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Jack Dorsey onstage at the Bitcoin 2021 Convention in Miami, Florida (Joe Raedle/Getty Images)
OUT OF THE BLUE

Jack Dorsey has made a Bluetooth-based messaging app that doesn’t require internet

At the weekend, the Twitter cofounder unveiled the beta version of “Bitchat” — an encrypted, decentralized messaging service built on... Bluetooth.

Millie Giles

However you spent your Fourth of July weekend, it probably wasn’t as productive as Jack Dorsey’s (or, for that matter, Joey Chestnut’s).

On Sunday, the Twitter cofounder and ex-CEO announced that he’d successfully completed his “weekend project” of learning about Bluetooth mesh networks — and created a beta version of “Bitchat,” a new encrypted messaging app able to function entirely via Bluetooth, without the need for internet connection, cell service, phone numbers, or emails.

Dorsey’s “personal experiment” works by connecting users’ phones via local Bluetooth clusters, allowing messages to be sent between devices. Then, “bridge” devices that connect overlapping clusters are used to stretch the mesh network over a greater distance.

Privacy, please

Dorsey has long been a fan of decentralized communications, playing a major role in the development of social networking apps Damus and Bluesky, and his new app’s peer-to-peer encrypted messaging will also rival Meta-owned WhatsApp — without the requirements of identifiable accounts or data collection.

What really separates Bitchat, though, is its use of Bluetooth to keep it functioning offline, similar to mesh messaging apps used during the 2019 Hong Kong protests, per CNBC. While Bluetooth technology isn’t anything new, it’s still impressively prescient in the modern tech world.

Bluetooth Device Shipments
Sherwood News

Long in the tooth

Based on developments made at Nokia-owned Ericsson in 1994, the first Bluetooth device hit the market in 1999 the same year that the first camera phone was released. 

With a name that started as a reference to King Harald, who united Denmark and Norway, and a logo resembling Nordic runes for his initials, Bluetooth connected computers, phones, and gadgets with wireless transfer capabilities at breakneck speed in the decades to come. In 2000, an estimated 800,000 Bluetooth-enabled devices were shipped; by 2020, this number had multiplied 5,125x over to 4.1 billion, per company reports.

There are very few technologies that are still growing after 30-plus years... but, despite contracting slightly in 2024, Bluetooth looks to have managed it, with the company projecting that shipments will near 8 billion by 2029.

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EPA: xAI’s Colossus data center illegally used gas turbines without permits

The Environmental Protection Agency has ruled that xAI violated the law when it used dozens of portable gas generators for its Colossus 1 data center without air quality permits.

When xAI set out to build Colossus 1 in Memphis, Tennessee, CEO Elon Musk wanted to move with unprecedented speed, avoiding all of the red tape that could slow such a big project down.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

To power the 1-gigawatt data center, Musk took advantage of a local loophole that allowed portable gas generators to be used without any permits, as long as they did not spend more than 364 days in the same spot. That allowed xAI to bring in dozens of truck-sized gas generators to quickly supply the massive amount of power the data center needed to train xAI’s Grok model.

The new EPA rule says the use of such portable generators falls under federal regulation, and the company did need air quality permits to operate the turbines. xAI is also using dozens of such generators to power its Colossus 2 data center just over the border in Alabama.

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Trump to push Big Tech to fund new power plants as AI drives up electricity costs

President Donald Trump is expected to announce a plan Friday morning that would require Big Tech companies to bid on 15-year contracts for new electricity generation capacity. The move would effectively force companies to help fund new power plants in the PJM region as soaring demand from AI data centers pushes up electricity costs across the US power grid.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

Earlier this week, Trump called on tech giants to “pay their own way,” arguing that households and small businesses should not bear the cost of power infrastructure needed to support energy-hungry data centers.

Microsoft quickly responded, saying it would “pay utility rates that are high enough to cover our electricity costs,” along with committing to other changes aimed at easing pressure on the grid. Other major tech companies are expected to follow suit, though Wedbush Securities analyst Dan Ives warned the added costs could slow the pace of data center build-outs.

As we’ve noted, forcing tech companies to shoulder higher electricity costs is likely to hit some firms harder than others. Companies like Microsoft, Google, and Amazon can pass at least some of those costs on to customers by selling data center capacity downstream. Meta, in contrast, does not have a cloud business, meaning its AI ambitions lack a direct revenue stream to offset rising power costs.

So far tech stocks don’t appear to be affected much in premarket trading. However utility companies most levered to the AI boom certainly are, with Vistra, Constellation Energy, and Talen Energy deep in the red ahead of the open as analysts at Jefferies warn that these firms face risks from this plan.

tech
Jon Keegan

OpenAI working to build a US supply chain for its hardware plans, including robots

When OpenAI purchased Jony Ive’s I/O, it entered the hardware business. The company is currently ramping up to produce a mysterious AI-powered gadget.

But OpenAI plans on making more than just consumer gadgets — it also plans on making data center hardware, and even robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

Bloomberg reports that OpenAI has been on the hunt for US-based suppliers for silicon and motors for robotics, as well as cooling systems for data centers.

AI companies are looking toward robots as a logical next step for finding applications for their models.

OpenAI told Bloomberg that US companies building the AI brains of robots might have an edge against the Chinese hardware manufacturers that are currently making some impressive humanoid robots.

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