Larry Fink Says Bitcoin Could Replace the Dollar as the World's Reserve Currency Because of National Debt | | With America's national debt sitting comfortably over the $36.2 trillion mark, BlackRock CEO Larry Fink is warning the burden could one day be the reason the dollar is dethroned as the reserve currency of the world.
From a report: He argues that decentralized currencies like Bitcoin could replace the dollar as worldwide organizations lose faith in national currencies and seek an independent solution. Fink explained his theory in his 2025 letter to shareholders, writing: "The U.S. has benefited from the dollar serving as the world's reserve currency for decades. But that's not guaranteed to last forever.
"The national debt has grown at three times the pace of GDP since Times Square's debt clock started ticking in 1989. This year, interest payments will surpass $952 billion -- exceeding defense spending. By 2030, mandatory government spending and debt service will consume all federal revenue, creating a permanent deficit. If the U.S. doesn't get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin." Read more of this story at Slashdot. |
DeepMind is Holding Back Release of AI Research To Give Google an Edge | | Google's AI arm DeepMind has been holding back the release of its world-renowned research, as it seeks to retain a competitive edge in the race to dominate the burgeoning AI industry. From a report: The group, led by Nobel Prize-winner Sir Demis Hassabis, has introduced a tougher vetting process and more bureaucracy that made it harder to publish studies about its work on AI, according to seven current and former research scientists at Google DeepMind. Three former researchers said the group was most reluctant to share papers that reveal innovations that could be exploited by competitors, or cast Google's own Gemini AI model in a negative light compared with others.
The changes represent a significant shift for DeepMind, which has long prided itself on its reputation for releasing groundbreaking papers and as a home for the best scientists building AI. Meanwhile, huge breakthroughs by Google researchers -- such as its 2017 "transformers" paper that provided the architecture behind large language models -- played a central role in creating today's boom in generative AI. Since then, DeepMind has become a central part of its parent company's drive to cash in on the cutting-edge technology, as investors expressed concern that the Big Tech group had ceded its early lead to the likes of ChatGPT maker OpenAI.
"I cannot imagine us putting out the transformer papers for general use now," said one current researcher. Among the changes in the company's publication policies is a six-month embargo before "strategic" papers related to generative AI are released. Researchers also often need to convince several staff members of the merits of publication, said two people with knowledge of the matter. Read more of this story at Slashdot. |
Study Reveals Why Credit Card Interest Rates Remain Stubbornly High | | Credit card interest rates, which averaged 23% in 2023, are significantly higher than any other major loan product primarily due to non-diversifiable default risk and banks' market power, according to research published by the Federal Reserve Bank of New York.
The comprehensive study, which analyzed 330 million monthly credit card accounts, found that while high default losses contribute to elevated rates, they explain only part of the picture. Even high-FICO borrowers pay spreads exceeding 7% above the federal funds rate. Researchers determined that credit card banks have substantial pricing power, achieved through exceptionally high operating expenses -- about 4-5% of dollar balances annually -- with marketing costs ten times higher than those at other banks.
"Credit card charge-off rates are highly correlated with default rates on banks' other loans as well as on corporate bonds," the researchers said, noting that default risk cannot be diversified away across lending markets, particularly during economic downturns. The study estimated that exposure to aggregate default risk carries a premium of 5.3% per year, which fully explains the relationship between return on assets and credit scores.
Credit cards are ubiquitous in American finance, with 74% of adults owning at least one card, and the payment method accounting for 70% of retail spending. According to the research, 60% of accounts carry balances month-to-month. Read more of this story at Slashdot. |
London Mayor Axes Cyber Crime Victim Support Line | | London's mayor has axed a cyber crime helpline for the victims of online abuse, triggering a backlash from campaigners who argue that women and girls will be left struggling to access vital support. From a report: The service, which was shut down on Tuesday, assisted victims of fraud, revenge porn and cyberstalking to protect their digital identity. During its 18-months of operation it led to 2,060 cases being opened. The helpline was launched in 2023 as a one-year pilot scheme with $220,000 in funding from the Mayor's Office for Policing and Crime (Mopac), and was later extended by six months.
Conservative London Assembly member Emma Best said an informal evaluation showed the helpline "was working" and was going to be extended for another year. However, Sadiq Khan said that the scheme would be closed. "It was a pilot and pilots are what they say on the tinā... we will receive an end of project report, we have collected the data and the results of that report will inform our future work," he said, speaking at Mayor's Question Time. Read more of this story at Slashdot. |
Gmail is Making It Easier For Businesses To Send Encrypted Emails To Anyone | | Google is rolling out a new encryption model for Gmail that allows enterprise users to send encrypted messages without requiring recipients to use custom software or exchange encryption certificates. The feature, launching in beta today, initially supports encrypted emails within the same organization, with plans to expand to all Gmail inboxes "in the coming weeks" and third-party email providers "later this year."
Unlike Gmail's current S/MIME-based encryption, the new system lets users simply toggle "additional encryption" in the email draft window. Non-Gmail recipients will receive a link to access messages through a guest Google Workspace account, while Gmail users will see automatically decrypted emails in their inbox. Read more of this story at Slashdot. |
Average Person Will Be 40% Poorer If World Warms By 4C, New Research Shows | | Economic models have systematically underestimated how global heating will affect people's wealth, according to a new study that finds 4C warming will make the average person 40% poorer -- an almost four-fold increase on some estimates. The Guardian: The study by Australian scientists suggests average per person GDP across the globe will be reduced by 16% even if warming is kept to 2C above pre-industrial levels. This is a much greater reduction than previous estimates, which found the reduction would be 1.4%.
Scientists now estimate global temperatures will rise by 2.1C even if countries hit short-term and long-term climate targets. Criticisms have mounted in recent years that a set of economic tools known as integrated assessment models (IAM) -- used to guide how much governments should invest in cutting greenhouse gas emissions -- have failed to capture major risks from climate change, particularly extreme weather events. The new study, in the journal Environmental Research Letters, took one of the most popular economic models and enhanced it with climate change forecasts to capture the impacts of extreme weather events across global supply chains. Read more of this story at Slashdot. |
Xiaomi EV Involved in First Fatal Autopilot Crash | | An anonymous reader quotes a report from Reuters: China's Xiaomi said on Tuesday that it was actively cooperating with police after a fatal accident involving a SU7 electric vehicle on March 29 and that it had handed over driving and system data. The incident marks the first major accident involving the SU7 sedan, which Xiaomi launched in March last year and since December has outsold Tesla's Model 3 on a monthly basis. Xiaomi's shares, which had risen by 34.8% year to date, closed down 5.5% on Wednesday, underperforming a 0.2% gain in the Hang Seng Tech index. Xiaomi did not disclose the number of casualties but said initial information showed the car was in the Navigate on Autopilot intelligent-assisted driving mode before the accident and was moving at 116 kph (72 mph).
A driver inside the car took over and tried to slow it down but then collided with a cement pole at a speed of 97 kph, Xiaomi said. The accident in Tongling in the eastern Chinese province of Anhui killed the driver and two passengers, Chinese financial publication Caixin reported on Tuesday citing friends of the victims. In a rundown of the data submitted to local police posted on a Weibo account of the company, Xiaomi said NOA issued a risk warning of obstacles ahead and its subsequent immediate takeover only happened seconds before the collision. Local media reported that the car caught fire after the collision. Xiaomi did not mention the fire in the statement. The report notes that the car was a "so-called standard version of the SU7, which has the less-advanced smart driving technology without LiDAR." Read more of this story at Slashdot. |
Alan Turing Institute Plans Revamp in Face of Criticism and Technological Change | | Britain's flagship AI agency will slash the number of projects it backs and prioritize work on defense, environment and health as it seeks to respond to technological advances and criticism of its record. From a report: The Alan Turing Institute -- named after the pioneering British computer scientist -- will shut or offload almost a quarter of its 101 current initiatives and is considering job cuts as part of a change programme that led scores of staff to write a letter expressing their loss of confidence in the leadership in December.
Jean Innes, appointed chief executive in July 2023, argued that huge advances in AI meant the Turing needed to modernise after being founded as a national data science institute by David Cameron's government a decade ago this month. "The Turing has chalked up some really great achievements," Innes said in an interview. "[But we need] a big strategic shift to a much more focused agenda on a small number of problems that have an impact in the real world." A review last year by UK Research and Innovation, the government funding body, found "a clear need for the governance and leadership structure of the Institute to evolve." It called for a move away from the dominance of universities to a structure more representative of AI in UK. Read more of this story at Slashdot. |
Anthropic Will Begin Sweeping Offices For Hidden Devices | | Anthropic said it will start sweeping physical offices for hidden devices as part of a ramped-up security effort as the AI race intensifies. From a report: The company, backed by Amazon and Google, published safety and security updates in a blog post on Monday, and said it also plans to establish an executive risk council and build an in-house security team. Anthropic closed its latest funding round earlier this month at a $61.5 billion valuation, which makes it one of the highest-valued AI startups.
In addition to high-growth startups, tech giants including Google, Amazon and Microsoft are racing to announce new products and features. Competition is also coming from China, a risk that became more evident earlier this year when DeepSeek's AI model went viral in the U.S. Anthropic said in the post that it will introduce "physical" safety processes, such as technical surveillance countermeasures -- or the process of finding and identifying surveillance devices that are used to spy on organizations. The sweeps will be conducted "using advanced detection equipment and techniques" and will look for "intruders." Read more of this story at Slashdot. |
First Flight of Isar Aerospace's Spectrum Rocket Lasted Just 40 Seconds | | An anonymous reader quotes a report from Ars Technica: The first flight of Isar Aerospace's Spectrum rocket didn't last long on Sunday. The booster's nine engines switched off as the rocket cartwheeled upside-down and fell a short distance from its Arctic launch pad in Norway, punctuating the abbreviated test flight with a spectacular fiery crash into the sea. If officials at Isar Aerospace were able to pick the outcome of their first test flight, it wouldn't be this. However, the result has precedent. The first launch of SpaceX's Falcon 1 rocket in 2006 ended in similar fashion. "Today, we know twice as much about our launch system as yesterday before launch," Daniel Metzler, Isar's co-founder and CEO, wrote on X early Monday. "Can't beat flight testing. Ploughing through lots of data now."
Isar Aerospace, based in Germany, is the first in a crop of new European rocket companies to attempt an orbital launch. If all went according to plan, Isar's Spectrum rocket would have arced to the north from Andoya Spaceport in Norway and reached a polar orbit. But officials knew there was only a low chance of reaching orbit on the first flight. For this reason, Isar did not fly any customer payloads on the Spectrum rocket, designed to deliver up to 2,200 pounds (1,000 kilograms) of payload mass to low-Earth orbit. [...] Isar declared the launch a success in its public statements, but was it? [...] Metzler, Isar's chief executive, was asked last year what he would consider a successful inaugural flight of Spectrum. "For me, the first flight will be a success if we don't blow up the launch site," he said at the Handelsblatt innovation conference. "That would probably be the thing that would set us back the most in terms of technology and time."
This tempering of expectations sounds remarkably similar to statements made by Elon Musk about SpaceX's first flight of the Starship rocket in 2023. By this measure, Isar officials can be content with Sunday's result. The company is modeling its test strategy on SpaceX's iterative development cycle, where engineers test early, make fixes, and fly again. This is in stark contrast to the way Europe has traditionally developed rockets. The alternative to Isar's approach could be to "spend 15 years researching, doing simulations, and then getting it right the first time," Metzler said. With the first launch of Spectrum, Isar has tested the rocket. Now, it's time to make fixes and fly again. That, Isar's leaders argue, will be the real measure of success. "We're super happy," Metzler said in a press call after Sunday's flight. "It's a time for people to be proud of, and for Europe, frankly, also to be proud of." You can watch a replay of the live launch webcast on YouTube. Read more of this story at Slashdot. |
'There is No Vibe Engineering' | | Software engineer Sergey Tselovalnikov weighs in on the new hype: The term caught on and Twitter quickly flooded with posts about how AI has radically transformed coding and will soon replace all software engineers. While AI undeniably impacts the way we write code, it hasn't fundamentally changed our role as engineers. Allow me to explain.
[...] Vibe coding is interacting with the codebase via prompts. As the implementation is hidden from the "vibe coder", all the engineering concerns will inevitably get ignored. Many of the concerns are hard to express in a prompt, and many of them are hard to verify by only inspecting the final artifact. Historically, all engineering practices have tried to shift all those concerns left -- to the earlier stages of development when they're cheap to address. Yet with vibe coding, they're shifted very far to the right -- when addressing them is expensive.
The question of whether an AI system can perform the complete engineering cycle and build and evolve software the same way a human can remains open. However, there are no signs of it being able to do so at this point, and if it one day happens, it won't have anything to do with vibe coding -- at least the way it's defined today.
[...] It is possible that there'll be a future where software is built from vibe-coded blocks, but the work of designing software able to evolve and scale doesn't go away. That's not vibe engineering -- that's just engineering, even if the coding part of it will look a bit different. Read more of this story at Slashdot. |
Intel CEO Lip-Bu Tan Says Company Will Spin Off Non-Core Units | | Intel Chief Executive Officer Lip-Bu Tan said the chipmaker will spin off assets that aren't central to its mission and create new products including custom semiconductors to try to better align itself with customers. From a report: Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to meet the needs of potential customers, Tan said. Speaking at his first public appearance as CEO, at the Intel Vision conference Monday in Las Vegas, Tan didn't specify what parts of Intel he believes are no longer central to its future.
"We have a lot of hard work ahead," Tan said, addressing the company's customers in the audience. "There are areas where we've fallen short of your expectations." The veteran semiconductor executive is trying to restore the fortunes of a company that dominated an industry for decades, but now finds itself chasing rivals in most of the areas that define success in the field. A key question confronting its leadership is whether a turnaround is best served by the company remaining whole or splitting up its key product and manufacturing operations. Tan gave no indication that he will seek to divest either part of Intel. Instead, he highlighted the problems he needs to fix to get both units performing more successfully. Intel's chips for data center and AI-related work in particular are not good enough, he said. "We fell behind on innovation," the CEO said. "We have been too slow to adapt and meet your needs." Read more of this story at Slashdot. |
UK's GCHQ Intern Transferred Top Secret Files To His Phone | | Bruce66423 shares a report from the BBC: A former GCHQ intern has admitted risking national security by taking top secret data home with him on his mobile phone. Hasaan Arshad, 25, pleaded guilty to an offence under the Computer Misuse Act on what would have been the first day of his trial at the Old Bailey in London. The charge related to committing an unauthorised act which risked damaging national security.
Arshad, from Rochdale in Greater Manchester, is said to have transferred sensitive data from a secure computer to his phone, which he had taken into a top secret area of GCHQ on 24 August 2022. [...] The court heard that Arshad took his work mobile into a top secret GCHQ area and connected it to work station. He then transferred sensitive data from a secure, top secret computer to the phone before taking it home, it was claimed. Arshad then transferred the data from the phone to a hard drive connected to his personal home computer. "Seriously? What on earth was the UK's equivalent of the NSA doing allowing its hardware to carry out such a transfer?" questions Bruce66423. Read more of this story at Slashdot. |
Intel and Microsoft Staff Allegedly Lured To Work For Fake Chinese Company In Taiwan | | Taiwanese authorities have accused 11 Chinese companies, including SMIC, of secretly setting up disguised entities in Taiwan to illegally recruit tech talent from firms like Intel and Microsoft. The Register reports: One of those companies is apparently called Yunhe Zhiwang (Shanghai) Technology Co., Ltd and develops high-end network chips. The Bureau claims its chips are used in China's "Data East, Compute West" strategy that, as we reported when it was announced in 2022, calls for five million racks full of kit to be moved from China's big cities in the east to new datacenters located near renewable energy sources in country's west. Datacenters in China's east will be used for latency-sensitive applications, while heavy lifting takes place in the west. Staff from Intel and Microsoft were apparently lured to work for Yunhe Zhiwang, which disguised its true ownership by working through a Singaporean company.
The Investigation Bureau also alleged that China's largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), used a Samoan company to establish a presence in Taiwan and then hired local talent. That's a concerning scenario as SMIC is on the USA's "entity list" of organizations felt to represent a national security risk. The US gets tetchy when its friends and allies work with companies on the entity list.
A third Chinese entity, Shenzhen Tongrui Microelectronics Technology, disguised itself so well Taiwan's Ministry of Industry and Information Technology lauded it as an important innovator and growth company. As a result of the Bureau's work, prosecutors' offices in seven Taiwanese cities are now looking into 11 Chinese companies thought to have hidden their ties to Beijing. Read more of this story at Slashdot. |
OpenAI Plans To Release a New 'Open' AI Language Model In the Coming Months | | OpenAI plans to release a new open-weight language model -- its first since GPT-2 -- in the coming months and is seeking community feedback to shape its development. "That's according to a feedback form the company published on its website Monday," reports TechCrunch. "The form, which OpenAI is inviting 'developers, researchers, and [members of] the broader community' to fill out, includes questions like 'What would you like to see in an open-weight model from OpenAI?' and 'What open models have you used in the past?'" From the report: "We're excited to collaborate with developers, researchers, and the broader community to gather inputs and make this model as useful as possible," OpenAI wrote on its website. "If you're interested in joining a feedback session with the OpenAI team, please let us know [in the form] below." OpenAI plans to host developer events to gather feedback and, in the future, demo prototypes of the model. The first will take place in San Francisco within a few weeks, followed by sessions in Europe and Asia-Pacific regions.
OpenAI is facing increasing pressure from rivals such as Chinese AI lab DeepSeek, which have adopted an "open" approach to launching models. In contrast to OpenAI's strategy, these "open" competitors make their models available to the AI community for experimentation and, in some cases, commercialization. Read more of this story at Slashdot. |
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