The European Union is so far the only jurisdiction globally to drive forward comprehensive rules for artificial intelligence with its AI Act.
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The European Union on Wednesday presented a plan to boost its artificial intelligence industry and help it compete more aggressively with the U.S. and China, following criticisms from technology firms that its regulations are too cumbersome.
In a press release, the European Commission, the executive body of the EU, outlined its so-called “AI Continent Action Plan,” which aims to “transform Europe’s strong traditional industries and its exceptional talent pool into powerful engines of AI innovation and acceleration.”
Among the ways Europe plans to bolster regional AI developments are a commitment to build a network of AI factories and “gigafactories” and create specialized labs designed to improve the access of startups to high-quality training data.
The EU defines these “factories” as large facilities that house state-of-the-art chips needed to train and develop the most advanced AI models.
The bloc will also create a new AI Act Service Desk to help regional firms comply with its landmark AI law.
“The AI Act raises citizens’ trust in technology and provides investors and entrepreneurs with the legal certainty they need to scale up and deploy AI throughout Europe,” the Commission said, adding the AI Act Service Desk will “serve as the central point of contact and hub for information and guidance” on the rules.
The plan bears similarities to the U.K.’s AI Action Plan announced earlier this year. Like the EU, Britain committed to expand domestic AI infrastructure to aid developers.
Hindering innovation?
The launch of the EU’s AI plan arrives as the bloc is facing criticisms from tech leaders that its rules on everything from AI to taxation hinder innovation and make it harder for startups to operate across the region.
The bloc’s landmark legislation known as the AI Act has proven particularly thorny for companies in the rapidly growing artificial intelligence industry.
The law regulates applications of AI based on the level of risk they pose to society — and in recent years it has been adapted to cover so-called “foundational” model makers such as OpenAI and French startup Mistral, much to the ire of some of the buzziest businesses in that space.
At a global AI summit in Paris earlier this year, OpenAI’s Chief Global Affairs Officer Chris Lehane told CNBC that European political and business leaders increasingly fear missing out on AI’s potential and want regulators to focus less on tackling risks associated with the technology.
“There’s almost this fork in the road, maybe even a tension right now between Europe at the EU level … and then some of the countries,” Lehane told CNBC’s Arjun Kharpal in February. “They’re looking to maybe go in a little bit of a different direction that actually wants to embrace the innovation.”
The U.S. administration has also been critical of Europe over its treatment of American tech giants and fast-growing AI startups.
At the Paris AI summit in February, U.S. Vice President JD Vance took aim at Europe’s regulatory approach to AI, stressing that “we need our European friends in particular to look to this new frontier with optimism rather than trepidation.”
“There is a real emphasis on easing the burden of regulation and removing barriers to innovation, which in part is likely to reflect some of the concerns that have been raised by the US government,” John Buyers, global head of AI at law firm Osborne Clarke, told CNBC over email.
“This isn’t only about the EU: If they are serious about eliminating legal uncertainties caused by interpretation of the EU’s AI Act, then this would be a real boost for AI developers and users in the UK and the US, as the AI Act applies to all AI used in the EU, regardless of where sourced.”
Bay Area Rapid Transit (BART) passengers walk off a train at the Richmond station on March 15, 2023 in Richmond, California.
Justin Sullivan | Getty Images
Commuters in and around San Francisco rode into work for free on Tuesday morning due to an outage in the Clipper card system, which is used to handle payments for train, bus and ferry rides.
“ATTENTION: The Clipper system is experiencing an outage on all operators this morning,” the Bay Area Clipper account wrote in a post on X. “Please be prepared to pay your fare with another form of payment if required by your transit agency.”
Many buses were waving commuters on without asking for payment, and at Bay Area Rapid Transit (BART) train stations, the faregates were open, allowing travelers to walk through for free.
Clipper is owned by the Metropolitan Transportation Commission, which manages transportation for the nine-county Bay Area. The service is used by hundreds of thousands of tech workers in San Francisco and Silicon Valley.
The MTC website said there were 1.35 million unique Clipper cards — physical and digital — used in May, the highest monthly toll for the year and the most since December 2019, before the pandemic. A fact sheet from the MTC says Clipper is used by 800,000 transit riders a day across the region.
BART fare gates open on July 1, 2025, due to Clipper outage
Kif Leswing
BART, in particular, has undergone dramatic changes in recent years, most notably installing fare gates starting in late 2023, with full deployment expected to be completed by the end of this year.
In the first five months of the year, average BART station exits totaled between 170,000 and 182,000 a month, according to its website. Those numbers are way down from the pre-pandemic days of 2019, when averages were generally above 400,000 a month.
The MTC has plans to roll out an updated system called Clipper 2.0, which it says will be a “customer-focused, cost-effective fare collection system” with a “flexible platform for future fare structures.” Features include use across the various mobile operating systems, updated communication and “expanded retail, online and mobile sales.”
The update, however, has been routinely delayed, leading to tense confrontations at recent Clipper executive board meetings.
Corporate treasuries have surpassed ETFs in bitcoin buying for a third consecutive quarter as more companies try to benefit from the MicroStrategy playbook in a more crypto-friendly regulatory environment.
Public companies acquired about 131,000 coins in the second quarter, growing their bitcoin balance 18%, according to data provider Bitcoin Treasuries. ETFs showed an 8% increase or about 111,000 BTC in the same period.
“The institutional buyer who is getting exposure to bitcoin through the ETFs are not buying for the same reason as those public companies who are basically trying to accumulate bitcoin to increase shareholder value at the end of the day,” said Nick Marie, head of research at Ecoinometrics.
Public company bitcoin holdings increased 4% in April, a tumultuous month after the market was rocked by President Donald Trump’s initial tariffs announcement, versus 2% for ETFs, he pointed out.
“They don’t really care if the price is high or low, they care about growing their bitcoin treasury so they look more attractive to the proxy buyers,” Marie added. “It’s not so much driven by the macro trend or the sentiment, it’s for different reasons. So it becomes a different kind of mechanism that can push bitcoin forward.”
Bitcoin ETFs, whose collective U.S. launch in January 2024 was one of the most successful ETF debuts in history, still represent the largest holders of bitcoin by entity with more than 1.4 million coins held today, representing about 6.8% of the fixed supply cap of 21 million. Public companies hold about 855,000 coins, or about 4%.
Regulatory relief
The trend reflects the significant regulatory relief the crypto industry broadly is benefiting from under the Trump administration. In March, Trump signed an executive order for a U.S. bitcoin reserve, sending a strong message that the flagship cryptocurrency, which has long been a source of reputation risk among many investors, is here to stay. The last time ETFs outpaced public companies in bitcoin buying was in the third quarter of 2024, before Trump was re-elected.
In the second quarter, GameStop began buying bitcoin, after its board approved it as a treasury reserve asset in March; health-care company KindlyMD merged with Nakamoto, a bitcoin investment company founded by crypto entrepreneur David Bailey; and investor Anthony Pompliano’s ProCap, kicked off its own bitcoin purchasing program and is going public through a special purpose acquisition company, or SPAC.
Strategy, recently rebranded from MicroStrategy, is still the main behemoth in the bitcoin treasury game. The company pioneered the strategy that more than 140 public companies globally are now emulating. It holds about 597,000 BTC, and is followed by the bitcoin miner Mara Holdings, which has almost 50,000 coins.
“It’s going to be very hard to catch Strategy’s scale,” said Ben Werkman, chief investment officer at Swan Bitcoin. “They’re going to be the preferred landing spot for institutional capital because of the deep liquidity around their equity, while these smaller equities are going to be really good risk returns for retail investors and smaller institutions that want more of that upside – that initial growth that comes in kicking off the strategy – because a lot of people missed it with MicroStrategy.”
A long-term case?
Marie suggested that 10 years from now, there probably won’t be so many companies committed to the bitcoin treasury strategy. Firstly, he said, the more that enter the category, the more diluted the activity at each firm becomes. Plus, bitcoin may be so normalized by then that proxy buyers are no longer constrained by rules and mandates around direct exposure to bitcoin.
“You can think about this wave as a bunch of companies that are trying to benefit from this arbitrage,” Marie said.
Werkman pointed out that most investors that are attracted to bitcoin treasury companies today already have a thesis around bitcoin. For them, leveraged bitcoin equities are likely how they try to outperform bitcoin itself, the foundational component of their investments.
“What people really like about these companies, and why they like to get into these smaller companies, is because they can do something that the investors holding spot bitcoin can’t do: go and accumulate more bitcoin on your behalf because they have access to the capital markets and can issue securities,” Werkman said.
There’s also likely to be a fair number of companies that convert their existing treasury holdings to bitcoin without pursuing leverage the way Strategy does, Werkman noted.
“They’ve got that ability to generate more and more value behind their shares, backed by bitcoin, plus whatever the operations of the company are generating. It’s a unique value proposition,” he said.
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An image of a Quantix drone made by AeroVironment.
David Mcnew | Getty Images News | Getty Images
AeroVironment shares fell 7% Tuesday after the defense contractor said it plans to offer $750 million in common stock and $600 million in convertible senior notes due in 2030 to repay debt.
The drone maker said it would use leftover funding for general purposes such as boosting manufacturing capacity.
AeroVironment shares have soared 85% this year, ballooning its market value to about $13 billion.
Last week, shares of the Arlington, Virginia-based company rallied on strong fourth-quarter results, lifting higher as CNBC’s Jim Cramer called it the “next Palantir of hardware.”
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Last month, the company also closed its $4.1 billion acquisition of space-related defense tech company Blue Halo.
Earlier this month, President Donald Trump signed an executive order intended to boost drone production in the U.S. and crack down on unauthorized uses.
The company also has a high short interest level, which may have contributed to some of the recent gains, creating a short squeeze. This phenomenon occurs when a stock price surges, forcing those shorting the stock to purchase shares to cover their positions and prevent losses.