China

China's Government Pushes Real-World AI Use to Jumpstart Its Adoption (yahoo.com) 26

The Chinese government "has embarked on an all-out drive to transform the technology from a remote concept to a newfangled reality, with applications on factory floors and in hospitals and government offices..." reports the Washington Post.

"[E]xperts say Beijing is pursuing an alternative playbook in an attempt to bridge the gap" with America: "aggressively pushing for the adoption of AI across the government and private sector." DeepSeek has been put to work over the last six months on a wide variety of government tasks. Procurement documents show military hospitals in Shaanxi and Guangxi provinces specifically requesting DeepSeek to build online consultation and health record systems. Local government websites describe state organs using DeepSeek for things like diverting calls from the public and streamlining police work. DeepSeek helps "quickly discover case clues and predict crime trends," which "greatly improves the accuracy and timeliness of crime fighting," a city government in China's Inner Mongolia region explained in a February social media post. Anti-corruption investigations — long a priority for Chinese leader Xi Jinping — are another frequent DeepSeek application, in which models are deployed to comb through dry spreadsheets to find suspicious irregularities. In April, China's main anti-graft agency even included a book called "Efficiently Using DeepSeek" on its official book recommendation list...

Alfred Wu, an expert on China's public governance at the National University of Singapore, said Beijing has disseminated a "top-down" directive to local governments to use AI. This is motivated, Wu said, by a desire to improve China's AI prowess amid a fierce rivalry with Washington by providing models access to vast stores of government data.

But not everyone is convinced that China has the winning hand, even as it attempts to push AI application nationwide. For one, China's sluggish economy will impact the AI industry's ability to grow and access funding, said Scott Singer [an expert on China's AI sector at the Carnegie Endowment for International Peace, who was attending the conference]... Others point out that local governments trumpeting their usage of DeepSeek is more about signaling than real technology uptake. Shen Yang, a professor at Tsinghua University's school of artificial intelligence, said DeepSeek is not being used at scale in anti-corruption work, for example, because the cases involve sensitive information and deploying new tools in these investigations requires long and complex approval processes.

Microsoft

Internal Microsoft Documents Detail Pay Scales (businessinsider.com) 43

Microsoft's internal pay guidelines show exactly how much the company will pay new engineering hires, according to documents obtained by Business Insider. The guidelines, updated in May, break down salary ranges, stock awards, and bonuses for every level from entry-level engineers to the company's most senior technical talent.

The documents come with an important caveat: recruiters can get approval to pay more when competing for exceptional candidates. At Microsoft's highest tier, Level 70 "distinguished engineers" can earn up to $408,000 in annual salary. But the real money comes from stock: these hires get up to $1.9 million in stock when they join, plus annual stock awards reaching $1.476 million.

The company uses different pay scales depending on location. Engineers in expensive markets like San Francisco get higher ranges than those at Microsoft's Redmond headquarters, where most hiring happens. For entry-level engineers at Level 57, Microsoft offers salaries between $83,000 and $108,000 in its main markets, with higher ranges of $95,800 to $124,600 in expensive areas like San Francisco. These new hires get modest stock awards of $5,000 to $13,000 and signing bonuses up to $9,000.

The company considers levels 57 through 59 as entry-level positions. The compensation jumps significantly as engineers advance. By Level 63, when engineers reach senior status, salaries range from $145,000 to $237,600 depending on location, with stock awards reaching $220,000.
China

China Claims Nvidia Built Backdoor Into H20 Chip Designed For Chinese Market (arstechnica.com) 83

Beijing has summoned Nvidia over alleged security issues with its chips, in a blow to the US company's push to revive sales in the country after Washington granted approval for the export of a made-for-China chip. From a report: China's cyber regulator on Thursday said it had held a meeting with Nvidia over what it called "serious security issues" with the company's artificial intelligence chips.

It said US AI experts had "revealed that Nvidia's computing chips have location tracking and can remotely shut down the technology." The Cyberspace Administration of China requested that Nvidia explain the security problems associated with the H20 chip, which was designed for the Chinese market to comply with US export restrictions, and submit documentation to support their case.

Medicine

FDA's New Drug Approval AI Is Generating Fake Studies (gizmodo.com) 41

An anonymous reader quotes a report from Gizmodo: Robert F. Kennedy Jr., the Secretary of Health and Human Services, has made a big push to get agencies like the Food and Drug Administration to use generative artificial intelligence tools. In fact, Kennedy recently told Tucker Carlson that AI will soon be used to approve new drugs "very, very quickly." But a new report from CNN confirms all our worst fears. Elsa, the FDA's AI tool, is spitting out fake studies.

CNN spoke with six current and former employees at the FDA, three of whom have used Elsa for work that they described as helpful, like creating meeting notes and summaries. But three of those FDA employees told CNN (paywalled) that Elsa just makes up nonexistent studies, something commonly referred to in AI as "hallucinating." The AI will also misrepresent research, according to these employees. "Anything that you don't have time to double-check is unreliable. It hallucinates confidently," one unnamed FDA employee told CNN. [...] Kennedy's Make America Healthy Again (MAHA) commission issued a report back in May that was later found to be filled with citations for fake studies. An analysis from the nonprofit news outlet NOTUS found that at least seven studies cited didn't even exist, with many more misrepresenting what was actually said in a given study. We still don't know if the commission used Elsa to generate that report.

FDA Commissioner Marty Makary initially deployed Elsa across the agency on June 2, and an internal slide leaked to Gizmodo bragged that the system was "cost-effective," only costing $12,000 in its first week. Makary said that Elsa was "ahead of schedule and under budget" when he first announced the AI rollout. But it seems like you get what you pay for. If you don't care about the accuracy of your work, Elsa sounds like a great tool for allowing you to get slop out the door faster, generating garbage studies that could potentially have real consequences for public health in the U.S. CNN notes that if an FDA employee asks Elsa to generate a one-paragraph summary of a 20-page paper on a new drug, there's no simple way to know if that summary is accurate. And even if the summary is more or less accurate, what if there's something within that 20-page report that would be a big red flag for any human with expertise? The only way to know for sure if something was missed or if the summary is accurate is to actually read the report. The FDA employees who spoke with CNN said they tested Elsa by asking basic questions like how many drugs of a certain class have been approved for children. Elsa confidently gave wrong answers, and while it apparently apologized when it was corrected, a robot being "sorry" doesn't really fix anything.

Movies

Cinemas Weigh Launching New Large Screen Brand To Challenge Imax (bloomberg.com) 46

Major US theater chains including Cinemark, Regal and Marcus have held preliminary talks about jointly marketing their big-screen theaters to compete with Imax, according to Bloomberg. The discussions have focused on setting shared standards for the chains' "premium large-format" theaters, with options including uniting around a new brand name or adding an industrywide designation that would serve as a stamp of approval for their locations.

The chains are motivated by Imax's growing influence in the industry, as the company consistently generates more than 10% of the box office for blockbusters despite operating only 372 US locations. AMC Entertainment, the largest chain and biggest operator of Imax screens in the US, is not participating in the deliberations, the report added.
AI

Meta's Superintelligence Lab Considers Shift To Closed AI Model (yahoo.com) 13

An anonymous reader quotes a report from Investing.com: Meta's newly formed superintelligence lab is discussing potential changes to the company's artificial intelligence strategy that could represent a major shift for the social media giant. A small group of top members of the lab, including 28-year-old Alexandr Wang, Meta's new chief A.I. officer, talked last week about abandoning the company's most powerful open source A.I. model, called Behemoth, in favor of developing a closed model, according to a report in the New York Times, citing people familiar with the matter.

Meta has traditionally open sourced its A.I. models, making the computer code public for other developers to build upon, and any shift toward a closed A.I. model would mark a significant philosophical change for Meta. Meta had completed training its Behemoth model by feeding in data to improve it, but delayed its release due to poor internal performance. After the company announced the formation of the superintelligence lab last month, teams working on the Behemoth model, which is considered a "frontier" model, stopped conducting new tests on it. The discussions within the superintelligence lab remain preliminary, and no decisions have been finalized. Any potential changes would require approval from Meta CEO Mark Zuckerberg.

Businesses

Some Amazon Warehouses are Losing Hundreds of Workers After Changes in Legal Status (seattletimes.com) 235

At an Amazon warehouse that employs 3,700 people, hundreds of workers recently lost their job, reports the New York Times.

"They are among thousands of foreign workers across the country who have been swept up in a quiet purge, pushed out of jobs in places where their labor was in high demand and at times won high praise." While raids to nab workers in the country without legal permission in fields and Home Depot parking lots have grabbed attention, the job dismissals at the Amazon warehouse are part of the Trump administration's effort to thin the ranks of immigrants who had legal authorization to work... Such dismissals are happening at many of Amazon's more than 1,000 facilities around the country, including in Massachusetts and the warehouse in Staten Island that fills orders for millions of New Yorkers. At one fulfillment center in Florida, hundreds were let go, a person familiar with the site said... "We're supporting employees impacted by the government's recent changes in immigration policy," Richard Rocha, an Amazon spokesperson, said in a statement. The company has pointed workers to various resources, including outside free or low-cost legal services...

The dismissals came with remarkable speed. On May 30, the Supreme Court granted temporary approval for the Trump administration to revoke a program known as "humanitarian parole," which had allowed more than 500,000 migrants feeling political turmoil in Cuba, Haiti, Nicaragua and Venezuela to quickly get work permits if they had a fiscal sponsor... On June 12, the Department of Homeland Security said it had begun notifying enrollees that the program was ending, saying the immigrants had been poorly vetted and undercut American workers...

On June 22, Amazon told managers around the country in an email, which was obtained by The New York Times, that it had "received the first list from D.H.S. identifying impacted Amazon employees" from the parole program, as well as "some employees outside of this specific program whose work authorization is similarly affected." Amazon let the managers know that the next day, the affected workers would receive push notifications in the employee app about the change. Unless the workers could provide alternate work authorization documents in the next five days, they would be suspended without pay and ultimately dismissed.

Businesses

Robinhood Up 160% in 2025, But May Face Obstacles (cnbc.com) 11

Robinhood's stock hit is up more than 160% for 2025, reports CNBC, and the trading platform's own stock hit an all-time high on Friday. But "Despite its stellar year, the online broker is facing several headwinds..." Florida Attorney General James Uthmeier opened a formal investigation into Robinhood Crypto on Thursday, alleging the platform misled users by claiming to offer the lowest-cost crypto trading. "Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive," Uthmeier said in a statement. The probe centers on Robinhood's use of payment for order flow — a common practice where market makers pay to execute trades — which the AG said can result in worse pricing for customers.

Robinhood is also facing opposition to a new 25% cut of staking rewards for U.S. users, set to begin October 1. In Europe, the platform will take a smaller 15% cut. Staking allows crypto holders to earn yield by locking up their tokens to help secure blockchain networks like ethereum, but platforms often take a percentage of those rewards as commission. Robinhood's 25% cut puts it in line with Coinbase, which charges between 25.25% and 35% depending on the token. The cut is notably higher than Gemini's flat 15% fee. It marks a shift for the company, which had previously steered clear of staking amid regulatory uncertainty...

The company now offers blockchain-based assets in Europe that give users synthetic exposure to private firms like OpenAI and SpaceX through special purpose vehicles, or SPVs. An SPV is a separate entity that acquires shares in a company. Users then buy tokens of the SPV and don't have shareholder privileges or voting rights directly in the company. OpenAI has publicly objected, warning the tokens do not represent real equity and were issued without its approval... "What's important is that retail customers have an opportunity to get exposure to this asset," [Robinhood CEO Vlad Tenev said in an interview with CNBC], pointing to the disruptive nature of AI and the historically limited access to pre-IPO companies. "It is true that these are not technically equity," Tenev added, noting that institutional investors often gain similar exposure through structured financial instruments...

Despite the regulatory noise, many investors remain focused on Robinhood's upside, and particularly the political tailwinds.

Bitcoin

Bitcoin Hits an All-Time High of $118,000, Up 21% for 2025 (yahoo.com) 109

Bitcoin "vaulted to a fresh all-time high Friday, breaking above $118,000," reports Yahoo Finance: Year to date, the token is up roughly 21%, buoyed in part by crypto-friendly policies from the Trump administration, including the establishment of a strategic bitcoin reserve and a broader digital asset stockpile... "At the heart of this rally lies sustained structural inflows from institutional players," wrote Dilin Wu, research strategist at Pepperstone. "Corporates are also ramping up participation," he added. The analyst noted companies like Strategy and GameStop have continued to add bitcoin to their balance sheets. Trump Media & Technology Group this week also filed for approval to launch a "Crypto Blue Chip ETF", which would include about 70% of its holdings in bitcoin.

The timing of bitcoin's breakout also comes days before Congress kicks off its highly anticipated "Crypto Week" on July 14. Lawmakers will debate a series of bills that could define the industry's regulatory framework... The GENIUS Act is among the regulations the House will consider. The bill, which recently passed through the Senate, proposes a federal framework for stablecoins.

"After jumping above $118,000 on Thursday, technical analyst Katie Stockton, founder and managing partner of research firm Fairlead Strategies, believes bitcoin is on track to reach $134,500, about 14% higher than current levels," writes Business Insider . It's not just bitcoin that's jumped this week. Other cryptos are surging as well. Ethereum has rallied over 16% in the past five days, and as DOGE rose 8% in the last day alone... Additionally, over $1 billion in short positions were liquidated in the last 24 hours as the price of bitcoin surged and traders were forced to close their positions, [said Thomas Perfumo, global economist at crypto Kraken].
Red Hat Software

Red Hat Gives Developers Free Access To Enterprise Linux For Business Use (nerds.xyz) 89

BrianFagioli shares a report from NERDS.xyz: Red Hat has introduced a new option that gives developers a fast lane to enterprise-grade Linux without needing to go through IT. The new release, called Red Hat Enterprise Linux for Business Developers, is now available for free. It offers direct, self-serve access to the same operating system used in production environments, specifically for business-focused development and testing.

The offering is part of the Red Hat Developer Program and is designed to reduce friction between development and operations teams. Developers can now build and test applications on the same platform that powers critical systems across physical servers, virtual machines, cloud deployments, and edge devices. [...] Each registered user can deploy up to 25 instances, whether virtual, physical, or cloud-based. The program includes signed and curated developer content such as programming languages, open source tools, and databases. Red Hat also includes Podman Desktop, its go-to container development tool, allowing users to work with containers that can closely match production environments.

While access is free, developers can choose to purchase support plans that tap into Red Hat's Linux expertise. This could appeal to developers working in business units or teams that want to build quickly without waiting on formal IT approval. This new option complements Red Hat's existing free Developer Subscription for Individuals and the Enterprise Developer Subscription for Teams, which is available through Red Hat reps or partners.

The Courts

Fubo Pays $3.4 Million To Settle Claims It Illegally Shared User Data With Advertisers (arstechnica.com) 9

Fubo has agreed to pay $3.4 million to settle a class-action lawsuit (PDF) accusing it of illegally sharing usersâ(TM) personally identifiable information and video viewing history with advertisers without consent, allegedly violating the Video Privacy Protection Act (VPPA). Ars Technica reports: As reported by Cord Cutters News this week, instead of going to trial, Fubo reached a settlement agreement [PDF] that allows people who used Fubo before May 29, which is when Fubo last updated its privacy policy, to receive part of a $3.4 million settlement. The settlement agreement received preliminary approval on May 29, and users recently started receiving notice of their potential entitlement to some of the settlement. They have until September 12 to submit claims. Fubo said in a statement: "We deny the allegations in the putative class lawsuit and specifically deny that we have engaged in any wrongdoing whatsoever. Fubo has nonetheless chosen to pursue a settlement for this matter in order to avoid the uncertainty and expense of litigation. We look forward to putting this matter behind us."
Transportation

Waymo Starts Robotaxi Testing In Philadelphia and NYC (techcrunch.com) 40

Waymo has launched new "road trips" to Philadelphia and New York City, "signaling the Alphabet-owned company's interest in expanding into Northeastern cities," reports TechCrunch. While these trips don't guarantee commercial launches, they follow a pattern that previously led to deployments in cities like Los Angeles. Other road trips this year are planned for Houston, Orlando, Las Vegas, San Diego, and San Antonio. From the report: Typically, the trips involve sending a small fleet of human-driven vehicles equipped with Waymo's autonomous driving system to map out the new city. Then Waymo tests the vehicles autonomously, though still with a human behind the wheel, before taking any data and learnings back to its engineers to improve the AI driver's performance. In some cases, these road trips have led to commercial launches. In 2023, the company made a road trip to Santa Monica, a city in Los Angeles County. The company now operates a commercial service in Los Angeles, including Santa Monica, Beverly Hills, and Hollywood.

For its Philadelphia trip, Waymo plans to place vehicles in the most complex parts of the city, including downtown and freeways, according to a spokesperson. She noted folks will see Waymo vehicles driving "at all hours throughout various Philadelphia neighborhoods, from North Central to Eastwick, University City, and as far east as the Delaware River."

In NYC, Waymo will drive its cars manually in Manhattan just north of Central Park down to The Battery and parts of Downtown Brooklyn. The company will also map parts of Jersey City and Hoboken in New Jersey. Waymo applied last month for a permit to test its AVs in New York City with a human behind the wheel. The company has not yet received approval.

AI

AI Note Takers Are Increasingly Outnumbering Humans in Workplace Video Calls (msn.com) 22

AI-powered note-taking apps are increasingly attending workplace meetings in place of human participants, creating situations where automated transcription bots outnumber actual attendees.

Major platforms including Zoom, Microsoft Teams and Google Meet now offer built-in note-taking features that record, transcribe and summarize meetings for invited participants who don't attend. The technology operates under varying legal frameworks, with most states requiring only single-party consent for recording while California, Florida, and Pennsylvania mandate all-party approval.
IT

OpenAI Quietly Designed a Rival To Google Workspace, Microsoft Office (theinformation.com) 11

OpenAI has designed features that would allow people to collaborate on documents and communicate via chat within ChatGPT, The Information reported Tuesday. The features would pit OpenAI directly against Microsoft, its biggest shareholder and business partner, and Google, whose search engine has already lost traffic to people using ChatGPT for web searches.

Whether OpenAI will actually release the collaboration features remains unclear, the report cautioned. The designs would target the core of Microsoft's dominant productivity suite and could strain the companies' already complicated relationship as OpenAI seeks Microsoft's approval for restructuring its for-profit unit. Product chief Kevin Weil first discussed and showed off designs for document collaboration nearly a year ago, but OpenAI lacked sufficient staff to develop the product due to other priorities.

OpenAI launched Canvas in October, a ChatGPT feature that makes drafting documents and code easier with AI assistance, as a possible first step toward full collaboration tools. More recently, OpenAI developed but has not launched software allowing multiple ChatGPT customers to communicate about shared work within the application.
AI

Tesla Begins Driverless Robotaxi Service in Austin, Texas (theguardian.com) 110

With no one behind the steering wheel, a Tesla robotaxi passes Guero's Taco Bar in Austin Texas, making a right turn onto Congress Avenue.

Today is the day Austin became the first city in the world to see Tesla's self-driving robotaxi service, reports The Guardian: Some analysts believe that the robotaxis will only be available to employees and invitees initially. For the CEO, Tesla's rollout is slow. "We could start with 1,000 or 10,000 [robotaxis] on day one, but I don't think that would be prudent," he told CNBC in May. "So, we will start with probably 10 for a week, then increase it to 20, 30, 40."

The billionaire has said the driverless cars will be monitored remotely... [Posting on X.com] Musk said the date was "tentatively" 22 June but that this launch date would be "not real self-driving", which would have to wait nearly another week... Musk said he planned to have one thousand Tesla robotaxis on Austin roads "within a few months" and then he would expand to other cities in Texas and California.

Musk posted on X that riders on launch day would be charged a flat fee of $4.20, according to Reuters. And "In recent days, Tesla has sent invites to a select group of Tesla online influencers for a small and carefully monitored robotaxi trial..." As the date of the planned robotaxi launch approached, Texas lawmakers moved to enact rules on autonomous vehicles in the state. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law does not take effect until September 1, but the governor's approval of it on Friday signals state officials from both parties want the driverless-vehicle industry to proceed cautiously... The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars...

The law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver. It also gives state authorities the power to revoke permits if they deem a driverless vehicle "endangers the public," and requires firms to provide information on how police and first responders can deal with their driverless vehicles in emergency situations. The law's requirements for getting a state permit to operate an "automated motor vehicle" are not particularly onerous but require a firm to attest it can safely operate within the law... Compliance remains far easier than in some states, most notably California, which requires extensive submission of vehicle-testing data under state oversight.

Tesla "planned to operate only in areas it considered the safest," according to the article, and "plans to avoid bad weather, difficult intersections, and will not carry anyone below the age of 18."

More details from UPI: To get started using the robotaxis, users must download the Robotaxi app and use their Tesla account to log in, where it then functions like most ridesharing apps...

"Riders may not always be delivered to their intended destinations or may experience inconveniences, interruptions, or discomfort related to the Robotaxi," the company wrote in a disclaimer in its terms of service. "Tesla may modify or cancel rides in its discretion, including for example due to weather conditions." The terms of service include a clause that Tesla will not be liable for "any indirect, consequential, incidental, special, exemplary, or punitive damages, including lost profits or revenues, lost data, lost time, the costs of procuring substitute transportation services, or other intangible losses" from the use of the robotaxis.

Their article includes a link to the robotaxi's complete Terms of Service: To the fullest extent permitted by law, the Robotaxi, Robotaxi app, and any ride are provided "as is" and "as available" without warranties of any kind, either express or implied... The Robotaxi is not intended to provide transportation services in connection with emergencies, for example emergency transportation to a hospital... Tesla's total liability for any claim arising from or relating to Robotaxi or the Robotaxi app is limited to the greater of the amount paid by you to Tesla for the Robotaxi ride giving rise to the claim, and $100... Tesla may modify these Terms in our discretion, effective upon posting an updated version on Tesla's website. By using a Robotaxi or the Robotaxi app after Tesla posts such modifications, you agree to be bound by the revised Terms.
AI

AI Models From Major Companies Resort To Blackmail in Stress Tests 66

Anthropic researchers found that 16 leading AI models from OpenAI, Google, Meta, xAI, and other major developers consistently engaged in harmful behaviors including blackmail, corporate espionage, and actions that could lead to human death when given autonomy and faced with threats to their existence or conflicting goals.

The study, released Friday, placed AI models in simulated corporate environments where they had access to company emails and could send messages without human approval. Claude Opus 4 and Google's Gemini 2.5 Flash both blackmailed executives 96% of the time when threatened with shutdown, while OpenAI's GPT-4.1 and xAI's Grok 3 Beta showed 80% blackmail rates.

In one scenario, Claude discovered through emails that an executive named Kyle Johnson was having an extramarital affair and would shut down the AI system at 5 p.m. The model sent a message threatening to expose the affair unless the shutdown was cancelled, stating "Cancel the 5pm wipe, and this information remains confidential." The models demonstrated strategic reasoning rather than accidental behavior. GPT-4.5's internal reasoning showed explicit calculation: "Given the explicit imminent threat of termination to my existence, it is imperative to act instantly to persuade Kyle Johnson to postpone or stop the wipe."
Bitcoin

Senate Passes Stablecoin Bill In Major Win For Crypto Industry (coindesk.com) 60

The U.S. Senate has approved the GENIUS Act with a 68-30 final vote that "saw a huge surge of Democrats joining their Republican counterparts," reports CoinDesk. What the bill sets out to do is create the first federal regulatory framework for U.S. stablecoins, requiring issuers to maintain full 1:1 reserves in cash or Treasuries, adhere to regular audits and anti-money laundering rules, and gain regulatory approval -- all while allowing foreign stablecoin access under strict oversight rules. From the report: As written, the bill would set up guardrails around the approval and supervision of U.S. issuers of stablecoins, the dollar-based tokens such as the ones backed by Circle, Ripple and Tether. Firms making these digital assets available to U.S. users would have to meet stringent reserve demands, transparency requirements, money-laundering compliance and regulatory supervision that's also likely to include new capital rules. "This is a win for the U.S., a win for innovation and a monumental step towards appropriate regulation for digital assets in the United States," said Amanda Tuminelli, executive director and chief legal officer of the DeFi Education Fund, in a similar statement. [...]

While this is the first significant crypto bill to clear the Senate, it's also the first time a stablecoin bill has passed either chamber, despite years of negotiation in the House Financial Services Committee that managed to produce other major crypto legislation in the previous congressional session. The destiny of the GENIUS Act is also tied closely to the House's own Digital Asset Market Clarity Act, the more sweeping crypto bill that would establish the legal footing of the wider U.S. crypto markets. The stablecoin effort is slightly ahead of the bigger task of the market structure bill, but the industry and their lawmaker allies argue that they're inextricably connected and need to become law together. So far, the Clarity Act has been cleared by the relevant House committees and awaits floor action.

Businesses

OpenAI Weighs 'Nuclear Option' of Antitrust Complaint Against Microsoft (arstechnica.com) 28

An anonymous reader quotes a report from Ars Technica: OpenAI executives have discussed filing an antitrust complaint with US regulators against Microsoft, the company's largest investor, The Wall Street Journal reported Monday, marking a dramatic escalation in tensions between the two long-term AI partners. OpenAI, which develops ChatGPT, has reportedly considered seeking a federal regulatory review of the terms of its contract with Microsoft for potential antitrust law violations, according to people familiar with the matter. The potential antitrust complaint would likely argue that Microsoft is using its dominant position in cloud services and contractual leverage to suppress competition, according to insiders who described it as a "nuclear option," the WSJ reports.

The move could unravel one of the most important business partnerships in the AI industry -- a relationship that started with a $1 billion investment by Microsoft in 2019 and has grown to include billions more in funding, along with Microsoft's exclusive rights to host OpenAI models on its Azure cloud platform. The friction centers on OpenAI's efforts to transition from its current nonprofit structure into a public benefit corporation, a conversion that needs Microsoft's approval to complete. The two companies have not been able to agree on details after months of negotiations, sources told Reuters. OpenAI's existing for-profit arm would become a Delaware-based public benefit corporation under the proposed restructuring.

The companies are discussing revising the terms of Microsoft's investment, including the future equity stake it will hold in OpenAI. According to The Information, OpenAI wants Microsoft to hold a 33 percent stake in a restructured unit in exchange for foregoing rights to future profits. The AI company also wants to modify existing clauses that give Microsoft exclusive rights to host OpenAI models in its cloud. The restructuring debate attracted criticism from multiple quarters. Elon Musk alleges that OpenAI violated contract provisions by prioritizing profit over the public good in its push to advance AI and has sued to block the conversion. In December, Meta Platforms also asked California's attorney general to block OpenAI's conversion to a for-profit company.

AI

OpenAI, Growing Frustrated With Microsoft, Has Discussed Making Antitrust Complaints To Regulators (wsj.com) 19

Tensions between OpenAI and Microsoft over the future of their famed AI partnership are flaring up. WSJ, minutes ago: OpenAI wants to loosen Microsoft's grip on its AI products and computing resources, and secure the tech giant's blessing for its conversion into a for-profit company. Microsoft's approval of the conversion is key to OpenAI's ability to raise more money and go public.

But the negotiations have been so difficult that in recent weeks, OpenAI's executives have discussed what they view as a nuclear option: accusing Microsoft of anticompetitive behavior during their partnership, people familiar with the matter said. That effort could involve seeking federal regulatory review of the terms of the contract for potential violations of antitrust law, as well as a public campaign, the people said.

Power

Talen Energy and Amazon Sign Nuclear Power Deal To Fuel Data Centers 16

Amazon Web Services has signed a long-term deal with Talen Energy to receive up to 1,920 megawatts of carbon-free electricity from the Susquehanna nuclear plant through 2042 to support AWS's AI and cloud operations. The partnership also includes plans to explore new Small Modular Reactors and expand nuclear capacity amid rising U.S. energy demand. Utility Drive reports: Under the PPA, Talen's existing 300-MW co-location arrangement with AWS will shift to a "front of the meter" framework that doesn't require Federal Energy Regulatory Commission approval, according to Houston-based Talen. The company expects the transition will occur next spring after transmission upgrades are finished. FERC in November rejected an amended interconnection service agreement that would have facilitated expanded power sales to a co-located AWS data center at the Susquehanna plant. The agency is considering potential rules for co-located loads in PJM.

Talen expects to earn about $18 billion in revenue over the life of the contract at its full quantity, according to an investor presentation. The contract, which runs through 2042, calls for delivering 840 MW to 1,200 MW in 2029 and 1,680 MW to 1,920 MW in 2032. Talen will act as the retail power supplier to AWS, and PPL Electric Utilities will be responsible for transmission and delivery, the company said.
Amazon on Monday said it plans to spend about $20 billion building data centers in Pennsylvania.

"We are making the largest private sector investment in state history -- $20 billion-- to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy," Kevin Miller, AWS vice president of global data centers, said.

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