What World Does Bitcoin Want To Build For Itself?


Article by Patrick Redford: “We often talk about baseball games as a metric for where we are, and we’re literally in the first inning,” one of the Winklevoss twins gloats. “And this game’s going to overtime.”

It’s the first day of Bitcoin 2025, industry day here at the largest cryptocurrency conference in the world. This Winklevoss is sharing the stage with the other one, plus Donald Trump’s newly appointed crypto and AI czar David Sacks. They are in the midst of a victory lap, laughing with the free ease of men who know they have it made. The mangled baseball metaphor neither lands nor elicits laughs, but that’s fine. He’s earned, or at any rate acquired, the right to be wrong.

This year’s Bitcoin Conference takes place amid a boom, the same month the price of a single coin stabilized above $100,000 for the first time. More than 35,000 people have descended on Las Vegas in the final week of May for the conference: bitcoin miners, bitcoin dealers, several retired athletes, three U.S. senators, two Trump children, one U.S. vice president, people who describe themselves as “content creators,” people who describe themselves as “founders,” venture capitalists, ex-IDF bodyguards, tax-dodging experts, crypto heretics, evangelists, paladins, Bryan Johnson, Eric Adams, and me, trying to figure out what they were all doing there together. I’m in Vegas talking to as many people as I can in order to conduct an assay of the orange pill. What is the argument for bitcoin, exactly? Who is making it, and why?

Here is the part of the story where I am supposed to tell you it’s all a fraud. I am supposed to point out that nobody has come up with a use case for blockchain technology in 17 years beyond various forms of money laundering; that half of these people have been prosecuted for one financial crime or another; that the game is rigged in favor of the casino and those who got there before you; that this is an onerous use of energy; that all the mystification around bitcoin is a fog intended to draw in suckers where they can be bled. All that stuff is true, but the trick is that being true isn’t quite the same thing as mattering.

The bitcoin people are winning…(More)”

The path for AI in poor nations does not need to be paved with billions


Editorial in Nature: “Coinciding with US President Donald Trump’s tour of Gulf states last week, Saudi Arabia announced that it is embarking on a large-scale artificial intelligence (AI) initiative. The proposed venture will have state backing and considerable involvement from US technology firms. It is the latest move in a global expansion of AI ambitions beyond the existing heartlands of the United States, China and Europe. However, as Nature India, Nature Africa and Nature Middle East report in a series of articles on AI in low- and middle-income countries (LMICs) published on 21 May (see go.nature.com/45jy3qq), the path to home-grown AI doesn’t need to be paved with billions, or even hundreds of millions, of dollars, or depend exclusively on partners in Western nations or China…, as a News Feature that appears in the series makes plain (see go.nature.com/3yrd3u2), many initiatives in LMICs aren’t focusing on scaling up, but on ‘scaling right’. They are “building models that work for local users, in their languages, and within their social and economic realities”.

More such local initiatives are needed. Some of the most popular AI applications, such as OpenAI’s ChatGPT and Google Gemini, are trained mainly on data in European languages. That would mean that the model is less effective for users who speak Hindi, Arabic, Swahili, Xhosa and countless other languages. Countries are boosting home-grown apps by funding start-up companies, establishing AI education programmes, building AI research and regulatory capacity and through public engagement.

Those LMICs that have started investing in AI began by establishing an AI strategy, including policies for AI research. However, as things stand, most of the 55 member states of the African Union and of the 22 members of the League of Arab States have not produced an AI strategy. That must change…(More)”.

Europe’s dream to wean off US tech gets reality check


Article by Pieter Haeck and Mathieu Pollet: “..As the U.S. continues to up the ante in questioning transatlantic ties, calls are growing in Europe to reduce the continent’s reliance on U.S. technology in critical areas such as cloud services, artificial intelligence and microchips, and to opt for European alternatives instead.

But the European Commission is preparing on Thursday to acknowledge publicly what many have said in private: Europe is nowhere near being able to wean itself off U.S. Big Tech.

In a new International Digital Strategy the EU will instead promote collaboration with the U.S., according to a draft seen by POLITICO, as well as with other tech players including China, Japan, India and South Korea. “Decoupling is unrealistic and cooperation will remain significant across the technological value chain,” the draft reads. 

It’s a reality check after a year that has seen calls for a technologically sovereign Europe gain significant traction. In December the Commission appointed Finland’s Henna Virkkunen as the first-ever commissioner in charge of tech sovereignty. After few months in office, European Parliament lawmakers embarked on an effort to draft a blueprint for tech sovereignty. 

Even more consequential has been the rapid rise of the so-called Eurostack movement, which advocates building out a European tech infrastructure and has brought together effective voices including competition economist Cristina Caffarra and Kai Zenner, an assistant to key European lawmaker Axel Voss.

There’s wide agreement on the problem: U.S. cloud giants capture over two-thirds of the European market, the U.S. outpaces the EU in nurturing companies for artificial intelligence, and Europe’s stake in the global microchips market has crumbled to around 10 percent. Thursday’s strategy will acknowledge the U.S.’s “superior ability to innovate” and “Europe’s failure to capitalise on the digital revolution.”

What’s missing are viable solutions to the complex problem of unwinding deep-rooted dependencies….(More)”

Silicon Valley Is at an Inflection Point


Article by Karen Hao: “…In the decade that I have observed Silicon Valley — first as an engineer, then as a journalist — I’ve watched the industry shift to a new paradigm. Tech companies have long reaped the benefits of a friendly U.S. government, but the Trump administration has made clear that it will now grant new firepower to the industry’s ambitions. The Stargate announcement was just one signal. Another was the Republican tax bill that the House passed last week, which would prohibit states from regulating A.I. for the next 10 years.

The leading A.I. giants are no longer merely multinational corporations; they are growing into modern-day empires. With the full support of the federal government, soon they will be able to reshape most spheres of society as they please, from the political to the economic to the production of science…(More)”.

In a world first, Brazilians will soon be able to sell their digital data


Article by Gabriel Daros: “Last month, Brazil announced it is rolling out a data ownership pilot that will allow its citizens to manage, own, and profit from their digital footprint — the first such nationwide initiative in the world. 

The project is administered by Dataprev, a state-owned company that provides technological solutions for the government’s social programs. Dataprev is partnering with DrumWave, a California-based data valuation and monetization firm.

Today, “people get nothing from the data they share,” Brittany Kaiser, co-founder of the Own Your Data Foundation and board adviser for DrumWave, told Rest of World. “Brazil has decided its citizens should have ownership rights over their data.”

In monetizing users’ data, Brazil is ahead of the U.S., where a 2019 “data dividend” initiative by California Governor Gavin Newsom never took off. The city of Chicago successfully monetizes government data including transportation and education. If implemented, Brazil’s will be the first public-private partnership that allows citizens, rather than companies, to get a share of the global data market, currently valued at $4 billion and expected to grow to over $40 billion by 2034.

The pilot involves a small group of Brazilians who will use data wallets for payroll loans. When users apply for a new loan, the data in the contract will be collected in the data wallets, which companies will be able to bid on. Users will have the option to opt out. It works much like third-party cookies, but instead of simply accepting or declining, people can choose to make money…(More)”.

Some signs of AI model collapse begin to reveal themselves


Article by Steven J. Vaughan-Nichols: “I use AI a lot, but not to write stories. I use AI for search. When it comes to search, AI, especially Perplexity, is simply better than Google.

Ordinary search has gone to the dogs. Maybe as Google goes gaga for AI, its search engine will get better again, but I doubt it. In just the last few months, I’ve noticed that AI-enabled search, too, has been getting crappier.

In particular, I’m finding that when I search for hard data such as market-share statistics or other business numbers, the results often come from bad sources. Instead of stats from 10-Ks, the US Securities and Exchange Commission’s (SEC) mandated annual business financial reports for public companies, I get numbers from sites purporting to be summaries of business reports. These bear some resemblance to reality, but they’re never quite right. If I specify I want only 10-K results, it works. If I just ask for financial results, the answers get… interesting,

This isn’t just Perplexity. I’ve done the exact same searches on all the major AI search bots, and they all give me “questionable” results.

Welcome to Garbage In/Garbage Out (GIGO). Formally, in AI circles, this is known as AI model collapse. In an AI model collapse, AI systems, which are trained on their own outputs, gradually lose accuracy, diversity, and reliability. This occurs because errors compound across successive model generations, leading to distorted data distributions and “irreversible defects” in performance. The final result? A Nature 2024 paper stated, “The model becomes poisoned with its own projection of reality.”

Model collapse is the result of three different factors. The first is error accumulation, in which each model generation inherits and amplifies flaws from previous versions, causing outputs to drift from original data patterns. Next, there is the loss of tail data: In this, rare events are erased from training data, and eventually, entire concepts are blurred. Finally, feedback loops reinforce narrow patterns, creating repetitive text or biased recommendations…(More)”.

Trump Taps Palantir to Compile Data on Americans


Article by Sheera Frenkel and Aaron Krolik: “In March, President Trump signed an executive order calling for the federal government to share data across agencies, raising questions over whether he might compile a master list of personal information on Americans that could give him untold surveillance power.

Mr. Trump has not publicly talked about the effort since. But behind the scenes, officials have quietly put technological building blocks into place to enable his plan. In particular, they have turned to one company: Palantir, the data analysis and technology firm.

The Trump administration has expanded Palantir’s work across the federal government in recent months. The company has received more than $113 million in federal government spending since Mr. Trump took office, according to public records, including additional funds from existing contracts as well as new contracts with the Department of Homeland Security and the Pentagon. (This does not include a $795 million contract that the Department of Defense awarded the company last week, which has not been spent.)

Representatives of Palantir are also speaking to at least two other agencies — the Social Security Administration and the Internal Revenue Service — about buying its technology, according to six government officials and Palantir employees with knowledge of the discussions.

The push has put a key Palantir product called Foundry into at least four federal agencies, including D.H.S. and the Health and Human Services Department. Widely adopting Foundry, which organizes and analyzes data, paves the way for Mr. Trump to easily merge information from different agencies, the government officials said…(More)

Creating detailed portraits of Americans based on government data is not just a pipe dream. The Trump administration has already sought access to hundreds of data points on citizens and others through government databases, including their bank account numbers, the amount of their student debt, their medical claims and any disability status…(More)”.

How Canada Needs to Respond to the US Data Crisis


Article by Danielle Goldfarb: “The United States is cutting and undermining official US data across a wide range of domains, eroding the foundations of evidence-based policy making. This is happening mostly under the radar here in Canada, buried by news about US President Donald Trump’s barrage of tariffs and many other alarming actions. Doing nothing in response means Canada accepts blind spots in critical areas. Instead, this country should respond by investing in essential data and building the next generation of trusted public intelligence.

The United States has cut or altered more than 2,000 official data sets across the science, health, climate and development sectors, according to the National Security Archive. Deep staff cuts across all program areas effectively cancel or deeply erode many other statistical programs….

Even before this data purge, official US data methods were becoming less relevant and reliable. Traditional government surveys lag by weeks or months and face declining participation. This lag proved particularly problematic during the COVID-19 pandemic and also now, when economic data with a one- or two-month lag is largely irrelevant for tracking the real-time impact of constantly shifting Trump tariffs….

With deep ties to the United States, Canada needs to take action to reduce these critical blind spots. This challenge brings a major strength into the picture: Canada’s statistical agencies have strong reputations as trusted, transparent information sources.

First, Canada should strengthen its data infrastructure. Official Canadian data suffers from similar delays and declining response rates as in the United States. Statistics Canada needs a renewed mandate and stable resources to produce policy-relevant indicators, especially in a timelier way, and in areas where US data has been cut or compromised.

Second, Canada could also act as a trusted place to store vulnerable indicators — inventorying missing data sets, archiving those at risk and coordinating global efforts to reconstruct essential metrics.

Third, Canada has an opportunity to lead in shaping the next generation of trusted and better public-interest intelligence…(More)”.

Two Paths for A.I.


Essay by Joshua Rothman: “Last spring, Daniel Kokotajlo, an A.I.-safety researcher working at OpenAI, quit his job in protest. He’d become convinced that the company wasn’t prepared for the future of its own technology, and wanted to sound the alarm. After a mutual friend connected us, we spoke on the phone. I found Kokotajlo affable, informed, and anxious. Advances in “alignment,” he told me—the suite of techniques used to insure that A.I. acts in accordance with human commands and values—were lagging behind gains in intelligence. Researchers, he said, were hurtling toward the creation of powerful systems they couldn’t control.

Kokotajlo, who had transitioned from a graduate program in philosophy to a career in A.I., explained how he’d educated himself so that he could understand the field. While at OpenAI, part of his job had been to track progress in A.I. so that he could construct timelines predicting when various thresholds of intelligence might be crossed. At one point, after the technology advanced unexpectedly, he’d had to shift his timelines up by decades. In 2021, he’d written a scenario about A.I. titled “What 2026 Looks Like.” Much of what he’d predicted had come to pass before the titular year. He’d concluded that a point of no return, when A.I. might become better than people at almost all important tasks, and be trusted with great power and authority, could arrive in 2027 or sooner. He sounded scared.

Around the same time that Kokotajlo left OpenAI, two computer scientists at Princeton, Sayash Kapoor and Arvind Narayanan, were preparing for the publication of their book, “AI Snake Oil: What Artificial Intelligence Can Do, What It Can’t, and How to Tell the Difference.” In it, Kapoor and Narayanan, who study technology’s integration with society, advanced views that were diametrically opposed to Kokotajlo’s. They argued that many timelines of A.I.’s future were wildly optimistic; that claims about its usefulness were often exaggerated or outright fraudulent; and that, because of the world’s inherent complexity, even powerful A.I. would change it only slowly. They cited many cases in which A.I. systems had been called upon to deliver important judgments—about medical diagnoses, or hiring—and had made rookie mistakes that indicated a fundamental disconnect from reality. The newest systems, they maintained, suffered from the same flaw.Recently, all three researchers have sharpened their views, releasing reports that take their analyses further. The nonprofit AI Futures Project, of which Kokotajlo is the executive director, has published “AI 2027,” a heavily footnoted document, written by Kokotajlo and four other researchers, which works out a chilling scenario in which “superintelligent” A.I. systems either dominate or exterminate the human race by 2030. It’s meant to be taken seriously, as a warning about what might really happen. Meanwhile, Kapoor and Narayanan, in a new paper titled “AI as Normal Technology,” insist that practical obstacles of all kinds—from regulations and professional standards to the simple difficulty of doing physical things in the real world—will slow A.I.’s deployment and limit its transformational potential. While conceding that A.I. may eventually turn out to be a revolutionary technology, on the scale of electricity or the internet, they maintain that it will remain “normal”—that is, controllable through familiar safety measures, such as fail-safes, kill switches, and human supervision—for the foreseeable future. “AI is often analogized to nuclear weapons,” they argue. But “the right analogy is nuclear power,” which has remained mostly manageable and, if anything, may be underutilized for safety reasons.

How Being Watched Changes How You Think


Article by Simon Makin: “In 1785 English philosopher Jeremy Bentham designed the perfect prison: Cells circle a tower from which an unseen guard can observe any inmate at will. As far as a prisoner knows, at any given time, the guard may be watching—or may not be. Inmates have to assume they’re constantly observed and behave accordingly. Welcome to the Panopticon.

Many of us will recognize this feeling of relentless surveillance. Information about who we are, what we do and buy and where we go is increasingly available to completely anonymous third parties. We’re expected to present much of our lives to online audiences and, in some social circles, to share our location with friends. Millions of effectively invisible closed-circuit television (CCTV) cameras and smart doorbells watch us in public, and we know facial recognition with artificial intelligence can put names to faces.

So how does being watched affect us? “It’s one of the first topics to have been studied in psychology,” says Clément Belletier, a psychologist at University of Clermont Auvergne in France. In 1898 psychologist Norman Triplett showed that cyclists raced harder in the presence of others. From the 1970s onward, studies showed how we change our overt behavior when we are watched to manage our reputation and social consequences.

But being watched doesn’t just change our behavior; decades of research show it also infiltrates our mind to impact how we think. And now a new study reveals how being watched affects unconscious processing in our brain. In this era of surveillance, researchers say, the findings raise concerns about our collective mental health…(More)”.