In the rapidly evolving world where technology giants increasingly intersect with geopolitical concerns, a significant development has emerged regarding how major corporations manage AI tools. For those following the intersection of tech, security, and the broader digital landscape, news from Microsoft’s leadership sheds light on the cautious approach being taken towards certain generative AI services. This includes a notable Microsoft DeepSeek ban for its internal workforce, citing critical security and data handling issues. Why the Microsoft DeepSeek Ban? Urgent Concerns Highlighted Microsoft’s decision to prohibit its employees from using the DeepSeek application stems from explicit concerns over data security and the potential for state influence. During a recent Senate hearing, Microsoft vice chairman and president Brad Smith stated clearly, “At Microsoft we don’t allow our employees to use the DeepSeek app.” He elaborated that this restriction applies to the application service, accessible on both desktop and mobile devices. The primary reasons articulated for this significant step are: Data Storage Location: The risk that sensitive data processed through the app could be stored on servers located in China. Potential for Propaganda: Concerns that the AI model’s outputs could be influenced by or spread “Chinese propaganda.” Legal Compliance Risks: DeepSeek’s privacy policy confirms user data is stored on Chinese servers, making it subject to Chinese law, which can mandate cooperation with intelligence agencies. Censorship: The model is known to heavily censor content considered sensitive by the Chinese government. While many organizations and governments have implemented restrictions on various technologies, this public statement from a tech leader like Microsoft regarding a specific AI app is noteworthy and underscores the growing complexity of managing AI data security in a global context. Employee AI Use: A Distinction Between App and Model It’s crucial to understand the nuance in Microsoft’s position. While the DeepSeek app is banned for Employee AI use , Microsoft has offered DeepSeek’s R1 model on its Azure cloud service. This distinction is significant: Using the DeepSeek App : Involves sending data directly to DeepSeek’s servers. Data is stored in China, subject to Chinese law. Directly utilizes DeepSeek’s potentially unfiltered service. Using the DeepSeek Model on Azure : Since DeepSeek is open source, the model can be downloaded. Organizations can host the model on their own servers (like Azure). User data stays within the organization’s controlled environment (e.g., Azure), not sent back to DeepSeek’s servers in China. This highlights that the core concern for the app ban is primarily data residency and control, rather than the AI model itself being inherently unusable in all contexts. However, hosting the model locally doesn’t eliminate all risks, such as the potential for the model to generate insecure code or biased content, linking back to broader Generative AI security considerations. China AI Risks and Microsoft’s Mitigation Efforts The concerns raised by Microsoft directly point to the unique China AI risks associated with data handling and potential governmental influence. Brad Smith mentioned that Microsoft has taken steps to mitigate some of these risks when offering the model on Azure. He claimed Microsoft was able to “go inside” the DeepSeek AI model and “change” it to remove “harmful side effects.” While Microsoft did not provide specific details on these modifications, they stated that DeepSeek underwent “rigorous red teaming and safety evaluations” before being made available on Azure. This suggests an attempt to address potential biases, safety issues, or the risk of spreading propaganda at the model level, separate from the data security concerns of the app. This situation also brings into focus the competitive landscape. DeepSeek’s app is a competitor to Microsoft’s own Copilot. However, Microsoft doesn’t ban all competing apps; for instance, Perplexity is available in the Windows app store. This suggests the ban is specifically tied to the identified security and geopolitical risks of DeepSeek, rather than merely competitive reasons, though the competitive aspect is hard to ignore entirely when discussing restrictions on Employee AI use . Conclusion: Navigating the Complexities of Generative AI Security Microsoft’s public stance on the DeepSeek app ban for its employees serves as a clear indicator of the complex security and geopolitical challenges tech companies face with the proliferation of generative AI tools. The distinction made between using a third-party app and hosting an open-source model on controlled infrastructure like Azure highlights different facets of AI data security and risk management. As AI becomes more integrated into daily work, organizations must carefully evaluate the origins, data handling practices, and potential influences embedded within the tools they permit for Employee AI use , especially when navigating the landscape of China AI risks and broader Generative AI security concerns. To learn more about the latest AI security trends, explore our article on key developments shaping AI safety features.
XRP has experienced a notable rally, driven by a combination of factors including the Federal Reserve’s decision to pause interest rate hikes and Bitcoin’s recent breakout. These developments have contributed to a more favorable environment for altcoins like XRP. Fed Pause Impacts Crypto Market The Federal Reserve’s decision to hold steady on interest rates has … Continue reading "XRP Rally Fueled by Fed Pause and Bitcoin Breakout" The post XRP Rally Fueled by Fed Pause and Bitcoin Breakout appeared first on Cryptoknowmics-Crypto News and Media Platform .
COINOTAG reports that on May 9th, data from TheDataNerd reveals a significant movement in the cryptocurrency market. A whale account, identified as “0xbA7,” deposited an impressive 9.47 million USDT on
Shiba Inu’s latest burn rate surge, hitting an impressive 4,833%, indicates increased accumulation and potential breakout pressure in the crypto market. Whale inflows alongside significantly low volatility signal robust accumulation
Apple is reportedly working on its own microchips across multiple product categories, including smart glasses and artificial intelligence — a hint at what’s next for the massive Silicon Valley-based tech giant. A May 8 report from Bloomberg, citing people familiar with the matter, said the company is working on new processors to power its future devices, including its first smart glasses to rival Meta’s Ray-Bans, more powerful Macs, and artificial intelligence servers. The smart glasses — a first for Apple — would rely on a specialized chip codenamed N401. The processor is based on Apple Watch chips but is further optimized for power efficiency and designed to control multiple cameras planned for the glasses, the sources said. Apple’s smart glasses will initially be non- augmented reality versions that will include cameras, microphones and integrated AI, much like rival offerings from Meta . They would presumably have similar functions like snapping photos, recording video and offering translation options, the report added. The product may also integrate a visual intelligence feature for scanning the environment and describing objects, looking up information about products and providing directions. Mass production targeted for late 2026 or 2027, suggesting a product launch within approximately two years, they added. Apple is targeting rival Meta’s smart Ray-Bans. Source: Ray-Ban The Bloomberg sources added that other semiconductors were also developing chips to power future Macs and AI servers that can power the firm’s “Apple Intelligence” platform. Related: Apple softens crypto-related app rules, ‘hugely bullish’ for crypto industry Meanwhile, MacRumors reported that chips codenamed “Komodo” will likely be M6 chips that will follow this year’s M5 chips, while chips codenamed “Borneo” will be Apple’s future M7 processors with another more advanced chip that will debut in the future codenamed “Sotra.” Dedicated Apple AI chips Apple is also working on its first dedicated AI server chips in a project codenamed “Baltra” to power its Apple Intelligence platform, according to Bloomberg. The firm’s Baltra chips could have up to eight times the processing and graphics cores of the current M3 Ultra chips, the report added. Apple has targeted completion by 2027 to make its AI services faster and more competitive. In late April, it was reported that Chinese tech giant Huawei has developed a powerful AI chip that could rival high-end processors from US chip maker Nvidia. Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest
Economist Nouriel Roubini made remarkable statements about the future of the US economy. Roubini, a senior advisor at Hudson Bay Capital, said technological advances would offset the impact of trade tariffs. He said the U.S. is a leader in future fields such as artificial intelligence, quantum computing and green technology. “Technology outweighs tariffs,” he said. According to Roubini, this technological superiority could increase the potential growth rate of the United States from 2% to 4% by 2030. In contrast, the economist stated that the impact of tariffs and immigration restrictions could only reduce growth by 0.5%, and that technological progress would more than compensate for this loss. Roubini, who believes that the high tariffs that Donald Trump plans to impose will also be limited by the market, said: “Bond investors will force Trump to back down. The most powerful parties are the market disciplinarians.” Related News: BREAKING: US Senate Rejects Crypto-Friendly GENIUS Act – Here Are the Details In the short term, Roubini predicts a slowdown in the economy. He said that cost increases due to customs duties could push inflation to 4%, which could restrict consumer spending and lead to a loss of confidence in both the consumer and business world. In this context, he said a “short and shallow” recession could occur in the last quarter of 2025. Roubini also responded to the question of how the FED would act in this situation, saying that the central bank would want to see clear signs of a recession before cutting interest rates. “Inflation expectations are still under control. The Fed will be patient and wait for the data,” Roubini said, adding that he thought lessons had been learned from mistakes made in previous periods. Roubini also said that the weakening of the dollar could put additional pressure on inflation by increasing import prices, and therefore the Fed should not make sudden interest rate cuts. He added that long-term bond yields could diverge from the Fed policy due to reasons such as the increasing budget deficit. Roubini stated that despite the short-term difficulties in the economy, the US has a strong growth potential in the long term thanks to its innovative structure, and said, “Customs duties are temporary, but technology is a permanent advantage.” *This is not investment advice. Continue Reading: Economist Nouriel Roubini Assesses the US Economy, Interest Rate Cuts, and Tariffs – What to Expect?
The cryptocurrency world is buzzing with news of a potential seismic shift. Reports indicate that Coinbase, one of the largest crypto exchanges globally, is making a massive move with the proposed Coinbase Deribit acquisition . This isn’t just another deal; it could fundamentally alter the competitive landscape, particularly in the rapidly growing sector of crypto derivatives . Understanding the Scale of the Coinbase Deribit Acquisition According to CoinDesk, citing analysis from KeyBanc, Coinbase is reportedly set to acquire Deribit, a dominant player in the cryptocurrency options market, for a staggering $2.9 billion. This figure alone highlights the immense value and strategic importance Coinbase places on this deal. Deribit isn’t just any exchange; it’s a powerhouse specifically focused on options and futures trading for cryptocurrencies like Bitcoin and Ethereum. This acquisition is poised to catapult Coinbase into a leading position within the crypto derivatives space. KeyBanc analysts suggest that post-acquisition, Coinbase could become the world’s largest cryptocurrency derivatives platform when measured by open interest (OI) and options trading volume. This immediate scaling is a direct challenge to established giants in the derivatives market. Deribit’s Unmatched Dominance in Deribit Options Why is Deribit so valuable? The numbers speak for themselves. Deribit currently commands an estimated 95% of the global cryptocurrency options market. This near-monopoly status in a specific, high-value segment makes it an incredibly attractive target for an exchange looking to diversify and expand its offerings beyond spot trading. Options trading, unlike simple spot trading, involves contracts that give traders the right, but not the obligation, to buy or sell an asset at a specific price on or before a certain date. It’s a more complex form of trading often used by sophisticated investors and institutions for hedging or speculating on price movements. Deribit has built a robust platform and liquidity pool specifically for these advanced financial instruments. Consider its trading volume: last year alone, Deribit facilitated $1.2 trillion in trading volume. This immense activity underscores the platform’s liquidity and its central role in price discovery and risk management within the crypto options market. By integrating this volume and user base, Coinbase instantly gains a deep foothold in a market segment where it previously had limited presence. Bridging the Gap: Enhancing Coinbase International Presence Another crucial aspect highlighted by financial institutions like Barclays is how the Deribit acquisition is expected to significantly expand Coinbase’s presence overseas. Coinbase has historically generated the majority of its revenue from its operations in the United States. Currently, only about 20% of Coinbase’s revenue originates from international markets. Acquiring Deribit, which has a strong global user base and operates outside the U.S. regulatory environment (though subject to others), provides Coinbase with an established international infrastructure and customer base. This helps bridge a significant geographic gap and is vital for Coinbase’s long-term growth strategy. Expanding internationally diversifies Coinbase’s revenue streams and reduces its reliance on a single market, mitigating regulatory risks associated with operating predominantly in one jurisdiction. This strategic move aligns with Coinbase’s ambition to become a truly global financial institution in the crypto space, offering a wider range of products to a broader audience worldwide. The Competitive Edge: Coinbase vs Binance in Crypto Derivatives Perhaps the most significant implication of the Coinbase Deribit acquisition is the direct challenge it poses to Binance, currently a dominant force in the broader crypto derivatives market (which includes futures, perpetual swaps, and options). While Binance has a massive overall derivatives volume, Deribit’s near-monopoly in options gives Coinbase a specific, powerful advantage in that niche. KeyBanc’s analysis suggesting Coinbase could surpass Binance in options volume and open interest post-acquisition indicates a major shift in market dynamics. This competition is likely to intensify as Coinbase integrates Deribit’s platform and leverages its brand and user base to attract more derivatives traders. What does this mean for the market and users? Increased competition often leads to innovation, better pricing, and improved services. As Coinbase and Binance vie for market share in derivatives, traders could benefit from more sophisticated tools, lower fees, and greater liquidity across various derivatives products. Potential Impacts: Benefits and Challenges Like any large acquisition, this deal comes with potential benefits and challenges: Potential Benefits: Market Dominance: Instantly becomes a leader in crypto options. Revenue Diversification: Adds a significant high-volume revenue stream beyond spot trading. Global Expansion: Accelerates international reach and reduces reliance on the U.S. market. Product Offering: Expands Coinbase’s suite of financial products for advanced traders and institutions. Increased Liquidity: Combining user bases and platforms could enhance liquidity for all participants. Potential Challenges: Integration Complexity: Merging platforms, technology, and teams can be difficult and time-consuming. Regulatory Hurdles: Navigating different regulatory environments globally presents challenges. Maintaining Deribit’s Niche: Integrating a highly specialized platform like Deribit into a broader exchange structure requires careful management to avoid disrupting its core strength. Competition: Facing off directly against an entrenched giant like Binance requires sustained effort and innovation. A Game-Changing Move for the Crypto Landscape The reported $2.9 billion acquisition of Deribit by Coinbase is far more than just a large corporate transaction. It’s a strategic maneuver that positions Coinbase as a major force in the burgeoning crypto derivatives market, directly challenging the existing hierarchy led by Binance. By acquiring Deribit’s dominant market share in options and its established international presence, Coinbase is setting the stage for intensified competition and significant growth in global markets. While integration and regulatory challenges lie ahead, this deal has the potential to reshape where and how traders access crypto derivatives, ultimately impacting the entire cryptocurrency ecosystem. To learn more about the latest crypto market trends, explore our article on key developments shaping crypto derivatives institutional adoption.
On May 9th, COINOTAG reported that prominent trader James Wynn has executed a strategic adjustment to his cryptocurrency holdings. According to insights from HyperInsight, Wynn has initiated a partial closure
BNB price is consolidating above the $605 support zone. The price is now showing positive signs and might aim for more gains in the near term. BNB price is attempting to recover from the $600 support zone. The price is now trading above $612 and the 100-hourly simple moving average. There is a key bullish trend line forming with support near $622 on the hourly chart of the BNB/USD pair (data source from Binance). The pair must stay above the $612 level to start another increase in the near term. BNB Price Eyes More Gains After forming a base above the $600 level, BNB price started a fresh increase. There was a move above the $605 and $612 resistance levels, like Ethereum and Bitcoin . The bulls even pushed the price above the $625 level. A high was formed at $629 and the price is now consolidating gains above the 23.6% Fib retracement level of the recent wave from the $597 swing low to the $629 high. The price is now trading above $622 and the 100-hourly simple moving average. There is also a key bullish trend line forming with support near $622 on the hourly chart of the BNB/USD pair. On the upside, the price could face resistance near the $628 level. The next resistance sits near the $630 level. A clear move above the $630 zone could send the price higher. In the stated case, BNB price could test $642. A close above the $642 resistance might set the pace for a larger move toward the $650 resistance. Any more gains might call for a test of the $655 level in the near term. Another Decline? If BNB fails to clear the $630 resistance, it could start another decline. Initial support on the downside is near the $622 level. The next major support is near the $620 level. The main support sits at $612 and the 50% Fib retracement level of the recent wave from the $597 swing low to the $629 high. If there is a downside break below the $612 support, the price could drop toward the $605 support. Any more losses could initiate a larger decline toward the $600 level. Technical Indicators Hourly MACD – The MACD for BNB/USD is gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently above the 50 level. Major Support Levels – $622 and $612. Major Resistance Levels – $630 and $642.
World Liberty Financial, a project associated with former President Donald Trump, has launched a snapshot vote to test an airdrop system offering a free USD1 stablecoin to eligible holders of its $WLFI token. Since late April, the market capitalization of the $USD1 stablecoin has surged from $130 million to over $2 billion. The $WLFI token is integrated with Lista DAO, a core decentralized finance (DeFi) protocol on Binance Smart Chain (BSC) and the largest interest-earning protocol on the BNB chain. This integration allows $WLFI holders to participate in lending and yield generation through Lista DAO. Additionally, a wallet likely linked to World Liberty Financial recently purchased 1,587 ETH valued at approximately $3.5 million and 9.7 Wrapped Bitcoin (WBTC) worth around $1 million, indicating active investment activity by the project. This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz . To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io