The AI Industry Is Built on a Big Unproven Assumption

Investors have invested unprecedented amounts in artificial intelligence (AI), driven by its potential to transform various industries. However, concerns are mounting regarding the sustainability of these investments and the possibility of a market bubble, as the actual returns on these investments remain uncertain.

Telefónica SA, Spain's largest telecommunications operator, plans to reduce its workforce by at least 5,319 jobs as part of a comprehensive cost-reduction strategy, according to the company's main workers' union.

A coalition of billionaires in San Francisco is funding various initiatives, including crime surveillance, food assistance programs, and the installation of an 83-foot Christmas tree, signaling a significant investment in the city's revival efforts.

Google has announced a significant update to its Gemini tools, allowing artificial intelligence to assist in building user interfaces. This move reflects the company's ongoing commitment to integrating advanced AI capabilities into its products, enhancing user experience and interaction.

Italy is reportedly considering the establishment of a government-backed cybersecurity entity aimed at enhancing the protection of sensitive digital assets. This initiative may involve acquisitions to bolster the country's digital infrastructure, according to sources familiar with the discussions.

Thai cryptocurrency exchange Bitkub is reportedly considering an initial public offering (IPO) in Hong Kong, a move that could enhance the city's reputation as a hub for digital assets. This potential IPO reflects the growing interest in cryptocurrency markets and the increasing acceptance of digital currencies in mainstream finance.

Model ML, an artificial intelligence startup, has successfully raised $75 million to develop technology aimed at automating tasks traditionally performed by junior investment bankers, such as creating pitch decks and conducting due diligence reports.

Bitcoin has experienced significant weakness, beginning the week on a downward trajectory following a prolonged selloff that positions it for its worst monthly performance since 2022. This downturn reflects ongoing volatility in the cryptocurrency market, raising concerns among investors.