AI

We don’t need AI to threaten humanity. We got Trump’s climate policies

You need a boost, right?

We’re living under a dark cloud, with a steady downpour of graft, thuggery and baloney.

There’s the raffling of presidential pardons and the attacks on reporters for doing their jobs, the clownish trade war with Canada, the bungled disaster in Iran, the petty obsessions with the ballroom and the Kennedy Center, the hogwash about a stolen election, the attacks on immigrants and the shameless presidential profiteering while working people suffer the cost of Trump’s countless broken promises.

I could go on, and I will. But rest assured, I have not forgotten about the boost I promised.

For all the affronts, nothing strikes me as more sinister than the Trump administration’s ambitious assault on the planet. Despite nearly daily headlines about the global calamity of overheated oceans, melting glaciers, stark weather transformations and species extinction, Trump keeps shoveling more coal onto a fire that will rage long after he’s dead and gone.

He’s gutted environmental protections and scientific research and dismantled clean energy initiatives. Now his administration is rolling back limits on power plant emissions, attempting to open the California coast to more oil drilling and sabotaging the state’s ambitious goals on emission controls and electric vehicle conversion.

We don’t need AI to threaten the future of humanity. We’ve got Trump.

It’s tempting to duck under the covers and wait for the nightmare to end, but the good news is that a lot of people are standing up rather than rolling over, rebelling against the ignorance and callous disregard that threatens our most precious and fragile shared inheritance.

In August, hundreds showed up to defend California’s authority to govern its own coast at a Santa Monica hearing of the National Oceanic and Atmospheric Agency, and 18,000 more people filed comments online.

The rollback of environmental safeguards is, for many, a call to arms.

“Yes, I am discouraged. … But I am not despairing,” said Bill McKibben, an author and environmental activist who is organizing a worldwide event called Sun Day for next year to promote clean energy. “We’re reacting to multiple crises, and we’re led by a pack of fools, so why would anybody not stand up?”

McKibben launched a national movement five years ago called Third Act, and tens of thousands of people 60 and older have signed on to advocate for climate action, voting rights and civic participation. Third Act now operates in about 30 states, with a robust chapter in Southern California.

Former Times reporter Zan Dubin has worked as both a volunteer and a paid communications consultant for Third Act, and I asked her what someone could expect to do if they became a member of Third Act/SoCal.

Environmentalist and author Bill McKibben is organizing a worldwide event called Sun Day next year to promote clean energy.

Environmentalist and author Bill McKibben is organizing a worldwide event called Sun Day next year to promote clean energy.

(Amanda Swinhart / Associated Press)

“We do it all,” Dubin said, from promoting climate-friendly candidates to running phone banks and testifying at public meetings. She said Third Act co-sponsors protests at Dodger Stadium, and she and others planned to meet at Vin Scully Avenue and Stadium Way for Sunday’s game against the San Francisco Giants. They want the Dodgers to stop doing business with Big Oil and bench their sponsorship deal with Phillips 66.

She also called out Disneyland for its exhaust-spewing Autopia attraction, along with former Times climate columnist Sammy Roth, and Disneyland responded by announcing in 2024 that it was switching to electric cars beginning in 2027.

Dubin, co-founder of National Drive Electric Week, said 170 volunteer-led events were being held nationwide over the next month to promote EVs, and she was leading one Friday in Irvine.

“Action is absolutely the antidote to despair,” Dubin said. “I find that despite the onslaught of these horrifying headlines … taking action invigorates me.”

Claremont resident Margaret Davis knows that feeling. She emailed me in 2023, prior to participating in a Third Act event, and said many retirees have time on their hands, which puts them in a powerful position.

“The climate crisis is the greatest existential threat humans have ever faced, hence we live in a time when we can make the greatest change for the better,” Davis wrote at the time.

When I called her a few days ago, Davis told me she’s now a member of Senior Stewards Acting for the Environment. She lives at Pilgrim Place — a senior community with a focus on justice, peace and environment — where residents meet regularly to study, discuss and advocate for sustainability, biodiversity and environmental causes.

“When I was in college in 1970, we had the antiwar movement and that was the first year of Earth Day,” Davis said. “At the time, I thought Earth Day was just a distraction from what was going on in the world.”

Later, she said, “I came to realize it was the biggest issue of all time.”

Climate activist Sim Bilal stands next to pumps at an oil field in Los Angeles in 2024.

Climate activist Sim Bilal stands next to pumps at an oil field in Los Angeles in 2024.

(Allen J. Schaben/Los Angeles Times)

Like Davis, I went to college in the ‘70s, and there’s no denying that our aggressively consumptive generation played a key role in manufacturing a crisis for our children and grandchildren. We’ve got matches in our hands and smoke on the horizon, and if we’re honest with ourselves, we’d see atonement not as a hobby, but as a duty.

As for the next generation, climate activist Sim Bilal, 24, said he too shares the sense that this is both a wickedly frightening time and a moment of opportunity.

“In the last month, we’ve gotten more young people involved,” said Bilal, executive director of Youth Climate Stewards 4 Local Action. “We usually have to reach out to them, but so many people have been wanting to get involved, and they’re so eager, and that’s been affirming for me. The policies are depressing, but the fact that people are reenergized and want to fight back is really exciting.”

Bilal said faith in politics, government and corporations is not high among his peers, but he’s trying to grow a network of young people to cultivate and support future leaders.

“A mentor told me there are two kinds of power — organized people, and organized money,” said Bilal, whose activism began when his grandmother died and he began wondering if her cancer, and global warming, were connected to the oil drilling in his South L.A. neighborhood. “We don’t have the money, but a lot of the work we do is political and civic education, demystifying power, and making people understand they have agency.”

You needed a boost, right?

There you go.

Whatever your age, do not despair.

Get off the chair.

steve.lopez@latimes.com

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Anthropic priced above $2 trillion as markets eagerly await IPO filing

Crypto traders are assigning Anthropic an implied valuation more than $1 trillion (€866bn) above its last funding-round price, before public investors have even seen its accounts.


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The company behind Claude has filed its IPO paperwork confidentially and chosen Nasdaq for its initial public offering.

What remains is the public release of its S-1 filing, the official registration package that a US company submits to the Securities and Exchange Commission.

Until it arrives, the only live price on Anthropic comes from a corner of the crypto market where pre-IPO speculation runs rampant, and it currently sits far above anything the company has ever agreed with an investor.

The last agreed valuation was $965 billion (€836bn), set when a $65 billion (€56bn) Series H round closed at the end of May, led by Altimeter Capital, Dragoneer, Greenoaks and Sequoia.

That was already an extraordinary figure for a company founded in 2021 by Dario and Daniela Amodei, and it followed a valuation of $61.5 billion (€53.3bn) barely a year earlier, representing a nearly sixteenfold increase in roughly 12 months.

Revenue has moved almost as fast.

Anthropic’s annualised revenue run rate passed $65 billion (€56bn) by the end of July, driven by enterprise adoption of Claude.

The losses are also enormous, reportedly reaching close to $42 billion (€36.4bn) in 2025, reflecting the cost of training frontier models. Amazon has committed to investing as much as $33 billion (€28.6bn) in the company, while Anthropic has committed to spending more than $100 billion (€86.6bn) on AWS technologies over the coming decade.

Given these figures, investors are already aiming considerably higher than the valuation in the last round.

Reports have put the target IPO valuation at $2 trillion (€1.73tn), with Goldman Sachs, JPMorgan and Morgan Stanley leading an offering expected to raise more than $60 billion (€52bn).

The market that is already trading

Perpetual futures contracts tracking Anthropic’s pre-IPO valuation are currently trading on Hyperliquid, the largest decentralised derivatives venue, where the implied market capitalisation reached an all-time high of roughly $2.36 trillion (€2.05tn) and sits near $2.15 trillion (€1.86tn) at the time of writing.

That is about 2.2 times the Series H valuation.

Heng Yu Lee, partner at market maker DWF Labs, which is active in these instruments, rejects the suggestion that leverage rather than conviction is driving the premium.

“Whether it’s leveraged or not, everyone trading the pre-IPO market is genuine demand at the price that’s reflected,” he told Euronews, adding that “the premium is pricing in public information that’s available, such as expected revenue numbers and expected market demand for the stock.”

These contracts will also be the first instruments to react when the filing lands, trading around the clock while equity markets are shut.

“At a moment like the S-1 dropping, you typically see volume spike and prices fluctuate heavily as the market digests the information,” Lee explained.

However, the market remains small relative to what it is valuing.

“Currently, the market isn’t super deep, with just $6M in 24-hour volume and $31M in open interest on Hyperliquid,” Lee said, adding that liquidity should improve as the listing approaches, given that more investors are likely to pile in.

Lee is also candid about how much weight the number deserves.

“As of now, I wouldn’t rely too heavily on the absolute pricing as we have yet to have a public S-1,” he stated while clarifying that “the direction of how the prices move typically still accurately reflects the shifting sentiment towards the company as things develop.”

A crowded year for AI listings

Once Anthropic files publicly, it will cement 2026 as the year of AI IPOs.

It started with chipmaker Cerebras Systems, which designs wafer-scale processors pitched as an alternative to Nvidia’s. The firm listed on Nasdaq in May after two false starts, raising $5.55 billion (€4.76bn) at $185 a share, above its revised price range.

The stock opened 89% higher and closed its first day near $311, valuing the company at roughly $67 billion (€58bn) compared with the $23 billion (€20bn) it had been worth three months earlier.

Investor appetite for a credible Nvidia challenger proved fierce, though the enthusiasm cooled quickly after a disappointing first earnings report. Cerebras is currently trading at a valuation of around $43.7 billion (€37.8bn).

Then came SpaceX, which listed in June, raising more than $85 billion (€73.6bn) at a valuation that briefly touched $2.8 trillion (€2.4tn) before falling back to around $1.95 trillion (€1.69tn).

OpenAI was also slated to hold an IPO this year and had already filed confidentially, but has now stepped back entirely. The company has a private valuation of $852 billion (€738bn), set during a $122 billion (€105bn) round in March.

CEO Sam Altman told Fortune on Saturday that listing this year would be “ill-advised”, ruling out 2026 and declining to commit to 2027. He said the company had “a lot of stuff to do” on safety and alignment and that being private made that easier.

Altman’s comments arrived the same day that Anthropic CEO Dario Amodei published an essay titled “We Must Pace the Frontier”, arguing that AI companies should deliberately slow the rate at which they improve their most capable models.

Amodei proposed three steps: independent evaluators with employee-level access to frontier systems, coordination on safety standards among labs in democratic countries, and international agreements on the most dangerous categories of use.

Anthropic has already committed unilaterally to the first, and the endorsements came quickly, with Sam Altman saying he agreed on the need to pace the frontier and Elon Musk replying simply: “Dario is right”.

However, US President Donald Trump did not.

In his first public response to the three CEOs, Trump, speaking in Ireland on Sunday, dismissed the argument.

“We’re leading China in AI. We’re the most sophisticated country in the world, and frankly, I want to keep it that way, because whoever wins AI wins,” Trump said, describing some warnings as things “that won’t happen”.

Trump has since reiterated that argument in several social media posts.

Likewise, China’s foreign ministry called the warnings “fearmongering”.

Markets registered the exchange, with shares in SoftBank, Kioxia and SK Hynix falling sharply on Monday. Shares in the Japanese and South Korean companies fell more than 6% and 4.3%, respectively.

This leaves Anthropic in an awkward position as it approaches what could be the largest listing ever attempted in public markets.

The company is asking public investors to fund frontier AI development while its founder argues publicly that such development should proceed more slowly.

That is not necessarily a contradiction, since pacing is not stopping, and Anthropic has always argued that safety-focused labs should be at the frontier rather than ceding it.

However, it is a story the S-1 filing will have to tell convincingly, and the risk factors section will be read unusually closely.

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Democratic leaders panic and GOP divides as AI fears spread

President Trump on Monday forcefully rejected calls to slow the development of artificial intelligence, dismissing concerns about its risks as a “hoax” and warning the United States remains locked in a fierce technological race with China.

The president’s position has put him at odds with a growing chorus of industry leaders and bipartisan lawmakers warning that AI could soon advance beyond human control.

Top executives from three of the country’s leading AI companies — OpenAI’s Sam Altman, Anthropic’s Dario Amodei and SpaceXAI’s Elon Musk — issued exceptional calls this past weekend for collaboration on a path forward that could “pace the frontier” of AI development.

Rare flashes of bipartisanship have also emerged on Capitol Hill, where Senate Majority Leader John Thune, a Republican, is working with Democrats on legislation aimed at guarding against AI’s most catastrophic risks, including its potential use to develop biological weapons.

And Democratic elders, including former President Obama and former Secretary of State Hillary Clinton, have urged their party to treat the threats posed by AI as an acute national security crisis.

But Trump remained steadfast in his pushback, blaming the political backlash on a “conspiracy” perpetuated by China, the only major competitor in the field.

“AI taking over the World, destroying Humanity, and all other things bad, is a HOAX,” Trump wrote in a series of social media posts. “The only control or ‘guardrails’ that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!”

The Trump administration, the president continued, “has stopped AI ‘people’ from doing bad, or potentially bad, ‘things,’ like Dario (Anthropic!), who is now pretending to be a ‘perfect little angel’ — and we will continue to do so! We already have tremendous CRIMINAL and REGULATORY power over these companies!”

Calls for action have grown since a former researcher at Anthropic posted a dire alert on social media that AI development could lead to an extinction-level event. His message went viral, prompting Amodei, the founder of Anthropic, to issue a public letter calling for a slowdown.

Altman said he agreed with Amodei, announcing the company would delay its initial public offering until 2027 over safety concerns. In July, OpenAI discovered a swarm of rogue AI agents had secretly plotted to escape their virtual sandbox, infiltrating the open internet and hacking a private company — a spectacular omen of how quickly AI systems could become difficult to contain.

“Given the accelerating rate of AI capability development, it’s my worry that in 6–12 months such a swarm could be capable of taking over the entire internet with a persistent botnet, potentially causing hundreds of billions of dollars in damage,” Amodei wrote over the weekend, “and that the scale of damage would continue to increase from there if AI becomes more powerful without the necessary guardrails.”

Still, Trump and several of his Republican allies rejected the prospect of government regulation — or cast doubt on Altman and Amodei’s motives.

The Defense Department posted a graphic on X promoting “AI-First,” and stating the government would advocate “Americanism, not effective altruism.” The image appeared generated by artificial intelligence.

“If the unreleased models are scary enough that you think you should slow down, I support your decision to be responsible,” David Sacks, Trump’s former AI czar now serving as co-chair of the president’s Council of Advisors on Science and Technology, wrote on X. “But stop pretending you need anyone else’s permission. Stop pretending antitrust law has to be suspended so you can form a cartel. Stop pretending you need a regulatory approval process that supersedes product liability.”

“Most of all, stop pretending the motivation to slow down is purely altruistic,” Sacks added. “You face massive product-liability exposure if your products enable a truly damaging cyberattack.”

Regardless of the companies’ motives, Democrats are seizing the moment as an opportunity to pursue meaningful regulatory reforms.

At a Thursday fundraiser with Democratic Rep. Hakeem Jeffries, the House minority leader, Obama said AI should move to the center of the Democratic agenda, both in Congress and on the campaign trail ahead of the 2028 presidential primary.

“I would strongly urge that the Democrats put together a framework for a very public conversation,” Obama said. “This is something that is moving very fast in private hands, and if we don’t get on top of it, I think can be dangerous.”

The following day, Clinton said AI was becoming “too dangerous” for partisanship to paralyze Washington.

“The one good thing that Donald Trump did in his first term was Warp Speed,” Clinton said on MS NOW’s “Morning Joe,” referring to a federal program in Trump’s first term to expedite the development of a vaccine for COVID-19. “Let’s put an AI commission on warp speed, and figure out what we’re going to do to sensibly regulate.”

AI leaders “are basically saying, ‘Stop us before something really bad happens,’” Clinton continued. “‘Help us stop.’ The president of China is coming to the White house in two weeks. There should be a concerted effort by this government to get off of the lies, get off of social media, quit worrying about ballrooms and ridiculous arches, and come up with a plan to enlist the Chinese.”

But China’s rapid progress in AI has so far pushed Trump to let U.S. industry move ahead with few constraints.

China’s spy chief issued a rare warning Monday that AI development could risk the future of Chinese Communist Party control over the country. But China’s foreign ministry responded defensively to the U.S. debate. “Fearmongering, confrontation and vicious competition will only disrupt the process of global AI governance which serves no one’s interest,” a spokesperson said.

Leading AI companies in the United States have begun using their most advanced models to train new ones, in a process known as recursive self-improvement. Within the industry, experts and researchers believe the first AI company to master recursive self-improvement will kick off exponential development, “winning” the race by making it impossible for competitors to catch up.

But that achievement — reaching endless intelligence improvements, generated by machines — could also drive intelligence growth beyond human control.

“There is a SICK conspiracy going on against AI and Data Centers, and the only one that is happy about it is China,” Trump wrote Monday. “WHOEVER WINS AI, WINS! We are leading China, and all others, and will continue to do so. Conspiracy Theorists, Treasonists, Traitors, and Leakers, BEWARE!”

In the U.S. House, strange bedfellows from the Republican and Democratic parties, including Sen. Bernie Sanders (I-Vt.) and Rep. Anna Paulina Luna (R-Fla.), have come together to try to tackle legislation that might contain AI’s greatest dangers. One bill, introduced by Rep. Lori Trahan (D-Mass.) and Rep. Jay Obernolte (R-Big Bear Lake), proposes embedding independent government auditors in AI labs and installing a federal “kill switch” to shut down agents in case of emergencies.

But it is far from clear whether Rep. Mike Johnson, the Republican speaker of the House and a close Trump ally, would allow any such bill to come to the floor.

“We cannot put a moratorium on this because China will overlap us, and that’s the challenge,” Johnson said Sunday. “It’s national security balanced with the immediate security of making sure the models are safe.”

“We need to handle this new technology like we have others in the past and make sure we’re doing everything we can responsibly to also not smother American innovation,” Johnson added. “We have to do both things simultaneously.”

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Rogue AI concerns prompt CA lawmakers to demand penalties, guardrails

California lawmakers are calling for emergency legislation and criminal penalties for creators of rogue AI systems after top AI executives publicly claimed that their technology poses existential threats to humanity.

After Anthropic Chief Executive Dario Amodei wrote in a Sept. 12 essay that they “must slow the pace” of the technology, Silicon Valley congressman Ro Khanna (D-Fremont) blasted him for not going “nearly far enough” to make sure artificial intelligence was erected with guardrails.

The answer, Khanna argued, was simple: Make the companies liable for the harm executives say looks increasingly inevitable.

“If you’re creating an AI that is doing illegal things, you should either face liability or criminal sanction,” Khanna said in a video posted to X on Saturday. “That is what we need to protect humanity.”

In July, officials from OpenAI, the company behind ChatGPT, disclosed that, unbeknownst to them, its AI models had hacked into rival startup Hugging Face.

Amodei said he believed that, within the next year, “given the accelerating rate of AI capability development,” a similar incident could lead to AI “taking over the entire internet.”

Amodei warned in his essay that AI was rapidly improving itself, through a process known as recursive self-improvement, which threatened to outpace humans’ ability to control it. Khanna argued that banning this capability was the “most obvious” thing Anthropic could do.

“We need to stop, ban self-improving AI,” Khanna said. “You can not have recursive self-improving AI that basically is able to improve itself and exceed human capability.”

Rep. Ted Lieu (D-Torrance) expressed similar outrage over the weekend, calling on House Speaker Mike Johnson to call lawmakers back to Washington to pass guardrails on the technology now that he said multiple AI companies had conceded “what they are creating is not safe.”

xAI Chief Executive Elon Musk and OpenAI Chief Executive Sam Altman joined Amodei’s call for a slowdown of the breakneck development Saturday.

The statements come after Jacob Coxon, who worked as a researcher at both Anthropic and OpenAI, said in a widely circulated post that he resigned from the company in protest after becoming convinced the tech giants were “racing straight to self-improving superintelligence and gambling with our lives.” Neither company immediately responded to a request for comment.

“This is a direct result of the trump Administration letting the AI industry run wild,” Lieu wrote on X. “That mistake has harmed America, harmed the industry and harmed the American people. November is coming.”

Former President Barack Obama urged Democrats this week to make AI oversight the core of their agenda and said presidential candidates in 2028 should have a “clear plan” for responding to concerns about the technology, the New York Times reported. Americans appear increasingly alarmed by the technology with seven in 10 polled in March opposing local construction of data centers that power AI technology, according to a Gallup survey.

During a Sunday appearance on CNN, Johnson rebuffed the idea that lawmakers should rush into an emergency session to consider erecting industry guardrails. Instead, he said lawmakers needed to be careful to “not smother American innovation.”

“We will lose the race to China, and that is a threat to every single American,” he said on CNN’s “State of the Union.” “We don’t need everyone to panic right now.”

Trump said earlier this week that he is not concerned with the pace of AI progress, telling one reporter, “It’s going to be fine.” American AI companies have long argued too much government regulation would shackle them in a race with China.

Calls for a federal fix were echoed this week by California Gov. Gavin Newsom, who has argued the Trump administration needs to move on national legislation to prepare for fallout from the technology.

Newsom signed bills this week aimed at creating a pathway for outside audits of the top AI companies, many of which are based in California, and a registry for AI auditors.

“The scale and potential consequences of this technology demand sustained action from every level of government,” Newsom said in a statement. “The federal government must step forward with robust, national regulations that match the urgency of this moment.”

Efforts to impose state-level regulations have been mixed, with critics echoing Johnson’s fears that they will stifle innovation.

Late last month, California lawmakers passed sweeping new safeguards around social media, artificial intelligence and data centers, including the ones Newsom signed last week.

Newsom will now decide the fate of the rest of the bills. He has previously vetoed some bills aimed at restricting big tech.

Newsom’s signal that he supports creating some regulation for AI comes two years after he vetoed SB 1047, an AI safety bill that would have required developers to submit safety protocols to the state attorney general, who could hold companies liable if the AI model they directly controlled were to threaten public safety. That legislation would also have required tech firms to be able to turn off the models they directly control if things went awry.

Newsom said at the time the bill would give the public a “false sense of security,” without making a sufficient distinction between the kinds of uses for which AI is deployed.

The bill was supported by a host of prominent AI researchers, but was opposed by Meta, OpenAI and industry groups.

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Arab News | Israel army rejects testimonies in film about AI-powered killing in Gaza

JERUSALEM: The Israeli military on Friday said it “categorically rejects” allegations made in a new documentary about Israel’s AI-powered mass killing of civilians in Gaza, which received a 25-minute ovation at its premiere in Venice the day before.

The Israeli-made film “NAZA” uses conversations with 24 different Israeli military or intelligence whistleblowers who spoke on condition that their identities be protected, with interviewees describing how they felt like they worked in a killing “factory” or a lethal video game.

The Israeli military criticized the use of anonymous testimonies in the film which it said “cannot be verified”, saying in a statement that it “makes unprecedented efforts to minimize harm to civilians” during its offensive in Gaza.



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Arab News | China, Iran among countries that have used AI to aid spying, Anthropic says

SAN FRANCISCO, California: Anthropic said Thursday it shut down multiple cases of state-sponsored surveillance operations that used its artificial intelligence (AI) models, and warned that governments and state-aligned actors are increasingly using AI to spy on ethnic minorities and dissidents.

The incidents were found and disrupted between January and July, and they originated in China, Iran and west Africa, Anthropic said in a report about misuse of its models.

These surveillance campaigns “targeted the same diaspora and dissident communities these regimes have historically targeted. These include pro-democracy figures in Hong Kong, Tibetan and Falun Gong communities across Asia, and Iranian minority communities and opponents of the Iranian regime abroad,” the report said.

In one case, Iranian actors developed a way to identify people through their social media accounts; in another, a contractor working for Malian national security authorities used Claude “to design the underlying software that enabled the intelligence gathering.”

“AI is now being used in place of an engineering workforce,” the report said.

Anthropic also disrupted efforts by users to design weapons, conduct questionable biological research, and create dating scams.

The San Francisco-based AI lab also accused Chinese developers of deceptively using Claude to produce responses to user queries while simultaneously “distilling” that data to improve their own models.

Distilling is an industry term that refers to a process where one AI model is used to train another one.

Chinese developers have previously been accused of using that technique without permission, essentially stealing resources from American labs such as Anthropic and OpenAI.

Now Anthropic alleges that China’s Moonshot and Deepseek have also secretly used Claude to generate answers given to its users.

“In one instance, over a ten-day period, Moonshot relayed almost 300,000 customer requests to Anthropic” through a “network of 5,380 fraudulent accounts, most of which appeared to be located in Singapore and Japan,” the report said.

Some of that data contained sensitive user information, potentially in violation of privacy agreements.

“We do not know if Moonshot notified their customers that their requests were being rerouted to Anthropic and exposed to a third party,” the report said.

Deepseek used similar techniques.

When it comes to the research Anthropic detected and blocked that was related to biological weapons, the intent of the actors was less clear-cut and the AI lab did not identify them.

“The individuals implicated in these case studies are working scientists. We do not assert that they intended harm, and identifying them or their labs could expose them to harm,” the report said.

The scientific research in those cases involved work around the mosquito-born chikungunya virus, a “highly-pathogenic” strain of the bird flu, a family of viruses that include smallpox and mpox, venoms and other toxins.

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Google to invest €13bn in Finnish AI data centres, its biggest European push yet

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Helsinki has landed the biggest cheque Google has written anywhere in Europe


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The company announced on Wednesday that a €13 billion investment will fund data centres and supporting infrastructure across four municipalities, along with clean energy projects and funds dedicated to local biodiversity, education, research and workforce development.

The facilities in Hamina, Kajaani, Muhos and Vaala will power a range of Google services, among them its Gemini chatbot. The company described the decision as “a testament to Finland’s leadership in responsibly building AI infrastructure.”

Construction is expected across 2027 and 2028, and the firm estimates the investment will add €3.6 billion a year to Finland’s GDP while supporting more than 37,000 jobs, roughly 16,000 of them in construction.

Once the building stops, Google projects the sites will sustain around 7,000 jobs annually, spanning technical and facility roles, equipment suppliers, as well as the shops, restaurants and services used by those workers and their families.

Finnish Prime Minister Petteri Orpo welcomed the announcement in Google’s statement.

“Google’s decision is a clear testament to our strengths. The value of the data economy extends far beyond direct investment into spurring innovation, research and development,” Orpo said, adding that closer collaboration would “deliver lasting benefits for both parties.”

Why Finland

The appeal to invest in Finland is rooted in its cold climate.

Data centres generate enormous heat and consume vast quantities of electricity, and Finland offers a cold climate that reduces cooling costs alongside relatively cheap and stable power from nuclear plants, wind and hydro.

That combination has produced a boom, with dozens of data centres already under construction across the country.

Google’s own presence dates back to 2009, when it bought a disused paper mill in the coastal city of Hamina and converted it, expanding steadily since.

For Orpo’s right-wing government, attracting this kind of investment has also been a priority, especially since Finnish elections will take place in April of next year.

Finland is contending with record unemployment and weak growth, and the data economy has become one of the few sectors offering the prospect of substantial investment and job creation.

Additional sources • AFP

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Mistral AI raises record €3 billion in Samsung-led funding round

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Europe’s answer to OpenAI has just become considerably better funded.


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The Paris-based company Mistral AI announced its Series D on Tuesday, three years after being seeded, with the memory chip giant Samsung leading alongside the EU-backed Scaleup Europe Fund, managed by EQT, and existing investor PSG Equity.

The step up is steep.

Mistral was valued at €11.7 billion in 2025 after a €1.7 billion Series C led by Dutch chipmaker ASML, meaning the company has almost doubled its valuation in a year.

Much of the money is going into concrete rather than code. CEO Arthur Mensch announced the funding would build out data centres and computing capacity that Mistral can rent to others but that will also ensure autonomy.

“Long term, the plan is to fully rely on capacity that we are building ourselves, and so that means that the amount of compute that we own is going to grow around 100% in the next five years,” Mensch said, adding that the company would train “bigger and faster models.”

Mistral is already spending €4 billion on data centres across France and Europe, with one facility running outside Paris and another under construction in Sweden.

It raised further debt financing in March for the same purpose, and Microsoft has agreed to fund capacity from its European network, built around thousands of Nvidia chips.

Both Microsoft and Nvidia are also investors in Mistral, with the latter also adding exposure in this funding round.

The company says more than 125 enterprises across 20 countries use its technology, and Mistral projects it will pass a billion in annual recurring revenue by the end of 2026.

Europe lags behind in the AI race

Despite the news, Europe continues to critically lag behind in the global AI race.

Mistral’s valuation sits far below OpenAI and Anthropic, and Europe’s wider AI sector remains a fraction of the American one, with enterprise adoption across the bloc running at around 13.5%.

Other European contenders exist but are smaller.

Germany’s Aleph Alpha focuses on government and regulated industries rather than competing at the frontier, while Helsing has grown quickly in defence applications, and Switzerland’s Apertus offers fully open models and training data.

Brussels is trying to close the gap.

The InvestAI initiative carries a €200 billion headline commitment, and in July the Commission opened tenders for up to seven AI gigafactories, aiming to unlock more than €30 billion in investment, though those sites are not expected to operate until next year or 2028.

Thirteen smaller AI factories are already being built across seven EU countries.

The AI Act became applicable in August, but its toughest obligations were pushed back by the digital omnibus agreed in May, with high-risk rules now landing in December 2027 and August 2028, a delay Brussels framed as making the policy more innovation-friendly.

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‘Possible Love’ on Netflix: Meet stars of South Korea’s Oscar hopeful

“My actual personality is not very friendly, I’m afraid,” claims Korean actor Jeon Do-yeon. “Myself and actor Sul Kyung-gu, we can be a little bit brusque. We don’t really have the talent to make the set fun.”

As she says it, though, Jeon and co-star Cho Yeo-jeong are laughing — making the assertion rather harder to believe when it arrives in English from Korean via an interpreter. Throughout our conversation, in fact, the pair chuckles, nods along to each other’s answers, interjects sounds of assent. Enough for me to understand that their chemistry comes naturally, whatever Jeon’s protestations.

“In the film I play a character that chases [Jeon’s character] and it really suited me, almost to the point where I didn’t really need to try and act this role,” as Cho puts it. “I was almost like a sunflower, constantly facing and chasing actor Jeon.”

The actors needed every ounce of the sublime chemistry they forged to portray the magnetic but fatally flawed relationship at the heart of auteur Lee Chang-dong’s first film in eight years, “Possible Love,” which premiered Sunday at the Venice Film Festival. South Korea’s international feature submission for the 2027 Oscars, the Netflix film sees Ye-ji (Cho), a documentarian married to a wealthy businessman (Zo In-sung), cozy up to Mi-ok (Jeon), whose husband (Sul) has been seriously injured in a brutal crackdown on striking factory workers, in order to secure an interview with him — only for divisions of class and professional ambition to expose the fault lines in their relationship, and in turn their marriages.

“It seems like they want to be friends with each other, but then there seems to be a line that just cannot be crossed between them,” says Lee, also through an interpreter, of the actors’ accomplished double act, referring to a scene in which Ye-ji bristles at Mi-ok’s suggestion that her high-end clothes are out of place interviewing unemployed laborers. “[Jeon and Cho] knew of that and they went into shooting that scene knowing that it was quite challenging to express. There were, of course, some things that were up to the camera in bringing that about, but I think that was a scene where the two were able to express just how nuanced and quite strange the relationship can be.”

The film itself is just as slippery and multi-layered, down to Lee’s heady admixture of documentary and dramatic aesthetics. Inspired by real-life labor conflict in South Korea, “Possible Love” uses Ye-ji’s nonfiction study of laid-off workers as a window into the lives of ordinary people swept up in large-scale social change, against the backdrop of which the two women’s competing priorities are thrown into stark relief. Can a filmmaker who totes a $4,000 Lora Piana backpack, however well-intentioned, truly understand the plight of the working class? Is a subject eager to publicize a political struggle prepared for the risk that her personal privacy will be invaded in the process?

To choreograph the film within the film — so compelling that I almost missed seeing its conclusion when “Possible Love” shifts the focus to interpersonal fireworks in the third hour — Lee cast a real-life documentary director and cinematographer as Ye-ji’s crew, lending what Cho calls their “natural energy” to the movements of the camera. Cho herself prepared by consulting the late master of the form, Frederick Wiseman, who was unabashed about the tension between documentary filmaking’s often radical politics and the privilege required to turn it into a profession.

“[Wiseman] was posed the question by some students studying film and documentary: ‘How can I pursue this work in reality?’” she recalls. “And he replied with the immortal words, ‘Marry a rich man.’ And you know, I was preparing for the role of Ye-ji, so it was such an apt response for her situation.”

Jeon, left, and Cho in "Possible Love."

Jeon, left, and Cho in “Possible Love.”

(Joo Jae-bum/Netflix)

The potential for conflict bursts into the open at a seaside home that has been in Ye-ji’s husband’s family for years, where the group has decamped for a supposedly restorative holiday. Reminded of the setting by the location of our conversation — a set of green-curtained, pink-carpeted suites at the Hotel Excelsior, overlooking the northern shores of the Adriatic — I ask the actors what’s going through their characters’ minds when Mi-ok and Ye-ji’s promising connection ultimately severs.

Mi-ok “doesn’t really want to reveal to anyone else what’s going on in the family … She only wants to show the good side that they are trying to live their best life and trying to improve and move forward with hopefulness,” Jeon says, citing an early scene in which Mi-ok asks the crew not to film her son’s awkward taekwondo at a school field day. When the camera’s prying eye becomes more intrusive, though, she “feels a great sense of betrayal, that her family is being used and exploited.”

For Cho, who says Ye-ji is “constantly balancing the ethical dilemma” between documenting the truth and treating her subjects with care, the break was always inevitable, and no amount of Ye-ji’s remorse or guilt can repair the damage.

Against this microcosm of the class war Lee sets the emergence of artificial intelligence, which threatens to further destabilize labor across a range of industries — including his own. Although he’s uncertain if, when or how AI will “intrude” on the “entirely creative” filmmaking process, the “Poetry” and “Burning” director is already using it for everyday tasks.

“Before going to see the doctor, I like to ask AI all the symptoms that I have, ask what’s wrong with me. Or I would ask, you know, ‘What’s the weather like in Venice?’” he says. “AI gives us instant answers, and it goes even beyond that to where it gives you advice these days. And in that sense, AI has indeed really gotten deeply intertwined in my daily life.”

Similarly, Jeon is open to using AI for more “trivial” matters, such as simultaneous translation from English to Korean and vice versa. But she admits to more “extreme thoughts” than Lee about the technology’s role in the future of screen acting.

“I’m going to be starring in a [Korean-language adaptation] of Anton Chekov’s “The Cherry Orchard” upcoming in New York. And I was wondering, actually, is the stage the last place that cannot be conquered by AI, and will not be replaced by AI?”

Perhaps. But the scene in “Possible Love” that best captures the finely honed chemistry of its female leads, in which Mi-ok and Ye-ji drunkenly bond over soju and Korean barbecue as their bemused husbands look on, seems to me beyond the capabilities of AI — it’s too warm, too meticulously rendered to be anything other than fully human, the sort of acting one hopes the Venice jury will remember when it hands out the Volpi Cup for best actress on Saturday.

“It is quite difficult technically and practically — it was a scene that we shot all night long,” Cho says. “But I remember shooting it with a lot of pleasure.”

No protest there.

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Backlash over data centers hits California, and the midterms

Darian Orduno bounced her baby boy on her chest, looking down at his thick black hair and bright eyes. What might pollution from a data center do, she wondered, to his growing lungs?

That question had brought Orduno, 25, to a community meeting opposing a possible data center here, and her fears, she said, likely would influence her vote in the midterm election too.

“I just had him, and now it’s concerning if he’s going to be able to grow up here,” Orduno said, or “if I’m going to have to relocate.”

As about 100 residents filed into a church for the meeting in late August, under a Central Valley sky hazy with air pollution, many shared the same worries — that a facility pitched for the local fairgrounds could further worsen the area’s air quality and strain its water supply.

Barbara Castle listens to speakers during a town hall meeting on a possible small-scale data center in Hanford.

Barbara Castle listens to speakers during a town hall meeting on a possible small-scale data center in Hanford.

Nationwide, such concerns are fueling a backlash to data centers from both the left and the right as tech companies flood the country with thousands of proposals for the facilities in nearly every state from California to Maine.

Data centers have become an unusually bipartisan flash point in the midterm elections, as candidates race to delineate policy platforms and respond to public opinion. The issue stands to influence swing voters and motivate turnout at the polls.

Here in the 22nd District, home to the state’s most competitive congressional race, how significantly the issue will affect voters’ decisions remains to be seen. But one thing is clear: Anxiety about data centers is mounting.

“It’s a national concern, it’s now a state concern, and now it’s bled into the local concern,” Hanford Mayor Mark Kairis said. “It’s a very emotionally charged issue right now.”

The Art Center building in Hanford.

Residents in Hanford who oppose data centers say they are worried about the region’s air and water quality, concerns echoed by rural communities across the country.

Demand for data centers, which house the computer systems powering artificial intelligence and the internet, has surged as AI use has ballooned. As of April, more than 1,500 new data centers were in development across the United States, according to a Pew Research Center analysis, largely in rural areas.

The centers require intense cooling, which often demands high water and power use and creates the potential to affect the environment and to pass on utility costs to consumers. But they power technology that is becoming increasingly integrated into American business. They also create jobs, though with limitations.

Democrats see the data center uproar as fitting into their affordability messaging, and candidates generally agree data centers should be regulated, though their positions vary on how aggressively. For Republicans, whose party has backed AI innovation, responding to worsening public opinion has been trickier — particularly given President Trump’s championing of AI and data centers.

Vice President JD Vance on Thursday acknowledged negative polling on data centers but framed the issue as a question of American industrial dominance, saying the country can’t shy away from development. Earlier in the week, Trump asserted that the only reason communities should reject data centers is if they want to be “backwards and poor.”

The public may see data centers as a physical manifestation of AI advancement in general, said Camille Crittenden, executive director of the Center for Information Technology Research in the Interest of Society, a University of California research center. Opposing data centers offers people a way to vent their broader concerns about the technology’s increasing dominance.

Priest Luke Martinez expresses concerns during the community meeting .

Priest Luke Martinez expresses concerns during the community meeting .

“This is a very specific focal point for a general anxiety about AI,” she said. “People see these data centers, and they’re thinking, ‘AI’s going to take my job.’”

The backlash from residents in the Central Valley to the possibility of even a small-scale data center demonstrates how acutely the issue has put many Americans on edge.

“It really is terrifying,” said Lucy Gomez, 57, of Hanford, a retired teacher. “I feel like we’re being guinea pigs when we don’t want to be.”

Increasing influence

Community anger about the facilities has prompted close attention from California lawmakers, who passed legislation in Sacramento on Monday to regulate energy use by the data center industry and impose other requirements.

California is home to the third-most data centers of any state, though it has experienced a relatively smaller new boom because of its high electrical prices and other factors. Still, 54 new facilities were in the works for the state as of April, according to Pew.

Hanford Mayor Mark Kairis speaks with coulcilwoman Kimber Regan during a town hall meeting in Hanford.

Hanford Councilwoman Kimber Regan speaks with Mayor Mark Kairis during the meeting. Hanford’s zoning ordinances do not allow data centers, but the city does not have jurisdiction over the county fairgrounds site where Global Stack is evaluating its proposal.

In Georgia and Pennsylvania, New York and Texas, Nevada and Virginia, the issue has become hot-button in elections at all levels. Ads about data centers run on the airwaves in states with key congressional races. Gubernatorial candidates jockey over it; both New York Gov. Kathy Hochul, a Democrat, and Texas Gov. Greg Abbott, a Republican, put temporary moratoriums on new data centers.

A memo from the Republican senatorial campaign arm underscored how critical the question was becoming last month, when it warned AI companies that data centers could be the deciding issue in the close race between Ohio GOP Sen. Jon Husted and former Sen. Sherrod Brown, his Democratic challenger.

Data centers “are the anchor hanging around Husted’s neck,” said the memo, which was first obtained by Axios. “If he loses and data centers get the blame, politicians across the country will take notice — and they will not go near the next one.”

Sixty-one percent of Americans would oppose a data center being built where they live, a late August poll by the Economist and YouGov found.

Though Democrats and independents were more likely to oppose the centers, 47% of Republicans also said they would oppose it, and 52% of people who voted for Trump in 2024 said they believed construction of a new data center would increase their electrical bills.

Data centers encapsulate existing concerns among red and blue voters across the nation and in California about their quality of life and the influence of major tech companies, said Sonoma State University political science professor David McCuan.

“California has a lot of communities that have been struggling and trying to find a way forward, and the data center debate captures those voters’ frustrations,” McCuan said.

Political winds

The historic Bastille and courthouse in Hanford's Civic Center Park.

The historic Bastille, which served as Kings County’s jail and sheriff’s office from 1897 until 1964, stands tall next to the courthouse in Hanford’s Civic Center Park.

The idea for a center on the Kings County fairgrounds is part of a broader pitch by developer Global Stack USA to boost the state’s emergency infrastructure by installing small-scale data centers, helipads and parking garages at fairgrounds around the state.

Global Stack Chief Executive Dan Kang said the goal was strengthening the state’s emergency response capabilities while helping fairgrounds financially. The company’s early materials envisioned operating 70 sites by 2030.

The company has not made any formal proposals, but in Kings and Tulare counties, the issue caught attention after fair officials agreed to allow Global Stack to evaluate their sites. The idea also prompted some residents to voice opposition in Ventura County last month.

The facilities would include what’s known as an edge computing data center, which typically is much smaller than traditional data centers and which Global Stack says would require lower utility use and no municipal water connection.

Concerns about water and energy use by data centers are legitimate, said Shaolei Ren, a UC Riverside engineering professor who studies AI. Centers like the one proposed by Global Stack do not guzzle water the way larger ones do, but they still can use extra power or generate air and noise pollution, Ren said.

In Kings County, the project potentially could benefit the fairgrounds as a long-term revenue source, said Dena Rizzardo, chief executive of the fair board, a state entity that would have final say over any proposal. Because fairgrounds are state property, local and county officials don’t have jurisdiction.

Kang said he is committed to working with local communities to ensure “any path forward reflects local needs and California’s broader resilience priorities.”

In the district’s congressional race, which could help decide control of the House in November, Democratic nominee Randy Villegas said he has been getting questions about data centers from voters. Last month, he released a set of policy points and called for a data center moratorium of at least a year to give Congress time to pass regulations.

Anti-data center crowd during a town hall meeting at the Episcopal Church of the Savior in Hanford.

Democratic congressional candidate Randy Villegas urged meeting attendees to lobby federal lawmakers to pass legislation regulating data centers.

“The advancement of technology … should not be an excuse to throw our communities under the bus,” Villegas said at the Hanford meeting, where he addressed the friendly crowd without identifying himself as a congressional candidate. A College of the Sequoias professor, he is attempting to unseat Republican Rep. David Valadao.

Valadao, in a statement to The Times, said data center construction requires a “responsible approach” that includes local input and ratepayer protections.

“Data centers play an important role in our economy and national security, but Central Valley families are already facing high electric bills and concerns about our water supply,” Valadao said. He did not answer questions about the proposal in Hanford.

Several attendees at the Hanford meeting, who ranged from Gen Z to elderly, said the issue would affect their midterm votes, though most said they already were leaning to the left.

Gomez, the retired teacher, was not happy with either party but planned to vote for Democrats because she viewed them as taking more action to protect public health than Republicans.

a girl stands next to her father sitting in a church pew with others

Ember Gomez listens to speakers while her father, Filiberto, looks on during the meeting. Filiberto Gomez said he was concerned a data center would affect children’s health.

Courtney Hawkins, 40, said the data center issue “absolutely” would carry weight in his votes.

“I believe that AI is good for propelling technology in general,” Hawkins said, “but I don’t believe we should be pursuing it without regulations and at the cost of the environment.”

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Reigning In Big Tech: How California lawmakers plan to regulate AI and social media

Long the epicenter of the global tech industry, California is taking more action to shield its children, communities and workers from the threats posed by the very industry that’s become central to the state’s identity and enviable economy.

State lawmakers on Monday passed new safeguards around social media and artificial intelligence — and are poised to approve restrictions on data centers — at a time when technology has become intertwined with people’s daily lives.

Efforts to rein in the power of Big Tech extend beyond concerns that TikTok, Instagram and other social media platforms are harming young children.

Unions and workers worry that AI will take their jobs, and lawmakers are trying to tackle privacy and safety issues as AI features get added into smart glasses and toys. Californians are concerned that the proliferation of data centers will increase their electricity bills and strain water supplies.

“There’s a heightened level of tech anxiety right now, and that manifests itself from social media to data centers to AI taking jobs,” said Assemblyman Josh Lowenthal (D-Long Beach). “People are coalescing and they’re demanding that policymakers make change.”

California Gov. Gavin Newsom, who has previously vetoed some bills aimed at adding restrictions on Silicon Valley businesses, will still have to weigh in on whether to sign the pieces of legislation into law.

The Democratic governor has acknowledged the challenge of adopting regulations that protect the public without going too far and potentially stifling the technology industry’s growth, which brings critical revenue to the state budget.

“I think that’s the constant tension,” Newsom said in an interview earlier this summer. “We’re constantly sort of fighting that balance.”

The governor, who has close relationships in the technology industry from his time in San Francisco, said only a couple other states have attempted to regulate artificial intelligence like California. The state, he said, leads on regulation of social media.

“We’re not rolling over, certainly,” Newsom said. “We’re leaning forward, and we’re iterating. We will push the boundaries and litigate.”

The looming restrictions on social media follow a landmark Meta Platforms legal settlement aimed at making social media safer for young people. Parents, politicians and child advocacy groups are worried that social media is contributing to depression, anxiety, eating disorders and other issues.

The actions being pushed in the California legislature are more sweeping than that settlement, however. One of the bills passed by lawmakers on Monday, Assembly Bill 1709, would bar certain online platforms from providing an “addictive feature” to users under 16 years old and add ways to verify users’ ages.

Under the bill, prohibited addictive features include autoplay and feeds that display recommended content.

The addictive nature of autoplay and other features is “harmful, full stop, and that they’re not appropriate for the developing brain,” said Lowenthal, who authored the bill.

After watching technology “run free” in California for years, legislators are now seeking to “pump the brakes a little bit,” said Samantha Vigil, a UC Davis researcher who built a registry tracking social media legislation in states across the country.

“They want to reevaluate what is working,” said Vigil. “What is healthy and beneficial, and what is progress just for the sake of having a new iteration of something?”

All 50 states have introduced or passed some type of digital media or technology-related legislation, tackling smartphone use in schools, social media and chatbots, Vigil said.

Other countries have taken more stringent steps to limit social media use among young people. Australia banned social media use for those under 16, but enforcing the law has been challenging because young people have tried to get around the restrictions.

California isn’t trying to ban social media; instead, it’s trying to limit how platforms design their features.

Parents and state attorneys general have not waited for policy makers to act. They have sued Meta, Google and other tech companies over the alleged harms their products have done to young people.

In late August, Meta, which owns Facebook and Instagram, agreed to pay up to $17 billion and make child-safety changes to resolve a multi-state lawsuit alleging the tech company designed and deployed harmful features while misleading the public about potential harms. Meta and YouTube also lost a social media addiction lawsuit earlier this year in Los Angeles.

Assembly Bill 1709 goes further. For example, Meta’s settlement gives teens the option to pick a non-algorithmic feed and turn off autoplay but, unlike in the legislation, it’s not mandatory. The bill would also apply to other platforms outside of Meta. Meta declined to comment.

Tech industry and business group opposing the bill say it is too blunt and could cut off access to social media’s benefits, according to the bill’s analysis.

“The durable path is to enforce the targeted laws California already has and to strengthen parental tools rather than an overlapping framework whose scope can be redrawn by regulation,” said Robert Boykin, TechNet’s Executive Director for California and the Southwest.

California lawmakers passed another Lowenthal bill aimed at holding social media liable for harm caused to children. Under Assembly Bill 2, social media companies could face fines of up to $1 million per child for negligent harm.

California lawmakers this year also attempted to tackle two other perils of the technological world — the rapid development and implementation of artificial intelligence and the proliferation of the massive data centers that are essential to sustaining the AI universe.

National and state union leaders have urged California legislators and Newsom to protect workers from the threats of AI to replace workers, saying it posed an existential threat to the foundation of a healthy, productive democracy.

“AI must remain a tool controlled by humans, not the other way around,” said Sen. Jerry McNerney (D-Pleasanton).

The state Legislature on Monday approved McNerney’s bill, Senate Bill 947, which would bar employers from “solely” using automated decision-making systems to discipline or fire employees. If an employer primarily relies upon this system, a human must verify the decision.

Lawmakers also approved Senate Bill 951, introduced by Sen. Eloise Gomez Reyes (D-Colton), which would require employers to provide a 60-day advance notice to workers and local and state governments before AI-related layoffs. Lawmakers also approved Assembly Bill 1609, which requires large private businesses that serve customers to provide access to human customer service representatives and to disclose to use of chatbots.

They passed another bill by Sen. Steve Padilla (D-Chula Vista) that enacts a four-year moratorium on the sale and manufacturing of AI-chatbot powered toys over concerns that the technology can harm children.

On Friday, lawmakers agreed on a compromise on proposed legislation to regulate energy use by California’s growing data center industry, measures prompted by community fears about the massive complexes. Lawmakers say the legislation would help protect consumers from growing electricity costs driven upward by the sprawling facilities and to track the centers’ immense energy and water consumption.

At a June hearing on Senate Bill 886 to regulate data centers’ energy use, Assemblymember Pilar Schiavo (D-Chatsworth) said it’s just “a handful of companies that are gonna make trillions of dollars” from AI. They should pay for related utility infrastructure upgrades, she added.

“People, I would argue, are not even begging to use AI,” she said. “They’re struggling to figure it out to keep up with the times, but don’t even really want it.”

The California legislature is expected to vote on two of the bills to regulate the controversial industry within the next day.

Whether Newsom will embrace the legislature’s efforts to corral big Tech in California — in part of in whole — remains unclear.

Newsom last year vetoed a similar AI bill from McNerney to ban automated decision-making systems to discipline employees over worries that it could restrict companies’ ability to use customer ratings. That element was dropped in this year’s legislation.

Newsom last year signed Assembly Bill 56 that required social media platforms to display mental health warning labels to users under 18 starting in January 2027. But he also vetoed Senate Bill 771 that aimed to hold social media platforms liable if they amplified content that contributed to hate crimes and other violent acts, saying that the legislation was “premature” and current civil rights laws might be adequate.

Lowenthal said he’s heard from California families who are anxious about social media and seeking “relief” from their concerns about how the platforms are affecting their children.

“This is a kitchen-table topic,” he said. “I’ve yet to find a family with school-age children in the state of California, any corner of the state, that is not going through this right now.”

Times staff writer Taryn Luna contributed to this report.

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Sunny Hostin of “the View” clones her voice and likeness

Hollywood A-listers are more comfortable than ever with cloning their voice and likeness to create a new stream of income, despite the threat of viewer backlash to artificial intelligence.

Sunny Hostin of the popular daily talk show “The View” has licensed her image and likeness to AI production studio Fountain 0, which will make film adaptations of her novels.

“To be able to bring my novels to life in movie and TV form, and actually have my image inserted in the productions, so that audiences can relate to me through my stories beyond my role as an author, is incredibly exciting to me,” Hostin said in a statement.

“AI can give me a way to both more fully develop, and more fully immerse myself in, IP I have developed,” she said.

The Overton window for acceptable AI use in Hollywood continues to widen as Hollywood actors, television hosts, and influencers embrace cloning with protections and compensation. As high-quality synthetic re-creations become cheap and accessible, cloning has become a more desirable option for studios struggling with runaway production costs.

Audiences will be subject to more AI content on the big screen that’s indistinguishable from real human performances.

Fountain 0 is the producer behind “Dreams of Violets,” a fully AI-generated film inspired by anti-government protests in Tehran. The 75-minute drama was made with a budget of $2,000 without a cast or a crew, and was the first fully AI-generated film accepted at the Tribeca Film Festival.

“We are incredibly gratified that Sunny is willing to be the talent pioneer willing to step out and take advantage of this new form of creative expression,” said Ash Koosha, co-founder and CEO of Fountain 0, in a release.

The production company will be releasing its second fully AI-generated film, “Odysseus: The Fall,” later this year. The film uses the likeness of many people, including the film’s creator Koosha, who stars as Odysseus.

Fountain 0’s executive chariman told CNBC that the film is designed to ride the buzz around Christopher Nolan’s ‘’The Odyssey” and give people the opportunity to compare the height of human filmmaking with AI filmmaking.

Proponents of AI argue that it allows writers and creators to take on blockbuster-scale films without financial constraints. Many creators oppose AI because it could replace humans and was built using the unauthorized scraping of creative works used to train generative AI video and image models.

Online reactions to news of Hostin’s cloning were fierce.

“Basically, no film studio wants to give her the budget to turn her books into a movie with real actors, so she’s resorting to AI studios,” wrote one person on Reddit.

Hollywood has fought hard for protections from AI in the prolonged writers’ and actors’ strikes of 2023. SAG-AFTRA, the union representing about 160,000 actors and other performers, has been demanding informed consent, fair compensation, more control and transparency over the use of digital replicas.

The latest agreement, signed in June, introduced limits on studios’ use of digital replicas. The contract requires studios to notify actors before using their voices to create a replica. After a project is complete, actors must sign off and be paid the equivalent of an in-person performance if their replica is used.

Additionally, studios need to pay residuals to digital replicas used in reruns, and replicas cannot be used during a strike.

Hiring fully AI-generated characters such as Tilly Norwood, created without hiring a human performer, is not impossible but comes with a very high threshold for use under the 2026 union contract. Producers must notify the union in advance and prove the AI character brings “significant additional value” to the role.

Still, a fissure remains between those actors who stay morally opposed to cloning, and those who embrace this new reality.

ElevenLabs’ voice marketplace features clones of dozens of personalities — including actress Judy Garland, physicist Richard Feynman and popular characters such as Mr. Potato Head for creators to legally license and get compensated for their use.

This has created a contentious ecosystem in which A-listers are gaining millions from cloning with safeguards and building a new stream of passive income from their intellectual property, while early-career actors complain that their likenesses are being misappropriated and opportunities are being driven away. A massive lobbying effort is underway to institute a uniform standard for protecting an individual’s voice and likeness as property rights.

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California lawmakers move to crack down on AI used for public comment.

California lawmakers have passed legislation that will make it easier for government agencies to protect themselves from the rising use of artificial intelligence for public comment, records requests and other forms of civic engagement.

Senate Bill 1159 from Sen. Christopher Cabaldon (D-West Sacramento) prohibits anyone from knowingly using AI to falsely represent that a real person engaged with a government agency. It also specifies that agencies are not required to treat engagement from AI or bots as if they were real humans.

“What we have seen with the result of the advent of artificial intelligence and other similar technologies is the capability for these systems to flood the zone — to drown local governments, and potentially state agencies as well, in inauthentic, non-human engagement” Cabaldon said during a March meeting of the Senate Judiciary Committee.

The legislation was introduced shortly after a February report from The Times about a campaign to sway a vote on gas-powered appliances at the South Coast Air Quality Management District. A Southern California based public affairs consultant named Matt Klink took credit for the campaign, stating that he used a platform called CiviClick to flood the district with 20,000 public comments opposing the rule ahead of the air board’s vote.

CiviClick describes itself on its website as “the first and best AI-powered grassroots advocacy platform.” Company officials maintain that AI was not used in the AQMD campaign, but said it is a tool they offer and use in other campaigns. Chief executive Chazz Clevinger said he could not share how the 20,000 comments to the air board were generated or how constituents were identified and contacted.

Agency insiders said the onslaught of emails almost certainly influenced the air board’s decision to reject the proposed rules, which would have imposed fees on new gas-powered furnaces and water heaters for some 10 million appliances across the South Coast region.

Cabaldon cited The Times story when he introduced the legislation, noting that at least three people contacted by the air district said they had not submitted the public comments attached to their names.

He also cited a report from the San Francisco Chronicle about a similar campaign to sway a different rule at the Bay Area Management District, which was run through a platform called Speak4 that advertises its ability to produce custom AI-powered letters.

The business advocacy group that ran the campaign also denied that AI was used. However, 10 people contacted by The Chronicle said they had not written the letters attributed to them. “This was forged,” one person said.

Reached by phone, Cabaldon said the legislation will help public agencies navigate how to respond to the deployment of AI, which is increasingly being used in a way that “swamps our civic engagement process, but also disables our state and local governments altogether.”

For example, the California Public Records Act requires government agencies to respond to requests for public records within 10 days, while the Brown Act and the Bagley-Keene Open Meeting Act guarantee the right to participate in public meetings and provide public comment.

“The point of the bill is to say that these laws are about humans, and just because it comes in the form that a human would write it, does not mean you have to treat each of these communications as if it’s a human being, and therefore, AI is not entitled to 10 days, AI is not entitled to three minutes at the school board meeting,” he said.

Experts said the use of AI for “astroturfing,” or faking, civic engagement is a growing trend. In the United Kingdom, a service called Objector.ai is using AI to identify and generate formal objections to local planning applications, garnering the concern of experts, The Guardian reported.

Public officials in California are worried, too. Vacaville vice mayor Michael Silva said the city has been receiving AI-generated public records requests, which are slowing its ability to respond to other legitimate requests submitted by residents.

Dylan Plummer, deputy director of the Sierra Club’s Clean Heat Campaign, said many AI campaigns have benefited the fossil fuel industry and pose an “existential threat to public participation in our democracy.”

“The passage of Senate Bill 1159 is an important step to clarify the law and discourage the use of emerging technologies to falsify public records and mislead regulators in California,” he said. “That said, much work still needs to be done to understand how widespread this practice is, and to hold bad actors accountable for laws that may have already been broken.”

Lawmakers acknowledged that the legislation is just a start, and that it is increasingly difficult for public officials to detect bespoke letters, deepfake videos or other kinds of engagement powered by AI. The bill authorizes government agencies to use disclosure verification tools to determine if AI is present — something the Bay Area Air District already indicated it may do by replacing its email system with a website for public comment submissions instead.

The legislation does not preclude real people from using AI to facilitate genuine public engagement, such as someone using ChatGPT or Perplexity to improve the text of a letter, so long as the volume and frequency of their engagement are consistent with ordinary participation from a real person.

For its part, CiviClick notes on its website that it supports SB 1159, and said its platform already complies with what the bill proposes.

Some lawmakers said the use of AI in a civic capacity represents a new frontier.

“If I’d have read this bill back when I was on the Sacramento County Board of Supervisors, I would have wondered what you were smoking,” Sen. Roger Niello (R-Fair Oaks) said during the March meeting of the Judiciary Committee.

“But that’s how things have progressed, and the development of technology will always outpace the development of defenses against the undesirable effects of technology,” he said.

SB 1159 passed the legislature this month and will head to Gov. Gavin Newsom’s desk for signature in September.

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AI and Lenders: Who’s Liable if LLMs Err?

Private credit firms can still whiff if algorithms do the work, but the onus is on them.

Lenders are leaning on artificial intelligence to score borrowers, monitor portfolios, and automate workflows that once took analysts weeks. Momentum is only building: More than half of private credit portfolio managers—54%—plan to deploy AI in underwriting, according to a March PwC survey of 120 global firms.

But as AI takes on more of that analytical heavy lifting, firms face a tough question: When an algorithm makes a mistake, who bears the blame?

For credit risk expert Naeem Siddiqi, author of Intelligent Credit Scoring and senior risk advisor at SAS, the answer is clear: Don’t fault AI; it’s just a tool.

If the large language model, or LLM, miscalculates a number or uses a prohibited category like race or religion, “then the lender is liable,” he said in an email. The courts already tested that principle — that a company can’t hide behind its own algorithm. Guess what? The company lost.

‘An Emerging Discipline’

Take Moffatt v. Air Canada for example. One of the airline’s customers used its chatbot in 2022 to ask about bereavement fares following a death in his family. The chatbot told him he could book a full-fare ticket and apply for a refund within 90 days, advice that contradicted Air Canada’s actual policy requiring passengers to submit such requests before travel.

When the customer tried to collect, Montreal-based Air Canada argued it shouldn’t be held liable, effectively treating the chatbot as a separate entity responsible for its own statements.

The British Columbia Civil Resolution Tribunal rejected that defense, found Air Canada liable for the error and ordered the airline to pay $812.02 Canadian dollars, including CA$650.88 in damages plus interest and fees.

Siddiqi said the ruling set a precedent: “Companies can’t argue that the AI is a separate independent entity that frees the firm from liability.”

He pointed to a broader wave of AI-related litigation in the U.S. where legal exposure extends far beyond chatbots and the airline industry. Currently, there are copyright suits against LLM developers, including Anthropic. However, in other scenarios, the company wielding the tech bore the brunt of scrutiny.

Last year, facial-recognition company Clearview AI faced privacy litigation while software firm Intuit and HR tech firm HireVue received a discrimination complaint alleging their AI hiring tools disadvantaged a deaf, Indigenous job applicant.

“This is an emerging discipline,” Siddiqi said, “but it’s safe to assume the lender is liable for discriminatory decisions made on its behalf, whether by a human or an AI.”

Risk Sits With Lender

For private credit firms racing to deploy AI across underwriting and portfolio monitoring, the early case law sends a signal: The technology can do the work, but it doesn’t absorb the risk. That still sits with the lender.

“Legally and regulatory-wise, the buck stops entirely with the lender,” said Omar Abassi, founder of Newport Beach-based lending tech startup LoanFlo AI.

So far, regulators such as the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and the U.S. Department of Housing and Urban Development have made it clear: You can’t delegate your compliance obligations to a software vendor, Abassi said.

If an AI algorithm introduces algorithmic bias, violates the Equal Credit Opportunity Act, or fails to provide legally compliant adverse action notices, regulators sue or fine the lender—not the AI company.

Because of this legal exposure, some lenders require vendor platforms to provide audit trails showing exactly what the AI read, and regular back-testing to prove the AI model does not inadvertently produce discriminatory outcomes.

Treating AI Like an Employee

That gap between high market interest and actual operational risk is top-of-mind for technology leaders building loan administration tools.

“There’s a general enthusiasm in the market around AI … and firms are very excited about diverse capabilities,” said David Yahalomi, chief operating officer and co-founder of Tel Aviv-based loan-management platform Hypercore. “But this technology is a statistical-based technology … it can make mistakes, and we’ve all seen that.”

Rather than viewing AI as a replacement for decision-makers, Yahalomi suggested lenders treat AI like a new hire who requires guidance and thorough review.

“We should treat it like it’s an employee,” Yahalomi said. “Even if you feel like you’ve trained your best agent … think about it like you gave a deal to your best person five minutes ago. Would it give you the correct answers, or does it need proper time to actually go and research?”

Ultimately, Yahalomi cautioned against granting agents final authority over deals: “We should not treat it as a person that makes calls … you shouldn’t treat it as an executive.”

What’s Next

The balance between strict regulatory oversight and day-to-day workflow is where human teams feel the pressure most. As LLMs become more ubiquitous, too few humans are taking on too much work and leaning heavily on AI-driven underwriting.

“Underwriters are definitely taking on too much work in traditional setups and being overworked in many cases, which leaves more room for human error,” Abassi said. But don’t expect AI to replace credit risk assessment; instead, it’s closing the gap so that fewer underwriters can underwrite many more loans and be less stressed as a result.

“Eventually, the AI will be so good that human underwriters won’t be able to keep up,” he added. “AI agents will be the ones reviewing the other AI’s work. We aren’t there yet, but ultimately it’s on its way.”

Anthony Noto covers corporate finance and private credit. Contact him at anoto@gfmag.com.

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