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How the Feds $400 billion cash injection will affect Bitcoin – Decrypt

The Federal Reserve Bank is pumping hundreds of billions of dollars into the economy by the end of January. The cash injection is to make sure that banks have enough money to keep running.

So-called reposmarket repurchasing agreementsare a way for central banks to regulate the economy and keep interest rates in check. The Fed sells government securitieslike bondsto banks, promising to buy them back a short while later. Unlike traditional bonds, which can take years to mature, repos are bought back overnight.

Theyve gone out of fashion for over a decadethe Fed used them for the first time since the 2008 financial crisis. But on Thursday, the Fed announced it was pumping yet more cash into the economy. By February, overnight repos would add over $400 billion into the economy.

The Feds strategy has angered those in the crypto community who take offense with the central banks intervention in the market, which they claim is similar to the controversial monetary policy of quantitative easing. This is 3x the entire Bitcoin market cap, tweeted cryptocurrency analyst Ivan Liljeqvist, before mocking those who reject the notion that the Fed is implementing a policy of quantitative easing. EvEryThiNgs fInE, he jibed.

What happens when 400 Billion new dollar bills does not work? asked one tweeter, who goes by the moniker of John Bitcoin. Opt out of this crap, buy bitcoin.

Of course, to take money out of the US economy and instead place it into the crypto-economy creates additional risks: the cryptocurrency market might have its own troublesinstead of a nosy central bank, its entire monetary policy is encoded into its protocol, for better or worse.

But tin-foilers could have a point. According to some traders, the Feds policies, should they backfire, are unlikely to impact on Bitcoins price.

BTC does not respond to monetary policy, crypto trader Alex Kruger told Decrypt. He referred to a tweet from back in September when he said, [Bitcoin] is an asset driven almost exclusively by endogenous factors, and is thus not impacted by the general market (no systematic risk), adding, This is a unique and valuable feature.

Nic Carter, a partner at Castle Island Ventures, told Decrypt much the same: I havent seen any evidence that federal reserve policy has any material effect on bitcoin, he said. Looking at the historical relationship, I dont see why bitcoin would start to exhibit a correlation to Fed policy when it hasnt in the past.

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So, worried about the Fed, want to run to Bitcoins warm embrace?

Not so fast, according to Carter, who said that the crypto-market could begin to reflect the wider US economy once it matures. I think the asset class would have to grow and the plumbing to connect it to financial markets would have to as well; then it would move more in concert with traditional assets, he said.

But you could be safe for now: I am not sure weve reached a sufficient stage of maturity or inter-connectedness, he added.

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Fidelity Looks to Embrace Ethereum & Break Only-Bitcoin Streak – Blockonomi

Late last year, Fidelity Investments a financial services giant with over $2 trillion worth of assets under management and thousands of institutional clients spanning the world revealed that it would be launching a cryptocurrency branch.

Named Fidelity Digital Assets, many in the industry had high hopes for the subsidiary, claiming that it could be the one institutional onramp into cryptocurrencies from Bitcoin to Ethereum that will drive the next bull run.

But, to the dismay of many, Fidelity revealed that its digital asset branch would first be focusing on Bitcoin. After all, the leading cryptocurrency is the most popular amongst traders, and the company has long been fascinated by it, exemplified by the fact that it mines BTC in a Blockstream facility.

Despite this, Tom Jessop, head of Fidelity Digital Assets, recently revealed that the addition of Ethereum to the platform, which currently offers institutions with trade execution and custodial services, will be a focus for 2020.

Tom Jessop recently sat down with industry outlet The Block to talk Fidelity Digital Assets latest updates.

During the podcast episode, Jessop said that the firm has done a lot of work on Ethereum over recent months, and is looking to add support for the second-largest cryptocurrency by market capitalization within the coming year. The catch: clients of the firm need to show that they demand Ethereum, for Bitcoin, the digital currency with the longest track record, has long been the star of the institutional crypto show due to risk factors. Jessop elaborated:

How do I know that if I buy this thing, its gonna be around tomorrow? Like what indication of durability or longevity do I have based on the fact that the history of this asset is 10 years old?

Earlier this year, Jessop was quoted as saying that his firm has been avoiding Ethereum due to the countless hard forks and potential risks that could come with the planned consensus changes.

These latest comments imply that Jessop is not as wary of hard forks anymore, though the planned migration to Proof of Stake, should it take place in 2020, is likely to complicate Fidelitys support of Ethereum.

Jessops appearance on The Blocks podcast is pertinent, for Fidelity Digital Assets late last month secured a Trust License from the New York State Department of Financial Services (NYDFS).

This license gives the venture the permission to launch a cryptocurrency custody and trade execution platform for institutions and individual investors for New York residents this being notable because New York is where much of American wealth is managed.

The news regarding Fidelitys potential support for Ethereum adds to the confluence of positive developments the blockchain has seen over recent weeks.

Earlier this month, Ethereum developers rolled out the latest iteration of the software, Istanbul. This hard fork brings a number of improvements to the chain, including a technical upgrade that allows Ethereum to better interact with another popular altcoin, ZCash.

Istanbul also gives developers the ability to roll out so-called ZK Rollups, which is an application that will allow Layer 2 scaling on Ethereum supporting upwards of 3000tps (larger than Visa), while maintaining decentralization and privacy. This is a big win for ETH-based stablecoins, [like USD Coin (USDC)], as Circles Jeremy Allaire has written on the matter.

With the capability of transacting thousands of near-instant and cheap transactions per second (that are private no less), Ethereum developers could begin to build applications that are similar to if not better than their real-world counterparts, creating a possible wave of adoption.

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Bitcoin Hedge Narrative Strengthens as Fed Plans More Fiat Injection – Bitcoinist

Bitcoin can still be a hedge against failing fiat. This is especially true in the face of the latest fiat injection plans put forward by the Fed.

The US central bank is ramping up is repo operation efforts with billions more planned to enter the financial system before the end of the year. Reports reveal that an additional $425 billion will be pumped back into the economy by the FED.

This is over double the current total cryptocurrency market capitalization which has remained under $200 billion this weekend.

Larger capital injections through the end of the year have been planned to avoid another lending rate spike. According to the central bank, the increased limit is to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures around year-end.

The consequences of prolonged quantitative easing could be very dire indeed. Banks are actively encouraging more lending in an economy that already has a galloping national debt of over $23 trillion.

Savers are being punished as negative interest rates become the norm and the specter of hyperinflation looms ever closer. Crypto and bitcoin market analyst PlanB warned that such economic adversity is not limited to countries with oppressive regimes or socialist governments.

But dont underestimate the consequences of quantitative easing & negative interest rates in US EUR JPN.

Using Zimbabwe as an example it was pointed out that the one-dollar note was introduced just one year before the 100 trillion note was introduced.

The FEDs dangerous destabilization of the financial system critically affects the way that banks operate which has a knock on to the wider economy. It appears that no lessons from the past are being heeded and a repeat could be inevitable.

The WSJ pointed out that federal budget deficits are projected to average $1.2 trillion a year for the next decade. As a result, the supply of Treasury debt used as collateral will continue to swell.

The detractors may disagree but BTC really does serve as a hedge when possible fiat devaluation is around the corner. Some are already loading up on it such as US consumer TV personality John Stossel who admitted that he doesnt want all of his savings in dollars in this recent tweet.

It may be some time before the dollar collapses to Zimbabwean levels of hyperinflation, but the premise is no longer so far-fetched and holding a bit of bitcoin may well be the parachute when the plane goes down.

Is bitcoin a solid hedge against failing financial systems? Add your thoughts below.

Images via Shutterstock, Twitter: @100trillionUSD, @JohnStossel

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Tether Sponsors New Version of Bitcoin Tokenization Layer Omni – Cointelegraph

Tether, the stablecoin operator behind USDT, has funded the development of the new version of Bitcoin (BTC) tokenization layer Omni.

In a press release shared with Cointelegraph on Dec. 15, the companies announce the release of Omni Core 0.7.0, the development of which was sponsored by Tether. The new version reportedly enhances network performance and fixes locking issues and Remote Procedure Calls.

The Omni protocol is a system running on the Bitcoin network that allows the creation of tokens on what is widely believed to be a secure network. Omni is also the platform that hosted the first USDT tokens. The official website further explains how the technology makes use of the Bitcoin blockchain:

Omni Core is an enhanced Bitcoin Core that provides all the features of Bitcoin as well as advanced Omni Layer features.

More interestingly, Omni Core 0.7.0 enables the building of an on-chain decentralized exchange. The new version of the Omni protocol allows users to trade any on-chain asset for Bitcoin. Tether CTO Paolo Ardoino commented:

As Bitcoin is the first blockchain that Tether used, Omni Core is highly valued and demonstrates good levels of security. [...] It is important to note that Tether is underpinned by diversity in different blockchains, of which Omni Core has proven to be an important component.

As Cointelegraph reported, in March Tether launched USDT tokens on the Tron blockchain. As of late October, nearly 12% of all the stablecoins supply was moved on the new chain. More recently, in July, Tether also announced the launch of the USDT stablecoin on its fifth blockchain, Algorand.

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How Has Bitcoin Done Since a Legendary Investor Shorted It in 2018? – U.Today

In November 2018, legendary investor Gary Shilling criticized bitcoin and said that hes short on the asset.

Speaking to Business Insider, he described bitcoin as a black box and that he is suspicious of assets that are not transparent.

Since then, the bitcoin price has increased from around $3,200 to over $7,000, by well over two-fold against the USD.

The performance of bitcoin is cyclical; it moves based on sentiment and as such, it goes through a cycle composed of a bear market, an accumulation phase, a build phase, and a bull market.

Often, when the bitcoin price reaches the lowest point of a bear market, investors are quick to criticize the dominant cryptocurrency for its declining price.

In doing so, many investors also tend to misdescribe bitcoins characteristics to support their arguments by saying it is not transparent and has a lack of clarity regarding its structure.

However, bitcoin technically is a piece of an open source software that is contributed to by developers worldwide. Its code can be viewed by anyone and in that regard, it could be described as the most transparent store of value.

Bitcoin has increased by more than twice since Shilling last criticized it because it was at the bottom of a bear trend at the time.

Source: tradingview.com

What happens during and after a bear trend is that companies within the ecosystem more proactively build better infrastructure to support users and investors.

Since November 2018, a new array of services providers such as Bakkt have emerged and many countries have started to provide more regulatory clarity surrounding cryptocurrencies as an asset class.

Although bitcoin is coming off a strong rally to $13,900 in mid-2019 and is down close to 50 percent within five months, it has still performed relatively well year-to-date.

In the medium to long-term, there are several fundamental catalysts for the bitcoin price such as the upcoming block reward halving in May 2020.

In the short-term, however, technical analysts are weighing towards a deeper pullback amidst falling volumes and interest across major cryptocurrency exchanges.

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Artificial Intelligence to be Used for Charting, Intel Collection – Department of Defense

Nautical, terrain and aeronautical charting is vital to the Defense Department mission. This job, along with collecting intelligence, falls to the National Geospatial-Intelligence Agency.

Two senior DOD officials think that artificial intelligence will aid NGA's mission.

Mark D. Andress, NGA's chief information officer, and Nand Mulchandani, chief technology officer from DODs Joint Artificial Intelligence Center, spoke yesterday at the AFCEA International NOVA-sponsored 18th Annual Air Force Information Technology Day in Washington.

The reason charts are so vital is that they enable safe and precise navigation, Andress said. They are also used for such things as enemy surveillance and targeting, as well as precision navigation and timing.

This effort involves a lot of data collection and analysis, which is processed and shared through the unclassified, secret or top secret networks, he said, noting that AI could assist them in this effort.

The AI piece would involve writing smart algorithms that could assist data analysts and leader decision making, Andress said.

He added that the value of AI is that it will give analysts more time to think critically and advise policymakers while AI processes lower-order analysis that humans now do.

There are several challenges to bringing AI into NGA, he observed.

One challenge is that networks handle a large volume of data that includes text, photos and livestream. The video streaming piece is especially challenging for AI because it's so complex, he said.

Andress used the example of an airman using positioning, navigation and timing, flying over difficult terrain at great speed and targeting an enemy. "An algorithm used for AI decision making that is 74% efficient is not one that will be put into production to certify geolocation because that's not good enough,"he said.

Another problem area is that NGA inherited a large network architecture from other agencies that merged into NGA. They include these Defense Mapping Agency organizations:

The networks of these organizations were created in the 1990s and are vertically designed, he said, meaning not easily interconnected. That would prove a challenge because AI would need to process information from all of these networks to be useful.

Next, all of these networks need to continuously run since DOD operates worldwide 24/7, he said. Pausing the network to test AI would be disruptive.

Therefore, Andress said AI prototype testing is done in pilots in isolated network environments.

However, the problem in doing the testing in isolation is the environments don't represent the real world they'll be used in, he said.

Nonetheless, the testing, in partnership with industry, has been useful in revealing holes and problems that might prevent AI scalability.

Lastly, the acceptance of AI will require a cultural shift in the agency. NGA personnel need to be able to trust the algorithms. He said pilots and experimentation will help them gain that trust and confidence.

To sum up, Andress said AI will eventually become a useful tool for NGA, but incorporating it will take time. He said the JAIC will play a central role in helping the agency getting there.

Mulchandani said the JAIC was set up last year to be DOD's coordinating center to help scale AI.

Using AI for things like health records and personnel matters is a lot easier than writing algorithms for things that NGA does, he admitted, adding that eventually it will get done.

Mulchandani said last year, when he came to DOD from Silicon Valley, the biggest shock was having funding for work one day and then getting funding pulled the next due to continuing resolutions. He said legislators need to fix that so that AI projects that are vital to national security are not disrupted.

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Artificial Intelligence Isn’t an Arms Race With China, and the United States Shouldn’t Treat It Like One – Foreign Policy

At the last Democratic presidential debate, the technologist candidate Andrew Yang emphatically declared that were in the process of potentially losing the AI arms race to China right now. As evidence, he cited Beijings access to vast amounts of data and its substantial investment in research and development for artificial intelligence. Yang and othersmost notably the National Security Commission on Artificial Intelligence, whichreleased its interim report to Congress last monthare right about Chinas current strengths in developing AI and the serious concerns this should raise in the United States. But framing advances in the field as an arms race is both wrong and counterproductive. Instead, while being clear-eyed about Chinas aggressive pursuit of AI for military use and human rights-abusing technological surveillance, the United States and China must find their way to dialogue and cooperation on AI. A practical, nuanced mix of competition and cooperation would better serve U.S. interests than an arms race approach.

AI is one of the great collective Rorschach tests of our times. Like any topic that captures the popular imagination but is poorly understood, it soaks up the zeitgeist like a sponge.

Its no surprise, then, that as the idea of great-power competition has reengulfed the halls of power, AI has gotten caught up in therace narrative.ChinaAmericans are toldis barreling ahead on AI, so much so that the United States willsoon be lagging far behind. Like the fears that surrounded Japans economic rise in the 1980s or the Soviet Union in the 1950s and 1960s, anxiety around technological dominance are really proxies for U.S. insecurity about its own economic, military, and political prowess.

Yet as technology, AI does not naturally lend itself to this framework and is not a strategic weapon.Despite claims that AI will change nearly everything about warfare, and notwithstanding its ultimate potential, for the foreseeable future AI will likely only incrementally improve existing platforms, unmanned systems such as drones, and battlefield awareness. Ensuring that the United States outpaces its rivals and adversaries in the military and intelligence applications of AI is important and worth the investment. But such applications are just one element of AI development and should not dominate the United States entire approach.

The arms race framework raises the question of what one is racing toward. Machine learning, the AI subfield of greatest recent promise, is a vast toolbox of capabilities and statistical methodsa bundle of technologies that do everything from recognizing objects in images to generating symphonies. It is far from clear what exactly would constitute winning in AI or even being better at a national level.

The National Security Commission is absolutely right that developments in AI cannot be separated from the emerging strategic competition with China and developments in the broader geopolitical landscape. U.S. leadership in AI is imperative. Leading, however, does not mean winning. Maintaining superiority in the field of AI is necessary but not sufficient. True global leadership requires proactively shaping the rules and norms for AI applications, ensuring that the benefits of AI are distributed worldwidebroadly and equitablyand stabilizing great-power competition that could lead to catastrophic conflict.

That requires U.S. cooperation with friends and even rivals such as China. Here, we believe that important aspects of the National Security Commission on AIs recent report have gotten too little attention.

First, as the commission notes, official U.S. dialogue with China and Russia on the use of AI in nuclear command and control, AIs military applications, and AI safety could enhance strategic stability, like arms control talks during the Cold War. Second, collaboration on AI applications by Chinese and American researchers, engineers, and companies, as well as bilateral dialogue on rules and standards for AI development, could help buffer the competitive elements of anincreasingly tense U.S.-Chinese relationship.

Finally, there is a much higher bar to sharing core AI inputs such as data and software and building AI for shared global challenges if the United States sees AI as an arms race. Although commercial and military applications for AI are increasing, applications for societal good (addressing climate change,improving disaster response,boosting resilience, preventing the emergence of pandemics, managing armed conflict, andassisting in human development)are lagging. These would benefit from multilateral collaboration and investment, led by the United States and China.

The AI arms race narrative makes for great headlines, buttheunbridled U.S.-Chinese competition it implies risks pushing the United States and the world down a dangerous path. Washington and Beijing should recognize the fallacy of a generalized AI arms race in which there are no winners. Instead, both should lead by leveraging the technology to spur dialogue between them and foster practical collaboration to counter the many forces driving them apartbenefiting the whole world in the process.

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Tech experts agree its time to regulate artificial intelligence if only it were that simple – GeekWire

AI2 CEO Oren Etzioni spakes at the Technology Alliances AI Policy Matters Summit. (GeekWire Photo / Monica Nickelsburg)

Artificial intelligence is here, its just the beginning, and its time to start thinking about how to regulate it.

Those were the takeaways from the Technology Alliances AI Policy Matters Summit, a Seattle event that convened experts and government officials for a conversation about artificial intelligence. Many of those experts agreed that the government should start establishing guardrails to defend against malicious or negligent uses of artificial intelligence. But determining what shape those regulations should take is no easy feat.

Its not even clear what the difference is between AI and software, said Oren Etzioni, CEO of the Allen Institute for Artificial Intelligence, on stage at the event. Where does something cease to be a software program and become an AI program? Google, is that an AI program? It uses a lot of AI in it. Or is Google software? How about Netflix recommendations? Should we regulate that? These are very tricky topics.

Regulations written now will also have to be nimble enough to keep up with the evolving technology, according to Heather Redman, co-founder of the venture capital firm, Flying Fish Ventures.

Weve got a 30-40 year technology arc here and were probably in year five, so we cant do a regulation that is going to fix it today, she said during the event. We have to make it better and go to the next level next year and the next level the year after that.

With those challenges in mind, Etzioni and Redman recommend regulations that are tied to specific use cases of artificial intelligence, rather than broad rules for the technology. Laws should be targeted to areas like AI-enabled weapons and autonomous vehicles, they said.

My suggestion was to identify particular applications and regulate those using existing regulatory regimes and agencies, Etzioni said. That both allows us to move faster and also be more targeted in our application of regulations, using a scalpel rather than a sledgehammer.

He believes the rules should include a mandatory kill switch on all AI programs and requirements that AI notify users when they are not interacting with a human. Etzioni also stressed the importance of humans taking responsibility for autonomous systems, though it isnt clear whether the manufacturer or user of the technology will be liable.

Lets say my car ran somebody over, he said. I shouldnt be able to say my dog ate my homework. Hey I didnt do it, it was my AI car. Its an autonomous vehicle. We have to take responsibility for our technology. We have to be liable for it.

Redman also sees the coming tide of A.I. regulation as a business opportunity for startups seeking to break into the industry. Her venture capital firm is inundated with startups pitching an A.I. and M.L. first approach but Redman said there are two other related fields, or stacks as she describes them, that companies should be exploring.

If you talk to somebody on Wall Street, they dont care what tech stack theyre running their trading on theyre looking at new evolutions in law and policy as big opportunities to build new businesses or things that will kill existing businesses, she said.

From a startup perspective, if youre not thinking about the law and policy stack as much as youre thinking about the tech stack, youre making a mistake, Redman added.

But progress toward a regulatory framework has been slow at the local and federal level. In the last legislative session, Washington state almost became one of the first to regulate facial recognition, the controversial technology that is pushing the artificial intelligence debate forward. But the bill died in the state House. Lawmakers plan to introduce data privacy and facial recognition bills again next session.

Redman said shes disappointed Washington state wasnt a first-mover on AI regulation because the company is home to two of the tech giants consumers trust most with their data: Amazon and Microsoft. Amazon is in the political hot seat along with many of its tech industry peers but the Seattle tech giant has not been implicated in the types of data privacy scandals plaguing Facebook.

We are the home of trusted tech, Redman said, and we need to lead on the regulatory frameworks for tech.

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Joint Artificial Intelligence Center Director tells Naval War College audience to ‘Dive In’ on AI – What’sUpNewp

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Saying the most important thing to do is just dive in, Lt. Gen. Jack Shanahan, director of the Department of Defense Joint Artificial Intelligence Center, talked to U.S. Naval War College students and faculty on Dec. 12 about the challenges and opportunities of fielding artificial intelligence technology in the U.S. military.

On one side of the emerging tech equation, we need far more national security professionals who understand what this technology can do or, equally important, what it cannot do, Shanahan told his audience in the colleges Mahan Reading Room.

On the other side of the equation, we desperately need more people who grasp the societal implications of new technology, who are capable of looking at this new data-driven world through geopolitical, international relations, humanitarian and even philosophical lenses, he said.

At the Joint AI Center, established in 2018 at the Pentagon, Shanahan is responsible for accelerating the Defense Departments adoption and integration of AI in order to quickly affect national security operations at the largest possible scale.

He told the Naval War College audience that the most valuable contribution of AI to U.S. defense will be how it helps human beings to make better, faster and more precise decisions, especially during high-consequence operations.

AI is like electricity or computers. Like electricity, AI is a transformative, general-purpose enabling technology capable of being used for good or for evil but not a thing unto itself. It is not a weapons system, a gadget or a widget, said the Air Force general whose prior position was director of Project Maven, a Defense Department program using machine learning to autonomously extract objects of interest from photos or video.

If I have learned anything over the past three years, its that theres a chasm between thinking, writing and talking about AI, and doing it, Shanahan said.

There is no substitute whatsoever for rolling up ones sleeves and diving in an AI project, he said.

Shanahan said adapting the Department of Defense to the AI world will be a multigenerational journey, requiring both urgency and patience.

He compared this moment in history to the period between World War I and World War II, when new ideas led to an explosion not just in military innovation but in technology advancement that eventually helped create Silicon Valley.

Now, the private sector is leading the way on AI, which leaves the Defense Department playing catch-up, Shanahan said. However, he added that he sees the U.S. militarys efforts running at a tempo comparable to commercial industry in five years from now.

China, he said, sees AI as a way to leapfrog over the current U.S. defense advantages.

The Chinese military has identified intelligent-ization as a military revolution on par with mechanization from the internal combustion engine, Shanahan said. They are sprinting to incorporate AI technology in all aspects of their military, and the Chinese commercial industry is more than willing to help.

After the speech, in an interview, Shanahan said AI isnt an arms race, but it is a strategic competition.

Regardless of what China does or does not do in AI, we have to accelerate our adoption of it. Its that important to our future, he said.

For example, Shanahan said, in 15 years, what if China has a fully AI-enabled military force, and the United States does not.

To me that scenario brings us an unacceptably high risk of failure because of the speed of the fight in the future, which we have not been prepared for as a result of fighting in the Middle East for 20-some years, he said. That, to me, is the best stark example of why we have to move in this direction.

Looking at the importance of military higher education in the effort, Shanahan said the role of institutions such as the Naval War College is to make a place for the militarys rising stars to think about new ways to harness AI.

What you are here to do is think strategy, the strategic and societal implications of using emerging and disruptive technology, he said.

You will find somebody comes out of here that has a spark, a lightbulb moment, that wants to go back and try this idea they developed while they were here, said Shanahan, who is a 1996 graduate of the Naval War Colleges College of Naval Command and Staff.

The Joint AI Center director said another role for military higher-education institutions is research on practical applications of AI.

Its the thinking about grand strategy and technology together that may be as important to the future of operating concepts as anything else, he said.

Source: USNWC Public Affairs Office | Jeanette Steele, U.S. Naval War College Public Affairs

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Artificial intelligence is writing the end of Beethoven’s unfinished symphony – Euronews

In the run-up to Ludwig van Beethoven's 250th birthday, a team of musicologists and programmers is using artificial intelligence to complete the composer's unfinished tenth symphony.

The piece was started by Beethoven alongside his famous ninth, which includes the well-known Ode To Joy.

But by the time the German composer died in 1827, there were only a few notes and drafts of the composition.

The experiment risks failing to do justice to the beloved German composer. Tthe team said the first few months yielded results that sounded mechanical and repetitive.

But now the project leader, Matthias Roeder, from the Herbert von Karajan Institute, insists the AI's latest compositions are more promising.

"An AI system learns an unbelievable amount of notes in an extremely short time," said Roeder. "And the first results are a bit like with people, you say 'hmm, maybe it's not so great'. But it keeps going and, at some point, the system really surprises you. And that happened the first time a few weeks ago. We're pleased that it's making such big strides."

The group is in the process of training an algorithm that will produce a completed symphony. They're doing this by playing snippets of Beethoven's work and leaving the computer to improvise the rest of it. Afterwards, they correct the improvisation so it fits with the composer's style.

Similar projects have been undertaken before. Schubert's eighth symphony was finished using AI developed by Huawei. It received mixed reviews.

The final result of the project will be performed by a full orchestra on 28 April next year in Bonn as part of a series of celebrations of Beethoven's work.

The year of celebrations begins on December 16th with the opening of his home in Bonn as a museum after renovation.

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