Five Top Tech Takeaways: SBF Gets Locked Up, Coinbase's Canadian Foray, AI Startups vie with Giants, LK-99 Update, and a Mind-Reading Breakthrough

AI Startups In the Land of Giants

Judge Revokes Bankman-Fried's Bail; Over Witness Tampering Allegations

Sam Bankman-Fried, the founder of FTX, was taken into custody after a judge agreed with federal prosecutors to revoke his bail due to alleged witness tampering. The decision came after a court hearing in New York, and Bankman-Fried was sent to Brooklyn’s Metropolitan Detention Center. Judge Lewis Kaplan rejected Bankman-Fried's plea for delayed detention pending an appeal. The judge believed there was probable cause that Bankman-Fried attempted to tamper with witnesses. Since his arrest in December, he had been on a $250 million bail and was required to stay at his parents' home in Palo Alto, California. The Justice Department accuses him of a "pattern of witness tampering and evading his bail conditions" through his interactions with the media. The defense argued that Bankman-Fried was exercising his first amendment rights. The prosecution's case was strengthened when Bankman-Fried leaked private diary entries of his ex-girlfriend, Caroline Ellison, to the New York Times. Ellison, a former executive of Bankman-Fried’s crypto hedge fund, Alameda Research, had pleaded guilty to federal charges and is cooperating with the government. The prosecution views Bankman-Fried's actions as an attempt to intimidate witnesses indirectly through the media. (Source: CNBC)

Coinbase Embraces Canadian Regulations, Integrates Interac e-transfer

Coinbase is expanding its Canadian operations, integrating Interac e-transfer to simplify transactions in the region and strengthening its presence with over 200 engineers. While other platforms like Binance are retreating from Canada due to tightening regulations by the Canadian Securities Administrators (CSA), Coinbase has embraced these changes, signalling its commitment to the country. The company has complied with the CSA's new rules and has found a positive working relationship with Canadian regulators. Coinbase's CEO Brian Armstrong sees regulatory clarity as a foundation for further growth in the fintech field and remains optimistic about the future of cryptocurrencies globally, even as the firm faces legal challenges in the U.S. (Source: Globe and Mail)

Mind-Reading Breakthrough: UC Berkeley Researchers Vocalize Thoughts.

Researchers at the University of California, Berkeley have made significant progress in the development of devices that can vocalize human thoughts. This advancement could potentially aid patients who have lost their speech abilities due to strokes or brain injuries, allowing them to communicate in a more natural manner. In a notable experiment, the neuroscientists reconstructed Pink Floyd’s song "Another Brick in the Wall, Part 1" using brain activity recordings from 29 patients who listened to the song during brain surgery. While the reconstructed version was not as refined as the original, it was identifiable. The study, which was published in PLOS Biology, demonstrates the potential of using brain-activity patterns to develop therapeutic technologies. Dr. Edward Chang, a neurosurgeon not involved in the study, highlighted the significance of the findings. The research aims to utilize this technology to create neural prosthetics that can restore natural speech abilities to patients. The algorithms developed were even able to reproduce partial vocals from the song. The choice of the Pink Floyd song was due to its balance of familiarity. The breakthrough raises questions about mental privacy, as the ability to interpret thoughts could be the next frontier in privacy concerns. (Source: WSJ)

The Quest for a Room-Temperature Superconductor Continues

The LK-99, initially believed to be a room-temperature superconductor, appears to have different properties than initially thought. Recent studies suggest that in its pure form, LK-99 behaves more like an insulator. This discovery came after the Quantum Energy Research Centre in Seoul, South Korea, shared their initial findings with great enthusiasm. The team had observed certain characteristics in LK-99 that resembled those of superconductors, such as partial levitation above a magnet and a notable drop in electrical resistance. While the initial findings were shared on a preprint server, which allows for rapid dissemination of research without peer review, it's evident that the team was genuinely excited about their discovery, even if subsequent studies have provided a different perspective. (Source: TechCrunch)

Big Tech's Dominance in AI Policy Discussions: Where Do Startups Stand?

In the rapidly evolving realm of generative AI, major players like Microsoft and OpenAI often dominate the conversation, especially when it comes to regulatory discussions. These industry giants have been at the forefront, engaging with policymakers and even entering agreements with the White House to promote responsible AI. However, there's growing concern that smaller AI entities, both commercial and non-commercial, are being overshadowed in these crucial discussions. While these larger companies are instrumental in shaping potential AI policies, smaller businesses, which also play a significant role in the AI ecosystem, are anxious about their limited influence on the outcomes of these regulations. Experts emphasize the importance of including a diverse range of stakeholders in the regulatory dialogue to ensure a balanced and inclusive approach to AI governance. (Source: TheVerge)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

The Furious Five for June 13: Tech and Business Stories You May Have Missed

The EV Charger to Rule them All

Apple Unveils is Vision Pro Headset: Are we Ready for Spatial Computing?

Apple has announced its much awaited VR headset. Last week, they unveiled the Vision Pro Headset, which is designed to seamlessly blend digital content with the physical world. This much awaited device allows users to interact with a three-dimensional user interface controlled by eye movements, hand gestures, and voice commands, and is powered by visionOS, the world's first spatial operating system. Careful to separate themselves from the competition, they classified the Vision Pro as their first spatial computer. The Vision Pro Headset is priced at $3,499 and is slated for release in early 2024. (Sources: Apple, Wired) 

For a great summary on Apple's latest, check out Cold Fusion's review:

Crypto Crackdown Continues: SEC Sues Binance and Coinbase

The Securities and Exchange Commission (SEC) has sued Binance and Changpeng Zhao (Binance’s Canadian founder and controlling shareholder) for operating an illegal trading platform in the U.S. and misusing customers’ funds. Binance is the world’s largest cryptocurrency exchange. The SEC said that Binance and Zhao misused customers’ funds and diverted them to a trading entity that Zhao controlled. That trading firm, Sigma Chain, engaged in manipulative trading (known as "wash trading") that made Binance’s volume appear larger than it actually was, the SEC said. Binance also concealed that it commingled billions of dollars in customer assets and sent them to a third-party, Merit Peak, which was owned by Zhao, the SEC alleged. The SEC filed the case in federal court in the District of Columbia and is asking a federal judge to freeze Binance’s assets and appoint a receiver. (Source: WSJ)

SEC then filed a lawsuit against Coinbase, for allegedly operating as an unregistered broker and exchange. Unlike Binance, Coinbase is listed on the NASDAQ and hence regulated by the SEC. The SEC claims that Coinbase violated rules that require it to register as an exchange and be overseen by the federal agency. Coinbase has denied the allegations and intends to defend itself in court. The SEC’s strategy has centered on using its enforcement division to subdue crypto companies and show why its regulations apply to crypto activities, with increasing focus on the biggest players rather than just the companies and currencies at the margins. Coinbase pushed back on Tuesday, accusing the SEC of taking an “enforcement-only approach” with the crypto industry in the absence of clear rules. Brian Armstrong, CEO of Coinbase, had the following take:  

“The solution is legislation that allows fair rules for the road to be developed transparently and applied equally, not litigation,” Paul Grewal, chief legal officer of Coinbase, said in a statement. “In the meantime, we’ll continue to operate our business as usual.” The lawsuits are part of a growing regulatory crackdown on the crypto industry in the post-FTX fallout. (Source: WSJ)

Global Tech Giants Bet Big on AI, Back Cohere with $270M Funding

AI startup Cohere has raised $270M in a Series C financing round, attracting investors from around the globe and notable tech firms like NVIDIA, Oracle, and Salesforce Ventures. This surge in investment underlines the growing recognition of AI as a critical driver of business success in the coming decade. The round was led by Inovia Capital and included participation from investors in the USA, Canada, Korea, the UK, and Germany. Cohere's CEO, Aidan Gomez, emphasized the company's readiness to lead in the next phase of AI products and services that will revolutionize business, while NVIDIA's CEO, Jensen Huang, hailed Cohere's contributions to generative AI as foundational. (Source: Cohere)

GM and Ford's EVs to Plug into Tesla's Charging Network

General Motors (GM) and Ford electric vehicles will gain access to Tesla’s vast U.S. charging network starting early next year. Both GM and Ford are aligning their electric vehicles to be compatible with approximately 12,000 out of Tesla's 17,000 chargers. The Detroit auto giants are advocating to establish Tesla's connector as the industry standard. At first, GM and Ford EV owners will need an adapter to hook into the Tesla stations, but both GM and Ford will switch to Tesla’s North American Charging Standard connector starting with new EVs produced in 2025. (Source: CBC, CNBC)

Data Management: An Inescapable Necessity in the World of Generative AI

As interest in Generative AI rises, the importance of robust data management in businesses comes to the fore. Efficient data storage, filtering, and protection are necessary for successful AI integration. A properly structured data management system is essential for companies to effectively utilize large language models. A key concern for these companies is the quality of data, which must be well-structured, relevant, and organized for effective AI training. Therefore, firms must carefully cleanse, categorize, and format their data to avoid retaining useless information. As highlighted in the Wall Street Journal, organizations such as Syneos Health are prioritizing such data cleansing efforts. Syneos spent roughly 18 months prepping this repository for AI model training and construction. This process involved a team of data scientists and business experts who created centralized, reusable machine-learning elements. (Source: WSJ)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.