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Beeple Announces ‘Synthetic Theatre’ Event Hosted By Danny McBride

By
Paul Ugbede Godwin
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0

Beeple has announced that his next event, titled “Synthetic Theatre,” will be hosted by Danny McBride. The event is a collaboration between Beeple Studios and Rough House Pictures, featuring a night of live AI experiments with music, dance, improv, and film.

It will take place on October 3-4, 2025, at Beeple Studios in Charleston, South Carolina, and will include performances by Edi Patterson, Daniel J. O’Connor, Holly Herndon, and others. Tickets went on sale Monday at 11 am EST.

The event features live AI experiments in music, dance, improv, and film, showcasing how AI can generate unique digital content. AI algorithms, such as those used in generative art, enable artists to produce infinite variations of digital creations, which can be tokenized as NFTs to ensure authenticity and ownership on the blockchain.

Beeple’s prominence in the NFT space, particularly after his $69.3 million sale of Everydays – The First 5000 Days, underscores how NFTs provide a platform for artists to monetize digital works. This event could further popularize AI-generated NFTs, merging cutting-edge technology with artistic innovation.

Economic and Market Opportunities

NFTs allow artists to earn royalties on secondary sales through smart contracts, providing ongoing revenue streams. The integration of AI can enhance this by creating personalized or interactive NFTs, increasing their value and appeal.

For example, AI-powered NFTs could adapt to user preferences, as seen in virtual fashion or music tokens. The global reach of NFTs, combined with AI’s ability to analyze market trends in real-time, can help artists and creators target broader audiences.

Beeple’s event, hosted at his studio, could attract collectors and enthusiasts, boosting the NFT market’s visibility in Charleston and beyond. NFTs’ unique, indivisible nature and volatile market dynamics pose challenges for valuation under frameworks like US GAAP or IFRS.

AI can assist by analyzing market data for more accurate pricing, but the lack of standardized guidelines remains a hurdle. Beeple’s high-profile event may amplify discussions on how to account for AI-generated NFTs in financial statements.

The absence of clear tax and legal frameworks for NFTs, as seen in jurisdictions like Indonesia, could complicate their adoption. Events like Beeple’s may push regulators to address these gaps, especially as AI-driven NFTs gain traction.

The anonymity and price volatility of NFTs make them susceptible to fraud and money laundering. AI can help detect fraudulent NFTs but also introduces ethical challenges if used to replicate or “transform” existing art without proper attribution. NFTs eliminate intermediaries, allowing artists like those at Beeple’s event to directly reach collectors.

The NFT market peaked in 2021 but faced a bear market by 2023, with declining royalties and trading volumes. Beeple’s event could signal a resurgence, particularly for AI-driven NFTs, though market fluctuations remain a risk. While interest in NFTs has waned since early 2022, events like this could sustain momentum by showcasing innovative applications of AI and blockchain.

Beeple’s “Synthetic Theatre” event underscores the transformative potential of combining AI and NFTs in creative industries, offering new avenues for artistic expression, monetization, and global reach. However, challenges like valuation difficulties, regulatory gaps, and ethical concerns around AI-generated art must be addressed to ensure sustainable growth.

Perplexity Is Raising Another Funding Round, Seeks $20bn Valuation

By
Samuel Nwite
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0

Perplexity, the fast-rising AI search engine startup, is raising yet another round of funding that could push its valuation to $20 billion, according to an email sent to prospective investors and a source familiar with the matter who spoke with Business Insider.

The figure represents a $2 billion leap from its $18 billion valuation secured in July, as first reported by Bloomberg, and a dramatic rise from its $520 million valuation in January 2024.

Founded in 2022, Perplexity has positioned itself as one of the most aggressive challengers in the AI sector, blending large language models with web search to deliver real-time, conversational answers. Over the past year, the company’s business trajectory has been nothing short of meteoric.

Annual recurring revenue soared from about $35 million in mid-2024 to over $150 million by the middle of 2025 — more than quadrupling in just 12 months.

We are currently doing more than $150 million in ARR, Perplexity’s head of communication, Jesse Dwyer, confirmed, declining to elaborate further.

The company has attracted heavyweight backers, including SoftBank, Nvidia, and Amazon founder Jeff Bezos, raising approximately $1.5 billion to date, according to PitchBook. But its latest moves suggest it is aiming to project even greater influence.

Earlier this week, Perplexity stunned the tech world by announcing a $34.5 billion bid, a figure nearly 100% higher than its expected valuation, to acquire Google’s Chrome browser. The proposal came as the Department of Justice pressured Google to divest Chrome over antitrust concerns. While Google has not indicated any willingness to sell, Perplexity claims it has secured commitments from several large venture capital funds to finance the purchase, though it has not disclosed names.

Analysts and industry insiders have been quick to question the seriousness of the bid. One venture capitalist, speaking anonymously to BI, dismissed it as “little more than a marketing stunt,” suggesting the move was designed to position Perplexity as a dominant player in the public eye, attract top talent, and secure more capital.

The timing of the Chrome play coincides with heightened competition in the AI browser space. Perplexity recently launched its own AI-native browser, Comet, directly challenging Google, Apple, and AI leaders like OpenAI, which is reportedly developing a browser of its own.

That competitive dynamic has also fueled speculation that Perplexity could become an acquisition target itself, particularly for Apple, which many analysts say is lagging in the AI race. Dan Ives, managing director at Wedbush Securities, has called an Apple acquisition of Perplexity a “no-brainer deal,” warning that “time is ticking” for the iPhone maker. Perplexity, for its part, insists it is “unaware of any M&A discussions” involving Apple.

Playing the Long Game in the AI Power Struggle

Perplexity’s pursuit of a $20 billion valuation, alongside its audacious bid for Chrome, appears designed to cement its status as a top-tier AI company in a market dominated by trillion-dollar incumbents.

The target valuation of $20 billion, while impressive, remains modest compared to the giants of the AI industry. OpenAI’s valuation is at least 10–25 times larger, depending on whether the realistic or optimistic figures are used. Even xAI, with its rapid funding and ambitious targets, sits at 4 to 10 times Perplexity’s valuation. And Alphabet, with its Gemini platform, operates on an entirely different scale—its sheer size highlights how far behind Perplexity still is.

AI Leaders’ Valuations vs. Perplexity

OpenAI

OpenAI recently completed a massive $40 billion funding round in March 2025, establishing a post-money valuation of approximately $300 billion.

Moreover, discussions are underway that could push OpenAI’s valuation even further—to around $500 billion—through a secondary share sale, allowing employees to cash out.

xAI (Elon Musk’s AI Venture)

Elon Musk’s AI firm xAI, merged with his social media company X under the banner X.AI Holdings, was valued at about $80 billion post-merger, with X (formerly Twitter) valued separately at $33 billion.

Recent funding maneuvers have brought its valuation up to approximately $113 billion, supported by debt and equity raises, including a $5 billion debt package.

Beyond that, xAI is reportedly targeting a valuation between $170 billion and $200 billion in upcoming rounds.

Google’s Gemini

Although Google’s Gemini initiative doesn’t come with a standalone valuation, Alphabet—the parent company—remains a multi-hundred-billion-dollar enterprise. For context, Alphabet is valued in the $500-$560 billion range, dwarfing Perplexity’s valuation. Gemini itself powers a significant portion of Alphabet’s AI strategy.

However, Perplexity’s rise in valuation—from just $520 million in early 2024 to an intended $20 billion in mid-2025—does mark remarkable progress. Still, in the race for AI dominance, the real heavyweights have already surged ahead in capital and influence.

While the Chrome offer may never materialize, the spectacle itself boosts the company’s visibility and helps frame it as a legitimate contender in the next phase of the internet’s evolution.

If successful in raising fresh capital at this valuation, Perplexity would have greater resources to accelerate its expansion, improve its AI infrastructure, and potentially fund high-profile acquisitions of its own. But the real strategic gamble may be in perception — convincing investors, talent, and the market that it is not merely another promising AI startup but a long-term platform capable of reshaping search and browsing at a global scale.

Do Kwon Pleads Guilty to Committing Frauds and Implosion of TerraUSD, Luna

By
Paul Ugbede Godwin
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0

Do Kwon, co-founder of Terraform Labs, pleaded guilty to one count of conspiracy to commit commodities fraud, securities fraud, and wire fraud, and one count of wire fraud in a New York federal court on August 12, 2025.

The charges stem from the $40 billion collapse of TerraUSD and Luna in 2022, which wiped out significant investor value. Under a plea deal, Kwon faces a maximum of 25 years in prison, though prosecutors have agreed to recommend no more than 12 years, provided he accepts responsibility.

He also agreed to forfeit over $19 million in illicit proceeds and his interest in Terraform and its cryptocurrencies. Sentencing is scheduled for December 11, 2025, before U.S. District Judge Paul Engelmayer.

Kwon was extradited from Montenegro to the U.S. on December 31, 2024, after his arrest in March 2023 for using forged travel documents. He still faces additional charges in South Korea. Kwon’s case highlights the vulnerability of investors in the crypto market and strengthens the case for stricter regulations.

Regulatory bodies like the U.S. Securities and Exchange Commission (SEC) and international counterparts (e.g., South Korea’s Financial Services Commission) are likely to intensify oversight of stablecoins and decentralized finance (DeFi) platforms.

The collapse of TerraUSD, a stablecoin meant to maintain a $1 peg, exposed risks in algorithmic stablecoins. This may push regulators to impose specific requirements, such as mandatory reserves or audits, to ensure stability and transparency.

The $40 billion TerraUSD/Luna collapse, coupled with Kwon’s guilty plea, may further erode confidence in crypto projects, particularly those lacking clear governance or transparency. Investors may demand more robust due diligence before engaging with new tokens or platforms.

Legal Accountability for Crypto Founders

Kwon’s plea sets a high-profile example that crypto founders and executives can face severe personal consequences for mismanagement or fraudulent activities. This may deter reckless or deceptive practices in the industry.

Terraform Labs, already weakened by the 2022 collapse, faces further reputational and financial damage. Kwon’s forfeiture of $19 million and his interest in Terraform and its cryptocurrencies could limit the company’s ability to recover or relaunch.

Other projects built on or inspired by Terra’s model may face increased scrutiny, potentially stifling innovation in algorithmic stablecoins or similar DeFi protocols. Kwon still faces charges in South Korea, where the Terra collapse had a significant impact, with thousands of retail investors affected.

Kwon’s case reinforces the U.S. as a key jurisdiction for prosecuting crypto-related fraud, even for non-U.S. citizens operating overseas. The use of U.S. wire fraud statutes in this context sets a precedent for applying traditional financial laws to decentralized systems.

The inclusion of conspiracy to commit securities and commodities fraud establishes that coordinated efforts to mislead investors in crypto markets can lead to severe penalties, even if the assets are not explicitly classified as securities.

The TerraUSD collapse is one of the largest stablecoin failures to date. Kwon’s guilty plea sets a precedent that creators of stablecoins can be held liable for misrepresenting their stability or failing to deliver on promised mechanisms (e.g., Terra’s algorithmic peg).

The plea deal’s recommendation of up to 12 years, despite a 25-year maximum, establishes a benchmark for sentencing in major crypto fraud cases. Future cases may reference this balance between accountability and cooperation when determining penalties.

By pleading guilty to charges involving securities fraud, Kwon’s case indirectly supports the SEC’s argument that certain cryptocurrencies (like Luna) may be treated as securities. This could influence ongoing debates about whether tokens are securities or commodities, shaping future regulatory classifications.

Do Kwon’s guilty plea is a landmark case in the cryptocurrency industry, signaling that founders and executives can face significant legal consequences for fraud and mismanagement. It sets a precedent for applying traditional financial laws to crypto, strengthens international enforcement, and highlights the risks of unstable stablecoins.

While it may deter fraudulent projects, it also emphasizes the need for balanced regulation to protect investors without stifling innovation. The case’s ripple effects will likely influence global crypto policies, investor behavior, and the legal accountability of industry leaders for years to come.

July 2025 CPI Data Shows Softer Headline But Stickier Core Inflation, Alongside Rising Tariff Pressures

By
Paul Ugbede Godwin
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0

The July 2025 U.S. CPI data shows headline inflation at 2.7% annually, slightly below the expected 2.8%, indicating a modest cooling of overall price pressures. Core CPI, excluding volatile food and energy, rose to 3.1%, above the forecasted 3%, suggesting persistent underlying inflationary trends.

The monthly CPI increase was 0.2%, aligning with estimates, while core CPI rose 0.3%, also as expected but marking a five-month high. Key drivers include falling energy prices (gasoline down 2.2%) and stable food prices, though shelter costs (up 0.2%) and rising prices for used cars, transportation services, and new vehicles continue to fuel core inflation.

The mixed data—headline CPI beating estimates and core CPI missing them—has markets pricing in a 96% probability of a Federal Reserve rate cut in September, up from 90% post-release, per CME FedWatch.

This reflects expectations that the Fed may prioritize moderating inflation over persistent core pressures, especially with signs of labor market weakness. However, sticky core inflation could temper aggressive easing, as some analysts note the Fed faces a balancing act.

Tariffs are increasingly influencing prices, with Goldman Sachs estimating 67% of tariff costs may hit consumers by October, potentially complicating the inflation outlook. Crypto markets, sensitive to rate expectations, may see boosted sentiment for risk assets like Bitcoin if cuts materialize.

The lower-than-expected headline CPI suggests moderating price pressures, driven by declining energy prices (e.g., gasoline down 2.2%) and stable food prices. This could ease consumer burdens and support real income growth, potentially boosting consumer spending, a key driver of U.S. GDP (about 70% of economic activity).

The higher-than-expected core CPI, fueled by persistent shelter costs (up 0.2%) and rising prices for used cars, transportation services, and new vehicles, indicates sticky underlying inflation. This could constrain consumer purchasing power in non-energy sectors, potentially dampening demand for discretionary goods and services.

Tariffs increase the cost of imported goods, reducing domestic production efficiency and potentially lowering GDP by 0.8–1% in broad tariff scenarios, with the U.S. and China facing the largest losses (up to 3.6% and 2.4% GDP declines, respectively).

However, tariff revenues, if redistributed to consumers, could partially offset these losses by boosting disposable income. Additionally, tariffs may spur domestic manufacturing employment (up to 1.1% by 2027), but at the cost of declines in services (down 0.3%) and agriculture (down 1.8%).

Federal Reserve Policy and Rate Cut Expectations

The slightly softer headline CPI, combined with signs of labor market weakness (e.g., unemployment at 4.2% and cooling job growth), has raised the probability of a September 2025 rate cut to 96%, per CME FedWatch.

A rate cut would lower borrowing costs, potentially stimulating investment and consumption, which could strengthen economic growth. The elevated core CPI and tariff-driven inflation risks complicate the Fed’s decision.

Some officials, like Susan Collins and Raphael Bostic, suggest that temporary tariff-induced price spikes might not necessitate rate hikes if inflation expectations remain anchored. However, persistent core inflation or rising consumer inflation expectations could prompt the Fed to maintain or even raise rates, especially if tariffs escalate.

The Fed is cautious due to uncertainty around tariff implementation. For instance, Trump’s 90-day trade truce with China and delayed tariffs on Canada/Mexico create a “wait-and-see” environment. If tariffs significantly boost inflation, the Fed may delay easing, keeping rates higher to prevent overheating, which could slow economic growth.

Tariffs incentivize domestic production by making imports costlier, potentially increasing manufacturing jobs (e.g., a 1.1% rise in manufacturing employment by 2027). This could strengthen industrial regions, particularly states less integrated into global supply chains (e.g., Colorado, Wyoming, Oklahoma, with real income gains up to 1.7%).

Tariffs may reduce reliance on foreign suppliers (e.g., China, where U.S. import dependence has decreased), enhancing economic resilience against supply chain disruptions. Tariffs raise costs for imported goods and domestically produced goods with imported components.

A September rate cut would lower borrowing costs for businesses and consumers, encouraging investment in capital-intensive projects and boosting consumer spending on big-ticket items like homes and cars. This could counteract tariff-induced price pressures and support GDP growth, especially given the Q2 2025 GDP growth of 3% despite trade war disruptions.

Manufacturing gains from tariffs, but services and agriculture face losses due to reduced competitiveness and higher input costs. A rate cut could mitigate these losses by lowering financing costs for service-oriented businesses and farmers.

Businesses are adapting to tariffs by building inventories, rerouting supply chains (e.g., via Mexico under USMCA), or seeking exemptions (e.g., consumer electronics from China). This could mitigate some inflationary and economic damage over time, but persistent high tariffs may force price hikes if trade deals falter.

A September rate cut (96% probability) would likely strengthen the economy by lowering borrowing costs, supporting consumer spending, and stabilizing the labor market, but it must be timed carefully to avoid exacerbating tariff-driven inflation. The Fed’s cautious approach, awaiting clarity on tariff impacts and upcoming data.

Trump–Nvidia–AMD Deal: Nothing Novel About Taking A 15% Cut – Cramer

By
Samuel Nwite
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0

CNBC’s Jim Cramer said Monday that President Donald Trump’s new arrangement with semiconductor giants Nvidia and AMD is far from unprecedented, likening it to past instances where the U.S. government took financial stakes in private companies.

Under the deal, confirmed by the White House, Nvidia and AMD will hand over 15% of their revenue from sales to China directly to the U.S. Treasury in exchange for licenses to export certain advanced chips to the country. The Financial Times first reported the agreement, which follows months of escalating restrictions on high-tech exports to China.

The arrangement marks a sharp turn in policy. The Trump administration had previously moved to block chip exports over national security concerns, prompting warnings from industry leaders that the U.S. risked ceding a lucrative $50 billion artificial intelligence market to foreign competitors. Nvidia CEO Jensen Huang had been among the most vocal critics of the restrictions, urging Washington to find a compromise.

Just last week, Trump imposed a 100% tariff on all semiconductor and chip imports — except those produced in the United States. Monday’s deal effectively exempts Nvidia and AMD from the full force of those tariffs, provided they share a slice of their China revenue with the government.

Cramer described the agreement as “basically just another form of tariff,” but one that might be more palatable to both industry and taxpayers.

“There’s nothing novel at all about taking a 15% cut,” he said on CNBC. “It’s not like Trump’s collecting this money personally… that 15% goes straight to the Treasury.”

While acknowledging “an element of pay-to-play” in the arrangement, Cramer said the policy was “benign” compared to other forms of government intervention in business. He pointed to historical precedents, such as the federal government’s investment in Chrysler during its 1979 near-bankruptcy and the capital injections into major U.S. banks during the 2008–09 financial crisis, both of which ultimately generated profits for the Treasury.

To Cramer, the most important aspect is not the revenue-sharing clause but the fact that the administration is allowing chipmakers to re-enter the Chinese market.

“The government intervened where it shouldn’t have, and then it changed course to do the right thing,” he said. “Wring your hands all you want, but this chip deal is good for the taxpayer and good for Nvidia and AMD. If the chipmakers aren’t complaining, why should we?”

The Trump–Nvidia–AMD deal follows Trump’s recent policy shift toward fostering “strategic cooperation” among U.S. tech leaders to counter China’s aggressive push into AI and semiconductor technology. In 2023, the Biden administration strongly supported the CHIPS and Science Act, providing billions in subsidies to domestic semiconductor production. That effort intensified in early 2025, following Beijing’s expansion of its own AI chip programs and increased subsidies for Chinese manufacturers.

In January 2025, Trump convened a closed-door meeting with Nvidia CEO Jensen Huang and AMD CEO Lisa Su at the White House. Sources familiar with the talks said Trump pitched a revenue-sharing model as a way to prevent U.S. firms from exhausting resources in cutthroat competition while Chinese rivals benefit. Under the arrangement, Nvidia and AMD will maintain separate R&D pipelines but will collaborate on certain AI chip projects, particularly those targeting defense, space, and high-performance data centers.

The deal underscores the Trump administration’s willingness to use unconventional trade and industrial policies to reshape the global technology supply chain while maintaining a focus on domestic manufacturing and revenue generation for the federal government. It also signals a more transactional approach to U.S.–China tech relations — one that could have ripple effects for other industries navigating between geopolitical tension and market opportunity.

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