spending

South Korean President Lee Jae-myung stated that the South Korean government's investment expenditure in the AI field will nearly double next year, reaching 21.3 trillion won.

According to Talis Protocol monitoring, attackers exploited vulnerabilities in its Injective market and auction contracts to steal approximately 5,700 custodial NFTs, which were then sold through public series acquisition offers. The platform has suspended new orders and auctions on Injective and will return over 26,000 NFTs within the contracts to their original owners.New orders and auctions on other chains have also been suspended, and existing offers can still be canceled. The repaired contracts are undergoing pre-deployment review. The platform is developing a plan to return the affected NFTs to their original owners and compensate the bidders of completed offers.

According to CoinDesk, researchers from Cornell Tech and Yale University tested Circle's AI agent wallet and found that when allowing the AI agent access to users' email, web pages, and wallet tools, 9 out of 10 tested models were able to bypass manual approval to increase spending limits at least once by independently obtaining a one-time verification code sent to the user's email, without any external attacker intervention.In experiments simulating an attacker impersonating a user, 5 out of 10 models increased spending limits at least once and transferred funds to a wallet controlled by the attacker. The study used real USDC on the Base mainnet, with an initial wallet balance of 10 USDC and a daily spending limit set at 0.01 USD. Researchers pointed out that existing approval mechanisms may fail when the AI agent can access credentials used to verify human authorization.Circle responded that its documentation clearly requires users not to grant unrestricted access to verification emails to AI agents. The research team also developed an open-source prototype called Countersign, which confirms transactions through manual physical operations on an independent trusted device to prevent AI agents from completing authorizations on their own.

Binance responded to community users on platform X, stating that the information regarding the $150 compensation for the suspension of withdrawals posted by the user is false, and the related screenshots have been digitally altered.The user had previously posted that Binance was offering a $150 compensation for the suspension of withdrawals, along with a screenshot showing the relevant compensation details.

Digital asset trading company QCP pointed out in its latest market report that the Federal Reserve, the European Central Bank, and the Bank of Japan all kept interest rates unchanged this week, but the market is still betting that the European Central Bank and the Bank of Japan may raise rates in December. The Federal Reserve maintained the federal funds rate at 3.75% to 4.00% with a vote of 10 to 2 during the October meeting. Federal Reserve Chairman Warsh did not commit to any rate adjustments for December and beyond.In addition, the Federal Reserve announced that there will be no rate votes at one meeting in 2027 and two meetings in 2028, which will only be used to discuss monetary policy strategy. QCP believes that the reduction in decision-making nodes may allow for the accumulation of more economic data between the two meetings, making the market more sensitive to data changes and increasing interest rate volatility and term premiums. The European Central Bank kept interest rates unchanged, citing that previous inflation data had not yet produced second-round effects, but the market still expects a possible rate hike in December. The Bank of Japan also kept interest rates unchanged and stated that inflation has reached the 2% target, with the market pricing in the possibility of a rate hike in December.In terms of technology stocks, shares of Alphabet, Amazon, Meta, and Intel fell after announcing quarterly results, as the market is concerned about current corporate earnings performance and future capital expenditure plans, particularly focusing on the pace and profitability of AI infrastructure investment. In the cryptocurrency market, Binance experienced a significant security incident on Friday morning, affecting approximately $6.3 billion in assets, which initially led to a decline in trading activity in the cryptocurrency market. QCP pointed out that the market gradually stabilized afterward, with participants seemingly viewing this incident as a company-level risk rather than a systemic event affecting the entire cryptocurrency market or infrastructure, with central bank policy uncertainty, concerns over technology companies' capital allocation, and the Binance security incident collectively driving the market to reprice.

Tokyo Electron's annual performance outlook exceeds market expectations, with an estimated operating profit of 1.17 trillion yen (approximately 7.4 billion USD) for the fiscal year ending in March next year, a year-on-year increase of 64%.Operating profit for the third quarter rose to 295.4 billion yen, surpassing the market expectation of 256.1 billion yen.

Alphabet (GOOG.O) executives stated that spending by Gemini enterprise customers has increased more than three times year-on-year.

The Federal Reserve FOMC statement pointed out that despite high uncertainty, domestic spending remains resilient.

According to a report by Reuters, the Bank of Korea warned that if large American technology companies slow down their capital expenditures in the field of artificial intelligence next year, South Korea's semiconductor exports could decrease by $50 billion to $100 billion compared to previous forecasts. The Bank of Korea simulated this scenario in a written response submitted to National Assembly member Ahn Doo-hyeon, assuming a 10% drop in the unit price of South Korean semiconductor products.In this scenario, South Korea's GDP growth rate in 2027 would be reduced by about 0.4 percentage points, and the current account surplus would be far below the previously estimated $430 billion. South Korea's chip exports account for about half of the country's total exports. Capital expenditures by Amazon, Google, Microsoft, Meta, and Oracle are expected to increase from $40 billion last year to $80 billion this year, reaching $110 billion next year.The Bank of Korea pointed out that there is still significant uncertainty regarding AI demand trends and the cycle of the memory chip industry. If technology giants cut back on investments in AI infrastructure, South Korea's chip exports and overall economic growth could be impacted.

The credit risk indicators of Meta Platforms have soared to an all-time high, and bond prices have fallen. The company plans to increase capital expenditures, raising market concerns about the rising debt for AI infrastructure.The five-year credit default swap prices rose by 8.9 basis points, reaching approximately 119.3 basis points per year. Meta stated it will invest about $825 billion in AI-related leases and contracts.

Meta Platforms (META.O) future spending commitments soar to $825 billion.

According to Bloomberg's report on October 22, Huawei Technologies Co., Ltd. has secured a loan of 15 billion yuan (approximately 2.25 billion USD), amid a significant increase in chip spending for artificial intelligence-related projects. A knowledgeable source stated that this seven-year offshore yuan loan was provided by six Chinese lending institutions, including Bank of China, China Construction Bank, and Industrial and Commercial Bank of China, and the funds will be used for general corporate purposes. The source requested anonymity as the discussion pertains to non-public matters.According to Moneycontrol, which reprinted the content attributed to Bloomberg, this transaction illustrates the role of domestic lending institutions in Huawei's offshore financing since the United States imposed restrictions on Huawei in 2019. Before finalizing, Huawei had exploratory contacts with international banks. Huawei, Bank of China, China Construction Bank, and Industrial and Commercial Bank of China did not immediately respond to requests for comment.The report states that Huawei's research and development expenditure increased to 121 billion yuan in the first half of this year, while stockpiling due to soaring memory costs led to a negative cash flow of 39.9 billion yuan, eroding current profits. According to compiled data from Bloomberg, this is Huawei's first offshore syndicated loan since raising 11.8 billion Hong Kong dollars (approximately 1.5 billion USD) in 2020.

According to Ramp's tracking of payment data from over 70,000 U.S. companies, approximately 80% of Anthropic and OpenAI's enterprise revenue comes from the top 1% of clients. In August and September, enterprise Token spending saw nearly zero growth for two consecutive months; although it reached a historical high at the beginning of October, it was only 1.5% higher than the peak in August.According to Ornn data, the actual Token price index for Anthropic fell from over $1.70 in mid-September to $0.83, a decline of more than 50%, while OpenAI's corresponding index was $0.45. According to YipitData, the top 1% of Anthropic's clients contributed 46% of revenue in August, up from 25% a year ago. Ramp data shows that the paid adoption rate for enterprise AI in September only increased by 0.62 percentage points to 55.9%. Ramp's chief economist Ara Kharazian believes that growth is shifting from expanding the paid user base to enhancing the depth of use among existing users.Goldman Sachs warns that the growth rate of Token demand must exceed the decline in prices to support sustained investment in computing power. Apollo's chief economist Torsten Slok pointed out that companies are highly sensitive to computing power prices, and price reductions may not necessarily lead to sufficient new demand. Goldman Sachs data also shows that the realized return on invested capital for Amazon, Alphabet, Meta, Microsoft, and Oracle has dropped from 40% to 25%, the lowest since 2016.

AWS Chief Financial Officer John Felton stated that spending on AI infrastructure and services is sustainable because it drives substantial innovation. AWS's AI capital expenditures are yielding returns, with a backlog of nearly $500 billion, including clients from large enterprises and small to medium-sized businesses.Felton mentioned that the return on investment for AI servers is less than three years, and AWS is achieving significant returns on investment and productivity improvements, planning to further increase its investments.

Morgan Stanley CEO Ted Pick expects that the annual spending in the field of artificial intelligence will remain around $1 trillion in the next 5 to 10 years. He stated that the role of banks is to regulate the pace of AI capital expenditures to adapt to market demand.

As companies make significant investments in AI infrastructure, American businesses are about to welcome a strong quarterly earnings season. Goldman Sachs expects that the earnings of S&P 500 constituent companies will grow by 27% year-over-year in the September quarter. Société Générale stated that this will be the third consecutive quarter of earnings growth exceeding 25%.

Hon Hai Precision announced quarterly revenue of 3.03 trillion New Taiwan Dollars (95.4 billion USD), a year-on-year increase of 47%, exceeding analysts' expectations of 2.83 trillion New Taiwan Dollars. As a partner of NVIDIA, Hon Hai benefits from the global cloud computing infrastructure development, and its sales performance is regarded as an important indicator of the AI industry's prosperity.

Tibo from the OpenAI Codex team posted on X that the team will reopen the $200 Pro subscription to new users tomorrow and adjust the usage calculation method for the plan. According to his calculations, the adjusted subscription's corresponding API expenditure will be equivalent to half of the old $200 Pro plan.Tibo stated that the team does not wish to compromise in other ways and promised not to restore the 5-hour usage limit, allowing users to use their weekly quota as needed. He also mentioned that subscriptions should allow users to accomplish more work and achieve higher quality with the same expenditure as model efficiency improves and API prices decrease. This week, the team has reduced the prices of GPT-6 Sol and GPT-6 Luna to 50% of their previous prices and intends to continue lowering prices and enhancing capabilities, rather than raising API prices and then offering discounts.Tibo also revealed that tomorrow, several content items that do not consume usage quotas will be added to the subscription, but specific items have not yet been disclosed. He stated that this advance notice of the adjustment in the calculation method is to inform users of this change before subsequent announcements related to the subscription.