“President Trump signed an executive order on Thursday that aims to neuter state laws that limit the artificial intelligence industry, a win for tech companies that have lobbied against regulation of the booming technology,” the New York Times reports.
America Has Become a Digital Narco-State
Paul Krugman: “Imagine what would happen if the United States were to legalize the distribution and sale of heroin — and do so without any restrictions or regulations on how the drug is marketed and who can buy it.”
“Heroin distribution and sales would quickly become a huge, multibillion-dollar industry. They would become a significant part of GDP, even though heroin harms and often kills those who consume it. Given the increasingly naked corruption of U.S. politics, the heroin industry would be able to purchase massive political influence, enough to block any attempts to limit the harm it does — the harm it knows it does, because heroin industry executives would surely be aware of the damage their products inflict.”
“Through massive political donations — enabled by the Supreme Court’s 2010 Citizens United ruling – and de facto bribery enabled via cryptocurrency deals, the industry would be able to enlist the U.S. government as an ally in its efforts to block regulation in other countries…”
“If this story strikes you as extreme and implausible, here’s what you should know: replace ‘heroin’ with ‘social media,’ and this is a description of actual events.”
Trump Will Allow Nvidia H200 Chip Sales to China
“President Trump said he would let Nvidia export its H200 chip to China and that the U.S. would receive a 25% cut, his latest bid to make money for the government in an unusual agreement with a private company,” the Wall Street Journal reports.
“The move is a boon for Nvidia, which has fought for months to maintain access to the world’s second-largest economy. The company had agreed earlier this year to give the U.S. 15% of the China sales from a lower-performing chip, only for the Chinese to scuttle those plans as part of continuing trade talks between the two sides.”
New York Times: “The administration had spent months wrestling with whether it was comfortable relaxing its policy on sales of a critical A.I. technology that has the potential to help China militarily and economically.”
Trump Promises to Block State AI Regulations
“President Trump said in a social media post Monday that he will issue an executive order this week to curb state laws on artificial intelligence, the latest win for a tech industry lobbying for deregulation,” the New York Times reports.
App That Tracks ICE Raids Sues Trump Officials
“For six months, Apple distributed an app called ICEBlock that allowed users to alert people when they saw Immigration and Customs Enforcement agents. But after the Trump administration complained that the app endangered officers, Apple removed it,” the New York Times reports.
“On Monday, the app’s developer, Joshua Aaron, sued top Trump administration officials, accusing them of pressuring Apple to stifle his free speech and his right to create, distribute and promote ICEBlock.”
AI Chatbots More Effective at Swaying Voters Than Ads
MIT Technology Review: “A multi-university team of researchers has found that chatting with a politically biased AI model was more effective than political advertisements at nudging both Democrats and Republicans to support presidential candidates of the opposing party.”
“The chatbots swayed opinions by citing facts and evidence, but they were not always accurate—in fact, the researchers found, the most persuasive models said the most untrue things.”
Trump Administration Takes Equity Stake in Chip Startup
“The Trump administration has agreed to inject up to $150 million into a startup trying to develop more advanced semiconductor manufacturing techniques in the U.S., its latest bid to support strategically important domestic industries with government incentives,” the Wall Street Journal reports.
Silicon Valley’s Man in the White House
The New York Times profiles Trump adviser David Sacks and his massive conflicts of interest:
“No event better illustrates Mr. Sacks’s ethical complexities and how his intertwined interests have come together than the July A.I. summit. Mr. Sacks initially planned for the forum to be hosted by ‘All-In,’ which he leads with other tech investors. ‘All-In’ asked potential sponsors to each pay it $1 million for access to a private reception and other events at the summit ‘bringing together President Donald Trump and leading A.I. innovators.'”
“The plan so worried some officials that Susie Wiles, the White House chief of staff, intervened to prevent ‘All-In’ from serving as the sole host of the forum.”
America’s Polarization Is the World’s Side Hustle
“A new feature on X is making people suddenly realize that some large portion of the divisive, hateful, and spammy content designed to inflame tensions or, at the very least, is designed to get lots of engagement on social media, is being published by accounts that are pretending to be based in the United States but are actually being run by people in countries like Bangladesh, Vietnam, India, Cambodia, Russia, and other countries,” 404 Media reports.
“Inauthentic viral accounts on X are just the tip of the iceberg, though, as we have reported. A huge amount of the viral content about American politics and American news on social media is from sock puppet and bot accounts monetized by people in other countries.”
JD Vance Has a Palantir Problem
“In a recent conversation, Vice President JD Vance asked Roger Stone, President Donald Trump’s longtime confidant, for his biggest concern facing the country. Stone later recalled on his radio show that his answer was a technology company Vance now hears about with increasing frequency: Palantir,” CNN reports.
“For years, Democrats have zeroed in on Vance’s relationship with Palantir’s co-founder Peter Thiel, the iconoclastic tech titan who gave Vance one of his first jobs and later put $15 million behind his successful 2022 Ohio Senate bid.”
“But the pressure on Vance is now coming from inside Trump’s coalition. As the administration steers billions of dollars of new work to Palantir, prominent voices have expressed fears that the firm’s powerful data analytics tools could give the government sweeping, almost futuristic surveillance capabilities.”
How the U.S. Economy Became Hooked on AI Spending
“The turbulence that hit stocks tied to artificial intelligence last week highlights a broader risk to the economy. Growth has become so dependent on AI-related investment and wealth that if the boom turns to bust, it could take the broader economy with it,” the Wall Street Journal reports.
A Surprising Rift Between Trump and His MAGA Base
“President Donald Trump faces an unexpected rift in the MAGA movement as Republican officials from statehouses to Capitol Hill warn his full-throated embrace of the tech industry’s artificial intelligence boom risks undermining Americans’ economic security and exposing their children to new harms,” the Washington Post reports.
Elon Musk’s AI Model Says He’s Great at Everything
“It’s no secret that Elon Musk shapes the X social platform and X’s ‘maximally truth-seeking’ Grok AI chatbot to his preferences. But it’s possible Musk may have needed a bit of an extra ego boost this week, because Grok’s worship of its creator seems, shall we say, more noticeable than usual,” The Verge reports.
“As a number of people have pointed out on social media over the past day, Grok’s public-facing chatbot is currently prone to insisting on Musk’s prowess at absolutely anything, no matter how unlikely — or conversely, embarrassing — a given feat is.”
Elon Musk Returns to White House as Tensions Thaw
“Elon Musk returned to the White House Tuesday in a sign that tensions between President Donald Trump and the world’s richest man have thawed since a fierce split over deficit spending earlier this year fractured their once-cozy relationship,” Bloomberg reports.
“Musk was invited as a guest for a gala dinner to honor Saudi Crown Prince Mohammed bin Salman, one of many business titans invited including Tim Cook, David Ellison, Marc Benioff, Bill Ackman and Jensen Huang.”
Judge Finds Meta Did Not Violate Antitrust Law
“Meta did not break the law when it acquired nascent rivals, a federal judge said on Tuesday, handing a major win to the $1.51 trillion company and dealing a blow to the government’s efforts to rein in the power of tech giants,” the New York Times reports.
Trump Says U.S. Needs to Import Some Workers
President Trump said in an interview that H-1B skilled worker visas are necessary because “you don’t have certain talents” in the U.S., Axios reports.
Congressional Budget Office Hacked
“The Congressional Budget Office, lawmakers’ nonpartisan bookkeeper, was hacked by a suspected foreign actor, potentially exposing the key financial research data Congress uses to craft legislation,” the Washington Post reports.
Tens of Thousands of White-Collar Jobs Are Disappearing
Wall Street Journal: “Behind the wave of white-collar layoffs, in part, is the embrace by companies of artificial intelligence, which executives hope can handle more of the work that well-compensated white-collar workers have been doing. Investors have pushed the C-suite to work more efficiently with fewer employees. Factors driving slower hiring include political uncertainty and higher costs.”
“Altogether, these factors are remaking what office work looks like in the U.S., leaving the managers that remain with more workers to supervise and less time to meet with them, while saddling the employees fortunate enough to have jobs with heavier workloads.”
Axios: How an AI job apocalypse unfolds.
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