TOP10 NEWS OF THE WEEK 02.22.2025
THE SANDBOX'S SEBASTIAN BORGET: 2025 LOOKS VERY PROMISING FOR CRYPTO AND METAVERSE
The Sandbox's COO & Co-Founder BORGET Sebastien is a prominent and influential player in the virtual reality and video game market. Shortly after NFT Paris 2025 Aida Dzhanhirova, from Cultural Singularity had the opportunity to interview him for the Metaverse Fashion MAGAZINE.
?? The Sandbox metaverse consists of 166,464 LAND parcels. These parcels are represented as NFTs on the Ethereum blockchain and can be bought, sold, and used by users to create unique content within the virtual world. Who are some of the largest owners of virtual land in The Sandbox?
?? Virtual land ownership in?The Sandbox?is central to the user experience. The Sandbox recently celebrated a very successful Alpha Season 4. We had the pleasure of featuring over 100 experiences with 40 major brands and 60 of the best UGC experiences. We saw over 580,000 unique players across those 10 weeks, and it was extremely rewarding to watch our players engage with the content, complete quests and participate in blockchain transactions. We love watching our players discover the unique capabilities and benefits of The Sandbox, and can’t wait to reveal what is next!
?? In 2024, The Sandbox hosted the?Digital Fashion Week?project as part of NFT Paris, the largest metaverse event. This collaboration was impressive, as real fashion runway shows were mirrored in the metaverse—a new step in the twins concept. What did your platform gain from this collaboration? What role do you see digital fashion playing in the development of virtual worlds?
?? The collaboration we did with?NFT Paris?last year was a highlight, we worked with Dress X to produce an AI modeling mirror where you could try on clothes. We’re excited to be at NFT Paris again this year, to continue to raise awareness about The Sandbox and the industry, and to reach new users through innovative and approachable activations. We’re always looking for the next innovative fashion brand to partner with to create unique experiences that showcase how people can connect with ideas and brands within the metaverse and inspire others.
?? What are your key predictions for the crypto industry in 2025?
?? It’s an exciting time to be in the crypto industry—I believe we’ll see more institutional players enter the space in legitimate ways over the next year. Combined with new technological advancements, and real-life applications for blockchain and crypto, 2025 looks very promising for crypto, the metaverse, and?The Sandbox.
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BIG BETS ON AI ARE STILL GAMBLES
Key Takeaways from The Interline:
?? As bullish as everyone is on AI, fashion must recognise that risk is a different calculus for established and heritage brands than it is for pure-play tech companies.Humane, the startup behind the wearable AI Pin that graced the runway in partnership with Coperni Paris less than eighteen months ago, will be finished next Friday. On its own merits, Humane is a spectacular fall from grace. The company secured $240 million in early funding from major investors, including Salesforce CEO Marc Benioff and OpenAI’s Sam Altman, and reached a valuation of $850 million before even unveiling a product. A seventh (or a tenth) of that target exit is not just a gigantic slump in an individual company’s worth – it’s a straight counter to the notion that AI businesses are intrinsically valuable. And it’s a caution in particular to organisations that aim to pair AI with new product categories in personal and wearable devices.Because technically this kind of plunge is nothing new for Silicon Valley and valley-adjacent companies. The headlines –?Theranos,?Wework,?FTX?– are all about vertiginous valuations that quickly leak away to nothing, but for every one of those there are tens or hundreds more stories of smaller startups that boom on a big idea and then bust afterwards.
?? Nobody remembers the names of the smaller, shorter-burning startup stars, because they were single-idea vehicles designed to soar or collapse – nothing in between. And even though two of those three high-profile founders are now in prison, the one who isn’t?stands a good chance of getting to do it all again. In tech and startup culture, memories are short. But fashion brands – especially the ones that have the resources and the ambitions to be thinking about building AI experiences and services, wearable tech products, and combinations of the two – are specifically designed to last.
?? The SEC is walking back climate disclosure rules. What do fashion brands who’ve invested in processes and tools for transparency do next?Just last week Mark Uyeda – the acting chair of the U.S. Securities and Exchange Commission (SEC) – took a step toward undoing a rule that would have mandated thousands of publicly traded companies to disclose detailed information on how their operations affect the climate and the environment. In an?SEC statement, Mr Uyeda called the rule “deeply flawed” and added that?it “could inflict significant harm on the capital markets and the [US] economy.” Or, in other words, the well-worn concern that sustainable companies are less competitive, and that transparency and due diligence are heavy burdens for enterprises to counterbalance against their growth ambitions.
DEEPSEEK PROMISES TO SHARE EVEN MORE AI CODE IN A RARE STEP
Key Takeaways from Bloomberg:
?? DeepSeek AI is pushing harder on its open-source approach
Chinese AI sensation?DeepSeek?plans to release key codes and data to the public starting next week, an unusual step to share more of its core technology than rivals such as OpenAI have done.The 20-month-old startup, which surprised Silicon Valley with the sophistication of its AI models last month, plans to make its code repositories available to all developers and researchers. That allows anyone to download and build on or improve the code behind the well-regarded R1 or other platforms, it said in a post on X.
?? With the move, DeepSeek is pushing harder on an open-source approach to AI development that’s won more advocates since its models outperformed?OpenAI?and?Meta Platforms Inc.?competitors in benchmark tests. Companies such as Meta already make their models available to the public, allowing users to customize the platform for their own applications. OpenAI began as partially open source, though it’s since?retreated?from that mission. But DeepSeek says it intends to go further by publicizing the underlying code, the data used to create it, and the way it develops and manages that code.
It also potentially escalates a race between the US and China to develop ever-more advanced AI models. By making its coding secrets freely available, DeepSeek is helping to ensure wider adoption of its technology, which is already spurring concerns about?security?among governments from the US to Australia.
??? “We’re a tiny team exploring AGI. Starting next week, we’ll be open-sourcing 5 repos, sharing our small but sincere progress with full transparency,”?DeepSeek?announced on its X handle on Friday.
?? A code and data repository is a digital storage space where the data and resources needed for training, running, and evaluating AI models are organized and managed. The Hangzhou-based startup said its technology has been fully tested, deployed and documented.
?? DeepSeek’s surprising progress has forced larger, more established rivals like?Baidu Inc.?to adopt the open-source framework. But global competitors like?OpenAI?and Anthropic still keep their AI models, repositories and data proprietary.Investors in the biggest US AI startups like?Anthropic PBC?and?xAI?have plowed tens of billions of dollars into the industry in the hope of a big payday. DeepSeek, which?emerged?out of a quantitative hedge fund run by founder Liang Wenfeng, has so far not revealed outside backing and could face less pressure to build a revenue model.“No ivory towers - just pure garage-energy and community-driven innovation,” the startup posted on X.
GROK 3 UNVEILED: ITS POTENTIAL ROLE IN SMART FASHION
?? Elon Musk's xAI launched Grok 3 on Monday, February 17, 2025. With Musk's bold claim of Grok 3 being "the smartest AI on Earth," the tech community and beyond are abuzz with speculation about its capabilities and future applications, one of which is in the burgeoning sector of smart fashion.
?? The Launch of Grok 3
Musk described Grok 3 as an AI model that significantly outperforms its predecessor, Grok 2, with enhancements in reasoning, computational power, and adaptability. The model was trained using an unprecedented computational setup, leveraging 100,000 Nvidia H100 GPUs for a training capacity ten times larger than that of Grok 2.
??? Grok 3's Role in Smart Fashion
The integration of AI into fashion isn't new, but Grok 3's capabilities suggest a transformative leap forward for what's known as smart fashion. Here's how Grok 3 might reshape this sector:
???? Personalization at Scale:?With Grok 3's enhanced understanding of human preferences and its ability to process real-time data, fashion could become more personalized than ever. Imagine clothing that adjusts not just to your size but to your mood, activities, or even the weather, all suggested or controlled by Grok 3's algorithms.
?? Improved Material Innovation:?Smart textiles could benefit from Grok 3's ability to analyze vast datasets on material science, leading to the development of fabrics that are not only more durable and comfortable but also self-regulating in terms of temperature, moisture control, and even color based on user preference or environmental conditions.
?? Augmented Design Process:?Designers could leverage Grok 3 to simulate how new clothing designs would look on varied body types in real-time, using AI-generated models or even 3D renderings. This could significantly speed up the design process, reduce waste from traditional prototyping, and cater to inclusivity in fashion.
?? Interactive Wearables:?Grok 3's multimodal capabilities could enhance the interaction between users and their clothing or accessories. Smart clothes might respond to voice commands, provide health advice based on biometric data, or even interact with other smart devices in your environment for a seamless experience.
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HOW AI, EMERGING TECH IS SHOWING UP AT FASHION WEEK
Key Takeaways from Jing Daily:
?? As the Fall 2025 season unfolds, fashion’s relationship with tech is entering a new phase. As the Fall 2025 fashion season unfolds, early adopters are cautiously re-engaging with emerging tech — this time with a more considered, integration-first approach.
?? VIKTOR&ROLF At Paris Couture Week, Viktor & Rolf was inspired by the endless possibilities of prompts and digital experimentation, choosing to reinterpret a single outfit — a trench coat, white shirt, and blue trousers all made from silk gazar — across 24 different looks.Accompanying the clothes was an AI-generated voice, detailing each ensemble in a vaguely robotic French accent. Technology has been making its presence felt in new, more considered ways on the couture fashion week calendar, such as Schiaparelli’s use of obsolete offcuts last year. It makes sense: the couture schedule has long been a space for brands to push creative boundaries and experiment with storytelling in ways that the ready-to-wear calendar doesn’t always allow.Viktor & Rolf’s approach this season spoke to AI’s wider role in fashion, where machine learning and generative tools are still finding their place in an industry divided by opinion.
?? Seoul Fashion Week Meanwhile, at Seoul Fashion Week, which ran from February 6-10, AI was explored in a different way.Celebrating its 25th anniversary, the event spotlighted designers pushing both sustainability and innovation. Hannah Shin’s “Cosmogonie” collection combined 3D printing with traditional tailoring, producing architectural silhouettes that felt both futuristic and functional. Seoul Fashion Week is quietly setting the pace for fashion’s tech evolution, while Western runways find themselves bogged down in an era overrun with quiet luxury facsimiles.Seoul Fashion Week has also become a testbed for innovation, attracting major tech players eager to integrate digital fashion into everyday wear. Last year, LG Electronics debuted its Stretchable Display technology on garments and accessories designed by Youn-Hee Park and Chung-Chung Lee. This season, Samsung Electronics launched its “Galaxy Studio Fashion” experience at DDP Plaza, showcasing AI-powered digital fashion tools that had been integrated into Samsung devices.
?? Coperni Paris And there’s more innovation to come. At the upcoming Paris Fashion Week circuit, Coperni will host a LAN-inspired party — where attendees bring their gaming consoles to a shared physical location and connect them through a local network to play multiplayer video games — tapping into the gaming community and the growing commercial influence of livestreamers.Can the brand continue to harness innovation in a way that feels purposeful rather than performative? Stay tuned.
WHY PURE SCALING HAS FAILED TO PRODUCE AGI
Key Takeaways from Fortune by Gary Marcus:
???? On the order of half a trillion dollars has been invested on?a premise that I have long argued was unlikely to succeed: the idea (sometimes informally referred to as the scaling hypothesis) that we could get to “artificial general intelligence” simply by adding more and more data and GPUs. Virtually all of the generative AI industry has been built on this presumption; projects like the OpenAI/Oracle/Softbank joint venture?Stargate, allegedly another half trillion dollars, are also largely based on this premise.
?? The so-called scaling laws aren’t universal laws like gravity but rather mere observations that might not hold forever, much like Moore’s Law, a trend in computer chip production that held for decades but arguably began to slow a decade ago.
?? The first signs that the pure scaling of data and compute might in fact be hitting a wall came from industry leaks from people like famed investor Marc Andreessen, who said in early November 2024 that current models are “sort of hitting the same ceiling on capabilities.” ?? Elon Musk said over that weekend that Grok 3, with 15x the compute of Grok 2, and immense energy (and construction and chop) bills, would be “the smartest AI on the earth.” Yet the world quickly saw that Grok 3 is still afflicted by the kind of unreliability that has hobbled earlier models. ?? Hallucinations still plague even the newest systems, as the examples from When customers begin to realize that even with the greater expenses, errors still seep in, they are likely to be disappointed.
?? The fact is, pure scaling has not worked. In short, half a trillion dollars have been invested in a misguided premise; a great deal more funding seems to be headed in the same direction for now.Unfortunately, none of this looks to be sustainable. Most of the money has been invested on the premise that one of these companies would reach artificial general intelligence, which seems (at least in the near term) increasingly unlikely.
?? The reason we are having a price war is that everybody knows basically the same recipe, but nobody has been able to produce a true quantum leap forward.Given the double whammy of price wars and unreliability, many AI companies will probably never make back their investments. Expect a major correction, possibly soon.Investors and nations should continue to invest in AI, but not in more of the same. The real prize will be to investors and nations that are willing to make long-term bets in companies willing to think outside the box. Scaling may be part of the solution, but we will likely need genuinely new ideas if we are to create a reliable AI that we can trust.
AI-POWERED SELFIES AND ROBOTS ARE TAKING ON EUROPEAN RETAIL'S RETURNS CRISIS
Key Takeaways from Fortune:
?? From sizing advice via selfies to robot stock-takers, online shopping behemoths have increasingly turned to artificial intelligence in a bid to stem the flow of bad-for-business clothes returns.
?? Up to 30 percent of fashion items bought on the internet are sent back, according to a late 2024 study by consulting firm McKinsey — not least because “clients are buying several sizes or styles and returning most of them”.That practice drags down profit margins. Each returned package costs between $21 and $46 on average given the costs of transport, treatment and making the item fit for selling again, according to a separate McKinsey study.?? “Seventy percent of returns are linked to a sizing issue,” said Zoé Tournant, whose company FRINGUANT markets an AI-driven algorithm to fix that, charging clients between 5,000 to 100,000 euros ($5,250 to $105,000) a year.Armed with the customer’s height, weight and a quick selfie taken on the phone, the French-based startup promises shoppers a better idea of what size would fit them best.“With the selfie we detect their age, gender”, to help “refine” the image of the customer’s body fed into its AI model, trained for a year on thousands of photos, Tournant explained.
?? ‘Avoid returns’Similarly tempted by AI’s promise, Zalando acquired Swiss start-up Fision Corporation in 2020, one of a raft of companies working in the size-prediction niche.Since July 2023 the German heavyweight retailer has adopted its own AI-driven sizing tool where customers help avoid returns “by taking two photos of themselves with their phone while wearing tight-fitting clothes”, Zalando told AFP.?? Besides sizing, e-commerce firms are also counting on AI to help avoid returns caused by shipping errors and automate their stock counts.At ID Logistics, which operates in 18 countries, the order pickers’ trolleys are equipped with a smart camera to check that the colour or size of the product retrieved from the shelves matches the order.The device immediately alerts the worker if they have picked up the wrong item.In less than two years, this camera has “reduced by 90 percent” the number of incorrect parcels, explains Ludovic Lamaud, ID Logistics Director of Development and Innovation.Elsewhere in the warehouse, an independent robot “rammed with AI” likewise maps the premises to “update the stock according to what it sees”, processing “6,000 to 30,000 pallets a night”.“The right stock prevents preparation errors and therefore returns,” said Lamaud.
CHINA OVERTAKES THE UK IN SOFT POWER RANKING FOR THE FIRST TIME
Key Takeaways from Jing Daily:
?? China has surpassed the United Kingdom to become the second most influential soft power nation, according to the?2025 Brand Finance Global Soft Power Index?released today. The annual index, based on a survey of more than 170,000 respondents across 100 countries, highlights China’s rising status across multiple dimensions. Economic diplomacy, technology leadership, and the global expansion of Chinese brands have propelled the country to an all-time high soft power score of 72.8 out of 100.
?? The strategy behind China’s soft power expansion David Haigh, Chairman of Brand Finance, attributes China’s rise to its sustained investments in economic attractiveness, cultural engagement, and governance stability. He points to China’s growing reputation for sustainability, its expanding influence in the luxury and technology sectors, and its positioning as an increasingly trusted international partner.Chinese brands in luxury, technology, and e-commerce continue to make international inroads. BYD, now the world’s largest?electric vehicle manufacturer, recorded an 83 percent year-over-year increase in overseas sales last month. Beauty brand Florasis has expanded into European markets, while Pinduoduo’s fusion of social networking and e-commerce?has been increasingly recognized as an innovative model for online retail.
?? China’s AI disruption: How DeepSeek AI is reshaping the market China’s soft power gains are also emerging in the technology sector, where the launch of?DeepSeek AI has shaken up U.S. markets. The debut of the cost-efficient AI model triggered a $969 billion selloff in semiconductor and AI infrastructure stocks, signaling a major disruption in the global AI race.DeepSeek’s success suggests that China is no longer merely catching up in AI innovation — it is actively reshaping the industry’s trajectory.
?? What China’s soft power means for global luxury, culture Luxury brands must also consider the broader implications of China’s soft power expansion. For decades, Hollywood, French fashion, and European heritage brands have maintained uncontested cultural dominance. Now, China is closing the gap, driven by homegrown brands expanding overseas, the success of domestic films, and advancements in AI-driven consumer engagement.
?? Who’s gaining and who’s losing in soft power? Despite China’s rise, the U.S. continues to lead the Global Soft Power Index, ranking high in Familiarity, Influence, and Business & Trade. The United Arab Emirates maintained its 10th position, bolstered by business-friendly policies and diplomatic influence.
TRUMP TARIFFS WOULD TEST PRICING POWER OF EUROPE'S LUXURY GOODS MAKERS
Key Takeaways from Reuters:
?? European luxury goods makers say they could draw on pricing power to offset the cost of any tariffs imposed by U.S. President Donald Trump, but analysts say some brands may have limited room to hike prices.Famous brands like LVMH's Louis Vuitton or Kering's Gucci are counting on a buoyant U.S. market this year as China lags.However, Trump has threatened new?tariffs?on the European Union due to trade surpluses it had with the United States, in a widening offensive that economists say could trigger a global economic slowdown.Executives at Hermès and Kering, which make handbags and loafers that sell for thousands of dollars, said last week they could leverage their brands' cachet to absorb any additional duties.
?? "If duties increase, we'll increase our prices accordingly," Hermes Executive Chairman Axel Dumas said on Friday after reporting results.Kering CEO Francois-Henri Pinault signalled the same commitment earlier in the week, saying his brands, including Gucci, Balenciaga and Yves Saint Laurent, would "review (their) pricing strategy" in the event of tariffs."We know how to manoeuvre that," he said.
?? PASSING ON COSTSYet, years of aggressive price hikes, particularly during the post-pandemic boom, could make it harder for some brands to pass on higher import costs.Most brands lifted prices by their most ever in recent years, analysts from firms including UBS, Citi and Bernstein said.
?? CAUTIOUS PRICING
A significant price rise would counter a recent trend for more cautious pricing policy, especially in the U.S. market.Dior, for example, kept U.S. prices flat last year, while Louis Vuitton increased them by a little more than 2%, according to Paris-based market intelligence firm Data & Data, which monitors online retail prices for brand catalogues.
?? CHOPPY OUTLOOK
As Chinese demand stays subdued, Europe's luxury companies are pinning their hopes on Americans in 2025, boosted by roaring equities and crypto markets.Even though business with American customers is expected to grow fastest this year, at 6%, buoyed also by a strong dollar, sales to Chinese customers are set to drop 1%, UBS has forecast. But the outlook remains uncertain.
?? LAND OF CONQUEST
Hermes CEO Dumas last week said he still saw the United States as a "land of conquest" to generate growth, pointing to his group's retail expansion into second-tier U.S. cities, with upcoming openings in Phoenix and Nashville.LVMH hinted it could further bulk up?production?there. CEO Bernard Arnault and his?family?have cultivated personal ties with Trump, with four of them attending the president's?inauguration?last month.
ACHIM BERG LAUNCHES AN INDEPENDENT THINK TANK
Key Takeaways from WWD
The veteran consultant Achim Berg has launched FashionSIGHTS, an independent corporate think tank.
??? “The fashion and luxury industry faces unprecedented challenges, from stagnating top lines in Western markets to rising costs across the entire value chain, driving significant polarization in performance,” Achim Berg said. “Compounding these pressures, external disruptions —?ranging from geopolitical conflicts and supply chain instability to evolving regulatory?landscapes — continue to emerge at an increasing pace. “In this complex landscape, senior decision-makers need clear insights, in-depth analytics, thought leadership and professional advice to navigate uncertainty and drive success,” he said.The think tank is built around four pillars.
?? Thought leadership featuring “distinctive perspectives fueled by data and expertise across a variety of formats to engage and inform a broad audience.” Among the projects in the works is a book, “The Future of Fashion,” that will be drawn from interviews with more than 50 industry leaders.
?? Advisory services to senior decision-makers, founders, entrepreneurs and other stakeholders.
?? Investments in both post-seed start-ups as well as scale-ups at the intersection of fashion and technology.
?? Community: Berg wants to use FashionSights to bring together the fashion and luxury community “to foster connections and collaboration.” All together, the goal is to help shape the fashion industry’s future, in part by understanding its past. “The insights engine begins with a deep analysis of the mega trends and disruptions that have shaped the fashion industry over the past decades,” Berg said. “But we go beyond surface-level observations, uncovering the underlying economic, industry and consumer drivers that?have truly influenced its evolution. This deep historical understanding — hindsight — forms the foundation of our perspective on the future of fashion. Rather than merely extrapolating past developments, we leverage a nuanced understanding of?current and emerging drivers, along with the likely reactions of market players, to develop true foresight.”??? Berg has long been a keen observer of the industry, having spent 24 years at McKinsey, where he helped start the group’s apparel, fashion and luxury practice.“The dynamics among the richest are an impressively precise allegory for the polarization the fashion industry has been going through for years,” Berg wrote. “Luxury and value players are dominating in terms of numbers of billionaires and the net worth they are generating, while the premium and midmarket segment is squeezed.”