AI Industry Development & Policy Dynamics

The AI memory system MemPalace, developed with the participation of Milajovа Vіchy, sparked controversy after its test results were questioned for cheating. Real-world testing results show that its efficiency was exaggerated and errors were frequent. The development team has admitted the problem and started fixing it, but multiple data sets still haven’t been corrected, leading to community dissatisfaction.

Covenant AI announced on April 10 that it was withdrawing from the Bittensor network, accusing key figure Jacob Steeves of betraying the promise of decentralization and citing multiple suppression actions. Covenant AI emphasized that the apparent decentralized governance of Bittensor is actually controlled by a single person, creating a “decentralization theater.” The team’s decentralized LLM pretraining project, Covenant-72B, has significant influence in the industry; this withdrawal is seen as a proactive choice rather than a failure.

Musk confirmed on the X platform that Grok 4.2 has 0.5 trillion parameters. Calculations suggest that Claude Opus has about 5 trillion parameters, and Sonnet has 1 trillion. Although Anthropic has not disclosed the model parameters, these figures come from Musk’s remarks. Meanwhile, SpaceX AI’s Colossus 2 supercomputer is training a model with the largest scale of 10 trillion parameters, which will become a key competitive factor.

AlphaTON Capital announced plans to raise $43.0 million through a transaction with Vertical Data Inc. to support its AI infrastructure operations, with a focus on deploying NVIDIA B300 GPUs to enhance the computing power of the Cocoon AI platform. This move is part of the company’s transition from biotechnology to encrypted AI infrastructure, aiming to achieve data privacy protection and deep integration of AI with digital assets.

U.S. Treasury Secretary Bessent and Federal Reserve Chair Powell convened senior bank officials for an emergency meeting to discuss the potential threat to the financial system posed by Anthropic’s new AI model, Mythos. The meeting aims to heighten banks’ awareness of risks from new types of cyberattacks and to ensure system security. Anthropic has discussed the model with U.S. officials and restricted the scope of its release.

The U.S. CIA Deputy Director Michael Ellis said the CIA will incorporate AI into its analytical platforms over the next few years, but humans will still be the decision-makers. He mentioned a dispute with Anthropic and emphasized that competition between the U.S. and China in technology innovation is intensifying. AI and blockchain analytics will be key areas.

Gate News message: On April 10, according to Gate market data, as of the time of publication, VVV (Venice) is trading at $8.03. In the past 24 hours, it has pumped 19.99%, with a highest of $8.00 and a lowest pullback to $6.64. The total trading volume over the past 24 hours reached $834,000. Current market cap is approximately $364 million. Venice is a privacy-focused artificial intelligence platform that offers services such as generating conversations and image creation, but does not store user data. Users can privately or anonymously access industry-leading AI models including Claude Opus, GPT-5.2, Flux 2, and more, while also enjoying fully private data protection—every AI prompt is kept on the user’s device and is not stored on servers. In addition, Venice aims to eliminate platform