorithm.
The ruling made by Judge Howell stressed the fundamental premise of copyright law by noting that it has “never been granted to work that was ‘absent any guiding human hand'” and that “human authorship is a bedrock requirement of copyright.” Both of these statements were made in reference to the fact that copyright has “never been granted to work that was ‘absent any guiding human hand.'” Even if technological advancements are constantly being made, this viewpoint is consistent with the position taken by the United States Copyright Office, which maintains that the only “works of human creation” are entitled to legal protection under copyright laws.
The case received a lot of attention as a result of Thaler’s repeated efforts to register the AI-generated picture “as a work-for-hire to the owner of the Creativity Machine.” If this had been effective, it would have acknowledged the AI as the author while allowing Thaler to keep ownership of the work. However, none of his endeavors were successful since they were all greeted with failure.
Attorney Ryan Abbot of Brown Neri Smith & Khan LLP, who represents Stephen Thaler, has said that he disagrees with the court’s reading of the Copyright Act and suggested that an appeal of the verdict would be filed.
This judgement highlights the ongoing dispute around AI and copyright law, which is especially relevant given that AI is continuing to play an increasingly important role in creative sectors. As artificial intelligence (AI) technology progress and their applications in art and other industries increase, it is expected that the legal environment will encounter further obstacles and evolve as a result.
For now, the message is clear: while AI can be a tool for creation, the human element remains central to the concept of copyright in the United States.
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Cryptocurrency exchange Gemini has filed a reply brief in response to a lawsuit initiated by the United States Securities and Exchange Commission (SEC). The lawsuit, which is being heard in the U.S. District Court for the Southern District of New York, alleges that Gemini’s service, Gemini Earn, violated securities regulations by offering “unregistered securities.”
A Robust Defense
Gemini’s legal defense, represented by firms JFB LEGAL, PLLC, and SHEARMAN & STERLING LLP, has been robust. The reply brief, dated August 18, 2023, challenges the SEC’s claims, arguing that their complaint is based on “conclusory statements” and lacks concrete evidence. Specifically, Gemini’s defense has highlighted the SEC’s failure to answer pivotal questions, such as when the alleged security was sold, who were the buyer and seller, and at what price it was offered.
Gemini Earn at the Center of Controversy
The core of the lawsuit revolves around the Gemini Earn service, which facilitates customers in lending crypto assets like Bitcoin to Genesis. The SEC asserts that this service breached securities regulations. However, Gemini has consistently contested this claim. On May 27, the exchange posited that transactions within the Gemini Earn program were essentially loans, urging the SEC to dismiss the complaint based on this perspective.
Adding to the public discourse, Jack Baugham, a founding partner of JFB Legal, made a statement highlighting the inconsistent nature of the SEC’s arguments. He described the regulator’s approach as “floundering” and emphasized the contradictory facets of their claims.
Previous Legal Challenges
Earlier in the year, the legal waters were further muddied when US regulators initiated a lawsuit against both Gemini and Genesis Global Capital, alleging unregistered securities trading through the Gemini Earn program. This was compounded by accusations from investors against Gemini and its co-founders, alleging fraudulent activities.
In an official blog post, Gemini addressed the lawsuit, terming it “ill-conceived.” They underscored the clarity of “Section 5 of the securities act” and criticized the SEC for their ambiguous stance on the matter.
The Downfall of Gemini Earn
Genesis served as the primary lender for the Gemini Earn program, which once boasted an impressive annual return of over 8%. Digital Currency Group (DCG) borrowed a significant $1.65 billion from Genesis and subsequently channeled these funds primarily to Three Arrows Capital and the cryptocurrency exchange FTX. Unfortunately, both entities declared bankruptcy in 2022, leading to challenges for Gemini Earn users in retrieving their investments.
For transparency, the Gemini Earn website has been consistently updated with unfolding events. As of August 18th, the website reported that mediation sessions were held on August 16th and 17th, with Genesis extending the mediation to August 23rd. Gemini has voiced concerns over the prolonged negotiations with DCG, aiming to ensure fair compensation for Genesis’s creditors, including Earn users. DCG defaulted on a payment of $630 million due to the Genesis bankruptcy estate between May 9th and 11th.
Despite facing a motion by DCG and its CEO, Barry Silbert, to dismiss a lawsuit alleging them of fraud, Gemini claims to remain steadfast in its stance. They are set to respond to this motion by September 14th. On a positive note, Genesis has brokered a settlement agreement with the FTX estate, reducing FTX’s claim from $3.7 billion to $175 million against Genesis, promising better recoveries for all affected creditors.
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