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Investors see ANOTHER return from Masterworks (!!!!)

That’s 6 sales in 7 months. 29 all time. And the performance?

16.5%, 17.6%, and 17.8%, net annualized returns on sold works held longer than one year (See all 29 at Masterworks.com)

It’s not from stocks, private equity, or real estate… it’s from contemporary and post war art. Crazy, right?

With Masterworks, you don’t need to be a BILLIONAIRE to invest in multi-million dollar art anymore.

Historically, the segment overall has had attractive appreciation and low correlation to stocks.*

Masterworks targets works featuring legends like Banksy, Basquiat, and Picasso, identifying what they believe to have significant long-term appreciation potential, not just at the artist level but at the level of individual artworks.

As one of the largest players in the art market, with $1.3 billion invested over 500 artworks, they pass critical advantages through to their 70,000+ members to add art to their portfolios strategically.

Looking to diversify your investments in 2026?

*According to Masterworks data. Investing involves risk. Past performance is not indicative of future returns. See important Reg A disclosures at masterworks.com/cd.

βš–οΈ POLICY & REGULATION

South Korean Financial Services Commission Temporarily Eases AI Security Regulations: In response to rising concerns about AI-driven hacking, the Financial Services Commission has announced a temporary relaxation of network separation regulations. This change is aimed at bolstering security measures within the financial sector. Link

UK Government Raises Health AI Tender Value by 400%: The maximum framework value for a health AI tender has been increased from Β£150 million to Β£600 million following an extensive intelligence gathering exercise with suppliers. Link

Navigating the Legal Minefield of AI-Generated Child Pornography: A new Arizona law takes aim at AI-generated child pornography as discussions unfold around First Amendment implications and legal distinctions between virtual and real abuse. Experts analyze the challenges posed by hyper-realistic imagery in light of Supreme Court rulings such as Ashcroft v. Free Speech Coalition. Link

Virginia Weighs AI Regulation Under Federal Pressure: Virginia lawmakers are exploring how to regulate AI even as President Trump warns states they could face consequences for imposing restrictions on the technology. The debate underscores growing tension between state-level oversight and federal political pressure. Link

πŸ›‘οΈ SAFETY & SECURITY

Microsoft Releases Open-Source AI Safety Tools: Microsoft has open-sourced two tools aimed at building and maintaining safer AI agents. This initiative is a step towards enhancing the safety of AI technologies. Link

AI Hallucinations Generate 150,000 Fake Citations in Research Papers: A new study reveals that AI-generated hallucinations have produced nearly 150,000 fabricated citations that are appearing in scientific papers. This phenomenon raises significant concerns in the research community about the reliability of AI in academic publishing. Link

Researchers Find Solution to AI Model Collapse from Data Shortages: A new study reveals that incorporating human-made data into AI training can help prevent AI models from cannibalizing themselves when human-generated data runs out. Link

Pentagon Eyes Anthropic's Claude Mythos for Cyber Operations: A report indicates that the Pentagon plans to adopt and potentially weaponize the latest cyber-capable AI models, specifically mentioning Anthropic's Claude Mythos Preview, despite concerns regarding the company's supply chain risk designation. Link

Taiwan Targets AI Chip Smuggling with Detention Effort: Taiwanese officials are pursuing the detention of three individuals for allegedly forging documents to export Nvidia AI chips to China, marking the island's initial crackdown on semiconductor smuggling. Link

πŸ’° POWER & CAPITAL

Nvidia Achieves Record $82 Billion Quarter Fueled by AI Progress: Nvidia reported a record $82 billion revenue for the quarter, indicating significant advancements in artificial intelligence applications. This development marks a notable transition for AI in business, evolving from simple features to more integrated solutions. Link

Google's Strategy in the AI Race: Navigating Challenges and Opportunities: Google is actively pursuing a competitive edge in the AI space while ensuring its core business remains intact. The tech giant's approach reflects a careful balancing act as it aims to win the AI race against rivals like Anthropic and OpenAI. Link

πŸ›οΈ INDUSTRY IMPACT

A Historic News Cycle Illuminates the AI Landscape: In a pivotal two hours, a significant news cycle revealed crucial developments across the AI sector, highlighting important movements from major players like OpenAI and Anthropic, and featuring activities by SpaceX. Link

AI Poised for a Nobel Prize-Winning Discovery Within a Year: Jack Clark, co-founder of Anthropic, expresses optimism about AI's rapid advancements, highlighting a 'vertiginous sense of progress' and the 'profound changes' it brings to society, alongside potential risks associated with the technology. Link

Grok Chatbot Struggles with U.S. Government Client: The Grok chatbot has faced challenges with one of its largest clients, the U.S. government, raising questions about SpaceX's AI growth prospects. Despite expectations, its performance has been disappointing, highlighting significant hurdles ahead. Link

Samsung Workers Demand Fair Compensation Amid AI Success: With Samsung Electronics achieving a valuation of $1 trillion, benefitting significantly from the AI boom, employees are expressing dissatisfaction and demanding a larger share of the profits. Link

Marketers Face Transparency Issues with Google's New AI Ad Tools: Google's rollout of a suite of AI-driven ad tools is pushing marketers to confront transparency challenges similar to those seen with the Performance Max 'black box.' Link

πŸ“‘ PRODUCTS & SIGNALS

ByteDance Launches Lance: A Unified 3B Model for Image and Video: ByteDance has released Lance, a 3 billion parameter native unified multimodal model designed for image and video understanding, generation, and editing. Link

Can Microsoft’s Copilot Help It Regain AI Supremacy?: Microsoft's initial collaboration with OpenAI hasn’t kept it at the forefront of the AI landscape. The article explores how CEO Satya Nadella and his team plan to refocus their strategy for the long haul. Link

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