In today's ExchangeWire news digest: AI investments skyrocket off the back of Chat GPT's success; ByteDance strengthens its position in the VR headset market; and New York's DFS orders Paxos Trust Co. to cease the trade of Binance USD.

Investments in AI firms skyrocket

Analysts have warned of a “speculative” bubble brewing in the AI market as the success of ChatGPT has prompted an influx of investments in smaller AI firms.

ChatGPT recorded around 100 million monthly active users in January according to UBS, with the bank stating, “we cannot recall a faster ramp in a consumer internet app”. Data provider VandaTrack also forecast a “continuation of speculative activity” around AI, depending on macroeconomic conditions.

ByteDance rivals Meta on VR headset shipments

TikTok-parent ByteDance is gaining market share in the VR headset space, strengthening its position as a competitor to Meta.

The Chinese company purchased VR headset manufacturer Pico back in 2021, which has seen a spike in shipments in recent months. According to industry data, Pico’s global sales now second Meta’s, despite not shipping to the US.

New York financial authorities clamp down on Binance USD

The New York Department of Financial Services (DFS) has ordered a crypto company to cease the issuance of Binance USD as part of a wider clampdown on cryptocurrency in the US. Paxos Trust Co. partnered with Binance to launch the stablecoin back in 2019, stating that the currency was backed by New York’s DFS.

The DFS’ restrictions come as the US Securities and Exchange Commission plans to launch legal action against Paxos for violating investor protection laws. 

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Azerion Announces a Series of New Appointments as it Continues Rapid Growth 

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Fact of the Day

USD$1.25bn (~£1.03bn) - the forecast figure for the global chatbot market by 2025.

Source: Statista

Last week's tech teasers

Inspired by our Web3 Hub in association with Alkimi Exchange, last week's tech teasers challenged your knowledge on NFTs. See how you fared below!

• USD$15.54bn (~£12.81bn) - the size of the global NFT market in 2021 🌎
• OpenSea - the NFT marketplace which recorded trading volume of USD$3.7bn (~£3bn) in 2022 📈
• CryptoKitties - the first NFT collection to be created on the Ethereum blockchain using the ERC-721 token standard 🥇
• Elon Musk - the entrepreneur who inspired an NFT collection launched by Basic.Space 👔
• USD$91.8m (~£71.7m) - the amount ‘Merge’ sold for in 2021 🤑

Challenge yourself on ad tech, martech, media, and commerce, by signing up to The Stack, where we publish a new quiz every Friday.