Tether Invests $775M in Rumble

CRYPTO
Tether Invests $775M in Rumble

Tether has invested $775 million in Rumble, a video platform popular among right-wing influencers. Known for its stablecoin profits, Tether is expanding beyond crypto, using $250 million for Rumble's growth initiatives and $525 million to acquire up to 70 million publicly-traded shares. Tether CEO Paolo Ardoino emphasized the investment aligns with his vision of "freedom tech," promoting censorship-resistant platforms like Rumble.

Founded in 2013, Rumble has 67 million monthly users and operates its own cloud service, avoiding reliance on giants like Google. Ardoino lauded Rumble’s independence and hinted at integrating stablecoins into social media. He pledged to maintain Rumble's editorial autonomy and decentralization.

The move could bolster Tether’s legitimacy in Washington, given Rumble's appeal to Trump supporters. The deal follows Tether’s September 2023 stake in Northern Data and coincides with Rumble shares jumping 35% post-announcement. Cantor Fitzgerald facilitated the transaction, highlighting Tether’s growing influence.

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FINANCE
Major Banks Face Fraud Allegations

The Consumer Financial Protection Bureau (CFPB) has sued JPMorgan Chase, Bank of America, Wells Fargo, and Early Warning Services (EWS), the consortium behind Zelle, over $870 million in alleged fraud-related consumer losses. The CFPB accuses the banks and EWS of failing to implement sufficient safeguards to prevent fraud on the Zelle network, leaving victims without adequate recourse. The lawsuit claims violations of the Electronic Fund Transfer Act, citing poor identity verification, failure to act on fraud complaints, and lack of criminal tracking.

CFPB Director Rohit Chopra criticized the rushed launch of Zelle to compete with apps like Venmo, calling it a “gold mine for fraudsters.” EWS and the banks strongly denied the allegations, arguing the lawsuit is flawed and would harm consumers by increasing costs. The CFPB seeks compensation for victims, penalties, and an end to the alleged misconduct. The case highlights ongoing tensions between regulators and financial institutions.

TECH
OpenAI Unveils Groundbreaking o3 Models

OpenAI has introduced its o3 reasoning models, which CEO Sam Altman claims mark the “next phase” of AI. These models achieved significant progress on the ARC-AGI benchmark, sparking speculation about the arrival of artificial general intelligence (AGI). However, François Chollet, creator of the benchmark, dismissed the notion, stating that while o3 is a milestone with groundbreaking capabilities, it still struggles with certain basic tasks.

The ARC Prize organization also acknowledged o3's advancements, highlighting its novel task adaptation abilities unseen in previous GPT models. Despite skepticism about the limits of scaling laws and the pace of AI improvements, o3 demonstrates that these boundaries haven’t been reached yet. The models could improve AI-driven search, complex problem-solving, and content generation.

Currently, o3 and its smaller variant, o3 mini, are accessible only to safety researchers. OpenAI’s release emphasizes careful exploration of the potential risks and implications of these cutting-edge advancements.

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