The upheaval at OpenAI and Mastercard’s effort against Cryptocurrency fraud

Nov 20th, 2023 – The world of artificial intelligence looks very different today, indeed, after the extraordinary upheaval at OpenAI of the weekend, Microsoft (MSFT), the OpenAI’s biggest investor, announced on Sunday night that it would have hired Mr. Altman, the former CEO of the AI giant, to run a new advanced research lab. Microsoft late-night announcement restored its stock price, which had dropped after Friday’s news: Altman’s hiring can be considered as a major win for Microsoft and should lead to further gains for stock. The massive shakeup of the weekend affected Nvidia (NVDA)(0.215 units @ $462.20) as well since OpenAI and Microsoft are both big buyers of Nvidia’s GPUs but the company continues showing strength with a further accomplishment: it will keep selling their chips to the Chinese market notwithstanding from the U.S. restrictions of 2022. Nvidia, indeed, aims at delivering three new chips based on their H100: investors should be watching carefully the forecast for the fourth quarter, when sales growth is expected to be near 200%.

Another interesting announcement about AI’s future outlook regards the announced partnership established between Mastercard and the regulatory technology platform “Feedzai”; the latter will integrate directly with Mastercard’s “CipherTrace Armada Platform”, already involved in helping banks in the process of monitoring transactions, providing real time alerts about suspicious crypto transactions leveraging its AI. According to Feedzai data, an estimated 40% of scam transactions exit directly from a bank account to a crypto exchange: top banks including JPMorgan, NatWest and HSBC have indeed restricted or even blocked crypto transactions. Such hesitancy highlights the urgency for industry-wide measures to mitigate risks associated with digital assets. 

There’s definitely an increasing interest of financial institutions upon such matters but the actual deployment of commercially available crypto products is further away than it might seem to be.

Author: Ilaria Savignoni

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