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Dr. Joshua Bederson places Precision Neuroscience’s electrodes onto a brain.

Ashley Capoot

As the lights dimmed in an operating room at The Mount Sinai Hospital in New York City, Dr. Joshua Bederson prepared to make history.

Bederson, system chair for the Department of Neurosurgery at Mount Sinai Health System, is no stranger to long hours in an operating room. The former competitive gymnast has completed more than 6,500 procedures in his career, and he said he visualizes the steps for each one as if he’s rehearsing for a routine.   

On this particular morning in April, Bederson was readying for a meningioma resection case, which meant he would be removing a benign brain tumor. Bederson said his primary focus is always on caring for the patient, but in some cases, he also gets to help advance science. 

This procedure was one such case. 

A small crowd gathered as Bederson took his seat in the operating room, his silhouette aglow from the bright white light shining on the patient in front of him. Health-care workers, scientists and CNBC craned forward – some peering through windows – to watch as Bederson placed four electrode arrays from Precision Neuroscience onto the surface of the patient’s brain for the first time. 

An electrode is a small sensor that can detect and carry an electrical signal, and an array is a grid of electrodes. Neurosurgeons use electrodes during some procedures to help monitor and avoid important parts of the brain, like areas that control speech and movement.

Precision is a three-year-old startup building a brain-computer interface, or a BCI. A BCI is a system that decodes neural signals and translates them into commands for external technologies. Perhaps the best-known company in the field is Neuralink, which is owned by Tesla and SpaceX CEO Elon Musk.

Other companies like Synchron and Paradromics have also developed BCI systems, though their goals and designs all vary. The first application of Precision’s system will be to help patients with severe paralysis restore functions like speech and movement, according to its website. 

Stephanie Rider of Precision Neuroscience inspects the company’s microelectrode array

Source: Precision Neuroscience

Precision’s flagship BCI is called the Layer 7 Cortical Interface. It’s a microelectrode array that’s thinner than a human hair, and it resembles a piece of yellow scotch tape. Each array is made up of 1,024 electrodes, and Precision says it can conform to the brain’s surface without damaging any tissue.

When Bederson used four of the company’s arrays during the surgery in April, he set a record for the highest number of electrodes to be placed on the brain in real-time, according to Precision. But perhaps more importantly, the arrays were able to detect signals from the patient’s individual fingers, which is a far greater amount of detail than standard electrodes are able to capture.

Using Precision’s electrode array is like turning a pixilated, low-resolution image into a 4K image, said Ignacio Saez, an associate professor of neuroscience, neurosurgery and neurology at the Icahn School of Medicine at Mount Sinai. Saez and his team oversee Precision’s work with Mount Sinai.

“Instead of having 10 electrodes, you’re giving me 1,000 electrodes,” Saez told CNBC in an interview. “The depth and the resolution and the detail that you’re going to get are completely different, even though they somehow reflect the same underlying neurological activity.”

Bederson said accessing this level of detail could help doctors be more delicate with their surgeries and other interventions in the future. For Precision, the ability to record and decode signals from individual fingers will be crucial as the company works to eventually help patients restore fine motor control. 

The data marks a milestone for Precision, but there’s a long road ahead before it achieves some of its loftier goals. The company is still working toward approval from the U.S. Food and Drug Administration, and it has yet to implant a patient with a more permanent version of its technology. 

“I think these are little baby steps towards the ultimate goal of brain-computer interface,” Bederson told CNBC in an interview.

Inside the operating room

Dr. Joshua Bederson prepares for surgery at The Mount Sinai Hospital.

Ashley Capoot

Bederson’s surgery in April was not Precision’s first rodeo. In fact, it marked the 14th time that the company has placed its array on a human patient’s brain. 

Precision has been partnering with academic medical centers and health systems to perform a series of first-in-human clinical studies. The goal of each study varies, and the company announced its collaboration with Mount Sinai in March. 

At Mount Sinai, Precision is exploring different applications for its array in clinical settings, like how it can be used to help monitor the brain during surgery. In these procedures, surgeons like Bederson temporarily place Precision’s array onto patients who are already undergoing brain surgery for a medical reason. 

Patients give their consent to participate beforehand. 

It’s routine for neurosurgeons to map brain signals with electrodes during these types of procedures. Bederson said the current accepted practice is to use anywhere between four to almost 100 electrodes – a far cry from the 4,096 electrodes he was preparing to test. 

Electrode arrays from Precision Neuroscience displayed on a table.

Ashley Capoot

Precision’s arrays are in use for a short portion of these surgeries, so CNBC joined the operating room in April once the procedure was already underway. 

The patient, who asked to remain anonymous, was asleep. Bederson’s team had already removed part of their skull, which left an opening about the size of a credit card. Four of Precision’s arrays were carefully laid out on a table nearby.

Once the patient was stabilized, Precision’s employees trickled into the operating room. They helped affix the arrays in an arc around the opening on the patient’s head, and connected bundles of long blue wires at the other end to a cart full of equipment and monitors.

Dr. Benjamin Rapoport, Precision’s co-founder and chief scientific officer, quietly looked on. Every major procedure presents some risks, but the soft-spoken neurosurgeon’s calm demeanor never wavered. He told CNBC that each new case is just as exciting as the last, especially since the company is still learning. 

Experts help set up the wiring for Precision Neuroscience’s technology.

Ashley Capoot

Bederson entered the operating room as Precision’s preparations neared their end. He helped make some final tweaks to the set up, and the overhead lights in the operating room were turned off. 

Ongoing chatter quieted to hushed whispers. Bederson was ready to get started. 

He began by carefully pulling back a fibrous membrane called the dura to reveal the surface of the brain. He laid a standard strip of electrodes onto the tissue for a few minutes, and then it was time to test Precision’s technology. 

Using a pair of yellow tweezers called long bayonet forceps, Bederson began placing all four of Precision’s electrode arrays onto the patient’s brain. He positioned the first two arrays with ease, but the last two proved slightly more challenging. 

Bederson was working with a small section of brain tissue, which meant the arrays needed to be angled just right to lay flat. For reference, imagine arranging the ends of four separate tape measures within a surface area roughly the size of a rubber band. It took a little reconfiguring, but after a couple of minutes, Bederson made it happen.

Real-time renderings of the patient’s brain activity swept across Precision’s monitors in the operating room. All four arrays were working.  

In an interview after the surgery, Bederson said it was “complicated” and “a little bit awkward” to place all four arrays at once. From a design perspective, he said two arrays with twice as many points of contact, or longer arrays with greater spacing would have been helpful.  

Bederson compared the arrays to spaghetti, and the description was apt. From where CNBC was watching, it was hard to tell where one stopped and the next began.  

Once all the arrays were placed and actively detecting signals, Precision’s Rapoport stood with his team by the monitors to help oversee data collection. He said the research is the product of a true team effort from the company, the health system and the patient, who often doesn’t get to see the benefits of the technology at this stage. 

“It takes a village to make this sort of thing move forward,” Rapoport said. 

CNBC left the operating room as Bederson began removing the tumor, but he said the case went well. The patient woke up afterward with some weakness in their foot since the surgery was within that part of the brain, but Bederson said he expected the foot would recover in around three to four weeks. 

Employees from Precision Neuroscience collecting data.

Ashley Capoot

Rapoport was present at this particular surgery because of his role with Precision, but he’s well acquainted with the operating rooms at Mount Sinai. 

Rapoport is a practicing surgeon and serves as an assistant professor of neurosurgery at the Icahn School of Medicine at Mount Sinai. Rapoport reports to Bederson, and Bederson said the pair have known one another since Rapoport was in residency at Weill Cornell Medicine.

Dr. Thomas Oxley, the CEO of the competing BCI company Synchron, is also a faculty member under Bederson. Synchron has built a stent-like BCI that can be inserted through a patient’s blood vessels. As of early February, the company had implanted its system into 10 human patients. It is also working toward FDA approval. 

Bederson has an equity stake in Synchron, but he told CNBC he didn’t realize how much it would prevent him from participating in research with the Synchron team. He has no monetary investment in Precision. 

“I really did not want to have any financial interest in Precision because I think it has an equally promising future and wanted to advance the science as fast as I could,” Bederson said. 

Rapoport also helped co-found Musk’s Neuralink in 2017, though he departed the company the following year. Neuralink is building a BCI designed to be inserted directly into the brain tissue, and the company recently received approval to implant its second human patient, according to a report from The Wall Street Journal on Monday. 

As the BCI industry heats up, Bederson said the amount that scientists understand about the brain is poised to “explode” over the next several years. Companies like Precision are just getting started. 

Dr. Joshua Bederson helps set up Precision Neuroscience’s electrode arrays.

Ashley Capoot

“I really feel like the future is where the excitement is,” Bederson said.

Rapoport said Precision is hoping to receive FDA approval for the wired version of its system “within a few months.” This version, which is what CNBC saw in the operating room, would be for use in a hospital setting or monitored care unit for up to 30 days at a time, he said. 

Precision’s permanent implant, which will transmit signals wirelessly, will go through a separate approval process with the FDA. 

Rapoport said Precision hopes to implant “a few dozen” patients with the wired version of its technology by the end of the year. That data collection would give the company a “very high level of confidence” in its ability to decode movement and speech signals in real-time, he said. 

“Within a few years, we’ll have a much more advanced version of the technology out,” Rapoport said.

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U.S. chip curbs in Middle East just ‘business as usual,’ Ooredoo CEO says after Nvidia deal

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U.S. chip curbs in Middle East just 'business as usual,' Ooredoo CEO says after Nvidia deal

Jakub Porzyck | Nurphoto | Getty Images

Qatari telecoms provider Ooredoo told CNBC Wednesday that its new tie-up with Nvidia is compliant of all U.S. regulations and will still allow it to have access to the latest technology.

Ooredoo earlier this week signed a partnership with Nvidia, marking the chipmaker’s first large-scale entry into the Middle East market. The companies did not disclose the value of the deal.

The deal will see thousands of Nvidia’s GPUs (graphics processing units) deployed in 26 data centers across Qatar and five other countries: Kuwait, Oman, Algeria, Tunisia and the Maldives. These chips will help the data centers process massive amounts of information, which will feed AI chatbots and other tools, essential components of a country’s AI infrastructure.

The tie-up comes after the United States last year restricted the sale of certain advanced chips to some Middle Eastern nations, over fears the technology could be intercepted by China.

Washington does allow the export of some Nvidia chips to the region, and Nvidia, AMD and Intel have all indicated plans to create less powerful chips for export to the Chinese market. The restrictions focus on A100 and H100 chips, not GPUs (another type of semiconductor) which are central to this deal.

Qatar's Ooredoo discusses Nvidia's Middle East launch

Ooredoo told CNBC that the deal is compliant of all U.S. regulations. Under the partnership, no new licenses for different chips have been created.

“As a telecom operator, dealing with very stringent regulation is business as usual. We are used to dealing with regulators and government authorities, whether they’re local or international,” Ooredoo’s CEO told CNBC.

“We are working very closely with the different regulators and with Nvidia to see all the required approvals and to provide all the guarantees required,” he added.

A tug of war between China and the United States has played out in the race to obtain and protect the latest artificial intelligence technology. The United Arab Emirates’ top AI group G42 vowed to phase out Chinese hardware to appease Washington, later seeing through a deal with Microsoft worth $1.5 billion.

Gulf states are leveraging their vast energy wealth to try to become pioneers in artificial intelligence, investing in developing the technology and importing massive quantities of chips used in AI data centers.

According to Ooredoo’s CEO, the chips are latest generation GPUs, catered specially for artificial intelligence and “will be able to deliver extreme machine learning and model utilization of these AI models and generative AI.”

They will be used in citizen services for governments, and to enhance productivity and efficiency for general corporations and research and development.

The cloud partnership between Ooredoo and Nvidia aims to position the chipmaker as the central source for AI technology in the region, and according to Ooredoo will drive innovation, development and create jobs. The countries will get access to Nvidia’s latest full-stack AI platform, catering to both Ooredoo and non-Ooredoo customers through independent data centers.

Ooredoo also committed to investing $1 billion to boost its regional data center capacity even before announcing its partnership with Nvidia. Aziz Aluthman Fakhroo, Ooredoo’s CEO, told CNBC’s Dan Murphy that he expects that investment to be returned in the years to come.

“The demand we’re seeing just from the cloud and now adding that layer of AI to it is already outstripping our most optimistic plan, so we will probably exceed that investment in the next three to five years.”

Qatar Investment Authority-backed Ooredoo, which is listed in both Qatar and Abu Dhabi, plans to develop a platform driven by AI and powered by Nvidia in the hope of meeting market demand.

Nvidia briefly became the world’s most valuable company last week, overtaking Microsoft. The chipmaker rebounded in Tuesday trade, reversing a three-day losing streak which wiped over $550 billion from its market value.

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E-commerce firm Shopee agreed to adjust its practices in Indonesia after watchdog says it violated competition law

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E-commerce firm Shopee agreed to adjust its practices in Indonesia after watchdog says it violated competition law

BRAZIL – 2022/03/22: In this photo illustration, a woman’s silhouette holds a smartphone with a Shopee logo in the background. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

Rafael Henrique | Sopa Images | Lightrocket | Getty Images

Shopee and its courier service Shopee Express agreed to adjust its current practices after admitting to breaching a competition rule in Indonesia, the country’s watchdog said on Wednesday.

Shopee is the e-commerce arm of Southeast Asian tech giant Sea Limited.

“Shopee and Shopee Express admitted that they had violated Law no. 5 of 1999, regarding delivery (courier) services on the Shopee platform by agreeing to various behavioral change points determined by the KPPU Council in the hearing yesterday,” Indonesia Competition Commission Komisi Pengawas Persaingan Usaha said in a Google-translated statement.

KPPU said Shopee proposed adjustments to its current practices on June 20 which were approved by the commission council.

“Shopee Indonesia attended a meeting with KPPU on 25 June to discuss points of the integrity pact that was shared by KPPU last week. On 20 June, Shopee proposed changes to our user interface to enhance our services and demonstrate our compliance in providing the best services to our users, in accordance with the feedback provided and approved by the KPPU,” Radynal Nataprawira, head of public affairs at Shopee Indonesia, told CNBC in emailed comments.

“Shopee is always committed to complying with all applicable regulations and laws in the Republic of Indonesia in conducting our business operations,” said Nataprawira.

Last month, KPPU revealed its preliminary investigation found that Shopee allegedly prioritized Shopee Express in every package delivery to consumers.

Alibaba is focusing on performance amid increased competition, Joe Tsai says

The watchdog also accused Shopee of “discriminatory behavior,” saying Shopee Express and another delivery service J&T Express were “automatically activated en masse on the seller dashboard” while other companies that also have good service performance did not get selected automatically.

KPPU investigators also named an employee who held director positions in both Shopee Indonesia and Shopee Express, saying this “dual position” has the ability to influence competition and control the behavior of both companies.

KPPU is also probing Shopee rival Lazada, the Southeast Asian e-commerce arm of Chinese tech giant Alibaba, saying it has found indications of similar violations.

“If it is later proven to have violated, Lazada can be subject to a fine of a maximum of 50% of the net profit or 10% of the total sales it earned in the relevant market during the period of the violation,” KPPU said in a statement last month.

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Europe is at risk of over-restricting AI and falling behind U.S. and China, Dutch prince says  

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Europe is at risk of over-restricting AI and falling behind U.S. and China, Dutch prince says  

Prince Constantijn is special envoy to Techleap, a Dutch startup accelerator.

Patrick Van Katwijk | Getty Images

AMSTERDAM — Europe is at risk of falling behind the U.S. and China on artificial intelligence as it focuses on regulating the technology, according to Prince Constantijn of the Netherlands.

“Our ambition seems to be limited to being good regulators,” Constantijn told CNBC in an interview on the sidelines of the Money 20/20 fintech conference in Amsterdam earlier this month.

Prince Constantijn is the third and youngest son of former Dutch Queen Beatrix and the younger brother of reigning Dutch King Willem-Alexander.

He is special envoy of the Dutch startup accelerator Techleap, where he works to help local startups grow fast internationally by improving their access to capital, market, talent, and technologies.

“We’ve seen this in the data space [with GDPR], we’ve seen this now in the platform space, and now with the AI space,” Constantijn added.

European Union regulators have taken a tough approach to artificial intelligence, with formal regulations limiting how developers and companies can apply the technology in certain scenarios.

The bloc gave final approval to the EU AI Act, a ground-breaking AI law, last month.

Officials are concerned by how quickly the technology is advancing and risks it poses around jobs displacement, privacy, and algorithmic bias.

The law takes a risk-based approach to artificial intelligence, meaning that different applications of the tech are treated differently depending on their risk level.

For generative AI applications, the EU AI Act sets out clear transparency requirements and copyright rules.

All generative AI systems would have to make it possible to prevent illegal output, to disclose if content is produced by AI and to publish summaries of the copyrighted data used for training purposes.

But the EU’s Ai Act requires even stricter scrutiny for high-impact, general-purpose AI models that could pose “systemic risk,” such as OpenAI’s GPT-4 — including thorough evaluations and compulsory reporting of any “serious incidents.”

Prince Constantijn said he’s “really concerned” that the Europe’s focus has been more on regulating AI than trying to become a leader innovating in the space.

“It’s good to have guardrails. We want to bring clarity to the market, predictability and all that,” he told CNBC earlier this month on the sidelines of Money 20/20. “But it’s very hard to do that in such a fast-moving space.”

“There are big risks in getting it wrong, and like we’ve seen in genetically modified organisms, it hasn’t stopped the development. It just stopped Europe developing it, and now we are consumers of the product, rather than producers able to influence the market as it develops.”

Between 1994 and 2004, the EU had imposed an effective moratorium on new approvals of genetically modified crops over perceived health risks associated with them.

Republican victory in U.S. election will increase protectionism in tech market: François Hollande

The bloc subsequently developed strict rules for GMOs, citing a need to protect citizens’ health and the environment. The U.S. National Academies of Sciences says that genetically modified crops are safe for both human consumption and the environment.

Constantijn added that Europe is making it “quite hard” for itself to innovate in AI due to “big restrictions on data,” particularly when it comes to sectors like health and medical science.

In addition, the U.S. market is “a much bigger and unified market” with more free-flowing capital, Constantijn said. On these points he added, “Europe scores quite poorly.”

“Where we score well is, I think, on talent,” he said. “We score well on technology itself.”

Plus, when it comes to developing applications that use AI, “Europe is definitely going to be competitive,” Constantijn noted. He nevertheless added that “the underlying data infrastructure and IT infrastructure is something we’ll keep depending on large platforms to provide.”

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