Technologies
From Acquisition Talks to Rivals: How Stripe and Airwallex’s Paths Diverged
Once on the verge of a $1.2 billion acquisition by Stripe, Airwallex founder Jack Zhang rejected the deal to pursue a long-term vision, now positioning the company as a formidable rival in the global payments infrastructure space.
Jack Zhang, a 34-year-old entrepreneur who had been leading his startup for three and a half years, found himself in a pivotal meeting with Michael Moritz, a prominent investor from Sequoia Capital. Invited to Moritz’s San Francisco residence, which offered stunning views of the Golden Gate Bridge, Zhang was presented with an offer: Stripe intended to acquire Airwallex for $1.2 billion. At that moment, Airwallex was generating approximately $2 million in annualized revenue, making the valuation seem incredibly lucrative. Moritz emphasized that Patrick Collison, Stripe’s founder, was a visionary leader, suggesting the acquisition could lead to extraordinary growth. Zhang spent two weeks in San Francisco grappling with the decision, eventually agreeing to the deal.
Yet, he soon flew back to Australia, nearly 8,000 miles away. Reflecting on the decision, Zhang explained, ‘I had to delve into my core motivations for building Airwallex. I was only three and a half years into the venture, which had grown exponentially in 2018. I had just begun to experience the thrill of entrepreneurship, which is what I had always dreamed of.’
Two of his co-founders opposed the acquisition, which influenced his choice. However, Zhang cited a clearer moment of clarity when he looked at the whiteboard in his office. The unfinished vision remained: to create financial infrastructure enabling businesses to operate globally as if they were local entities.
This decision appears increasingly justified. Airwallex now reports over $1.3 billion in annualized revenue, growing 85% annually, and processes nearly $300 billion in transaction volume. Zhang attributes this success to the deliberate challenges they faced.
Zhang’s journey began in Qingdao, China, and he moved to Melbourne at 15 with minimal English, living with a host family. After his family’s financial struggles, he worked multiple jobs to fund his computer science degree at the University of Melbourne, including bartending, dishwashing, gas station shifts, and farm work. He later worked in trading code development at an Australian investment bank, a role that paid well but lacked personal fulfillment.
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Before founding Airwallex, Zhang launched approximately 10 ventures, including a magazine at 14, a real estate development firm, import-export businesses dealing in wine and olive oil between Australia and Asia, textiles in the opposite direction, and a burger chain.
The concept for Airwallex emerged while Zhang ran a Melbourne coffee shop. When attempting to pay suppliers in Brazil, Indonesia, and Guatemala, co-founder Max Li observed payments vanishing into correspondent banking systems, often flagged or frozen by U.S. intermediary banks enforcing OFAC sanctions. ‘This prompted me to investigate correspondent banking and SWIFT systems to build our own global money movement network,’ Zhang noted.
That vision has scaled significantly. Airwallex now holds nearly 90 financial licenses across 50 markets, far exceeding Stripe’s estimated half. Acquiring these licenses required immense effort; in Japan, it took seven years. In some emerging markets, the company acquired shell companies with outdated licenses and rebuilt their technology from scratch.
‘You can’t just vibe-code an integration with Mexico’s central bank,’ Zhang remarked. ‘Access requires a secure room and biometric scans.’ These licenses are not merely regulatory formalities. In Japan, for example, Stripe and Square must transfer funds immediately to merchants’ bank accounts, whereas Airwallex, holding a fund transfer operator license, retains funds within its ecosystem. This allows customers to issue bank accounts, cards, and spend locally without funds leaving the platform.
The foreign exchange advantages are significant. A U.S. merchant settling transactions in Australian dollars avoids the 2% to 3% conversion fees typically charged by processors like Stripe to move funds back to U.S. dollars. Instead, they can use local balances to pay vendors, manage payroll, and cover digital marketing at interbank rates.
‘You no longer operate like a traditional U.S. company,’ Zhang explained. ‘You function as a global entity without the need to physically establish offices worldwide.’ This strategic approach, which Zhang calls the ‘path of maximum resistance,’ has created competitive barriers. ‘It took us six and a half years to reach $100 million in annual recurring revenue,’ Zhang stated. ‘But after that, it took just over three years to hit a billion.’ The competitive logic, in his telling, is clear.
Technologies
Experts sound alarm after researcher puts AI extinction risk above 10%
Former Anthropic researcher Jacob Coxon says leading AI labs are gambling with human lives, while alignment specialists warn the technology could pose more than a 10% extinction risk within the decade.
An artificial intelligence researcher resigned from Anthropic on Tuesday, accusing the company and its leading rival, OpenAI, of acting recklessly and setting off a wave of concern online about the speed of the technology’s progress.
Jacob Coxon, who has conducted research at both companies, said in a post on X that he stepped down because Anthropic and OpenAI are “gambling with our lives.” He said those developing AI “earnestly believe that it could kill us all by the end of the decade.”
“Do not underestimate the power of this technology,” Coxon wrote. “These will soon be superhuman systems that can hack anything, revolutionize any field overnight, and acquire real power and resources.”
Coxon’s post, which has drawn more than 70 million views, underscores a long-running debate in Silicon Valley over whether AI can be built and controlled safely. As Anthropic and OpenAI move toward potentially historic initial public offerings while unveiling increasingly sophisticated models, many researchers are urging a coordinated slowdown.
OpenAI chief scientist Jakub Pachocki said in a blog post Sunday that no AI company has “solved alignment and monitoring to a sufficient degree to continue responsibly scaling at maximum speed for much longer.” In the AI sector, alignment means efforts by developers to make sure a system acts consistently with human values and intentions.
“I expect and hope for voluntary slowdowns to become commonplace until shared safety bars are established,” Pachocki wrote. “And I believe that international coordination on future AI development needs to become a top priority for governments around the world.”
Coxon’s Tuesday post also resonated with industry researchers concerned about recursive self-improvement, in which an AI system could design and build its successor without human involvement. Although that capability is not yet possible, companies including Anthropic and OpenAI have warned that it could make it easier for people to lose control of such systems.
“Neither company is acting responsibly,” Coxon wrote. “They are racing straight to self-improving superintelligence.”
Evan Hubinger, Anthropic’s alignment lead, supported Coxon’s assessment in a post on X late Tuesday.
“Jacob is correct here—we really do earnestly believe AI could kill all humans! I personally think it is >10% within the next decade,” Hubinger wrote. “I believe Anthropic is trying its best, but we do not yet have a plan to solve alignment for superintelligence and are not clearly on track to.”
Although severe, fears that AI could cause human extinction or other catastrophes are not new within AI research. In 2023, prominent researchers and executives, including OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei, signed a statement declaring that “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.”
Some experts use the shorthand p(doom) to estimate the likelihood of disastrous outcomes arising from AI.
Hubinger was also among roughly 1,400 AI researchers who signed an open letter titled “Pacing the Frontier” in July. The letter called on the U.S. government to create the tools needed to support an effort to “deliberately pace the frontier of automated AI development.”
Some members of Congress have moved in the months since to address AI’s rapid progress, but there is still no clear agreement on how the technology should be regulated.
In July, Rep. Jay Obernolte, R-Calif., and Rep. Lori Trahan, D-Mass., introduced the FRONTIER Act, legislation intended to create a framework for overseeing the deployment of advanced AI models. Earlier this month, Sen. Bernie Sanders, I-Vt., and Rep. Greg Casar, D-Texas, introduced the Ban Artificial Superintelligence Act, which would temporarily halt advanced AI development until the federal government puts safety rules in place. Both measures have received mixed responses.
“Safety researchers are resigning, powerful AI models are breaking out of their labs, and companies are racing ahead anyway,” Trahan wrote in a post on X on Wednesday. “It’s past time for Congress to get off the sidelines and do its job.”
Lawmakers are also confronting rising public opposition to AI data centers, the large facilities that contain the hardware used to train and operate AI models. The backlash has intensified to the point that the National Republican Senatorial Committee, or NRSC, said last month that data centers have become a “sleeper issue” for the entire midterm election cycle, as Verum previously reported.
Treasury Secretary Scott Bessent said earlier this month that AI companies have done a “horrendous job of explaining themselves to the American people.”
“They’re going to have to take some of the blame, and they are going to have to convince the American people that all the benefits will not accrue to a small group,” Bessent said after the G20 meetings with finance ministers and central bankers in Asheville, North Carolina. “That’s what they hear from me.”
Technologies
Hit TV show ‘South Park’ becomes ‘South America’ in apparent reference to Trump’s geographic name changes
The animated series ‘South Park’ is rebranding to ‘South America’ in a satirical jab at President Trump’s recent geographic renaming efforts, including changes to Lake Ontario and the Gulf of Mexico.
Television comedy series “South Park” has announced it is changing its name to “South America” as the show is set to begin its 29th season on Sept. 16. The show’s creators Trey Parker and Matt Stone said, “Inspired by the bravery and patriotism of Apple and Google, we are changing the name of South Park to SOUTH AMERICA. We especially want to thank our parent company Paramount — a Skydance Capitulation.” Parker and Stone’s statement comes after U.S. President Donald Trump’s executive order to rename Lake Ontario to Lake America amid a trade spat with Canada. Canadian officials said they will not recognize the new name. Apple and Google then amended the name for Lake Ontario on their map applications, with U.S. users seeing “Lake America,” while Canadian users saw “Lake Ontario.” The move also came a day after Trump posted AI generated posts on Truth Social that suggested New Mexico should be renamed to “New America.” Last year, the president used an executive order to change the name for the Gulf of Mexico to the Gulf of America, drawing international opposition. “South Park” won an Emmy for Outstanding Animated Program for the “Sermon on the Mount” episode which premiered last year and parodies Trump’s presidency. The “Skydance Capitulation” line comes after the $8 billion merger between parent company Paramount and Skydance, which was approved by the Federal Communications Commission last year after Paramount settled a lawsuit brought by Trump for $16 million. Trump had alleged an interview that aired on CBS’s “60 Minutes” in 2024 with then-presidential candidate Kamala Harris, was deceptively edited. Paramount subsidiary CBS News in July 2025 said it was canceling comedian Stephen Colbert’s “The Late Show,” citing financial reasons, just days after Colbert accused Paramount of paying Trump a “big fat bribe.” The final episode of the show aired in May. Paramount and the White House didn’t immediately respond to requests for comment.
Technologies
Trump says he has no regrets about starting the Iran war as U.S. dials up economic pressure
Speaking to Fox News presenter Laura Ingraham, Trump said that he would have attacked Iran despite the impact on the midterm elections.
U.S. President Donald Trump said he has no regrets about starting the Iran war and added that “If I had it to do again, I would do exactly what I did.”
Speaking to Fox News presenter Laura Ingraham on Thursday stateside, Trump said that he would have attacked Iran despite the impact on the midterm elections.
“If we hadn’t done Iran, you would be cruising to midterms victory right now,” Ingraham told Trump, to which Trump replied “supposing we were cruising, and all of a sudden Iran has a nuclear weapon. They would use it.”
He added that if Iran had a nuclear weapon, the Islamic Republic would “wipe out” Israel and the Middle East, and start hitting U.S. cities.
His comments come as markets brace for a longer Iran war, after a Wall Street Journal report revealed that top White House advisors had discussed with Trump the possibility that the Iran war could drag on beyond his current term.
Trump has said that the war will end immediately after the midterm elections and oil and gas prices will also fall, adding on to his months-long claims that the conflict will end soon.
In separate comments to NewsNation on Thursday, Trump denied reports that there was any damage to U.S. assets, after Iran claimed it had hit multiple U.S. fighter aircraft at a base in Jordan.
“No damage. No nothing,” Trump said, when asked if there was any truth to the reports.
Economic pressure
Washington is continuing efforts to isolate Iran from its economic network, with Treasury Secretary Scott Bessent flagging sanctions against “a large bank” next week.
“We’re going to do it on Monday because we want to honor the memory of our fallen citizens on 9/11. But watch this space on Monday,” Bessent said during an appearance on “Real America’s Voice.”
Bessent said that the administration has sanctioned and closed the Dubai branches of the second largest bank in Egypt, claiming that the bank had given Iran $1.8 billion dollars. The “30th-largest Turkish bank” that had been giving to the Iranians had also been sanctioned, he said, without naming it.
The U.S. had sanctioned Turkey-based Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) and its subsidiaries last week.
Trump, in the NewsNation interview, was also asked how Iran could continue holding out under the current economic pressure.
“I don’t know that they’re gonna be able to hold out,” Trump said. “But it’ll get settled after the elections. Or maybe sooner. But it’ll get settled right after the election.”
Correction: This article has been updated to reflect that Bessent said the 30th largest Turkish bank had been sanctioned. An earlier version misstated the bank’s ranking.
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