AI Eye chatted with Framework Venture’s Vance Spencer recently and he raved about the possibilities offered by an upcoming game his fund invested in called AI Arena in which players train AI models how to battle each other in an arena.
Framework Ventures was an early investor in Chainlink and Synthetix and three years ahead of NBA Top Shots with a similar NFL platform, so when they get excited about the future prospects, it’s worth looking into.
Also backed by Paradigm, AI Arena is like a cross between Super Smash Brothers and Axie Infinity. The AI models are tokenized as NFTs, meaning players can train them up and flip them for profit or rent them to noobs. While this is a gamified version, there are endless possibilities involved with crowdsourcing user-trained models for specific purposes and then selling them as tokens in a blockchain-based marketplace.
Screenshot from AI Arena
“Probably some of the most valuable assets on-chain will be tokenized AI models; that’s my theory at least,” Spencer predicts.
AI Arena chief operating officer Wei Xi explains that his cofounders, Brandon Da Silva and Dylan Pereira, had been toying with creating games for years, and when NFTs and later AI came out, Da Silva had the brainwave to put all three elements together.
“Part of the idea was, well, if we can tokenize an AI model, we can actually build a game around AI,” says Xi, who worked alongside Da Silva in TradFi. “The core loop of the game actually helps to reveal the process of AI research.”
There are three elements to training a model in AI Arena. The first is demonstrating what needs to be done — like a parent showing a kid how to kick a ball. The second element is calibrating and providing context for the model — telling it when to pass and when to shoot for goal. The final element is seeing how the AI plays and diagnosing where the model needs improvement.
“So the overall game loop is like iterating, iterating through those three steps, and you’re kind of progressively refining your AI to become this more and more well balanced and well rounded fighter.”
The game uses a custom-built feed forward neural network and the AIs are constrained and lightweight, meaning the winner won’t just be whoever’s able to throw the most computing resources at the model.
“We want to see ingenuity, creativity to be the discerning factor,” Xie says.
Currently in closed beta testing, AI Arena is targeting the first quarter of next year for mainnet launch on Ethereum scaling solution Arbitrum. There are two versions of the game: One is a browser-based game that anyone can log into with a Google or Twitter account and start playing for fun, while the other is blockchain-based for competitive players, the “esports version of the game.”
This being crypto, there is a token of course, which will be distributed to players who compete in the launch tournament and later be used to pay entry fees for subsequent competitions. Xie envisages a big future for the tech, saying it can be used “in a first-person shooter game and a soccer game,” and expanded into a crowdsourced marketplace for AI models that are trained for specific business tasks.
“What somebody has to do is frame it into a problem and then we allow the best minds in the AI space to compete on it. It’s just a better model.”
Chatbots can’t be trusted
A new analysis from AI startup Vectara shows that the output from large language models like ChatGPT or Claude simply can’t be relied upon for accuracy.
Everyone knew that already, but until now there was no way to quantify the precise amount of bullshit each model is generating. It turns out that GPT-4 is the most accurate, inventing fake information around just 3% of the time. Meta’s Llama models make up nonsense 5% of the time while Anthropic’s Claude 2 system produced 8% bullshit.
Google’s PaLM hallucinated an astonishing 27% of its answers.
Palm 2 is one of the components incorporated into Google’s Search Generative Experience, which highlights useful snippets of information in response to common search queries. It’s also unreliable.
For months now, if you ask Google for an African country beginning with the letter K, it shows the following snippet of totally wrong information:
“While there are 54 recognized countries in Africa, none of them begin with the letter ‘K’. The closest is Kenya, which starts with a ‘K’ sound, but is actually spelled with a ‘K’ sound.”
It turns out Google’s AI got this from a ChatGPT answer, which in turn traces back to a Reddit post, which was just a gag set up for this response:
“Kenya suck on deez nuts lmaooo.”
Screenshot from r/teenagers subreddit (Spreekaway Twitter)
Google rolled out the experimental AI feature earlier this year, and recently users started reported it was shrinking and even disappearing from many searches.
Google may have just been refining it though, as this week the feature rolled out to 120 new countries and four new languages, with the ability to ask follow-up questions right on the page.
AI images in the Israel-Gaza war
While journalists have done their best to hype up the issue, AI-generated images haven’t played a huge role in the war, as the real footage of Hamas atrocities and dead kids in Gaza is affecting enough.
There are examples, though: 67,000 people saw an AI-generated image of a toddler staring at a missile attack with the caption “This is what children in Gaza wake up to.” Another pic of three dust-covered but grimly determined kids in the rubble of Gaza holding a Palestinian flag was shared by Tunisian journalist Muhammad al-Hachimi al-Hamidi.
And for some reason, a clearly AI-generated pic of an “Israeli refugee camp” with an enormous Star of David on the side of each tent was shared multiple times on Arabic news outlets in Yemen and Dubai.
AI-generated pic picked up by news sites (Twitter)
Aussie politics blog Crikey.com reported that Adobe is selling AI-generated images of the war through its stock image service, and an AI pic of a missile strike was run as if it were real by media outlets including Sky and the Daily Star.
But the real impact of AI-generated fakes is providing partisans with a convenient way to discredit real pics. There was a major controversy over a bunch of pics of Hamas’s leadership living it up in luxury, which users claimed were AI fakes.
But the images date back to 2014 and were just poorly upscaled using AI. AI company Acrete also reports that social media accounts associated with Hamas have regularly claimed that genuine footage and pictures of atrocities are AI-generated to cast doubt on them.
In some good timing, Google has just announced it’s rolling out tools that can help users spot fakes. Click on the three dots on the top right of an image and select “About This Image” to see how old the image is, and where it’s been used. An upcoming feature will include fields showing whether the image is AI generated, with Google AI, Facebook, Microsoft, Nikon and Leica all adding symbols or watermarks to AI imagery.
Dear Palestinians,
While the leaders of Hamas are living luxurious lives enjoying good lives, they ask you to sacrifice yourselves and your children. Hamas doesn’t care for the Palestinians. Hamas is the enemy of the Palestinian people.
ChatGPT this week unveiled GPT-4 Turbo, which is much faster and can accept long text inputs like books of up to 300 pages. The model has been trained on data up to April this year and can generate captions or descriptions of visual input. For devs, the new model will be one-third the cost to access.
OpenAI is also releasing its version of the App Store, called the GPT Store. Anyone can now dream up a custom GPT, define the parameters and upload some bespoke information to GPT-4, which can then build it for you and pop it on the store, with revenue split between creators and OpenAI.
CEO Sam Altman demonstrated this onstage by whipping up a program called Startup Mentor that gives advice to budding entrepreneurs. Users soon followed, dreaming up everything from an AI that does the commentary for sporting events to a “roast my website” GPT. ChatGPT went down for 90 minutes this week, possibly as a result of too many users trying out the new features.
Not everyone was impressed, however. Abacus.ai CEO Bindu Reddy said it was disappointing that GPT-5 had not been announced, suggesting that OpenAI tried to train a new model earlier this year but found it “didn’t run as efficiently and therefore had to scrap it.” There are rumors that OpenAI is training a new candidate for GPT-5 called Gobi, Reddy said, but she suspects it won’t be unveiled until next year.
Elon Musk brought freedom back to Twitter — mainly by freeing lots of people from spending any time there — and he’s on a mission to do the same with AI.
The beta version of Grok AI was thrown together in just two months, and while it’s not nearly as good as GPT-4, it is up to date due to being trained on tweets, which means it can tell you what Joe Rogan was wearing on his last podcast. That’s the sort of information GPT-4 simply won’t tell you.
There are fewer guardrails on the answers than ChatGPT, although if you ask it how to make cocaine it will snarkily tell you to “Obtain a chemistry degree and a DEA license.”
“The threshold for what it will tell you, if pushed, is what is available on the internet via reasonable browser search, which is a lot …” says Musk.
Within a few days, more than 400 cryptocurrencies linked to GROK had been launched. One amassed a $10 million market cap, and at least ten others rugpulled.
All Killer No Filler AI News
— Samsung has introduced a new generative artificial intelligence model called Gauss that it suggests will be added to its phones and devices soon.
— YouTube has rolled out some new AI features to premium subscribers including a chatbot that summarizes videos and answers questions about them, and another that categorizes the comments to help creators understand the feedback.
— Google DeepMind has released an AGI tier list that starts at the “No AI” level of Amazon’s Mechanical Turk and moves on to “Emerging AGI,” where ChatGPT, Bard and LLama2 are listed. The other tiers are Competent, Expert, Virtuoso and Artificial Superintelligence, none of which have been achieved yet.
— Amazon is investing millions in a new GPT-4 rival called Olympus that is twice the size at 2 trillion parameters. It has also been testing out its new humanoid robot called Digit at trade shows. This one fell over.
Pics of the week
An oldie but a goodie, Alvaro Cintas has spent his weekend coming up with AI pun pictures under the heading “Wonders of the World, Misspelled by AI”.
The most engaging reads in blockchain. Delivered once a
week.
Andrew Fenton
Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.
It might feel like it’s been even longer for the prime minister at the moment, but it’s been a whole year since Sir Keir Starmer’s Labour Party won a historic landslide, emphatically defeating Rishi Sunak’s Conservatives and securing a 174-seat majority.
Over that time, Sir Keir and his party have regularly reset or restated their list of milestones, missions, targets and pledges – things they say they will achieve while in power (so long as they can get all their policies past their own MPs).
We’ve had a look at the ones they have repeated most consistently, and how they are going so far.
Overall, it amounts to what appears to be some success on economic metrics, but limited progress at best towards many of their key policy objectives.
From healthcare to housebuilding, from crime to clean power, and from small boats to squeezed budgets, here are nine charts that show the country’s performance before and after Labour came to power, and how close the government are to achieving their goals.
Image: Sir Keir Starmer has been in office for a year. Pic Reuters
Cost of living
On paper, the target that Labour have set themselves on improving living standards is by quite a distance the easiest to achieve of anything they have spoken about.
They have not set a specific number to aim for, and every previous parliament on record has overseen an increase in real terms disposable income.
The closest it got to not happening was the last parliament, though. From December 2019 to June 2024, disposable income per quarter rose by just £24, thanks in part to the energy crisis that followed Russia’s invasion of Ukraine.
By way of comparison, there was a rise of almost £600 per quarter during the five years following Thatcher’s final election victory in 1987, and over £500 between Blair’s 1997 victory and his 2001 re-election.
After the first six months of the latest government, it had risen by £144, the fastest start of any government going back to at least 1954. As of March, it had fallen to £81, but that still leaves them second at this stage, behind only Thatcher’s third term.
VERDICT: Going well, but should have been more ambitious with their target
Get inflation back to 2%
So, we have got more money to play with. But it might not always feel like that, as average prices are still rising at a historically high rate.
Inflation fell consistently during the last year and a half of Rishi Sunak’s premiership, dropping from a peak of 11.1% in October 2022 to exactly 2% – the Bank of England target – in June 2024.
It continued to fall in Labour’s first couple of months, but has steadily climbed back up since then and reached 3.4% in May.
When we include housing costs as well, prices are up by 4% in the last year. Average wages are currently rising by just over 5%, so that explains the overall improvement in living standards that we mentioned earlier.
But there are signs that the labour market is beginning to slow following the introduction of higher national insurance rates for employers in April.
If inflation remains high and wages begin to stagnate, we will see a quick reversal to the good start the government have made on disposable income.
VERDICT: Something to keep an eye on – there could be a bigger price to pay in years to come
‘Smash the gangs’
One of Starmer’s most memorable promises during the election campaign was that he would “smash the gangs”, and drastically reduce the number of people crossing the Channel to illegally enter the country.
More than 40,000 people have arrived in the UK in small boats in the 12 months since Labour came to power, a rise of over 12,000 (40%) compared with the previous year.
VERDICT: As it stands, it looks like “the gangs” are smashing the government
Reduce NHS waits
One of Labour’s more ambitious targets, and one in which they will be relying on big improvements in years to come to achieve.
Starmer says that no more than 8% of people will wait longer than 18 weeks for NHS treatment by the time of the next election.
When they took over, it was more than five times higher than that. And it still is now, falling very slightly from 41.1% to 40.3% over the 10 months that we have data for.
So not much movement yet. Independent modelling by the Health Foundation suggests that reaching the target is “still feasible”, though they say it will demand “focus, resource, productivity improvements and a bit of luck”.
VERDICT: Early days, but current treatment isn’t curing the ailment fast enough
Halve violent crime
It’s a similar story with policing. Labour aim to achieve their goal of halving serious violent crime within 10 years by recruiting an extra 13,000 officers, PCSOs and special constables.
Recruitment is still very much ongoing, but workforce numbers have only been published up until the end of September, so we can’t tell what progress has been made on that as yet.
We do have numbers, however, on the number of violent crimes recorded by the police in the first six months of Labour’s premiership. There were a total of 1.1m, down by 14,665 on the same period last year, a decrease of just over 1%.
That’s not nearly enough to reach a halving within the decade, but Labour will hope that the reduction will accelerate once their new officers are in place.
VERDICT: Not time for flashing lights just yet, but progress is more “foot patrol” than “high-speed chase” so far
Build 1.5m new homes
One of Labour’s most ambitious policies was the pledge that they would build a total of 1.5m new homes in England during this parliament.
There has not yet been any new official data published on new houses since Labour came to power, but we can use alternative figures to give us a sense of how it’s going so far.
A new Energy Performance Certificate is granted each time a new home is built – so tends to closely match the official house-building figures – and we have data up to March for those.
Those numbers suggest that there have actually been fewer new properties added recently than in any year since 2015-16.
Labour still have four years to deliver on this pledge, but each year they are behind means they need to up the rate more in future years.
If the 200,000 new EPCs in the year to March 2025 matches the number of new homes they have delivered in their first year, Labour will need to add an average of 325,000 per year for the rest of their time in power to achieve their goal.
VERDICT: Struggling to lay solid foundations
Clean power by 2030
Another of the more ambitious pledges, Labour’s aim is for the UK to produce 95% of its energy from renewable sources by 2030.
They started strong. The ban on new onshore wind turbines was lifted within their first few days of government, and they delivered support for 131 new renewable energy projects in the most recent funding round in September.
But – understandably – it takes time for those new wind farms, solar farms and tidal plants to be built and start contributing to the grid.
In the year leading up to Starmer’s election as leader, 54% of the energy on the UK grid had been produced by renewable sources in the UK.
That has risen very slightly in the year since then, to 55%, with a rise in solar and biomass offsetting a slight fall in wind generation.
The start of this year has been unusually lacking in wind, and this analysis does not take variations in weather into account. The government target will adjust for that, but they are yet to define exactly how.
VERDICT: Not all up in smoke, but consistent effort is required before it’s all sunshine and windmills
Fastest economic growth in the G7
Labour’s plan to pay for the improvements they want to make in all the public services we have talked about above can be summarised in one word: “growth”.
The aim is for the UK’s GDP – the financial value of all the goods and services produced in the country – to grow faster than any other in the G7 group of advanced economies.
Since Labour have been in power, the economy has grown faster than European rivals Italy, France and Germany, as well as Japan, but has lagged behind the US and Canada.
The UK did grow fastest in the most recent quarter we have data for, however, from the start of the year to the end of March.
VERDICT: Good to be ahead of other similar European economies, but still a way to go to overtake the North Americans
No tax rises
Without economic growth, it will be difficult to keep to one of Chancellor Rachel Reeves’ biggest promises – that there will be no more tax rises or borrowing for the duration of her government’s term.
Paul Johnson, director of the Institute for Fiscal Studies, said last month that she is a “gnat’s whisker” away from being forced to do that at the autumn budget, looking at the state of the economy at the moment.
That whisker will have been shaved even closer by the cost implications of the government’s failure to get its full welfare reform bill through parliament earlier this week.
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5:03
One year of Keir: A review of Starmer’s first 12 months in office
But the news from the last financial year was slightly better than expected. Total tax receipts for the year ending March 2025 were 35% of GDP.
That’s lower than the previous four years, and what was projected after Jeremy Hunt’s final Conservative budget, but higher than any of the 50 years before that.
The Office for Budget Responsibility (OBR) still projects it to rise in future years though, to a higher level than the post-WWII peak of 37.2%.
The OBR – a non-departmental public body that provides independent analysis of the public finances – has also said in the past few days that it is re-examining its methodology, because it has been too optimistic with its forecasts in the past.
If the OBR’s review leads to a more negative view of where the economy is going, Rachel Reeves could be forced to break her promise to keep the budget deficit from spiralling out of control.
VERDICT: It’s going to be difficult for the Chancellor to keep to her promise
OVERALL VERDICT: Investment and attention towards things like violent crime, the NHS and clean energy are yet to start bearing fruit, with only minuscule shifts in the right direction for each, but the government is confident that what’s happened so far is part of its plans.
Labour always said that the house-building target would be achieved with a big surge towards the back end of their term, but they won’t be encouraged by the numbers actually dropping in their first few months.
Where they are failing most dramatically, however, appears to be in reducing the number of migrants making the dangerous Channel crossing on small boats.
The economic news, particularly that rise in disposable income, looks more healthy at the moment. But with inflation still high and growth lagging behind some of our G7 rivals, that could soon start to turn.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
Gunnar Strömmer reportedly said that Swedish authorities had confiscated more than $8.3 million worth of criminal profits since a law related to seizures was passed in 2024.