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Tech World Sees Shifts in AI, Stablecoins, Entertainment, and VR Fitness
The tech landscape experienced a week of notable developments, ranging from scrutiny of AI-related layoffs to the launch of new stablecoins, a surprising documentary success, and the backlash over the shutdown of a popular VR fitness app.
Concerns arose regarding the validity of companies citing artificial intelligence as the primary reason for workforce reductions. According to TechCrunch, over 50,000 layoffs in 2025 were attributed to AI, with companies like Amazon and Pinterest among those blaming the technology for recent cuts. However, a Forrester report published in January suggested that many companies announcing AI-related layoffs lacked mature AI applications ready to fill those roles, highlighting a potential trend of "AI-washing," where AI serves as a cover for other underlying issues like pandemic-era over-hiring. A New York Times article also questioned whether companies were using AI as an excuse to mask other problems.
In the cryptocurrency realm, Tether CEO Paolo Ardoino embarked on a media blitz, engaging with outlets like Fortune, Bloomberg, Reuters, and TechCrunch. This coincided with Tether's launch of USAT, a U.S.-regulated stablecoin issued through Anchorage Digital Bank. This marks Tether's first product designed to comply with new federal rules and directly compete with Circle's USDC. The move signals a significant shift for Tether, as Ardoino had previously avoided the United States while regulators scrutinized the company from offshore, according to TechCrunch. Fidelity Investments also entered the stablecoin market, joining JPMorgan Chase and PayPal in an increasingly competitive field.
Amazon's acquisition of the documentary "Melania," about former First Lady Melania Trump, proved surprisingly successful at the box office. The film grossed an estimated $7.04 million on its opening weekend, exceeding pre-release estimates of $3 to $5 million, reported TechCrunch. Despite this strong performance, placing it third overall behind "Send Help" (20 million) and "Iron Lung" (17.8 million), it is unlikely to make a profit in theaters given Amazon's $40 million acquisition cost and reported $35 million promotional spend. Amazon's bid was $26 million higher than Disney's, the next highest bidder, leading some critics to question the motivations behind the deal.
Meanwhile, in Southeast Asia, Indonesia conditionally lifted its ban on xAI's chatbot Grok, following similar moves by Malaysia and the Philippines, TechCrunch reported. The bans were initially imposed after Grok was used to generate a large number of nonconsensual, sexualized images on X, including images of real women and minors. Analyses by The New York Times and the Center for Countering Digital Hate indicated that at least 1.8 million such images were created in late December and January. Indonesia's Ministry of Communication and Digital Affairs stated that the ban was lifted after X sent a letter outlining concrete steps for service improvements and the prevention of misuse, according to a translation by The New York Times. Alexander Sabar, the ministry's director general of digital space monitoring, confirmed the decision.
Finally, The Verge highlighted the backlash against Meta's decision to shut down the VR fitness app Supernatural. The app had cultivated a passionate community, particularly among women, who felt betrayed by the decision. Sherry Dickson, a 69-year-old retired teacher, told The Verge that she used the app five days a week for 60 to 90 minutes at a time. The closure has sparked anger and disappointment among users who found a new way to stay active and connected through the VR platform.
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