GoKawiilCoinbase is the largest US-based cryptocurrency market. It has also dipped a toe into the world of prediction markets. Samuel Boivin/NurPhoto/Getty Images
Some World Cup bettors were in for a rude surprise on Sunday, when an AI-generated notification from the crypto exchange Coinbase shared false breaking news about a 3-2 Norway victory in a knockout match against Brazil. The AI said Norwegian player Erling Haaland scored two goals to clinch the win.
The kicker? The match hadn't even started yet. It had been delayed due to inclement weather conditions at the New Jersey-based MetLife Stadium. At the time, Coinbase's official prediction market page showed that the game had been delayed.
Hours later, once the game actually played out, the result was slightly different. Norway won, and Haaland scored two goals, but the final tally was just 2-1. For some bettors, that's enough of a difference to tank a sizable sum of cash -- at a time when gambling addiction rates are surging among young people, thanks to the widespread proliferation of online prediction markets and sportsbooks.
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Coinbase is the largest US-based public market for trading cryptocurrencies like bitcoin and ethereum, but has expanded its ventures to include stock and derivative trading. Recently, the company partnered with Kalshi to start offering prediction markets.
Screenshots of the inaccurate Coinbase AI news flooded social media as some critics pointed out how propagating false results is "dangerous and irresponsible." In response to one criticism of the Coinbase AI mistake shared on X, the company's CEO, Brian Armstrong, claimed that he was "taking a look with the team."
When reached for comment, Coinbase referred to an X post written by the company's head of consumer products, Max Branzburg.
Branzburg's reply to the X post criticizing the AI model's mistake indicated that the company fixed its incorrect World Cup story and "made some updates to avoid these types of inaccuracies in the future."
Norwegian player Erling Haaland did end up scoring two goals during the knockout match against Brazil -- but that in no way means that Coinbase's AI model can accurately predict the outcome of future events. Including the win over Brazil, Haaland has scored two goals in three of Norway's four matches so far in this year's World Cup. Image Photo Agency/Getty Images
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