AI Regulation & Policy

Today's Stories

1. 1

   AppLovin faces class action over AI video tool claims

   AppLovin (NasdaqGS:APP) faces a class action claiming it misled investors about its generative AI video creative feature, saying disclosures overstated capabilities and understated delays. The suit challenges the trust investors place in how the company describes its AI tools, which its investment story leans on as a driver of ad performance.

   The company's market cap is $103.1b, and the case puts management time toward discovery and potential settlement talks rather than rollout or expansion.

2. 2

   Bessent eyed as Trump's AI czar, held China AI talks

   Three sources told Semafor that Treasury Secretary Scott Bessent is a frontrunner for Trump's 'AI czar' role, after he discussed a possible US-China 'notification mechanism' on AI incidents with Vice Premier He Lifeng. Bessent already steers Trump's AI policy, so giving him the czar title would keep that portfolio inside the Treasury, not a new office — though Trump is said to favor dark-horse picks.

   Trump's choice isn't final, and the White House dismissed unannounced personnel reporting as 'baseless speculation'; watch whether a formal US-China AI dialogue follows the UN General Assembly talks.

3. 3

   Bessent: No government liability shield for AI labs

   Treasury Secretary Scott Bessent told CNBC the government will not absolve AI labs of responsibility, saying they "can slow down any time they want to." If labs must carry the liability themselves, AI developers are likely to face more pressure to slow down or build in safety measures on their own.

   The test is whether Congress turns this stance into law. Sen. Bernie Sanders has called for binding international safety rules, not voluntary industry standards.

4. 4

   Compute-to-GDP Fallacy skews AI pacing debate

   The authors argue both camps in the pacing debate have fallen for the "Compute-to-GDP Fallacy"—the belief that every leap in model performance instantly translates to economic output. Corporate America is years behind the frontier, so pacing would cost the economy little while enterprises catch up, the authors argue.

   Whether the Trump administration raises joint AI-safety guidelines with China hinges on discussions between Treasury Secretary Bessent and his Chinese counterpart.

5. 5

   Ex-Indeed CEO blasts $140 million anti-regulation push before Trump-Xi AI talks

   Former Indeed CEO Chris Hyams blasts accelerationism as the real AI threat ahead of a White House Trump-Xi summit, citing a $140 million pledge by AI billionaires to defeat pro-regulation candidates. Hyams argues the China-race argument is a political shield for AI executives with direct financial ties to the industry's growth, seen as a shift in the regulation debate.

   Recent polls and Republican lawmakers like Sen. Kevin Cramer calling the administration's stance 'the least popular position in America' suggest the political ground is shifting ahead of the midterms.

6. 6

   AI safety consensus collapses as Trump goes full 'hoax'

   Jacob Coxon's resignation set off a preference cascade. Anthropic CEO Dario Amodei wrote that we must pace the frontier, and Sam Altman, Elon Musk and Demis Hassabis agreed. That rare alignment among rival AI leaders suggested basic safety measures and sensible regulation might be within reach, a shift the article calls remarkable.

   The turn against existential risk came largely from Jensen Huang, Mark Zuckerberg and David Sacks instilling paranoia and economic fears, so the test is whether genuine concern can survive being treated as a plot.