The Web3 + AI Newsletter 5
Get your weekly batch of startup updates, investment announcements, and regulatory news.
Hello again, everyone, and welcome to all new subscribers!
This is the Web3 + AI newsletter, where we explore the intersection between blockchain and artificial intelligence. This week, I have gathered some exciting startup updates, investment announcements, and regulatory news for you.
Thank you for being here! Let's dive in!
What’s New in the Web3 + AI Startup World?
Bosch, Fetch.ai, peaq Collaborate to Build Smart City Ecosystem
Blockchain companies Fetch.ai and peaq have joined forces with manufacturing giant Bosch to create a decentralized physical infrastructure (DePIN) to collect live data and to help data owners monetize it. The Bosch XDK110 is a compact all-in-one sensor kit capable of measuring various environmental factors such as temperature and light pollution. It features a self-sovereign peaq ID, connecting it with multiple decentralized physical infrastructure networks (DePINs) on peaq. The device also incorporates a Fetch.ai AI agent, which autonomously selects its owner’s most rewarding DePIN connection.
The group believes this collaboration marks a significant step towards an ‘open smart city paradigm,’ where data-based goods and services are exchanged without centralized intermediaries.
A similar undertaking was previously made by the Helium, which also supports Internet of Things (IoT) devices and has almost a million hotspots. It is backed by Tiger Global, Andreessen Horowitz, Goodyear Ventures, Liberty Global, and Deutsche Telekom.
Cyber.Fund to Back Blockchain, AI, and IoT Companies
The investment firm cyber•Fund has announced it is to invest $100M in firms operating in the intersection of blockchain, artificial intelligence, and Internet of Things (IoT), aimed at growing “the cybernetic economy”. It describes cybernetic as an interconnected and automated economic framework around which blockchain, AI, and IoT converge.
Cyber.Fund was an early investor in Ethereum Foundation, and has also backed Solana Foundation, Cosmos Network: Internet of Blockchains, Polkadot, and more.
Noteworthy Podcasts, Articles, Events
The EU Reaches Political Agreement on AI Act
Last Friday, December 8th, after three days of intensive negotiations, the EU finally achieved a political agreement on its “world-leading” AI Act. Although this is a provisional accord and the final text has not been published yet, the act’s fundamental provisions are more or less clear. First and foremost, it forbids several AI applications such as manipulative techniques, systems exploiting vulnerabilities, social scoring, and predictive policing software to assess an individual’s risk for committing future crimes based on personal traits.
Check out this AI Act Cheat Sheet to go over the main AI uses categorized as banned or high-risk.
Also, listen to the Privacy Advisor Podcast featuring Euractiv's Luca Bertuzzi who was diligently reporting throughout the whole negotiation process and has loads of background information to share:
In the best-case scenario, the act is expected to come into force as early as 2026 whereas many things could happen in the AI world until then. What is more, it is still not clear how these measures will get enforced across 27 member states, although, as you have seen above, financial penalties for violating the act have already been determined and they are quite steep.
Moreover, the political bloc reached another agreement concerning AI - to update its Product Liability Directive (PLD) to cover software and artificial intelligence. What that means is that European citizens can now seek damages from software builders if they deem a product somewhat defective:
Considering how often AI systems act unexpectedly and surprise even their creators, these measures may seriously limit companies’ go-to-market strategies.
Fortunately, open-source and non-commercial software are exempt from the directive. As for its timeline, all companies operating in the European market will need to start complying 24 months after PLD enters into force.
Two Men Indicted for $25M AI Crypto Scam
Two individuals have been operating a $25M crypto Ponzi scheme while pretending to employ AI-automated trading bots to optimize clients’ earnings, the US Department of Justice (DOJ) alleges. In reality, Australian national David Gilbert Saffron and Los Angeles resident Vincent Anthony Mazzotta Jr. spent users’ deposits for lavish personal experiences.
The defendants are also accused of concealing the victims’ cryptocurrency investments through interchain swaps and using cryptocurrency mixers to evade detection. The scheme operated under various names, such as Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital, Federal Crypto Reserve, and Cloud9Capital.
Focus on Bulgaria: Amazon Invests $1M in INSAIT
Amazon Web Services (AWS) announced a $1M donation to Bulgaria’s INSAIT - Institute for Computer Science, Artificial Intelligence and Technology aimed at research program development. The US tech behemoth recognizes INSAIT as the first AI Institute in Eastern Europe that follows the model of leading global research institutions.
The cooperation also establishes a strategic partnership between the researchers and engineers of INSAIT and AWS, and will help the institute attract top researchers in the field of artificial intelligence and formal methods.
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Disclaimer: The content of this newsletter is provided for informational and educational purposes only. Nothing contained herein should be construed as financial advice or as a recommendation to buy, sell, or hold any of the companies or assets mentioned.
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