AI Regulation & Policy

Today's Stories

1. 1

   Chip Tariffs Loom; Uber's AI Spending Rises

   The article covers midday business news, highlighting potential chip tariffs and Uber's increased AI spending. These developments could affect technology costs and Uber's operational expenses, relevant for investors and market watchers.

   Further details on the tariff scope and Uber's AI investment impact are likely to emerge.

2. 2

   AI Governance Report: Corporate AI Oversight Falls Short

   Morgan Stanley published an AI Governance Report examining the state of corporate AI oversight, focusing on how companies are managing AI risks and governance structures. The report highlights that many companies lack robust AI governance frameworks, which could expose them to regulatory, ethical, and operational risks as AI adoption grows.

   The report suggests that companies may need to strengthen their AI oversight mechanisms to align with emerging best practices and regulatory expectations.

3. 3

   Trump eyes new chip tariffs; AI industry warns of 'dumbest way' to win AI race

   Politico reported that the Trump administration is preparing a wide range of new semiconductor tariffs that could hit chips and many goods made with them, like gaming consoles and data center servers. Commerce Secretary Howard Lutnick favors a system where the US would let a set volume of chips enter duty-free, tied to how much companies pledge to produce on American soil. The Computer and Communications Industry Association (CCIA) estimates the tariffs could cost the US about $90 billion annually in GDP losses and delay or cancel about 20 percent of data center projects planned through 2030. One tech official called this "the single dumbest way imaginable to pursue American dominance in AI," saying it's "like kneecapping yourself at the starting line."

   Trade groups' biggest ask is to avoid stacking tariffs so firms don't pay a double tax on both the semiconductors within derivative products and the products that contain them. They also hope the administration applies tariffs in "a nuanced and targeted way" or avoids them entirely.

4. 4

   OpenAI rallies 100+ firms in AI cyber defense letter

   OpenAI published an open letter on global cyber defense, co-signed by more than 100 companies including Microsoft, Google, AWS, Anthropic, Cisco, CrowdStrike, Deutsche Telekom, SAP, and Mastercard. The letter warns that AI-enabled cyber attacks will become far more widespread and sophisticated, with hospitals, water utilities, and other critical infrastructure at highest risk. It urges deploying AI tools while defenders still have an edge.

   A joint NSA, CISA, and FBI warning from mid-August reveals attackers are already using AI to write exploit scripts targeting industrial control systems like Siemens S7 across US energy, water, chemicals, and manufacturing sectors.

5. 5

   OpenAI CEO admits public hates data centers, top infra exec quits

   OpenAI CEO Sam Altman told Time that "Clearly, people hate data centers—right now, at least." The week before, OpenAI's head of data centers, Chris Malone, left the company, according to the Wall Street Journal. The backlash is already costing the industry: at least 48 data center projects representing $156 billion in investment were blocked or stalled by local resistance. OpenAI is planning to spend $50 billion this year on compute and expanding Stargate, its infrastructure project with SoftBank, which has plans to invest as much as $500 billion.

   State governments are responding. More than 120 moratoriums on data center development were proposed in 38 states as of July, and Texas Gov. Greg Abbott ordered regulators to scrutinize grid connections. Pennsylvania Gov. Josh Shapiro signed an executive order imposing new requirements on data centers on Aug. 18.

6. 6

   OpenAI bans pro-Russia ChatGPT accounts tied to fake think tank

   OpenAI banned a cluster of ChatGPT accounts it says were part of a pro-Russia influence operation. The users used VPNs to bypass restrictions and promoted the International Burke Institute, a think tank OpenAI describes as the core of the operation. The institute posted real academic articles misattributed to other researchers, including Noam Chomsky and Francis Fukuyama, without their knowledge. This shows how AI can be used to spread disinformation with stolen identities, undermining trust in AI and research.

   The Burke Institute's Telegram channels attracted 10,000 to 20,000 followers per channel. OpenAI also disrupted a separate Russian operation earlier this year that generated German-language political content ahead of Germany's federal election.