Explore

The Paper News

Dive into a curated collection of insights, analysis, and updates from the world of AI, Bitcoin, and Energy. Whether you’re catching up on missed stories or exploring industry trends, our archive is your gateway to understanding the forces shaping tomorrow. Browse through expertly crafted articles and newsletters designed to keep professionals like you ahead of the curve.

Bitcoin Whales Bought $11B of BTC in Two Weeks as Confidence Grew, Glassnode Says

While macroeconomic uncertainty and technical indicators raise doubts about bitcoin’s (BTC) recent gains, purchasing activity by some of the largest investors indicates a more optimistic outlook.
Since March 11, so-called bitcoin whales have snapped up over 129,000 BTC, worth $11.2 billion at the market price of $87,500, according to data tracked by blockchain analytics firm Glassnode.

Story continues
Don’t miss another story.Subscribe to the Crypto for Advisors Newsletter today. See all newsletters

Sign me up

By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy.

That’s the most significant accumulation rate since August 2024, indicating growing confidence in the largest cryptocurrency among the biggest market participants, Glassnode commented on X.
BTC has regained some poise, since reaching lows under $78K roughly two weeks ago. The recovery has been led by dovish comments from Federal Reserve and optimism that impending Trump tariffs on April 2 will be more measured than expected.

Glassnode’s analysis revealed that crypto whale addresses with over 10,000 BTC compensating for continued selling by small holders.

Bitcoin: Whale position change (30D) (Glassnode)
Other indicators, such as the “Bitcoin 1Y+ HOLD wave,” tracked by Bitbo Charts show a renewed upswing, indicating a shift to a holding strategy, as Wednesday’s edition of the Crypto Daybook Americas noted.

Read More

Trump SEC Pick Paul Atkins’ Crypto Ties Draw Sen. Warren’s Ire Ahead of Confirmation Hearing

Ahead of his confirmation hearing in front of the U.S. Senate Banking Committee tomorrow, Paul Atkins — President Donald Trump’s pick to lead the U.S. Securities and Exchange Commission (SEC) — disclosed having up to $6 million in crypto-related assets, prompting Sen. Elizabeth Warren (D-Mass.) to cry foul.

Story continues

In a Sunday letter to Atkins, Warren stressed that the former SEC commissioner’s background as a consultant and lobbyist for the financial industry could create “significant conflicts of interest” if he is confirmed.
“You also have served as an expert witness hired by Wall Street firms accused of engaging in Ponzi schemes and other misconduct that you would now be responsible for investigating as SEC Chair. Furthermore, you have served as a Board Advisor to the Digital Chamber, a registered lobbying group for the crypto industry. In these roles, you and your firm were paid by the same companies that you would now be responsible for regulating,” Warren wrote. “This will raise serious concerns about your impartiality and commitment to serving the public interest if you are confirmed to serve as the next SEC Chair.”

Warren urged Atkins to consider mitigating these potential conflicts of interest by recusing himself from any SEC matters involving his former clients, and agreeing not to do any lobbying, consulting or other work for any companies in the industry regulated by the SEC for at least four years after his departure from the agency. Her letter requests a written response from Atkins by Thursday.
Another letter, also dated Sunday, asked Atkins a series of questions about how he believed the cryptocurrency industry should be regulated, alongside other matters before the SEC’s purview.
Atkins’ recent financial disclosures revealed a $328 million family fortune, according to Reuters, largely stemming from his wife’s family ties to roofing supply giant TAMKO Building Products. His risk consultancy firm, Patomak Global Partners — though which Atkins has done consulting for a range of companies, both crypto and traditional finance, and from which he has promised to divest if confirmed — was valued at between $25 and $50 million, Reuters reported.
Atkins’ crypto-related assets were valued at up to $6 million, according to a report from Fortune, and include a combined $1 million in equity in crypto custodian Anchorage Digital and tokenization firm Securitize (Atkins held a board seat at Securitize until February). Atkins reported having up to a $5 million stake in the crypto investment firm Off the Chain Capital, where he is a limited partner. Off the Chain’s investments include private shares in big crypto companies like Digital Currency Group (DCG) and Kraken, as well as Mt. Gox bankruptcy claims.

In a Tuesday filing with the Office of Government Ethics, Atkins pledged to divest from Off the Chain Capital within 120 days of his confirmation. He has also resigned from his position on the board of the Digital Chamber of Commerce and the Token Alliance of the Chamber of Digital Commerce according to the same filing.
Atkins crypto ties are a stark contrast to his predecessor, former SEC Chair Gary Gensler, who was known for his so-called “regulation by enforcement” approach to crypto regulation. Ahead of Atkins’ confirmation, the SEC’s current leadership, spearheaded by Acting Chair Mark Uyeda and Commissioner Hester Peirce, have been overhauling the agency’s crypto regulation strategy, inviting industry players to roundtable discussions at the SEC’s headquarters in Washington, D.C. and backing down a considerable number of investigations and open litigation against crypto companies.
However, not everyone that the SEC went after under Gensler is off the hook — the agency has not yet shut its probes into Unicoin or Crypto.com, both of which received Wells notices (a heads up of forthcoming enforcement charges) from the SEC last year.
The SEC has shut down investigations into companies including Immutable, OpenSea and Yuga Labs, and ended litigation against companies like Coinbase, Kraken and Ripple since Uyeda took over the agency as acting chair.

Read More

Crypto Daybook Americas: Trump’s New Tariff Threat Fails to Budge Bitcoin

Shaurya Malwa
Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis. Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA. He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.

Read More

OMV Petrom, Romgaz Spud First Well in Neptun Deep Gas Project

SNGN Romgaz SA and OMV Petrom SA have launched development drilling in the Neptun Deep gas block on Romania’s side of the Black Sea, expecting to start production 2027.

At its peak Neptun Deep will add 8 billion cubic meters (282.52 billion cubic feet) a year to Romania’s natural gas production, according to the partners. They are undertaking the project as 50-50 co-venturers.

OMV Petrom, majority-owned by Austria’s state-backed OMV Group with investment from the Romanian state, and Romania’s majority state-owned Romgaz peg their investment in the project at up to EUR 4 billion ($4.3 billion).

“By developing this project, Romania can secure its natural gas needs from domestic sources and become an important player in the European market”, OMV Petrom chief executive Christina Verchere said in a joint press release.

Romgaz deputy chief executive Aristotel Jude commented, “The well spud in Neptun Deep is the first offshore key-operation in the Black Sea and represents the fulfillment of the development-exploitation work programs by both titleholders, being within the project schedule”.

The Neptun Deep project will exploit the Domino and Pelican South fields. The block sits some 160 kilometers (99.42 miles) from shore in water depths of about 1,000 meters (3,280.84 feet), according to figures from Romgaz.

Ten wells are to be drilled: 6 in Domino and 4 in Pelican South. The first well spudded is in Pelican South; the well will take around 2-3 months to complete drilling, the joint statement said.

The rig is Transocean Barents, while integrated drilling services have been contracted to Halliburton Energy Services Romania and Newpark Drilling Fluids Eastern Europe.

“The well foundations for Pelican were successfully installed using an advanced technology for offshore drilling, the CAN-ductor from Neodrill, that minimizes the overall environmental footprint of the drilling process”, the statement said.

Infrastructure for the 2 fields will include 3 subsea production systems (1 for Pelican South and 2 for Domino), a gathering pipeline network, a shallow-water offshore natural gas platform with its own power system, a main gas pipeline linked to shore and a gas metering station.

“A key aspect of the development concept is that the natural energy of the reservoir is used to transport the natural gas to shore, eliminating the need for compression”, the companies said. “This, along with other project features, ensures that emissions from the Neptun Deep project are kept to a minimum, significantly below industry benchmarks”.

“In addition to the drilling operations, work continues on various components of the Neptun Deep project: the production platform is under construction, systems for the subsea infrastructure are being manufactured, the support field vessel is being built, and the natural gas metering station is also under construction”, they said.

To contact the author, email [email protected]

Read More

How to save a glacier

Glaciers generally move so slowly you can’t see their progress with the naked eye. (Their pace is … glacial.) But these massive bodies of ice do march downhill, with potentially planet-altering consequences.   There’s a lot we don’t understand about how glaciers move and how soon some of the most significant ones could collapse into the sea. That could be a problem, since melting glaciers could lead to multiple feet of sea-level rise this century, potentially displacing millions of people who live and work along the coasts. A new group is aiming not only to further our understanding of glaciers but also to look into options to save them if things move toward a worst-case scenario, as my colleague James Temple outlined in his latest story. One idea: refreezing glaciers in place. The whole thing can sound like science fiction. But once you consider how huge the stakes are, I think it gets easier to understand why some scientists say we should at least be exploring these radical interventions.
It’s hard to feel very optimistic about glaciers these days. (The Thwaites Glacier in West Antarctica is often called the “doomsday glacier”—not alarming at all!) Take two studies published just in the last month, for example. The British Antarctic Survey released the most detailed map to date of Antarctica’s bedrock—the foundation under the continent’s ice. With twice as many data points as before, the study revealed that more ice than we thought is resting on bedrock that’s already below sea level. That means seawater can flow in and help melt ice faster, so Antarctica’s ice is more vulnerable than previously estimated.
Another study examined subglacial rivers—streams that flow under the ice, often from subglacial lakes. The team found that the fastest-moving glaciers have a whole lot of water moving around underneath them, which speeds melting and lubricates the ice sheet so it slides faster, in turn melting even more ice. And those are just two of the most recent surveys. Look at any news site and it’s probably delivered the same gnarly message at some point recently: The glaciers are melting faster than previously realized. (Our site has one, too: “Greenland’s ice sheet is less stable than we thought,” from 2016.)  The new group is joining the race to better understand glaciers. Arête Glacier Initiative, a nonprofit research organization founded by scientists at MIT and Dartmouth, has already awarded its first grants to researchers looking into how glaciers melt and plans to study the possibility of reversing those fortunes, as James exclusively reported last week. Brent Minchew, one of the group’s cofounders and an associate professor of geophysics at MIT, was drawn to studying glaciers because of their potential impact on sea-level rise. “But over the years, I became less content with simply telling a more dramatic story about how things were going—and more open to asking the question of what can we do about it,” he says. Minchew is among the researchers looking into potential plans to alter the future of glaciers. Strategies being proposed by groups around the world include building physical supports to prop them up and installing massive curtains to slow the flow of warm water that speeds melting. Another approach, which will be the focus of Arête, is called basal intervention. It basically involves drilling holes in glaciers, which would allow water flowing underneath the ice to be pumped out and refrozen, hopefully slowing them down. If you have questions about how all this would work, you’re not alone. These are almost inconceivably huge engineering projects, they’d be expensive, and they’d face legal and ethical questions. Nobody really owns Antarctica, and it’s governed by a huge treaty—how could we possibly decide whether to move forward with these projects? Then there’s the question of the potential side effects. Just look at recent news from the Arctic Ice Project, which was researching how to slow the melting of sea ice by covering it with substances designed to reflect sunlight away. (Sea ice is different from glaciers, but some of the key issues are the same.)  One of the project’s largest field experiments involved spreading tiny silica beads, sort of like sand, over 45,000 square feet of ice in Alaska. But after new research revealed that the materials might be disrupting food chains, the organization announced that it’s concluding its research and winding down operations.

Cutting our emissions of greenhouse gases to stop climate change at the source would certainly be more straightforward than spreading beads on ice, or trying to stop a 74,000-square-mile glacier in its tracks.  But we’re not doing so hot on cutting emissions—in fact, levels of carbon dioxide in the atmosphere rose faster than ever in 2024. And even if the world stopped polluting the atmosphere with planet-warming gases today, things may have already gone too far to save some of the most vulnerable glaciers.  The longer I cover climate change and face the situation we’re in, the more I understand the impulse to at least consider every option out there, even if it sounds like science fiction.  This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Read More

NSTA Expects UK Crude Oil Output to Continue Dropping in 2025

The North Sea Transition Authority (NSTA) expects UK crude oil production to continue dropping this year, according to data published on its website recently.

UK crude oil production is projected to average 0.53 million barrels per day in 2025 in the NSTA’s updated output forecasts, which show that this production averaged 0.77 million barrels per day in 2021, 0.71 million barrels per day in 2022, 0.63 million barrels per day in 2023, and 0.56 million barrels per day in 2024.

Looking further ahead, the data projects that UK crude oil output will average 0.50 million barrels per day in 2026, 0.46 million barrels per day in 2027, 0.43 million barrels per day in 2028, 0.40 million barrels per day in 2029, and 0.37 million barrels per day in 2030.

The NSTA expects UK oil production to average 0.60 million barrels per day in 2025, 0.56 million barrels per day in 2026, 0.52 million barrels per day in 2027, 0.48 million barrels per day in 2028, 0.45 million barrels per day in 2029, and 0.42 million barrels per day in 2030. This production came in at 0.85 million barrels per day in 2021, 0.79 million barrels per day in 2022, 0.70 million barrels per day in 2023, and 0.63 million barrels per day in 2024, according to the data.

UK net gas output is projected to average 0.41 million barrels of oil equivalent per day in 2025 in the figures. This production is expected to come in at 0.35 million barrels of oil equivalent per day in 2026, 0.31 million barrels of oil equivalent per day in 2027, 0.27 million barrels of oil equivalent per day in 2028, 0.23 million barrels of oil equivalent per day in 2029, and 0.20 million barrels of oil equivalent per day in 2030, the data showed.

UK net gas production averaged 0.48 million barrels of oil equivalent per day in 2021, 0.57 million barrels of oil equivalent per day in 2022, 0.51 million barrels of oil equivalent per day in 2023, and 0.41 million barrels of oil equivalent per day in 2024, according to the data.

In its 2025 Business Outlook report, Offshore Energies UK (OEUK) noted that UK oil and gas production decline has accelerated over the last five years. The report highlighted that this has averaged nine percent since 2020 but added that it “can be stemmed”.

Rigzone pointed out this section of OEUK’s report to the NSTA and the UK Department for Energy Security and Net Zero (DESNZ) and asked if they believe the production decline can be stemmed.

An NSTA spokesperson told Rigzone the organization can’t speculate on different scenarios. A DESNZ spokesperson said, “oil and gas production will continue to play an important role for decades to come, with the majority of future production in the North Sea expected to come from producing fields or fields already being developed on existing licenses”.

“New licenses awarded in the last decade have made only a marginal difference to overall oil and gas production,” the spokesperson added.

“Only by sprinting to clean power by 2030 can the UK take back control of its energy and protect both family and national finances from fossil fuel price spikes,” the spokesperson continued.

In a release sent to Rigzone recently by the OEUK team, OEUK Chief Executive David Whitehouse said, “our [Business Outlook] report shows as we work together to accelerate renewables the UK must make the most of its own oil and gas – or choose to increase reliance on imports”.

“We’re fully engaged with asking policy makers to choose a pragmatic path to the low carbon, high-growth, and secure economy we all want to see,” he added.

The NSTA licenses, regulates, and influences the UK oil and gas, offshore hydrogen, and carbon storage industries, according to its website, which notes that the organization “support[s] UK energy security, drive[s] emissions reduction from UK supplies, and help[s] accelerate the transition to net zero to realize the potential of the North Sea as an integrated energy basin”.

DESNZ notes on its site that it is responsible for UK energy security, protecting billpayers, and reaching net zero. The NSTA states on its site that it has day to day operational independence from DESNZ, adding that it undertakes its activities in accordance with all applicable laws and regulations and “the Strategy”.

It adds that the Secretary of State for Energy Security and Net Zero sets the overall policy and legislative framework within which the NSTA operates and is ultimately responsible to Parliament for the NSTA.

OEUK describes itself on its site as “the leading trade association for the UK offshore energy industry” and a “not for profit membership organization with a history stretching back five decades”.

To contact the author, email [email protected]

Read More

Join the Industry Leaders’ Inbox.

Get Tailored AI, Bitcoin, and Energy News Straight to Your Inbox.

Nvidia revenues hit $35.1B, up 94% in FYQ3 — with no sign of slowdown

Nvidia reported that its revenue for the fourth fiscal quarter ended January 26 was $39.3 billion, up 12% from the previous quarter and up 78% from a year ago.

For the quarter, GAAP earnings per diluted share was 89 cents, up 14% from the previous quarter and up 82% from a year ago. Non-GAAP earnings per diluted share was 89 cents, up 10% from the previous quarter and up 71% from a year ago. (Updated with corrected numbers).

The company’s stock is trading up to $132.87, up 1.2%, in after-hours trading, above where the analysts estimated that Nvidia’s quarterly results would be: $38.2 billion in revenue and 85 cents per share in earnings. Full-year revenue was $130.5 billion, up 114%. GAAP earnings per diluted share was $2.94, up 147% from a year ago. Non-GAAP earnings per diluted share was $2.99, up 130% from a year ago.

There’s always a lot at stake with Nvidia’s earnings these days. Thanks to AI growth, Nvidia’s market value is $3.16 trillion, making it second compared to fellow tech firm Apple, valued at $3.66 trillion.

That stock price has meant that investors view Nvidia as invincible. But the company got a shock to its systems in the past month as China’s DeepSeek AI announced it was able to deploy an AI model that performed well even though it was trained at a fraction of the cost of other heavy-duty AI models. That suggested to investors that such companies might not need a ton of Nvidia’s AI processors, and it led to a selloff in the company’s stock.

More recently, Microsoft appeared to back off on its decision to invest heavily into AI data centers. This earnings call is the first chance to talk extensively about why Nvidia still has big opportunities ahead of it.

Nvidia CEO Jensen Huang shows off Thor.

“Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,” said Jensen Huang, founder and CEO of Nvidia, in a statement.

“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries.”

During CES 2025, the big tech trade show in Las Vegas in January, Huang gave a keynote speech where he predicted a boom in physical AI, such as industrial robots, would happen because of heavy use of synthetic data, where computer simulations can fully test scenarios for things like robots and self-driving cars, reducing the time it takes to test such products in the real world.

Nvidia’s Outlook

For the first fiscal quarter ending in April, the company said it expects revenue to be $43.0 billion, plus or minus 2%.

GAAP and non-GAAP gross margins are expected to be 70.6% and 71.0%, respectively, plus or minus 50 basis points.

GAAP and non-GAAP operating expenses are expected to be approximately $5.2 billion and $3.6 billion, respectively.

GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million, excluding gains and losses from non-marketable and publicly-held equity securities.

Data Center

There are 72 Blackwell chips on this wafer.

Fourth quarter Data Center revenue was $35.6 billion, up 16% from Q3 and up 93% from a year ago.

Fourth-quarter revenue was a record $35.6 billion, up 16% from the previous quarter and up 93% from a year ago. Full-year revenue rose 142% to a record $115.2 billion.

During the quarter, Nvidia announced that Nvidia will serve as a key technology partner for the $500 billion Stargate Project.

It revealed that cloud service providers AWS, CoreWeave, Google Cloud Platform (GCP), Microsoft Azure and Oracle Cloud Infrastructure (OCI) are bringing Nvidia GB200 systems to cloud regions around the world to meet surging customer demand for AI.

The company partnered with AWS to make the Nvidia DGX Cloud AI computing platform and Nvidia NIM microservices available through AWS Marketplace.

And it revealed that Cisco will integrate Nvidia Spectrum-X into its networking portfolio to help enterprises build AI infrastructure.

Nvidia revealed that more than 75% of the systems on the TOP500 list of the world’s most powerful supercomputers are powered by Nvidia technologies.

It announced a collaboration with Verizon to integrate Nvidia AI Enterprise, NIM and accelerated computing with Verizon’s private 5G network to power a range of edge enterprise AI applications and services.

It also unveiled partnerships with industry leaders including IQVIA, Illumina, Mayo Clinic and Arc Institute to advance genomics, drug discovery and healthcare.

Nvidia launched Nvidia AI Blueprints and Llama Nemotron model families for building AI agents and released Nvidia NIM microservices to safeguard applications for agentic AI. And it announced the opening of Nvidia’s first R&D center in Vietnam.

The company also revealed that Siemens Healthineers has adopted MONAI Deploy for medical imaging AI.

Gaming and AI PC

Nvidia Blackwell GeForce RTX 50 series graphics card

Fourth-quarter Gaming revenue was $2.5 billion, down 22% from the previous quarter and down 11% from a year ago. Full-year revenue rose 9% to $11.4 billion.

In the quarter, Nvidia announced new GeForce RTX 50 Series graphics cards and laptops powered by the Nvidia Blackwell architecture, delivering breakthroughs in AI-driven rendering to gamers, creators and developers.

It launched GeForce RTX 5090 and 5080 graphics cards, delivering up to a 2x performance improvement over the prior generation.

Nvidia introduced Nvidia DLSS 4 with Multi Frame Generation and image quality enhancements, with 75 games and apps supporting it at launch, and unveiled Nvidia Reflex 2 technology, which can reduce PC latency by up to 75%.

And it unveiled Nvidia NIM microservices, AI Blueprints and the Llama Nemotron family of open models for RTX AI PCs to help developers and enthusiasts build AI agents and creative workflows.

Professional Visualization

Fourth-quarter revenue was $511 million, up 5% from the previous quarter and up 10% from a year ago. Full-year revenue rose 21% to $1.9 billion.

The company said it unveiled Nvidia Project DIGITS, a personal AI supercomputer that provides AI researchers, data scientists and students worldwide with access to the power of the Nvidia Grace Blackwell platform.

It announced generative AI models and blueprints that expand Nvidia Omniverse integration further into physical AI applications, including robotics, autonomous vehicles and vision AI.

And it introduced Nvidia Media2, an AI-powered initiative transforming content creation, streaming and live media experiences, built on NIM and AI Blueprints.

Automotive and Robotics

Nvidia Isaac robotics platform in action.

Fourth-quarter Automotive revenue was $570 million, up 27% from the previous quarter and up 103% from a year ago. Full-year revenue rose 55% to $1.7 billion.

The company announced that Toyota, the world’s largest automaker, will build its next-generation vehicles on Nvidia DRIVE AGX Orin running the safety-certified Nvidia DriveOS operating system.  

It partnered with Hyundai Motor Group to create safer, smarter vehicles, supercharge manufacturing and deploy cutting-edge robotics with Nvidia AI and Nvidia Omniverse.

And it announced that the Nvidia DriveOS safe autonomous driving operating system received ASIL-D functional safety certification and launched the Nvidia Drive AI Systems Inspection Lab.

Nvidia launched Nvidia Cosmos, a platform comprising state-of-the-art generative world foundation models, to accelerate physical AI development, with adoption by leading robotics and automotive companies 1X, Agile Robots, Waabi, Uber and others.

And it unveiled the Nvidia Jetson Orin Nano Super, which delivers up to a 1.7x gain in generative AI performance.

Read More

Grid equipment manufacturers anticipate 2% annual US load growth through 2050

Electricity demand in the United States will grow 2% annually over the next quarter century, driven by data centers and building electrification, industry and transportation, the head of the National Electrical Manufacturers Association said Wednesday.
NEMA will release its study “in the next couple of weeks,” CEO Debra Phillips said during an Axios-led event. “Our forecast is in the moderate range.”
“By the time we get to 2050, [that’s] 50% growth over where we are today,” Phillips said. “In large part, data centers over the next decade are going to be the key driver.” NEMA expects to see 300% growth in electricity demand from data centers, “and the rest coming from electrification of buildings, industrial systems, e-mobility.”
“We haven’t seen growth like this in a very long time — for decades — so we need policy solutions,” Phillips said.
Energy incentives in the Inflation Reduction Act are “at the center” of a conversation on how Republicans can pay for tax cuts, she said.

“From our point of view, the IRA has done a lot to bring manufacturing back home,” Phillips said. “Our industry has decreased its dependence on Chinese imports by about 20%, in part due to IRA. So we hope it’s preserved.” Some incentives, including for increased manufacturing of distribution transformers, could be expanded, she added. 
The U.S. House on Tuesday passed a budget resolution including $1.5 trillion in spending cuts and about $4.5 trillion in tax cuts over a decade. “Over 10 years, IRA clean energy provisions are roughly a trillion dollars,” Sen. Tina Smith, D-Minn., noted at the same Axios event
“As they go hunting in order to pay for their tax breaks, they’re going to come looking,” Smith said. “We have to do everything we can to defend this. We have to help folks understand how these investments are good for jobs and good for economic opportunity in red districts as well as other districts.”
The House bill calls for $880 billion in cuts from the House Energy and Commerce Committee. Rep. Bob Latta, R-Ohio, is on the committee and said energy may not make up as much of the cuts as some people may think.
“On the energy side … the Biden administration, starting around Labor Day last year, was pushing a lot of money out the door. So as you think about clawback and certain things, there’s not as much there as some people had anticipated,” Latta said.

Read More

LLaDA: The Diffusion Model That Could Redefine Language Generation

Introduction

What if we could make language models think more like humans? Instead of writing one word at a time, what if they could sketch out their thoughts first, and gradually refine them?

This is exactly what Large Language Diffusion Models (LLaDA) introduces: a different approach to current text generation used in Large Language Models (LLMs). Unlike traditional autoregressive models (ARMs), which predict text sequentially, left to right, LLaDA leverages a diffusion-like process to generate text. Instead of generating tokens sequentially, it progressively refines masked text until it forms a coherent response.

In this article, we will dive into how LLaDA works, why it matters, and how it could shape the next generation of LLMs.

I hope you enjoy the article!

The current state of LLMs

To appreciate the innovation that LLaDA represents, we first need to understand how current large language models (LLMs) operate. Modern LLMs follow a two-step training process that has become an industry standard:

Pre-training: The model learns general language patterns and knowledge by predicting the next token in massive text datasets through self-supervised learning.

Supervised Fine-Tuning (SFT): The model is refined on carefully curated data to improve its ability to follow instructions and generate useful outputs.

Note that current LLMs often use RLHF as well to further refine the weights of the model, but this is not used by LLaDA so we will skip this step here.

These models, primarily based on the Transformer architecture, generate text one token at a time using next-token prediction.

Simplified Transformer architecture for text generation (Image by the author)

Here is a simplified illustration of how data passes through such a model. Each token is embedded into a vector and is transformed through successive transformer layers. In current LLMs (LLaMA, ChatGPT, DeepSeek, etc), a classification head is used only on the last token embedding to predict the next token in the sequence.

This works thanks to the concept of masked self-attention: each token attends to all the tokens that come before it. We will see later how LLaDA can get rid of the mask in its attention layers.

Attention process: input embeddings are multiplied byQuery, Key, and Value matrices to generate new embeddings (Image by the author, inspired by [3])

If you want to learn more about Transformers, check out my article here.

While this approach has led to impressive results, it also comes with significant limitations, some of which have motivated the development of LLaDA.

Current limitations of LLMs

Current LLMs face several critical challenges:

Computational Inefficiency

Imagine having to write a novel where you can only think about one word at a time, and for each word, you need to reread everything you’ve written so far. This is essentially how current LLMs operate — they predict one token at a time, requiring a complete processing of the previous sequence for each new token. Even with optimization techniques like KV caching, this process is quite computationally expensive and time-consuming.

Limited Bidirectional Reasoning

Traditional autoregressive models (ARMs) are like writers who could never look ahead or revise what they’ve written so far. They can only predict future tokens based on past ones, which limits their ability to reason about relationships between different parts of the text. As humans, we often have a general idea of what we want to say before writing it down, current LLMs lack this capability in some sense.

Amount of data

Existing models require enormous amounts of training data to achieve good performance, making them resource-intensive to develop and potentially limiting their applicability in specialized domains with limited data availability.

What is LLaDA

LLaDA introduces a fundamentally different approach to Language Generation by replacing traditional autoregression with a “diffusion-based” process (we will dive later into why this is called “diffusion”).

Let’s understand how this works, step by step, starting with pre-training.

LLaDA pre-training

Remember that we don’t need any “labeled” data during the pre-training phase. The objective is to feed a very large amount of raw text data into the model. For each text sequence, we do the following:

We fix a maximum length (similar to ARMs). Typically, this could be 4096 tokens. 1% of the time, the lengths of sequences are randomly sampled between 1 and 4096 and padded so that the model is also exposed to shorter sequences.

We randomly choose a “masking rate”. For example, one could pick 40%.

We mask each token with a probability of 0.4. What does “masking” mean exactly? Well, we simply replace the token with a special token: . As with any other token, this token is associated with a particular index and embedding vector that the model can process and interpret during training.

We then feed our entire sequence into our transformer-based model. This process transforms all the input embedding vectors into new embeddings. We apply the classification head to each of the masked tokens to get a prediction for each. Mathematically, our loss function averages cross-entropy losses over all the masked tokens in the sequence, as below:

Loss function used for LLaDA (Image by the author)

5. And… we repeat this procedure for billions or trillions of text sequences.

Note, that unlike ARMs, LLaDA can fully utilize bidirectional dependencies in the text: it doesn’t require masking in attention layers anymore. However, this can come at an increased computational cost.

Hopefully, you can see how the training phase itself (the flow of the data into the model) is very similar to any other LLMs. We simply predict randomly masked tokens instead of predicting what comes next.

LLaDA SFT

For auto-regressive models, SFT is very similar to pre-training, except that we have pairs of (prompt, response) and want to generate the response when giving the prompt as input.

This is exactly the same concept for LlaDa! Mimicking the pre-training process: we simply pass the prompt and the response, mask random tokens from the response only, and feed the full sequence into the model, which will predict missing tokens from the response.

The innovation in inference

Innovation is where LLaDA gets more interesting, and truly utilizes the “diffusion” paradigm.

Until now, we always randomly masked some text as input and asked the model to predict these tokens. But during inference, we only have access to the prompt and we need to generate the entire response. You might think (and it’s not wrong), that the model has seen examples where the masking rate was very high (potentially 1) during SFT, and it had to learn, somehow, how to generate a full response from a prompt.

However, generating the full response at once during inference will likely produce very poor results because the model lacks information. Instead, we need a method to progressively refine predictions, and that’s where the key idea of ‘remasking’ comes in.

Here is how it works, at each step of the text generation process:

Feed the current input to the model (this is the prompt, followed by  tokens)

The model generates one embedding for each input token. We get predictions for the  tokens only. And here is the important step: we remask a portion of them. In particular: we only keep the “best” tokens i.e. the ones with the best predictions, with the highest confidence.

We can use this partially unmasked sequence as input in the next generation step and repeat until all tokens are unmasked.

You can see that, interestingly, we have much more control over the generation process compared to ARMs: we could choose to remask 0 tokens (only one generation step), or we could decide to keep only the best token every time (as many steps as tokens in the response). Obviously, there is a trade-off here between the quality of the predictions and inference time.

Let’s illustrate that with a simple example (in that case, I choose to keep the best 2 tokens at every step)

LLaDA generation process example (Image by the author)

Note, in practice, the remasking step would work as follows. Instead of remasking a fixed number of tokens, we would remask a proportion of s/t tokens over time, from t=1 down to 0, where s is in [0, t]. In particular, this means we remask fewer and fewer tokens as the number of generation steps increases.

Example: if we want N sampling steps (so N discrete steps from t=1 down to t=1/N with steps of 1/N), taking s = (t-1/N) is a good choice, and ensures that s=0 at the end of the process.

The image below summarizes the 3 steps described above. “Mask predictor” simply denotes the Llm (LLaDA), predicting masked tokens.

Pre-training (a.), SFT (b.) and inference (c.) using LLaDA. (source: [1])

Can autoregression and diffusion be combined?

Another clever idea developed in LLaDA is to combine diffusion with traditional autoregressive generation to use the best of both worlds! This is called semi-autoregressive diffusion.

Divide the generation process into blocks (for instance, 32 tokens in each block).

The objective is to generate one block at a time (like we would generate one token at a time in ARMs).

For each block, we apply the diffusion logic by progressively unmasking tokens to reveal the entire block. Then move on to predicting the next block.

Semi-autoregressive process (source: [1])

This is a hybrid approach: we probably lose some of the “backward” generation and parallelization capabilities of the model, but we better “guide” the model towards the final output.

I think this is a very interesting idea because it depends a lot on a hyperparameter (the number of blocks), that can be tuned. I imagine different tasks might benefit more from the backward generation process, while others might benefit more from the more “guided” generation from left to right (more on that in the last paragraph).

Why “Diffusion”?

I think it’s important to briefly explain where this term actually comes from. It reflects a similarity with image diffusion models (like Dall-E), which have been very popular for image generation tasks.

In image diffusion, a model first adds noise to an image until it’s unrecognizable, then learns to reconstruct it step by step. LLaDA applies this idea to text by masking tokens instead of adding noise, and then progressively unmasking them to generate coherent language. In the context of image generation, the masking step is often called “noise scheduling”, and the reverse (remasking) is the “denoising” step.

How do Diffusion Models work? (source: [2])

You can also see LLaDA as some type of discrete (non-continuous) diffusion model: we don’t add noise to tokens, but we “deactivate” some tokens by masking them, and the model learns how to unmask a portion of them.

Results

Let’s go through a few of the interesting results of LLaDA.

You can find all the results in the paper. I chose to focus on what I find the most interesting here.

Training efficiency: LLaDA shows similar performance to ARMs with the same number of parameters, but uses much fewer tokens during training (and no RLHF)! For example, the 8B version uses around 2.3T tokens, compared to 15T for LLaMa3.

Using different block and answer lengths for different tasks: for example, the block length is particularly large for the Math dataset, and the model demonstrates strong performance for this domain. This could suggest that mathematical reasoning may benefit more from the diffusion-based and backward process.

Source: [1]

Interestingly, LLaDA does better on the “Reversal poem completion task”. This task requires the model to complete a poem in reverse order, starting from the last lines and working backward. As expected, ARMs struggle due to their strict left-to-right generation process.

Source: [1]

LLaDA is not just an experimental alternative to ARMs: it shows real advantages in efficiency, structured reasoning, and bidirectional text generation.

Conclusion

I think LLaDA is a promising approach to language generation. Its ability to generate multiple tokens in parallel while maintaining global coherence could definitely lead to more efficient training, better reasoning, and improved context understanding with fewer computational resources.

Beyond efficiency, I think LLaDA also brings a lot of flexibility. By adjusting parameters like the number of blocks generated, and the number of generation steps, it can better adapt to different tasks and constraints, making it a versatile tool for various language modeling needs, and allowing more human control. Diffusion models could also play an important role in pro-active AI and agentic systems by being able to reason more holistically.

As research into diffusion-based language models advances, LLaDA could become a useful step toward more natural and efficient language models. While it’s still early, I believe this shift from sequential to parallel generation is an interesting direction for AI development.

Thanks for reading!

Check out my previous articles:

References:

[1] Liu, C., Wu, J., Xu, Y., Zhang, Y., Zhu, X., & Song, D. (2024). Large Language Diffusion Models. arXiv preprint arXiv:2502.09992. https://arxiv.org/pdf/2502.09992

[2] Yang, Ling, et al. “Diffusion models: A comprehensive survey of methods and applications.” ACM Computing Surveys 56.4 (2023): 1–39.

[3] Alammar, J. (2018, June 27). The Illustrated Transformer. Jay Alammar’s Blog. https://jalammar.github.io/illustrated-transformer/

Read More

U.S. Appeals Court (Mostly) Affirms 2023 Ruling Tossing Out Uniswap Class Action Suit

The U.S. Court of Appeals for the Second Circuit issued a ruling on Wednesday largely agreeing with a lower court’s 2023 decision to toss out a class action suit against decentralized exchange Uniswap.
A group of investors originally sued Uniswap Labs, the company behind the decentralized protocol of the same name, and some of its venture capital investors in 2022, alleging that the company was responsible for harming investors by allowing scam tokens to be issued on its protocol.

Story continues

District Court Judge Katherine Polk Failla of the Southern District of New York (SDNY) sided with Uniswap in 2023 and scrapped the suit before it went to trial, likening the plaintiffs’ arguments to “a suit attempting to hold an application like Venmo or Zelle liable for a drug deal that used the platform to facilitate a fund transfer.”

Plaintiffs appealed Failla’s ruling in September 2023, but were largely shut down by the fresh decision from the Second Circuit on Wednesday. The Second Circuit judges affirmed Failla’s decision to throw out the plaintiffs’ claims under both the Securities Act and the Exchange Act, writing:
“In sum, we agree with the district court that it ‘defies logic’ that a drafter of a smart contract, a computer code, could be held liable under the Exchange Act for a third party user’s misuse of the platform,” the filing read.
The only part of Failla’s ruling that was vacated and remanded back to a district court – meaning the lower court will hear this sliver of the the plaintiffs’ case again – were the state law claims, which essentially seek to try similar allegations under state, rather than federal law, in New York, North Carolina and Idaho.
The ruling is a win for Uniswap, fresh off the heels of Tuesday’s announcement that the U.S. Securities and Exchange Commission (SEC) would drop its investigation into the decentralized exchange which, under former SEC Chairman Gary Gensler, was being probed for allegedly operating as an unregistered securities broker and unregistered securities exchange, as well as issuing an unregistered security.
Read more: SEC Drops Investigation Into Uniswap, Will Not File Enforcement Action

Read More

Gotbit Founder Aleksei Andriunin Extradied to U.S. on Fraud Charges

Gotbit founder Aleksei Andriunin, a 26-year-old Russian national, was extradited to the U.S. on Tuesday to face fraud charges stemming from allegations that his firm participated in a “wide-ranging conspiracy” to manipulate token prices for paying client cryptocurrency companies, the U.S. Department of Justice said in a press release on Wednesday.

Story continues

Andriunin was arrested in Portugal last October and subsequently indicted by a Boston grand jury on charges of wire fraud and conspiracy to commit market manipulation and wire fraud, charges which carry a combined maximum sentence of 25 years in prison. The indictment also charged Gotbit itself, as well as two of its directors, Fedor Kedrov and Qawi Jalili, both also of Russia.
Between 2018 and 2024, prosecutors say that Gotbit essentially provided market manipulation services for hire, offering their token price-inflating services to a variety of crypto companies, including companies based in the U.S.

Andriunin was not shy about the nature of Gotbit’s services – in a 2019 interview with CoinDesk, which is referenced in the Department of Justice’s (DOJ) Wednesday announcement, Andriunin, then a sophomore at Moscow State University, bluntly admitted that his business was “not entirely ethical.”
Read more: For $15K He’ll Fake Your Exchange Volume – You’ll Get on CoinMarketCap
According to court documents, Gotbit received “tens of millions of dollars in proceeds” from their fraudulent activity. Andriunin is accused of “transferr[ing] millions of dollars of Gotbit’s proceeds into his personal Binance account.”
Andriunin made an initial appearance before a Boston judge on Tuesday. His next hearing has not yet been scheduled.

Read More

U.S. House Committee Advances Effort to Erase IRS’ DeFi Tax Rule

The U.S. House of Representatives has taken the first significant move to erase the work of the Internal Revenue Service to impose a tax regime on decentralized financial (DeFi) platforms in the final days of former President Joe Biden’s administration.
The House Ways and Means Committee — the panel responsible for overseeing the Treasury Department’s IRS — advanced a resolution in a 26-16 vote to reverse the IRS transaction-reporting policy under the Congressional Review Act. Such an effort requires majority approval in both the House and Senate before a presidential signature would make the move final, and the matter now moves to the overall House.

Story continues

In December, the IRS had approved a system that the crypto industry says forces DeFi protocols into a reporting regime designed for brokers, threatening the way that such protocols work and also potentially including a wide range of entities that aren’t brokers at all. Nearly every major name in the crypto sector signed onto a Blockchain Association letter last week calling for the elimination of this rule.

Read More: Crypto Industry Asks Congress to Scrap IRS’s DeFi Broker Rule
Senator Ted Cruz, a Texas Republican, has fielded a Senate version of the CRA resolution to cut the IRS rule.
“We must pass this resolution to avoid this nightmare for American taxpayers and for the IRS,” said Rep. Mike Carey, an Ohio Republican who has pressed for Congress to cut to rule, which he argued would overwhelm the tax agency.
Democrat Rep. Richard Neal from Massachusetts countered the Republican push.
“The bill before us today would repeal sensible and important Treasury regulations ensuring that taxpayers meet their tax filing obligations and do not skirt the law by selling crypto currency without reporting the gains,” he said. “It’s really that simple.”
Eliminating the specific tax approach to decentralized crypto platforms would cut U.S. revenue by an estimated $3.9 billion over a decade.
Rep. Jason Smith, the Republican chairman of the committee from Missouri, accused the IRS of going behind “the letter of the law” when it approved the rule during Biden’s final days in office.
“Not only is it unfair, but it’s unworkable,” he said.

Read More

Treasury Secretary Scott Bessent Hires Galaxy Digital Counsel to Advise on Crypto

U.S. Treasury Secretary Scott Bessent named Galaxy Digital regulatory counsel Tyler Williams to advise on digital assets and blockchain technology policy.

STORY CONTINUES BELOW

Williams currently serves as head of Regulatory and Legislative Affairs & Regulatory Counsel at Galaxy Digital and also lectures part-time at The George Washington University Law School.
He has previously worked with the government, most recently as Deputy Assistant Secretary at the Department of Treasury under Steven Mnuchin from 2018 to 2020 where he advised on digital assets. He also worked under Senator Thom Tillis in the U.S. Senate and under Congressmen Robert Hurt and John Boehner in the House of Representatives.
President Donald Trump signed an executive order earlier this month charging the Treasury and Commerce Departments with creating a sovereign wealth fund which he expects to be created before the end of this year.

While bitcoin (BTC) has not been mentioned in relation to the fund, it could potentially be a vehicle through which the government might buy and hold the crypto.
Trump has previously proposed that the federal government hold digital currencies as part of its national reserve strategy. However, in an executive order, he only charged his crypto advisers with evaluating the creation of a digital asset reserve.

Read More