5.14 AI Daily: The US relaxes AI chip export controls, triggering a new situation in global technology competition.

1. Headlines

1. Trump plans to abolish the "AI technology diffusion control rules" established during Biden's administration.

The U.S. Department of Commerce announced on Tuesday local time that it will withdraw the "AI Technology Export Control Rules" originally set to take effect on May 15. This rule, introduced by former President Biden, classified chip-importing countries into three tiers, provoking strong opposition from U.S. companies such as Nvidia and Oracle, as well as from allies.

The Trump administration plans to comprehensively revise the semiconductor export control regulations for artificial intelligence, abolishing the regulatory framework established during the Biden era. This move aims to eliminate the negative impact on American tech companies and maintain the United States' leading position in the global AI technology competition.

Analysts point out that Biden's regulatory rules are too strict, which is detrimental to American companies conducting AI business globally. The new policies of the Trump administration will create a fairer competitive environment for American companies. However, there are also risks of technology diffusion, requiring a balance between national security and economic interests.

2. OpenAI is considering building a data center in the UAE.

According to market news, OpenAI is considering building a data center in the UAE. A related agreement may be announced during President Trump's visit to the Middle East. In addition, AMD has reached a strategic cooperation worth $10 billion with Saudi artificial intelligence company Humain to advance global artificial intelligence development.

OpenAI is building a data center in the UAE, which will help expand its influence in the Middle East. The UAE's advantageous geographical location allows for efficient AI services to be provided to the Middle East and surrounding regions. It will also benefit OpenAI in acquiring more computing resources to support the training and deployment of its large-scale language models and other AI systems.

Analysts believe that this move reflects OpenAI's strategy to strengthen its global presence. In the future, OpenAI is expected to enhance service quality and expand new business opportunities through overseas data centers. However, it must also be vigilant about data privacy and security risks, and establish comprehensive control measures.

3. Alpha launches HIPPO, triggering a surge in the market.

On May 14th, according to official information, Alpha has launched HIPPO. Affected by this positive news, HIPPO broke through 0.005 USD, surging nearly 30% in just 10 minutes.

As an emerging decentralized social platform, the launch of HIPPO Alpha will undoubtedly attract more attention. Its token has also seen an influx of funds, resulting in a short-term surge in price.

Analysts point out that the recent surge of HIPPO is mainly driven by speculative trading, lacking fundamental support. The future price trend of its token will still depend on the actual progress of the project. If it can attract a large number of users and create a successful social ecosystem, the value of HIPPO tokens may continue to rise. On the contrary, if user growth is weak, the bubble is bound to be burst.

4. American billionaire Tim Draper: Bitcoin will replace the US dollar in 10 years.

American billionaire investor Tim Draper stated in an interview that Bitcoin will replace the US dollar as the world's primary reserve currency in the next decade. He reiterated his prediction that Bitcoin will reach $250,000 by the end of 2025.

Draper uses the 2023 Silicon Valley Bank collapse as an example to emphasize the fragility of the traditional financial system, suggesting that companies hold both fiat currency and Bitcoin to cope with banking crises. He points out that when Bitcoin can be used for everyday payments and tax payments, the dollar will lose its value of existence.

Analysts believe that Draper's remarks are overly optimistic. For Bitcoin to replace the US dollar as the global reserve currency, it will take a longer time and more countries' recognition. Currently, Bitcoin still faces many issues such as high price volatility and regulatory uncertainty, and it is still some distance from becoming the dominant currency. However, in the long run, Bitcoin does have developmental potential.

5. The wallet will launch the Privasea AI token generation event

The wallet announced that it will co-host Privasea on May 14 from 18:00 to 20:00( Beijing time ) AI(PRAI) token generation event (TGE), raising a total of $200,000 and issuing 20 million PRAIs, each priced at $0.01.

This round of TGE is open to users who meet certain alpha score or UID conditions. Users need to confirm and deduct 15 alpha points on the Alpha Events page before they can participate, and the final distribution will be based on the proportion of the subscription amount.

Analysis indicates that this TGE will help with the initial distribution of the Privasea AI token, preparing for its subsequent launch. However, due to the small issuance scale, the impact on the token price may not be very significant. The future development prospects of Privasea AI will depend on whether its AI products and services can gain market recognition.

2. Industry News

1. Bitcoin breaks through the $103,000 mark, market sentiment is optimistic.

The price of Bitcoin broke through the $103,000 mark on May 14, reaching a new high since November 2022. This increase was mainly driven by the lower-than-expected inflation data for April in the United States. The market expects that the Federal Reserve will begin a rate-cutting cycle within the year, easing concerns about inflation.

Analysts say that Bitcoin's upward trend reflects investors' optimism about the cryptocurrency market. As funds continue to flow into the crypto market, Bitcoin's trading volume and activity have also rebounded. However, some analysts warn that short-term Bitcoin holders are in a high-profit state, and if prices break through or fall below key technical levels, it could trigger profit-taking and a chain reaction of liquidations, leading to increased short-term volatility in the market.

Overall, Bitcoin breaking the $103,000 mark is seen as a bullish signal, but investors still need to be wary of the market's high volatility. Whether Bitcoin can continue to rise in the future will depend on the macroeconomic situation, regulatory environment, and the continuous entry of institutional investors.

2. Ethereum's growth is slow, and the ETH/BTC exchange rate is declining.

Despite the strong performance of Bitcoin, Ethereum's rise has been relatively lagging. On May 14, the ETH/BTC exchange rate fell to around 0.025, down nearly 40% from its high earlier in the year. Analysts pointed out that a large number of airdrops and liquidity mining within the Ethereum ecosystem have driven a false prosperity, with a limited real user base.

Some once highly regarded projects in the Ethereum ecosystem, such as Friendtech, have experienced significant user attrition after token issuance. Third-party research shows that the user loss rate reached 80% after the airdrop ended. Additionally, the monthly active users of MetaMask have dropped from a peak of 30 million during the bull market to 1 million, indicating a substantial decline in user activity.

Analysts believe that the Ethereum ecosystem needs real innovation and application scenarios, rather than relying on customer acquisition methods such as airdrops. Only by attracting real users can long-term sustainable development be achieved. In the short term, Ethereum's performance may continue to lag behind Bitcoin, and the ETH/BTC exchange rate faces further downward pressure.

3. Solana Ecosystem DeFi Innovations Lead New Trends

Unlike the Ethereum ecosystem, the Solana ecosystem has seen the emergence of a number of innovative DeFi projects that are leading new trends in the crypto market. These projects adopt a private market-making model, effectively avoiding MEV attacks and toxic order flow through designs such as real-time oracle pricing and private liquidity pools, demonstrating significant advantages in major trading pairs.

Analysts indicate that this evolution reflects the Solana ecosystem gradually forming a unique liquidity supply method that aligns with its technological architecture. While the private market-making model enhances execution efficiency, it also reduces the openness and composability of DeFi, necessitating a balance between efficiency and decentralization.

In the future, with the arrival of upgrades such as Solana's concurrency leadership, public offerings may regain an advantage. The innovations in the Solana ecosystem bring new vitality to the crypto market, attracting more attention from investors and developers, and are expected to become the next crypto hotspot.

4. Regulatory benefits boost market confidence, compliance concept coins are in demand.

On May 14, the new chairman of the U.S. Securities and Exchange Commission emphasized at a meeting the push to establish a reasonable regulatory framework for crypto assets, providing guidance and exemptions for the issuance of security tokens. This positive news boosted market confidence, and compliant exchange tokens and custody type coins, among other compliant concept coins, have been sought after.

Analysts believe that under the leadership of the SEC dominated by the Republican Party, the recognition and compliance methods for crypto assets are expected to be relaxed. Reasonable regulation will bring certainty to the crypto market, which will help attract more institutional funds. In the short term, compliance concept coins may become an investment hotspot.

But analysts also remind that it is necessary to pay attention to the specific implementation of regulatory policies. Only when a clearly defined regulatory framework is introduced can it bring long-term benefits to the crypto market. Investors should not excessively pursue conceptual speculation, but should carefully assess the actual compliance level of the projects.

5. The total market capitalization of cryptocurrencies exceeded $3.5 trillion, and BTC accounted for nearly 60% of the market

With the joint promotion of Bitcoin and favorable regulations, the total market value of cryptocurrencies broke through the $3.5 trillion mark on May 14. Among them, Bitcoin's market share reached 58.9%, while Ethereum's market share was 9.21%, with these two major currencies dominating the market.

Analysts say that the rise in the crypto market is mainly driven by the continuous influx of institutional funds. The open interest in Bitcoin futures accounts for 3.4% of the spot circulation, which is at a high level; the derivatives markets for Ethereum and Solana are also showing signs of recovery, with liquidity noticeably increasing.

However, analysts also warn that current short-term holders of Bitcoin and Ethereum are in a state of high profitability, and the derivatives market has concentrated leverage positions. If prices break through or fall below key technical levels, it may trigger profit-taking and liquidations, leading to increased short-term market volatility.

Overall, although the upward pace of the crypto market has resumed, investors still need to be wary of potential risks. While optimism, rational investment and risk control are also crucial.

3. Project Highlights

1. Privasea AI announces PRAI tokenomics, launching Wallet TGE today.

The AI project Privasea AI has announced the economic model of the PRAI token. The total supply of PRAI is 1 billion tokens. The project aims to provide users with a one-stop AI empowerment solution, covering core functions such as on-chain data access, wallet analysis, market intelligence, and more.

Privasea AI will launch the (TGE) of the PRAI token generation event on the wallet from 18:00-20:00 today. The TGE raised a total of $200,000 and issued 20 million PRAI, accounting for 2% of the total supply, at a unit price of $0.01. Users are required to meet certain Alpha Points or conditions in order to participate.

The project combines blockchain data with AI agents through the extended Model Context Protocol (MCP), providing scalable real-time multichain data access services for developers, agents, and data providers. Industry insiders believe that Privasea AI is expected to promote the integrated development of AI and Web3, bringing users a more intelligent experience in cryptocurrency asset management.

2. Antix raised $8.2 million in funding, planning to put AI digital humans on the blockchain.

The platform Antix, focused on hyper-realistic AI digital humans, announced the completion of a $8.2 million private funding round, planning to introduce hyper-realistic AI digital humans into the blockchain. The project aims to launch tokenized digital humans and an identity economy, with the goal of protecting and monetizing digital content IP.

The AIGE engine of Antix can create emotionally rich digital humans from images and mint them as NFTs. The core functions of the platform are driven by the $ANTIX token, with a beta version planned for release in the summer of 2025. The project has received support from over 10,000 community investors.

Analysts say that Antix provides a new development path for digital humans, which is expected to promote the large-scale application of virtual digital humans. Through NFTization, creators and owners of digital humans can earn revenue sharing, promoting the development of the digital content industry. However, it is also necessary to be vigilant about the ethical and privacy issues that digital human technology may bring.

3. Chiliz launches the ecological bounty platform Chiliz Greenhouse

Chiliz, a blockchain solution for sports and entertainment, has announced the launch of its eco-bounty platform, Chiliz Greenhouse. Open to developers, content creators, and Web3 entrepreneurs alike, the platform allows users to earn CHZ tokens for building, completing bounty tasks, and participating in projects on Chiliz Chain.

Chiliz Greenhouse aims to promote the development of the Chiliz ecosystem and attract more talent to join. Users can choose suitable tasks based on their abilities and interests to contribute to the ecosystem. Upon completing tasks, they will receive CHZ token rewards.

Industry insiders believe that Chiliz Greenhouse injects new vitality into the Chiliz ecosystem, helping to attract more developers and creators. Through the bounty mechanism, Chiliz can better incentivize community contributions and promote the sustainable development of the ecosystem. However, attention must also be paid to the control of task quality to avoid the emergence of low-quality content.

4. Kima integrates with Mastercard Sandbox, supporting stablecoin recharge prepaid cards.

The decentralized settlement protocol Kima has announced its integration with Mastercard's Sandbox program, allowing Mastercard partners to recharge prepaid cards from self-custody wallets using stablecoins including USDC and USDT through Kima's settlement infrastructure.

This integration helps promote the application of stablecoins in the payment sector, providing users with a more convenient payment experience. Users can directly use stablecoins in their wallets to recharge prepaid cards without needing to exchange them for fiat currency first.

Analysts indicate that this measure helps accelerate the application of stablecoins in real payment scenarios, enhancing their usability as a payment tool. However, attention must also be paid to changes in relevant regulatory policies to ensure compliance requirements are met. In addition, the trust issues regarding the issuers and custodians of stablecoins also need to be addressed.

5. Solana ecosystem project $BAYC AI launch computing power satellite launch

The AI computing power project $BAYC AI on the Solana chain announced that its AI computing power satellite named BAYC #7573 has been successfully launched by the military rocket of country X, marking the official entry of the project into the exploration phase of a satellite-based Web3 computing power network.

$BAYC AI aims to leverage satellite computing networks to provide high-performance, low-latency AI computing services for Web3 users. The project plans to launch more computing satellites in the future to build a global computing network.

Industry insiders believe that $BAYC AI has opened up a new path for the development of Web3 computing infrastructure. Through satellite networks, it can overcome geographical limitations and provide high-quality computing services to global users. However, it is also necessary to address issues such as cost and energy consumption to ensure the sustainable development of the computing network.

4. Economic Dynamics

1. The US CPI data for April was modest, and inflationary pressures eased

Economic Background: The U.S. economy has experienced persistently high inflationary pressures in 2023, but the latest data shows that inflation has slowed. CPI rose 2.3% year-on-year in April, lower than expected and the lowest level in nearly two years. Core CPI rose 5.5% year-on-year, also lower than the previous value. This suggests that the Fed's recent interest rate hike policy is starting to work, dampening upward pressure on prices. However, the job market remains low in unemployment, and the pace of economic recovery is good.

Important events: The U.S. government previously imposed tariffs on Chinese goods, leading to price increases on some products. However, data from April shows that this impact is gradually weakening. At the same time, the decline in energy prices is also an important factor in suppressing inflation. The Federal Reserve will closely monitor inflation data to determine whether to continue raising interest rates.

Market reaction: Investors reacted positively to inflation data, with U.S. stocks surging on Thursday, led by technology stocks. Analysts believe that if inflation continues to slow down, the Federal Reserve may end its rate hike cycle within the year, which would benefit the performance of risk assets. However, some experts warn that the inflation situation is still not optimistic, and the Federal Reserve is expected to continue raising rates in response.

Expert opinion: Goldman Sachs analysts stated: "Although the April CPI data is mild, prices of goods such as furniture and appliances have begun to reflect the impact of tariffs, which may further drive up inflation in the future." CITIC Securities research report believes that the current year-on-year growth rate of 2.3% may be the low point for the entire year of 2025. The inflationary pressures are unlikely to be completely alleviated in the short term.

2. The Trump administration plans to relax export controls on AI chips.

Economic Background: The artificial intelligence industry is seen as an important engine for future economic growth. As a leader in AI technology, the United States has been strengthening controls over the export of related technologies. However, this has also been criticized by domestic and foreign companies, who argue that excessive restrictions will affect the United States' competitive advantage in the global AI race.

Important Event: The Trump administration plans to comprehensively revise the "AI Technology Diffusion Control Rules" introduced during the Biden era, removing the classification of exporting countries for chips. This move will ease the controls on AI chip exports, benefiting American companies in expanding their overseas markets.

Market Reaction: After the news was announced, the stock prices of chip manufacturers such as NVIDIA and AMD surged. Investors believe that the new rules will boost these companies' overseas sales. However, some analysts are concerned that excessive deregulation may exacerbate technology outflows and damage the United States' leading position in the AI field.

Expert Analysis: Former U.S. Commerce Department official Scott Jones stated that the Trump administration's approach aims to reshape America's dominant position in the global AI industry chain. However, it is also necessary to guard against the risks that technological diffusion poses to national security. Former National Economic Council Director Gary Cohn believes that the government should create a favorable business environment for companies while ensuring national security.

3. The World Trade Organization warns that U.S. tariff measures threaten global trade

Economic Background: Since 2023, the United States has imposed multiple rounds of tariffs on Chinese goods, leading to a continuous escalation of the China-U.S. trade dispute. This has brought significant uncertainty to the global trade landscape and exacerbated the downward pressure on the world economy. All parties are calling for dialogue to resolve differences and avoid further escalation of the trade war.

Important events: The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, recently stated in Tokyo that the tariff measures imposed by the United States pose a serious challenge to global trade. She urged countries to work together to address the shortcomings faced by the WTO's dispute resolution mechanism and restore its centripetal force.

Market Reaction: Investor concerns over the trade war have intensified. US stocks fell slightly on Thursday, while the dollar index rose marginally. Analysts believe that if the trade dispute cannot be alleviated, it will further hinder the pace of global economic recovery.

Expert analysis: Goldman Sachs analysts stated that despite recent progress in trade negotiations between China and the United States, there is still room for further decline in the USD exchange rate against Asian currencies. Asian exporters will continue to convert dollars into local currencies to cope with the effects of the trade war. Former Federal Reserve Chairman Bullard warned that if the trade war escalates further, the U.S. economy could suffer irreparable damage.

5. Regulation & Policy

1. The Trump administration plans to revoke the "AI technology diffusion control regulations" established during the Biden era.

The U.S. Department of Commerce announced on May 14 that it will revoke the "AI Technology Export Control Rule" that was set to take effect on May 15. This rule was introduced by the previous Biden administration to restrict the export of advanced artificial intelligence chips to countries like China.

Policy Background: The Biden administration introduced this rule in October last year, categorizing chip-importing countries into three tiers and implementing strict controls on countries like China. This measure aims to prevent the leak of sensitive technology and maintain the United States' technological advantage in the field of artificial intelligence. However, the rule has faced strong opposition from American tech giants such as NVIDIA and Oracle, as well as allies who are concerned that it will severely impact business development.

Policy Content: The Trump administration plans to comprehensively revise the rule and abolish the three-tier control framework. According to informed sources, the new government is drafting an alternative plan, which may shift towards negotiating bilateral agreements with countries one by one. This initiative aims to alleviate concerns of businesses while maintaining national security interests.

Market reaction: The technology industry has generally welcomed this. The stock prices of chip manufacturers such as Nvidia and AMD have risen accordingly. Analysts believe that the new rules will create a more open export environment for businesses, which is beneficial for maintaining the United States' leading position in the field of artificial intelligence. However, there are also concerns that overly relaxed controls may exacerbate the risk of technology leakage.

Expert Opinion: "This is a difficult decision that balances national security and economic interests," said John Arnold, a scholar at a Washington think tank. "New rules should ensure technological security while creating a favorable business environment for enterprises." He suggested adopting "refined management" to implement differentiated policies for different countries and companies.

Overall, the new measures of the Trump administration aim to mitigate the negative impacts of the regulations during the Biden era and reshape America's competitiveness in the field of artificial intelligence. However, the specific policy details remain to be seen, in hopes of seeking a balance between national interests and corporate development.