The AI-Driven Future - Issue #484 September 5th, 2024

Magic, a San Francisco AI coding startup founded in 2022, has partnered with Google Cloud to develop two supercomputers on the Google Cloud Platform. Following a $320 million funding round with backing from investors like Alphabet’s CapitalG and Sequoia, Magic's total fundraising has reached $465 million, valuing the company at $500 million as of early 2024. With a team of 23, Magic aims to advance AI-driven software development and automation.

Hosts Benjamin Ensor and Nadine Timmer-Bodenstein, joined by special guests, dive into this week's major fintech and financial services news. Key topics include a warning from the FS trade union about AI-induced job losses in big banks, Atlantic Money's new challenge to the SWIFT network, OakNorth's approval to offer its products in the U.S., and KOHO's launch of tenant insurance and rent reporting services for renters in Canada.

Story Protocol has rapidly reached a $2.25 billion valuation in just two years by focusing on protecting creators' rights in the AI era. The company recently secured $80 million in funding, led by venture capital firm Andreessen Horowitz (a16z crypto).

Axis Bank MD and CEO Amitabh Chaudhry warned that banks risk missing valuable opportunities if they don't collaborate with fintech startups. He noted that fintech platforms are introducing innovative technologies, products, and services that can significantly enhance customer interactions and overall ecosystems. Chaudhry emphasized that working with fintechs is crucial, as banks often lack the necessary resources and time to develop these advancements independently.

New Zealand fintech company Debut is gearing up to become the country’s first locally-owned bank tailored for an open banking environment and driven by artificial intelligence (AI). This move addresses increasing concerns about competition and consumer choice in the banking sector, as underscored by a recent report from the Commerce Commission.

Aibit, a prominent digital asset trading platform, has unveiled a new AI system aimed at improving decision-making for fintech innovators. This advanced system is designed to tackle common issues encountered in the rapidly changing world of digital finance and technology. By leveraging sophisticated artificial intelligence, Aibit's solution streamlines the selection process, enabling users to quickly explore options and make well-informed decisions.

Klarna’s CEO has announced a dramatic plan to cut the company’s workforce by 50% and replace those roles with artificial intelligence, signaling a major shift in the fintech giant's strategy. Known for its innovative approach to e-commerce since its founding in 2005, Klarna, under CEO Sebastian Siemiatkowski, is making an unprecedented move towards automation that has shocked the fintech industry.

Shailendra Singh, managing director of Peak XV Partners, highlighted a lack of artificial intelligence (AI) adoption in India's growing fintech sector. Speaking at the Global Fintech Festival's "Future of Fintech" session, Singh emphasized that AI has the potential to bring transformative changes to the industry.