Weeks after Meta poured $14.3 billion into Scale AI and hired its founder, Alexandr Wang, to lead its new AI division, the startup has laid off 200 full-time employees — about 14% of its staff — in a significant restructuring move aimed at trimming excess and restoring operational focus.

The job cuts were announced by Scale AI’s interim CEO Jason Droege in a memo to employees on Wednesday. Droege, who stepped in after Wang joined Meta as its Chief AI Officer, acknowledged that the company had ramped up its generative AI business too rapidly, leading to layers of bureaucracy and inefficiencies that, he said, clouded the company’s mission.

“While that felt like the right decision at the time, it’s clear this approach created inefficiencies and redundancies,” Droege said in the memo. “We created too many layers, excessive bureaucracy, and unhelpful confusion about the team’s mission.”

The layoffs come amid rising questions about Scale AI’s profitability and sustainability, particularly after it expanded its workforce to 1,400 globally and relied heavily on contracts from major players like OpenAI, Google, and Microsoft. But in the last year, OpenAI has significantly wound down its collaboration with Scale, and Google has reportedly begun cutting ties with the startup following its deepening alliance with Meta.

Bloomberg first reported the number of job cuts, which Scale AI later confirmed. Alongside the layoffs, the company is also ending contracts with 500 contractors, reducing the scale of its non-employee workforce as part of a broader pivot.

Despite the shake-up, Droege assured employees that Scale AI remains a well-funded and well-resourced company. He emphasized that the layoffs were not about survival but strategic recalibration.

“These changes will make us more nimble — enabling us to react more quickly to shifts in the market and customer needs,” he said.

The restructuring is aimed at streamlining the company’s generative AI division, cutting down from 16 “pods” to five key focus areas, and merging various business development roles into a single Demand Generation team. The company said it would deprioritize GenAI projects that generate little revenue or show low growth potential as part of its effort to become more efficient and move toward profitability — a point Droege appeared to acknowledge in his memo.

However, after publication, a company spokesperson disputed the notion that Droege called the company unprofitable, while refusing to clarify the statement.

Going forward, Scale AI plans to double down on its enterprise and public sector divisions. Droege said the company would “significantly increase headcount” in the second half of 2025 within these units, including across its international public sector business.

Founded in 2016 by Alexandr Wang, Scale AI made its name as a critical behind-the-scenes player in the AI revolution, providing data labeling and infrastructure services used to train large models for OpenAI, Google, and others. Its reputation surged as demand for generative AI exploded in the wake of OpenAI’s ChatGPT, but that growth appears to have outpaced strategic planning.

The Meta-Scale partnership, which included Meta’s acquisition of key Scale talent and Wang’s appointment to head Meta Superintelligence Labs, has raised eyebrows in the industry. Insiders say the alliance may have triggered nervousness among other big tech clients like Google and Microsoft, who are now reportedly scaling back ties with Scale due to potential conflicts of interest.

Scale spokesperson Joe Osborne said affected workers were being offered severance and that the company would continue to invest heavily in new AI initiatives.

“We’re streamlining our data business to help us move faster and deliver even better data solutions to our GenAI customers,” he said, adding that hiring in government and enterprise AI sectors would remain a priority.

Droege, in his message to staff, expressed gratitude to those affected by the cuts, describing their contributions as instrumental to Scale’s growth. However, the move underscores the growing pains many AI firms are experiencing as they shift from early hype and experimentation to monetization and long-term strategy.

The development also signals a sobering moment in Silicon Valley’s AI gold rush — even well-capitalized startups are beginning to tighten their belts, realizing that breakneck expansion without profitability or focus can be as dangerous as falling behind.

Over the past 7 days, memecoins Mog Coin (MOG) and PENGU have been among the top performers in the memecoin sector, with significant price surges driven by broader market momentum and specific catalysts. MOG, an Ethereum-based memecoin, saw a price increase of approximately 73.2% over the last 7 days, according to CoinGecko data. Its current price is around $0.000002 USD, with a market cap of roughly $735.10M.

The surge is attributed to heightened investor interest in memecoins, fueled by Bitcoin’s recent all-time high above $123,000, which has driven capital rotation into riskier assets like memecoins. MOG’s community-driven approach, centered around meme culture and viral content, has also contributed to its momentum. However, technical indicators like the Relative Strength Index (RSI) at 76.96 suggest MOG is in overbought territory, hinting at a potential correction if buying pressure wanes.

PENGU, a Solana-based memecoin tied to the Pudgy Penguins ecosystem, has outperformed with gains of around 80–90% over the past week, with its price reaching approximately $0.0233 as of July 11, 2025. Posts on X highlight PENGU’s strong momentum, with a 55.46% surge in the past week and a 150% increase over 30 days, driven by factors like the SEC’s acknowledgment of a PENGU ETF filing and its listing on platforms like eToro.

The Solana memecoin sector, valued at over $12.8 billion, has seen a 12.3% surge, with PENGU leading due to its real-world backing from $13M in Pudgy Penguins toy sales and strong community engagement. Technical analysis indicates PENGU faces resistance at $0.024, but sustained bullish momentum could push it toward $0.030. While both coins have seen impressive gains, approaching 100% as you noted, their volatility and reliance on market hype and Bitcoin’s performance suggest caution.

The surge in MOG (up ~88%) and PENGU (up ~85.9%) reflects a broader speculative wave in the memecoin sector, driven by Bitcoin’s recent record highs above $123,000. This suggests capital is rotating from major cryptocurrencies into high-risk, high-reward assets like memecoins, a common pattern in bull markets where “peak greed” often emerges. Such rallies indicate heightened retail and whale investor FOMO (fear of missing out), amplified by social media hype and influencer endorsements on platforms like X.

Investors should brace for volatility. Memecoin surges are often short-lived, and overbought indicators (e.g., PENGU’s RSI at 81, MOG’s at 76.96) suggest potential corrections. Traders may benefit from quick gains but risk significant losses if momentum fades. Bitcoin’s breakout above $113,000–$122,000 has acted as a catalyst, boosting altcoins and memecoins like PENGU, MOG, Dogecoin, and others.

The Solana ecosystem, in particular, has seen a 12.3% surge in its memecoin market cap ($12.8B+), with PENGU and BONK leading. This suggests memecoins are riding Bitcoin’s coattails, benefiting from increased liquidity and market euphoria. Memecoin gains may continue as long as Bitcoin sustains its upward trajectory, but a Bitcoin pullback could trigger sharp declines in these speculative assets due to their lack of fundamental utility.

PENGU’s rally is partly fueled by the SEC’s acknowledgment of Canary Capital’s Spot PENGU ETF filing, which proposes a memecoin-NFT hybrid fund (80–95% PENGU tokens, 5–15% Pudgy Penguins NFTs). This unprecedented move could legitimize memecoins, drawing institutional capital and retail adoption if approved. PENGU’s real-world revenue ($13M from Pudgy Penguins toy sales) and brand expansion (e.g., gaming integrations like Pudgy World) further bolster its appeal.

Approval of a PENGU ETF could set a precedent for memecoin-based financial products, potentially driving PENGU’s price toward $0.06–$0.15 by Q4 2025 (a 200–600% upside). However, regulatory uncertainty remains a risk, as the SEC’s stance on memecoins is untested. Both MOG and PENGU thrive on strong community engagement and viral branding. MOG’s cat-themed meme culture and PENGU’s Pudgy Penguins ecosystem (backed by NFTs, toys, and games) demonstrate the power of storytelling in driving crypto adoption.

Major players like Coinbase and OpenSea adopting Pudgy Penguins imagery on X further amplify PENGU’s dominance. Memecoins remain a cultural phenomenon, onboarding new users through relatable branding. This could sustain interest in PENGU and MOG, but their reliance on hype makes them vulnerable to shifts in sentiment or competing narratives (e.g., new memecoins like MemeCore or SPX6900).

Analysts warn that memecoin surges often signal “peak greed,” a precursor to market corrections. MOG’s 88% weekly gain and PENGU’s 531% 30-day surge highlight speculative excess, with technical indicators like RSI signaling overbought conditions. MOG needs to hold $0.000002014 support, and PENGU must maintain $0.021 to avoid declines.

Investors should manage risk carefully, as memecoins lack intrinsic value and are prone to sharp reversals. Portfolio rebalancing and stop-loss strategies are critical in this high-volatility environment. PENGU’s success on Solana (low fees, fast transactions) contrasts with MOG’s Ethereum-based rally, highlighting competition between blockchain ecosystems. Solana’s memecoin market has outperformed, with tokens like BONK and FARTCOIN also posting double-digit gains. MOG’s surge, however, shows Ethereum-based memecoins remain competitive, possibly due to broader DeFi integration.

Solana’s dominance in memecoins could attract more projects and capital, but Ethereum’s established infrastructure may keep it relevant for tokens like MOG. Investors may diversify across both ecosystems to hedge platform-specific risks. PENGU’s real-world utility (toys, gaming, NFTs) gives it an edge over purely speculative memecoins like MOG, which relies heavily on community hype and potential influencer backing (e.g., Elon Musk’s rumored interest in cat-themed tokens). Analysts project PENGU could reach $0.10–$0.15 by Q4 2025, while MOG’s upside depends on sustaining momentum toward $0.000002354.

PENGU may offer longer-term growth potential due to its ecosystem, but MOG’s reliance on social momentum makes it riskier. Investors seeking stability might prefer projects with utility, like PENGU or emerging tokens like Remittix (RTX). The MOG and PENGU rallies underscore the memecoin sector’s volatility and cultural significance in 2025’s bull market. While PENGU’s ETF narrative and real-world backing suggest stronger fundamentals, both coins face risks from overbought conditions and market sentiment shifts.

Aethir and Credible Launch First DePIN-Powered Credit Card and Loan Facility Backed by ATH Tokens

Aethir, the decentralized physical infrastructure network (DePIN) powering distributed GPU compute, and Credible Finance announced today the launch of the first credit card and loan product backed by DePIN. The new product allows holders of ATH, the native token of Aethir’s decentralized GPU network, to access stablecoin credit without selling their holdings, using their digital assets as collateral.

With this initiative, Aethir node operators and token holders can claim a free ATH-powered credit card issued by Credible, which can be topped up with ATH tokens or stablecoins on Solana or can be used to unlock a revolving credit line against ATH tokens. Participants also gain access to Credible’s private investor portal, featuring short-term lending opportunities with yields of up to 24% APY on USDC and USDT.

Loan approvals and credit limits are determined by Credible’s AI-powered credit engine, which analyzes borrowers’ onchain activity, digital assets portfolio, including $ATH, and transaction history to generate dynamic credit scores. Combining DePIN participation and onchain data, Aethir is opening a new avenue of access to capital for users traditionally underserved by current financial systems.

As traditional DeFi lending falls short, new RWA-backed credit models are being developed to meet the needs of global businesses building from emerging markets. In Q1 2025, borrowing across decentralized lending platforms fell by $4.75 billion — a 21% drop from the previous quarter — marking the steepest pullback since 2023. The total crypto-collateralized loan market fell to $39.07 billion in open borrows, whereas the global credit gap in the SME segment from emerging markets is $5.7 trillion dollars. This downturn underscores the limitations of overcollateralized lending models and highlights the need for credit systems that reflect real onchain activity and infrastructure ownership.

This partnership brings real utility to the ATH token,” said Mark Rydon, Chief Strategy Officer and Co-founder at Aethir. “It’s the first step toward building a financial system around decentralized infrastructure. This is the first DePIN-native token being activated for real-time credit,” said Shrikant Bhalerao, CEO and Co-founder of Credible Finance. “We’re turning tokenized infrastructure into usable financial capital.

Credit card access will initially be available to GPU providers, node operators, and token holders, with plans to expand as the ecosystem grows to check eligibility, explore features, and apply. All lending services comply with regulatory standards, including KYC and AML protocols, ensuring secure and lawful access for users across decentralized ecosystems.

Aethir is the world’s largest decentralized cloud GPU network, with over 430,000 enterprise-grade GPU containers across 94 countries. The platform provides scalable, cost-efficient cloud GPU services for AI, machine learning, gaming, and rendering applications, connecting users to distributed resources through a Decentralized Physical Infrastructure Network (DePIN). By making high-performance computing more accessible and efficient, Aethir is transforming how AI and enterprise applications are powered.

Credible is the world’s first impact-driven protocol that connects stablecoin lenders with secure credit opportunities in emerging markets through regulated Non-Banking Financial Institutions (NBFIs). Since its launch just 10 months ago, Credible has processed over $16 million in USDC-denominated loans across Africa and is now expanding into Asia. The platform places a strong emphasis on building a robust investor network, offering curated deal flow, exclusive credit products such as specialized crypto-backed credit cards, and access to premium events.

Cantor Fitzgerald, led by Chairman Brandon Lutnick, is reportedly nearing the completion of a $4 billion SPAC deal through its blank-check vehicle, Cantor Equity Partners 1, to acquire over 30,000 Bitcoin (BTC) from Blockstream Capital, founded by Bitcoin pioneer Adam Back. The deal, valued at over $3 billion for the Bitcoin contribution, involves Back exchanging the BTC for equity in the SPAC, which will be renamed BSTR Holdings.

Additionally, Cantor plans to raise up to $800 million in outside capital to expand its Bitcoin purchases, pushing the total deal value past $4 billion. This move follows Cantor’s earlier $3.6 billion crypto venture with SoftBank and Tether, potentially bringing its 2025 Bitcoin acquisitions close to $10 billion. The deal, which could close soon, aligns with a growing trend of public companies using SPACs to amass Bitcoin as a core treasury asset, mirroring strategies like MicroStrategy’s.

Cantor Fitzgerald, a major Wall Street firm, acquiring a massive Bitcoin stash signals growing institutional acceptance of Bitcoin as a legitimate asset class. This follows the trend of firms like MicroStrategy, which holds over 226,500 BTC, and could encourage other financial institutions to allocate to crypto. The purchase of 30,000+ BTC (valued at ~$3 billion at current prices) reduces Bitcoin’s available supply, potentially driving price appreciation, especially given Bitcoin’s fixed 21 million coin cap. This could amplify bullish sentiment, particularly if more institutions follow suit.

Using a SPAC to acquire Bitcoin is innovative, providing a public market structure to hold and potentially monetize crypto assets. This could set a precedent for other SPACs to target digital assets, blending traditional finance with crypto. With this deal and its prior $3.6 billion crypto venture with SoftBank and Tether, Cantor is positioning itself as a leader in bridging traditional finance and crypto. Its potential $10 billion Bitcoin acquisition in 2025 could make it one of the largest corporate BTC holders.

By integrating Bitcoin into its portfolio via BSTR Holdings, Cantor diversifies its exposure beyond traditional securities, potentially hedging against fiat currency devaluation and inflation. Adam Back, a Bitcoin OG and cypherpunk, exchanging BTC for SPAC equity elevates his influence in bridging crypto with institutional finance. His involvement lends credibility to the deal among crypto purists.

Blockstream, known for Bitcoin infrastructure (e.g., Liquid Network, mining), may use the deal’s proceeds to scale its operations, potentially accelerating Bitcoin’s technological development and adoption. The deal could fuel optimism in the crypto market, especially post-Bitcoin halving (April 2024), where reduced mining rewards already constrain supply. Combined with ETF inflows and corporate buying, this could push BTC prices higher.

Large-scale Bitcoin acquisitions by public companies may attract regulatory attention, particularly from the SEC, which has been cautious about crypto’s integration into public markets. The SPAC structure might face questions about valuation and transparency. Cantor’s acquisition aligns with the view of Bitcoin as “digital gold,” a hedge against inflation and economic uncertainty. Institutional hoarding (e.g., MicroStrategy, Cantor) reinforces this narrative, reducing circulating supply and prioritizing long-term holding.

Bitcoin’s original vision, championed by figures like Adam Back, emphasized peer-to-peer electronic cash. Large-scale corporate accumulation could conflict with this ethos, centralizing Bitcoin in institutional hands and potentially limiting its use as a transactional currency. Wall Street’s entry (Cantor, BlackRock via ETFs) validates Bitcoin’s staying power but risks co-opting it into centralized financial systems, which many Bitcoiners oppose.

Crypto purists may view Back’s deal as a compromise, trading Bitcoin’s decentralized ideals for Wall Street equity. This could alienate parts of the community who see institutional involvement as antithetical to Bitcoin’s anti-establishment roots. Institutional buying (30,000+ BTC is ~0.14% of total supply) concentrates Bitcoin in fewer hands, potentially exacerbating wealth inequality within the crypto ecosystem. Retail investors may struggle to compete with deep-pocketed firms.

Conversely, public market exposure via SPACs could democratize access to Bitcoin’s upside through stock ownership, allowing smaller investors to gain exposure without directly buying crypto. The deal fuels speculative narratives, with Bitcoin’s price increasingly driven by corporate buying and macro trends rather than its utility. This could lead to volatility if institutional sentiment shifts.

The Cantor-Blockstream SPAC deal is a pivotal moment for Bitcoin, accelerating its integration into traditional finance while amplifying tensions between its store-of-value and medium-of-exchange roles. It strengthens institutional adoption, potentially driving prices higher, but risks alienating Bitcoin’s decentralized ethos.