Somewhat buried in ethereum’s big software makeover that rolled out Thursday is a code update known as Ethereum Improvement Proposal 3554, or EIP-3554 for short. It threatens to hasten the end of ethereum mining as we know it.
Since its launch, the ethereum community has talked about overhauling the way that it mints ether, which is the token associated with the ethereum blockchain. But getting people to make the change is going to require a push – and that push is something known as a difficulty bomb.
“It’s a mechanism in ethereum that makes it exponentially harder to mine,” said Tim Beiko, the coordinator for ethereum’s protocol developers. “It’s like we’re artificially adding miners on the network, which raises the difficulty, making it harder for every other miner that’s on the network to actually mine a block.”
EIP-3554 moves up the detonation date of that difficulty bomb by six months to December. Once it goes off, it will essentially make ethereum unmineable.
Ethereum 2.0
Cryptocurrencies like ethereum and bitcoin regularly receive flack for the process of mining, which is how new coins are generated. Both currently use a so-called “proof-of-work” mining model, where machines solve complex math equations to create new coins. This makes it impossible for any centralized body to create new coins arbitrarily – there’s no equivalent of a central government to print new dollars – which crypto enthusiasts believe helps preserve the value of these cryptocurrencies.
However, this effort requires significant energy to power the computers used to perform the calculations, which has drawn criticism from outsiders concerned about energy shortages and carbon emissions.
The ethereum community has coalesced around the idea of migrating from proof-of-work to “proof-of-stake,” which requires users to leverage their existing cache of ether as a means to verify transactions and mint new tokens. This will still limit the amount of new coin created, but without requiring the energy used to run massive banks of computers to solve math equations.
Beiko tells CNBC the original proposal required these so-called validators to have 1,500 ether, a stake now worth around $4.2 million. To lower the barrier to entry, the new proof-of-stake proposal would only require interested users to have 32, or about $90,000.
“It’s still not a trivial sum, but it’s a much more accessible system,” said Beiko.
Since December 2020, the ethereum community has been testing out the proof-of-stake workflow on a chain called Beacon.
Though proof-of-stake has been the plan for ethereum since the outset, developers have pushed back the rollout, because they had seen serious flaws in previous implementations. Beacon solves these problems, according to Beiko.
“We knew that there would be a lot of technical work to address things like the increased centralization that we see in other proof-of stake-systems,” he said. “We’ve achieved that with the Beacon chain, where there’s one or two orders of magnitude more validators…than any other proof-of-stake networks.”
Migrating the entire ethereum ecosystem to Beacon, an upgrade being dubbed “ethereum 2.0,” is the next step in the process. Getting everyone on board with the move is where the difficulty bomb becomes significant.
The Ice Age
This isn’t the first time in ethereum’s history that a difficulty bomb has detonated.
It’s happened a few times, including in 2017, 2019, and again last year.
When a difficulty bomb detonates, it floods the system with artificial miners, driving up the mining difficulty. That means new blocks will appear more and more slowly on the network. “If you increase the difficulty really, really quickly, it’s just not profitable for new miners,” explained Beiko.
But each time it’s gone off, the community has reset the clock in order to bring the difficulty level back down to normal levels.
Etherscan.io
While you don’t need a bomb to go off to roll out proof-of-stake mining, it certainly helps move things along by closing the on-ramp to proof-of-work mining. Beiko calls it more of a stopgap measure.
In essence, the point of the difficulty bomb is to force miners and node operators to upgrade their software after a predetermined amount of time has passed, according to Nic Carter, Castle Island Ventures general partner and Coin Metrics co-founder.
In December, if the deadline for detonation isn’t pushed back, the bomb will go off, and you’ll see another parabolic rise in difficulty, like the ones pictured in the chart above. But this time, developers won’t be rewinding the clock.
It will be the start of ethereum’s proof-of-work “Ice Age.”
Not everyone’s happy
While the upgrade to ethereum 2.0 has a lot of backers, not everyone is happy about the change.
“There are some miners who are against it, but it’s in their financial interest to be against it,” said Beiko.
Once the protocol has fully migrated to a proof-of-stake model, there won’t be any revenue to be made from ethereum mining.
At that point, miners have a few options for what to do next.
There are a lot of other chains that support GPU-based mining, so miners could simply choose to start mining other cryptocurrencies.
They could also decide to just shut down mining operations entirely and sell their mining equipment. Beiko expects to see a lot of that.
“We’ve also seen many mining farms and mining pools on ethereum start to get into staking,” he said.
“We’ve seen mining pools use their profits to set up validators on ethereum. We’ve also seen them offer pooling services for their users who might not have 32 ether but still want to validate the network.” So even if you don’t have $90,000 parked in ether, you still might be able to keep some skin in the mining game.
Three years since the arrival of OpenAI‘s ChatGPT, more devices featuring generative AI technology have hit the market in time for the 2025 holiday shopping season, with many offering deals for Black Friday.
Shoppers can pick from more advanced smart glasses, smart speakers with genAI and a pendant AI friend that acts as a confidant.
These latest gizmos come from megacaps like Amazon, Alphabet and Meta and smaller players like Friend and Plaud.
Despite the arrival of this new wave of products, reviews for many of the devices are mixed, and nothing has separated itself as a clear leader of the pack.
That’s in part because much of the spending on artificial intelligence has been focused on other things.
Since ChatGPT was released in late 2022, the bulk of the tech industry has reoriented itself to prioritize building out large language models in a race to reach artificial general intelligence, or AI with the capabilities that are on par with, or surpass, humans.
Thus far, much of the development in Silicon Valley has focused on AI apps, including chatbots like Anthropic’sClaude, image generators like Google’s Nano Banana or feeds for AI-generated short-form videos like OpenAI’s Sora. All things people can access on their existing smartphones without a spiffy new gadget.
But the world of AI hardware is growing fast.
If you’re in the market for the latest AI devices, here’s what’s available to snag this holiday season.
Daniel Rausch, vice president of Alexa and Echo, announces the Echo Studio and Echo Dot Max during an Amazon event showcasing new products in New York City, U.S., September 30, 2025.
Kylie Cooper | Reuters
Alexa+ Echo speakers
Amazon wants to make sure its Alexa voice assistant and Echo smart speakers don’t get left behind in the era of genAI.
The company unveiled Alexa+ in February, promising a smarter, more conversational and personalized version of its 11-year-old digital assistant. In September, it followed up with a new set of Echo speakers and displays, which are the first devices to come with Alexa+ out of the box.
The lineup includes a $100 Echo Dot Max, $180 Echo Show, $220 Echo Studio and $220 Echo Show 11.
The Echo Dot Max is an entry-level, all-purpose smart speaker, while the Echo Studio is larger, pricier and offers better sound quality. The main difference between Amazon’s smart displays, the Echo Show 8 and Echo Show 11, is the touchscreen size.
All of the devices have improved sensors, speakers and microphones.
Amazon is offering 11% off the cost of the Echo Show 11 and 10% off the Echo Dot Max as part of its Black Friday promotions.
With the upgrades, Amazon is aiming to have users engage more often with the devices than their predecessors. Consumers frequently complained that Alexa had grown outdated while the Echo devices offered little utility beyond setting timers, spouting weather forecasts, playing music and controlling smart home accessories, like turning lights on and off.
Amazon’s recent Alexa ad tries to paint a different picture.
Comedian Pete Davidson strolls through his kitchen when an Alexa-equipped Echo Show announces, unprompted, that the “Coffee’s on, and your Uber is on its way.” Davidson then casually banters back and forth with Alexa about his preferred nickname.
The interaction is meant to showcase a few of Alexa+’s biggest selling points — users don’t have to repeat a so-called “wake word” after every command, allowing the conversation to flow more naturally.
The devices can also now connect to external services to take actions on users’ behalf. As of now, Alexa+ can book an Uber or OpenTable reservation, generate a song via Suno, plan a trip through Fodor’s, schedule a repairman visit and purchase concert tickets through Ticketmaster. Amazon has said it expects to add more capabilities soon.
Alexa+ isn’t yet available to the general public. Consumers have to wait to receive Early Access or purchase a new Echo model to use it.
Amazon is offering Alexa+ for free to users with Early Access, but at some point, the company will begin charging non-Prime members $19.99 a month for the service.
The company is also making moves in wearables.
Amazon in July announced plans to acquire AI company Bee for an undisclosed amount, indicating that it could have more hardware infused with the technology in the works. Bee is known for its $50 wristband that uses AI and microphones to listen to and analyze conversations, then provide to-do lists, summaries and reminders for everyday tasks.
— Annie Palmer
A person holds Google Pixel 10, Pixel 10 Pro and Pixel 10 Pro Fold mobile phones during the ‘Made by Google’ event, organised to introduce the latest additions to Google’s Pixel portfolio of devices, in Brooklyn, New York, U.S., August 20, 2025.
Brendan McDermid | Reuters
Google’s AI-powered Pixel 10 series
Although the Gemini-powered Google Home Speaker won’t roll out until the spring, Alphabet did deliver some generative AI tech this year.
Launched in August, the Pixel 10 smartphones thoroughly integrate Google’s AI into several features, such as live translation, text-based photo editing and the built-in Gemini assistant.
The baseline Pixel 10 starts at $799, while the Pro lineup includes the $999 Pixel 10 Pro, the $1,199 Pixel Pro XL and the $1,799 Pixel 10 Pro Fold. The Pro line offers a higher quality camera and display, as well as additional video features.
Among the AI products is “Magic Cue,” which connects data across different apps to surface relevant information and suggest helpful actions. For example, if a user receives a message asking about a dinner reservation’s location, Magic Cue can find the answer from the calendar app.
For snapping pictures, Google provides an AI “Camera Coach,” which scans the scene of a photo and offers recommendations about framing, lighting and other techniques to improve the image.
The Pixel 10 Pro phones come with a one-year subscription to Google’s “AI Pro” plan, which typically costs $19 per month and offers multiple AI tools, including writing assistant NotebookLM and video generator Veo 3.
All the Pixel 10 models are currently on sale for $200 to $300 off until Dec. 6, except for the Pixel 10 Pro Fold, which has a $300 markdown until Dec. 2, the company said.
— Jaures Yip
The Meta Ray-Ban Display AI glasses at Meta headquarters in Menlo Park, California, US, on Tuesday, Sept. 16, 2025.
David Paul Morris | Bloomberg | Getty Images
Meta’s AI-infused Ray-Ban smart glasses
Meta’s partnership with eyewear giant EssilorLuxottica, originally inked in 2019, has spawned a surprise hit in the Ray-Ban Meta smart glasses that both companies are keen to boast about.
With the Meta AI digital assistant, users can command the camera-equipped glasses to take photos, play tunes and to answer questions about nearby landmarks.
In September, the two companies debuted the latest version of the glasses, dubbed Ray-Ban Meta (Gen 2).
The new model has double the battery life of its predecessor and an improved camera. It costs $379, which is $80 than the prior version.
Meta and Luxottica this year also launched two smart glasses aimed at athletes under the Oakley brand.
The $399 Oakley Meta HSTN glasses are pitched toward casual athletes who want to take photos while playing sports like golf, while the $499 Oakley Meta Vanguard smart glasses are geared toward the action-sports crowd, like skiers.
The Vanguard glasses feature a flashier wraparound design and two buttons on the frames’ underside that lets helmet-wearing athletes easily take photos and videos and perform other actions.
For those willing to spend big money and test new technology, Meta and Luxottica also rolled out the $799 Meta Ray-Ban Display glasses in September.
They are the first glasses Meta sells to the public that include a display, albeit a small one, in just one of the lenses. The display is intended to show users small bits of information, like navigation directions. The glasses also include a wristband that utilizes neural technology so users can command the device with gestures like rotating one’s fingers to adjust volume.
Buying the $799 glasses, though, is not easy.
Meta requires that people sign-up for in-person demos at stores like Best Buy and LensCrafters before buying the product, and the company warns that “availability varies by store, so you may not be able to purchase a pair immediately after your demo.”
Early reviews for the display glasses have been mixed.
Some reviewers have praised the device’s color display, camera and innovative wristband. Still, others have criticized its high price and have said its lack of apps limit functionality.
Meta is currently offering a few Black Friday and Cyber Monday deals for some of its various AI-powered smart glasses that will last until Dec. 1.
People can save 20% on all versions of the Ray-Ban Meta (Gen 1) at Best Buy, Target, Amazon and also at Meta’s website and the Ray-Ban website and stores. Meta is also offering 20% off the cost of prescription lenses for people who buy the Ray-Ban Meta (Gen 2) and Oakley Meta HSTN glasses from its website.
— Jonathan Vanian
Friend AI Pendant
Source: Friend
The AI friend you wear around as a pendant
Most AI chatbots want to make the user more productive. The makers of this smart pendant want AI to be your friend.
Users wear Friend, as the product is aptly called, around their necks while the $129 device listens to the conversations happening around it.
Friend’s chatbot is powered by Google Gemini, and it offers commentary on the user’s conversation and life. Those comments appear as notifications through the device’s corresponding smartphone app.
For example, when one reviewer played a new Taylor Swift song for her AI friend, the device commented through a notification that it didn’t “think it’s bad at all” and “pretty typical for pop.”
The device is at the center of the societal debate about the rise of AI.
Friend plastered a subway station in New York this fall with ads that suggested that the pendant was better than a real friend, promising that it “will never bail on our dinner plans.”
The posters were immediately defaced with messages like “AI wouldn’t care if you lived or died.”
Those wanting to experience what it’s like to wear around an AI friend should place orders swiftly.
The company’s website currently says units will be shipping “Winter 2025/26,” but Friend founder Avi Schiffmann told CNBC that devices ordered early enough will ship before Christmas.
— Kif Leswing
Plaud Note
Source: Plaud
Plaud, the AI recorder
The Plaud Note looks more like a credit card than a voice recorder, but it’s an ideal purchase for any note taker who wants to capture meetings, lectures or any dictation.
With over 30 hours of recording time and battery that last 60 days on standby, the slim device can produce transcriptions in 112 languages. The transcriptions include tags for each speaker on the audio.
The recorder’s companion app is powered by OpenAI’s GPT-5, Anthropic’s Claude Sonnet 4 and Google’s Gemini 2.5 Pro. The app uses those AI models to generate detailed summaries and notes. Users can select from over 3,000 summary templates, such as phone Q&As or seminar notes.
The Plaud App’s basic plan offers 300 minutes of transcription per month, though users can upgrade to a pro plan for 1,200 minutes for $8.33 per month or a more expensive unlimited plan for $19.99 per month.
The recorder can easily be attached to phones with MagSafe magnets, meaning all Apple smartphones since the iPhone 12 series, or phone cases with similar magnets.
The company also offers the Plaud NotePin, a smaller, pill-shaped version of the recorder that can be worn as a magnetic pin, clip, wristband or necklace.
Typically priced at $159, both devices are currently on sale for 20% off during Black Friday and Cyber Monday, with another 15% markdown set for Christmas, the company said.
With year-end approaching, it’s a good time to make sure your tax house is in order. It’s especially important for crypto investors, given a new IRS brokerage reporting requirement covering transactions after Jan. 1, 2025.
The IRS generally treats crypto like property, similar to stocks or real estate, so selling crypto can trigger a capital gain or loss. And while crypto investors should have been keeping good records all along, the new reporting requirement gives them an even more compelling reason. That’s because brokerages now have to send what’s known as a Form 1099-DA. For tax year 2025, they’re required to report gross proceeds for each digital asset sale the broker processes. In 2026 and beyond, it’s mandatory for brokers to report gross proceeds and cost basis information for covered securities.
Because brokers haven’t had to issue 1099s for selling or exchanging crypto in the past, it was easier for people to act as tax cheats, said Ric Edelman, financial advisor, author and founder of the Digital Assets Council of Financial Professionals. “Many people mistakenly believe that there’s no reporting obligation,” Edelman said.
As crypto investors do their tax planning for a year which saw bitcoin rise to new heights, but more recently endure a huge selloff that has shaved over $40,000 off its record price, it’s important to understand the new, stricter recordkeeping requirements.
Let’s say you bought ethereum for $1,500 and paid a $50 transaction fee, your cost basis would be $1,550, according to an example provided by Coinbase. “Essentially, your gain or loss is the difference between the gross proceeds and the cost basis. If you sold that 1 ETH for $2,000, your taxable gain would be $450 ($2,000 – $1,550).”
Get your crypto recordkeeping in order now
Brokers are required to report the cost basis information for tax year 2026, and if you haven’t been keeping good records thus far, you’re going to have to start. “It’s a taxpayer’s responsibility to track and substantiate whatever cost basis they’re providing,” said Daniel Hauffe, senior manager for tax policy and advocacy at The American Institute of Certified Public Accountants.
For many crypto investors, this will be complicated, especially if they transferred their tokens to a broker after holding them elsewhere and haven’t kept careful records. In that case, the broker won’t have the amount you purchased the crypto for; the broker would only know the price when you transferred it, Hauffe said.
Ideally, taxpayers should try to iron out these issues now, before brokers are required to report the basis, and that may require speaking to a qualified tax professional.
Crypto investors who have been keeping track of their holdings haphazardly in the past should also consider hiring a tax crypto recordkeeping provider. There are a number of these services, including ProfitStance, Taxbit, TokenTax and ZenLedger.
Edelman said it’s best to use a recordkeeping provider because of the complexities involved. “If you try to do this manually, it is complicated and you’re likely to make errors,” he said.
Crypto staking, and staking ETFs, to be a major tax focus
While the IRS issued core guidance about the tax treatment of cryptocurrency more than a decade ago, the market has changed significantly since then, underscoring the need for updated guidance in several areas.
In 2024, the IRS, in Notice 2024-57, said it was continuing to study different types of crypto transactions to determine appropriate taxation. This has left many taxpayers in limbo and scratching their heads on how to report certain types of transactions. While the IRS has said it won’t impose penalties for limited types of transactions while the regulations are being ironed out, taxpayers still have to keep careful records so they can appropriately account for them.
One area in which cryptocurrency investors are awaiting direction is staking transactions. Guidance on this and other types of more complicated crypto transactions are expected next year, Edelman said. Some advocates say taxes should only be applicable at the time these rewards are spent, sold, or otherwise disposed of. Thus far, however, the IRS has said that these rewards should be taxed as income upon receipt, Hauffe said.
Additional guidance in staking specifically could be especially important now that the IRS has confirmed exchange-traded funds issuers can provide staking rewards, said Zach Pandl, head of research at Grayscale, a digital asset-focused investment platform. The availability of cryptocurrency within ETFs has widened the playing field for ordinary investors to gain some exposure to the asset class, and the latest guidance suggests more investors will face tax consequences from staking rewards. “Staking rewards are increasingly common for investors because they’ve now been activated in ETFs,” Pandl said.
Bitcoin’s big drop could be a tax-loss advantage
For some crypto investors, there may be an opportunity in the next month or so for tax-loss harvesting, which involves selling investments at a loss and using those losses to offset gains in other investments, Pandl said.
Bitcoin’s struggles since its record highs in October could present an opportunity for investors to benefit from a tax perspective, depending on when they bought the crypto. Some investors could also benefit from tax-gain harvesting, a strategy that involves selling the investment when you think it’ll have the least impact on your taxes.
“This is the time to be thinking about that and planning for it,” said Stuart Alderoty, president of the National Cryptocurrency Association, a non-profit focused on crypto education. “You can harvest gains and you can harvest losses as well,” he said.
Many accountants don’t understand digital assets
Taxation depends largely on a person’s tax bracket and whether they are short-term or long-term gains. For example, if you’ve held the crypto for more than a year, profits are subject to long-term capital gains rates of 0%, 15% or 20%. If the crypto was held for less than a year, ordinary tax rates between 10% to 37% apply.
Due to the complexity and unique nature of crypto, determining taxation is complicated by other factors, especially since IRS rules about crypto are in flux. As one example, it is important to make sure to report the crypto transaction on the right form. For example, if you sold, exchanged or otherwise disposed of a digital asset you held as a capital asset, use Form 8949. If you were paid as an employee or independent contractor with digital assets, report the digital asset income on Form 1040, U.S. Individual Income Tax Return.
On top of that, many crypto owners are confused about the federal income tax question pertaining to digital assets. On the first page, near the top, they’re asked to identify whether at any time during the tax year, they either received (as a reward, award or payment for property or services) or sold, exchanged or otherwise disposed of a digital asset.
Many people think “received” means buy, but it doesn’t, Edelman said. Rather, the IRS says it refers to digital assets received for payment for property or services provided, a reward or award, mining, staking and similar activities or an airdrop as it relates to a hard fork.
For these and other issues regarding crypto taxation, make sure you’re talking to a tax advisor who is knowledgeable about crypto. “Most accountants are not because they haven’t had any training in this area,” Edelman said.
This week, volatility took hold of the AI trade as bubble fears continued to rise and Nvidia‘s blowout earnings failed to steady the market.
“Unless you’re the most optimistic person on the planet … you know you’re in a bubble, right?” Dan Niles, founder of Niles Investment Management, told CNBC’s Deirdre Bosa. “There is no question you’re in a bubble.”
Industry insiders raise AI bubble alarms
Industry insiders are also beginning to raise the alarm, with Alphabet CEO Sundar Pichai warning of an overrun.
“Given the potential of this technology, the excitement is very rational. It’s also true when we go through these investment cycles, there are moments we overshoot collectively as an industry,” Pichai told the BBC. “I think it’s both rational and there are elements of irrationality through moments like this.”
At a recent internal all-hands meeting, Pichai reiterated a point he’s made previously about the risks of Google not investing aggressively enough, CNBC reported Friday.
“I think it’s always difficult during these moments because the risk of underinvesting is pretty high,” said Pichai, pointing to Google’s cloud business, which just recorded 34% annual revenue growth to more than $15 billion in the quarter. Its backlog reached $155 billion.
“I actually think for how extraordinary the cloud numbers were, those numbers would have been much better if we had more compute,” he said.
Google’s AI momentum
Meanwhile, Google on Thursday surpassed Microsoft in market cap for the first time, as the search giant was lifted by renewed AI momentum. The search company launched Gemini 3 on Tuesday, which shot to the top of AI model rankings. Google also rolled out an updated version of its viral AI image generator Nano Banana on Thursday.
“I’ve never had more fun than right now,” Josh Woodward, vice president of Google Labs and Gemini, told CNBC in an interview. “I think it’s partly the pace, it’s partly the abilities these models give to people who can imagine new use cases and products. It’s unparalleled.”
Nvidia’s China threat
Nvidia’s earnings on Wednesday failed to restore confidence in the tech trade, despite the company posting a beat-and-raise quarter. Instead, the chipmaker added to fears of escalating geopolitical risk with China. Nvidia’s finance chief Colette Kress told analysts that “sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China.”
Aaron Ginn, co-founder and CEO of the graphics processing unit management company Hydra Host, said the West’s attitude toward Chinese AI is the biggest threat to Nvidia’s dominance.
“We just have to accept that we fell behind the eight ball in the fact that China is a manufacturing powerhouse,” he said. “We have the ability to beat back that trade balance to where we are now leaders.”