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AI vs Humanity: A Battle of Identity

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Timbo Dryason OkHi co-founder

By Timbo Drayson

Artificial intelligence (AI) is changing the world. The last two decades have laid the infrastructure to give over 5 billion people access to digital services through smartphones and the Internet. This has primed the world for an AI revolution, the exponential growth of which we’re beginning to see through services like ChatGPT that fundamentally change how we interact with technology.

Like every technological paradigm shift, from fire to flying or the industrial revolution to the Internet, the benefits of AI will also be challenged by its threat. While my pronoid nature is certain that the net impact will be positive (because there are many more good people in this world than bad), one growing area of AI concern is how we distinguish ourselves as human beings versus AI.

Trust is a base requirement for our lives to operate effectively, from our relationships with those around us to our interactions with business and government services. We have built systems to facilitate trust; our ID cards prove who we are, and our physical address ensures that we can be found. But in Africa and other emerging markets, poor identity and physical addressing infrastructure limits trust increase fraud and hold back the economy. MIT estimated that India’s lack of a physical addressing system costs its economy 0.5% of its GDP. Visa’s latest fraud report shows that attempted fraud in Africa is 5x more than in the US.

Over the past two decades, we’ve seen technology try to help us prove we are who we say we are. Before, every transaction at a bank had to be done in person, but over time, these physical verifications have been replaced by digital ones; we’ve all solved annoying online captcha puzzles, fumbled for another one-time pin (OTP), and maybe more recently awkwardly recorded a selfie video of yourself.

However, as more and more services become digital, the fraudsters keep out-innovating these measures. AI can now impersonate a customer service agent or make a video of you speaking from just a photo. This undermines the ability of businesses across various industries to identify and verify their customers. In January 2023, Visa saw a 60x increase in fraud rate for Financial Services compared to just a year earlier.

Proof of address is stuck in the analogue era

Smart operators worldwide understand the threat posed to customer verification by AI and are already investing in mitigations. Meta has begun using paid-for verification for Instagram and Facebook. PayPal uses a detailed process that relies on multiple layers of compliance, verification, and monitoring to verify and onboard customers.

However, proof of identity using an ID card is no longer enough, so startups are innovating to help businesses truly know their customer. Worldcoin launched earlier this year to use a person’s iris as a form of identity; others like Bright ID schedule group video calls where you need to hold a conversation to prove you’re a real human being.

One area that is being overlooked is knowing where the customer lives. In developed markets like the US and UK, your proof of address is the ultimate form of accountability because whether it’s your bank or the police, they can physically find you if you commit fraud.

Yet, proof of address has become harder to validate in our modern world. People don’t live in the same house for most of their lives like before; in fact, digital nomads don’t even have a fixed abode at all. Bank statements or utility bills are no longer posted through the letterbox, enforcing a point of verification because they’re now digital PDFs delivered to your phone. It used to be relatively easy to update your few services when you moved, but now you have an overwhelming number of accounts to update.

And this is the best-case scenario. It’s estimated that 4 billion people – half the globe – do not have a formal physical address because their building or road has no identifier. And what about those who do not have a fixed home because they are homeless or have had to flee their country as refugees?

When global banking regulation forces financial services to only offer their services if the customer can prove their address, this creates a massive problem for the world’s economy. On paper, the regulators are doing the right thing to ensure financial services correctly implement effective Know Your Customer (KYC) measures. However, it creates a catch-22 for financial service providers; to open accounts, they need to have verified customer addresses, but there are no practical ways to do this beyond sending a human agent to the customer’s address, which costs too much, especially for accounts for lower-income customers.

AI to the rescue

My Kenyan co-founder once said, “We’re blessed in Africa to have so many problems because it creates so much opportunity”, and it’s this problem and opportunity that my co-founders and I have spent the last 10 years trying to solve. We believe that it’s a human right for every person to have a verified address so that they can access the services they deserve, from opening up a bank account to having an ambulance arrive at their door.

We see a world where anyone with a smartphone has a digital address that uses the location data in their phone, behavioural science and AI to verify they live where they say they do. As a centralised addressing system, when the person moves, they just have to notify us for all other services to be updated. It puts control of the address into the hands of the user, who can manage their data privacy and only give access to their address to the businesses and people they trust.

The behavioural science in our solution grounds a user’s digital account to the real world through where they live, enabling both proof of address and proof of humanity. While AI can impersonate your voice and create a video of you, it cannot impersonate where you live.

In our new world, where it’s becoming increasingly difficult to build trust and distinguish the difference between AI and a human, perhaps the solution is closer to home than we think.

Timbo Drayson is the CEO & Co-Founder of OkHi

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Nigerian Tech Firms Raise $100m in Q1 2025 Amid Funding Squeeze

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fintech innovators

By Adedapo Adesanya

Nigerian tech firms attracted just $100 million in funding in the first quarter of 2025, raising worries about investment crunch into Africa.

This is part of a wider slowdown in funding on the continent as funding into the African tech ecosystem dropped 5 per cent to $460 million in the first quarter of 2025, according to data by Africa: The Big Deal.

The decline shows the consistent drop in venture capital funding on the continent, which fell from $486 million raised in the same period of 2024,

The data insight firm, which tracks funding rounds of $100,000 and above, revealed that nearly $300 million was raised by start-ups in January, and fell to $119 million in February.

March saw one of the lowest monthly totals since late 2020, with just $50 million in funding announced.

The Big Deal noted that despite a steady number of start-ups securing funding, the lack of deals exceeding $10 million significantly impacted overall investment figures.

“Q1 2025 is the second-lowest quarter in terms of start-up funding since late 2020,” the insight company noted.

“However, things are looking more positive if we focus on the number of start-ups that announced at least $1 million in funding during the quarter, with 52 such deals aligning with the 2023-2024 average,” a post seen by Business Post showed.

Nigeria alongside Kenya, South Africa, and Egypt – referred to as the Big Four – got 83 per cent of funding during the period under review.

Nigeria attracted roughly over $100 million in funding (24 per cent), same as Kenya (24 per cent) and followed closely by South Africa with $100 million (22 per cent).

Egypt secured $61 million (14 per cent), while Togo emerged as a surprise entry in the top five, buoyed by Gozem’s $30 million Series B funding round.

Fintech remained the dominant sector, accounting for nearly half (46 per cent) of total investment, the report disclosed with deals including LemFi’s $53 million raise and Naked’s $38 million.

The energy sector followed with an 18 per cent share of the total funding, while logistics and transportation startups secured 10 per cent.

It raised eye brows over the disparity in gender based funding with just over 2 per cent ($10 million) of Q1 funding went to female CEOs.

The largest such deal being a $6.2 million grant awarded to South African biotech firm, African Biologics.

Excluding grant funding, female-led start-ups accounted for a mere 0.7 per cent of all investments  while in contrast, Big Deal added that 79 per cent of total funding went to either solo male founders (11 per cent) or all-male founding teams (67 per cent).

It revealed that diverse founding teams attracted 20 per cent of the investment, this remains a modest improvement compared to previous quarters.

“A mere 1% was invested in solo female founders or female-only teams,” the report said.

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Equinix Boosts Nigeria’s Digital Economy With Data Centre Expansion

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Equinix MainOne

 By Adedapo Adesanya

Digital infrastructure company, Equinix Incorporated, has officially opened its latest data center expansion in Lagos as part of efforts to advancing Nigeria’s position in the global digital economy.

Called LG2.3, the facility will support Nigeria’s growing digital transformation efforts, providing state-of-the-art colocation and secure interconnection solutions which will empower businesses across the region.

Nigeria is targeting 200MW data capacity but it so far generates less than 70 MW and with more data center springing up in the country, this will bring further the target to fruition.

Equinix, which is one of these firms, said it is steadfast in its mission to enable secure, scalable, and sustainable digital growth for economies across the world.

Speaking at the inauguration, Mr Bruce Owen, President of EMEA at Equinix, said Nigeria is a crucial market for Equinix, adding that it symbolises Equinix’s continued investment in sustainable initiatives across the globe and highlighting the company’s broader goal of reducing its carbon footprint while supporting greener practices across its operations worldwide.

“Today’s opening is a clear demonstration of our continued commitments to invest and grow digital infrastructure that will benefit the many thousands of businesses in Nigeria and on the continent as a whole. I am deeply encouraged by the enthusiastic partnerships and innovations emerging from this dynamic region, which continue to inspire our commitment to Nigeria’s digital and sustainable future.”

On his part, Mr Wole Abu, Managing Director of Equinix West Africa, highlighted the critical role of data centers in driving economic growth.

“Data centers continue to play a pivotal role in driving economic development in Nigeria, serving as critical infrastructure that supports digital transformation and economic growth. As governments and enterprises increasingly acknowledge their significance, global demand for data center capacity is poised to rise.

“While Africa’s demand for data solutions is still evolving compared to more mature markets, the continent is demonstrating strong potential for digital adoption and innovation. To meet this growing need, Equinix is actively advancing three major data center projects in Nigeria, with future expansion plans for Ghana, Côte d’Ivoire, and South Africa.”

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OpenAI Raises $40bn to Boost AI Research

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OpenAI

By Adedapo Adesanya

Artificial Intelligence (AI) company, OpenAI, on Monday announced that it closed one of the largest private funding rounds in history to boost AI research.

According to a blog post on the company’s website, OpenAI raised $40 billion in a round that values the company at $300 billion.

Japan’s SoftBank led the round, with other participants including Microsoft, Coatue, Altimeter, and Thrive, all of which are earlier backers in the outfit.

OpenAI said it plans to use the fresh capital to “push the frontiers of AI research even further” and scale its compute infrastructure, according to the blog post.

“[This new capital] enables us to push the frontiers of AI research even further, scale our compute infrastructure, and deliver increasingly powerful tools for the 500 million people who use ChatGPT every week,” OpenAI wrote in the blog post.

“We’re excited to be working in partnership with SoftBank Group — few companies understand how to scale transformative technology like they do.”

About $18 billion of the funding is expected to be used for OpenAI’s commitment to Stargate.

Recall that the joint venture between SoftBank, OpenAI and Oracle was announced by President Donald Trump in January.

The initial funding will be $10 billion, followed by the remaining $30 billion by the end of 2025, the person said. But the round comes with a caveat.

SoftBank said in an updated disclosure that its total investment could be slashed to as low as $20 billion if OpenAI doesn’t restructure into a for-profit entity by December 31.

This come amid pressure on OpenAI to pull off the for-profit conversion, a plan that will need the blessing of Microsoft and the California Attorney General, and has been challenged in court by Mr Elon Musk, who was one of the co-founders of OpenAI in 2015, when it was started as a non-profit research lab.

The company’s current and unusual hybrid structure includes a capped-profit limited partnership created in 2019. The original nonprofit is the controlling shareholder and would be spun out as an independent entity if the company can restructure.

OpenAI’s venture backers have received convertible notes that would turn into equity.

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