President Trump's dismissal of AI safety concerns as a "hoax" clashes sharply with growing calls for regulation from tech leaders and lawmakers, highlighting a deep political divide on managing frontier AI.
President Trump publicly dismissed mounting AI safety concerns as a "hoax," even interrupting Nvidia CEO Jensen Huang during a live event to reiterate his stance and declare that "the robots will not be taking over." Trump also backed the use of controversial Flock cameras, an AI surveillance tool, despite growing calls for guardrails. Al JazeeraThe Hill
This presidential stance faces a rare bipartisan backlash in Congress, with Democrats and some Republicans pushing for AI guardrails, though Senate Majority Leader John Thune advocates for a "light touch" to avoid stifling innovation. House Minority Leader Hakeem Jeffries urged Congress to remain in Washington to address AI concerns, while Sen. Kennedy is preparing an AI "kill switch" bill. The Guardianpolitico.com
Microsoft responded to the escalating safety debate by publishing a provisional "code of conduct" for training new AI models, with Microsoft AI CEO Mustafa Suleyman emphasizing that "AI must be subordinate and always in service of people." The Guardian
A new $30 million initiative called "Who Decides" launched by New York state lawmaker Alex Bores aims to unify Democrats on AI policy, while Sen. Bernie Sanders and former Trump adviser Steve Bannon are set to speak at an event advocating for AI controls. PoliticoThe Hill
European Central Bank President Christine Lagarde warned that Europe must develop its own AI technology and build more data centers to avoid being cut off by the US or China, asserting that dependency could give trade partners unprecedented leverage. The Guardian
Economic Policy & Market Shifts
The Federal Reserve is poised to defy President Trump's demands by raising interest rates, signaling a tightening monetary policy that has already pushed the 10-Year Treasury Yield to a multi-year high.
The Federal Reserve is widely expected to raise its benchmark interest rate, directly defying President Trump's repeated demands for lower rates. This anticipated hike comes as the 10-Year Treasury Yield touched 5%, its highest level in years, reflecting investor sentiment that has rebuffed the administration's efforts to influence the bond market. AP NewsNew York Times
Bank of America's CEO sparked a selloff in bank stocks after forecasting a more than 10% drop in third-quarter investment banking fees, suggesting that Wall Street's AI boom might be facing turbulence. CNBC
AI-linked stocks, including Nvidia, AMD, Micron, and Intel, experienced declines following calls from tech leaders to slow AI development, though the broader Wall Street market held steadier after oil prices retreated from an early jump. AP News
Costco has raised the price of its Kirkland motor oil to $57.99 and implemented purchase limits, as a global shortage looms. Fox Business
US Politics & Elections
The Supreme Court's rejection of Trump's mail ballot restrictions is a win for voting rights advocates ahead of the midterms, while Mitch McConnell's return to the Senate signals a shift in legislative dynamics.
The US Supreme Court rejected President Trump's attempt to restrict mail-in voting rules, a decision welcomed by voting rights advocates ahead of the critical midterm elections. Al Jazeera
Senator Mitch McConnell returned to the US Senate after a three-month absence, casting his first vote since June and pledging his presence for crucial upcoming decisions. Al Jazeera
Texas Governor Greg Abbott directed state regulators to penalize data centers that fail to comply with water disclosure laws, emphasizing that these facilities "must share the duty to protect Texas water" amid drought concerns. The Guardian
The Environmental Protection Agency (EPA) announced plans to eliminate remaining greenhouse gas pollution standards for power plants, a move that will likely make electricity dirtier as demand from AI data centers and electric vehicles increases. The Verge
Tech Industry Developments
As AI safety concerns escalate, the industry grapples with the implications of a potential slowdown, while new investments continue to flow into AI infrastructure and chip alternatives.
OpenAI CEO Sam Altman identified two primary risks facing AI's future: the potential for losing control over advanced models and the challenge of ensuring equitable access to the technology. Fox Business
Samsung co-led a $230 million funding round for Dutch startup Euclyd, an AI chip rival to Nvidia, signaling growing investment in alternatives for GPU dominance. CNBC
AI infrastructure company Cornelis raised $205 million to develop its Active Compute Fabric, a network technology aimed at reducing wasted GPU time by improving data delivery, further challenging Nvidia's market position. TechCrunch
Oracle has initiated a new round of AI-driven layoffs, with employees receiving early morning emails about job cuts, even as the company celebrates a banner quarter. KRON4
Quick Shots
🍎 Apple released iOS 27, bringing 50 new features to iPhones, including a smarter Siri, ahead of the iPhone 18 launch. MacRumors
🏛️ The Kennedy Center announced it is on the brink of bankruptcy and might close as early as Tuesday, appealing to President Trump for a "rescue." NPR
🏒 NHL star Alex Ovechkin appeared in a campaign ad for Vladimir Putin's pro-Kremlin United Russia party, alongside Russia's foreign minister and RT editor-in-chief. The Guardian
⚖️ Legal AI startup Legora aims to challenge the duopoly of LexisNexis and Westlaw by collecting the world's legal data and deepening its presence in Big Law. Business Insider