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OpenAI battles privacy invasion while Circle's IPO surge validates Ethereum infrastructure

June 9th, 2025

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Read Time: 10 Minutes

Today’s Menu

  • OpenAI fights court order threatening user privacy fundamentals

  • Circle's explosive IPO validates Ethereum as institutional infrastructure backbone

Markets

Price

1 Day Change

Bitcoin

$108,322

1.9% ⬆️

Ethereum

$2,568

0.6% ⬆️

Solana

$156

2.1% ⬆️

TODAY IN AI

OpenAI fights court order threatening user privacy fundamentals

OpenAI is vigorously opposing a court mandate requiring the company to retain all user conversations, including those manually deleted by users, in its ongoing legal battle with The New York Times. This unprecedented order affects hundreds of millions of ChatGPT users across free, Plus, Pro, and Team tiers, fundamentally altering how AI companies handle user privacy.

The New York Times argued for data preservation based on concerns that users might infringe on its content through ChatGPT interactions, then delete evidence of those conversations. This rationale essentially treats every ChatGPT user as a potential copyright infringer requiring surveillance.

CEO Sam Altman has characterized the demand as an "inappropriate request that sets a bad precedent" and proposed establishing "AI privilege" similar to doctor-patient confidentiality protections. This concept recognizes that AI assistants are increasingly used for sensitive personal conversations that deserve legal protection.

The court order exempts ChatGPT Enterprise, Edu, and API customers operating under Zero Data Retention agreements, creating a two-tier privacy system where paying enterprise customers receive protection while individual users do not.

The timing couldn't be more critical. As millions of users begin trusting AI systems with vulnerable thoughts and sensitive information, this order threatens to shatter confidence just as AI becomes embedded in daily life. The privacy implications become even more concerning as AI transitions toward physical devices with always-on recording capabilities.

The broader implications extend beyond OpenAI to the entire AI industry. If courts can compel AI companies to preserve deleted user data based on speculative copyright concerns, it fundamentally undermines user expectations of privacy and control over their digital conversations.

What this means for AI adoption: The outcome of this case will likely determine whether AI assistants can maintain user trust necessary for widespread adoption, or whether privacy concerns will limit their integration into sensitive personal and professional contexts.

TODAY IN CRYPTO

Circle's explosive IPO validates Ethereum as institutional infrastructure backbone

Circle's public debut on the NYSE has delivered spectacular results, with shares surging 167% on the first day and climbing another 38% the following session. However, this success represents far more than a single company's triumph—it validates Ethereum as the critical infrastructure underlying the next generation of digital finance.

Circle's USDC stablecoin relies heavily on Ethereum, with over $36.7 billion hosted on the network—more than half of USDC's total supply. As Circle's market success draws institutional attention to stablecoin infrastructure, Ethereum emerges as the primary beneficiary of this validation.

The numbers supporting this thesis are compelling. Stablecoin transaction volume reached $27.6 trillion in 2024, surpassing traditional payment giants Visa and Mastercard combined. Major technology companies including Apple, Google, Airbnb, and X are reportedly in early discussions to integrate stablecoin payment capabilities, creating potential massive demand for Ethereum-based infrastructure.

As Bitwise strategist Juan Leon observed: "As USDC usage proliferates, it translates into more liquidity for DeFi and excitement for developers to build on Ethereum." This creates a virtuous cycle where stablecoin adoption drives broader Ethereum ecosystem development.

Institutional validation is already materializing through ETF flows. Spot ETH ETFs have recorded 15 consecutive days of inflows, reaching a record high of $3.35 billion in cumulative inflows since launch. This sustained institutional interest suggests professional investors recognize Ethereum's role as foundational infrastructure for digital finance.

Circle's IPO success essentially provides a public market valuation for the stablecoin economy, demonstrating that traditional investors view blockchain-based financial infrastructure as valuable and sustainable. This recognition could accelerate institutional adoption of Ethereum-based solutions across various financial services.

Strategic takeaway: Circle's market success represents indirect validation of Ethereum's value proposition as the backbone of digital finance infrastructure. As stablecoin adoption accelerates and institutional interest grows, Ethereum's position as the primary settlement layer for digital assets becomes increasingly valuable and difficult to replicate.

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