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Trump’s AI agenda hands Silicon Valley the win—while ethics, safety, and ‘woke AI’ get left behind

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Yesterday, I recapped my day at “Winning the AI Race”—an event hosted by the All-In podcast and the Hill & Valley coalition—where Silicon Valley’s elite descended on Washington’s stately Andrew Mellon Auditorium to celebrate President Trump’s new AI Action Plan, which he signed onstage after a surreal afternoon that fused podcast spectacle with public policy. The only non–Silicon Valley touch seemed to be the sea of suits that replaced the typical tech uniform of hoodies and sneakers (though Nvidia CEO Jensen Huang refused to budge from his usual leather jacket and black jeans).

Trump’s speech before scrawling his signature went on so long that I missed my Amtrak train back to New Jersey. While I waited for the next one, I had plenty of time to reflect on the day—which, without question, was a victory lap for the so-called AI “accelerationists,” now led in Washington by David Sacks, Trump’s appointed AI and crypto czar and co-host of the All-In podcast.

Pushing Silicon Valley’s pro-speed, pro-scale ideology

Sacks—along with senior White House AI policy advisor Sriram Krishnan and Office of Science and Technology Policy director Michael Kratsios, both of whom were also present at the event—has been front and center pushing Silicon Valley’s pro-speed, pro-scale ideology, advocating for rapid deployment and minimal regulation of AI.

For the “accelerationists”—those who believe the rapid development and deployment of artificial intelligence should be pursued as quickly as possible—innovation, scale, and speed are everything. Over-caution and regulation? Ill-conceived barriers that will actually cause more harm than good. They argue that faster progress will unlock massive economic growth, scientific breakthroughs, and national advantage. And if superintelligence is inevitable, they say, the U.S. had better get there first—before rivals like China’s authoritarian regime.

AI ethics and safety has been sidelined

This worldview, articulated by Marc Andreessen in his 2023 blog post, has now almost entirely displaced the diverse coalition of people who worked on AI ethics and safety during the Biden Administration—from mainstream policy experts focused on algorithmic fairness and accountability, to the safety researchers in Silicon Valley who warn of existential risks. While they often disagreed on priorities and tone, both camps shared the belief that AI needed thoughtful guardrails. Today, they find themselves largely out of step with an agenda that prizes speed, deregulation, and dominance.

Whether these groups can claw their way back to the table is still an open question. The mainstream ethics folks—with roots in civil rights, privacy, and democratic governance—may still have influence at the margins, or through international efforts. The existential risk researchers, once tightly linked to labs like OpenAI and Anthropic, still hold sway in academic and philanthropic circles. But in today’s environment—where speed, scale, and geopolitical muscle set the tone—both camps face an uphill climb. If they’re going to make a comeback, I get the feeling it won’t be through philosophical arguments. More likely, it would be because something goes wrong—and the public pushes back.

Also: I hope you’ll check out my first-ever Fortune cover story –a deep dive into Meta’s superintelligence spending spree, with a massive bet by Mark Zuckerberg on new chief AI officer and Scale AI founder Alexandr Wang. Also, don’t miss the marvelous feature from Jeremy Kahn about how Aravind Srinivas turned Perplexity into an $18 billion would-be Google killer. All part of our upcoming Most Powerful People issue!

With that, here’s the rest of the AI news.

Sharon Goldman
sharon.goldman@fortune.com
@sharongoldman

Fortune recently unveiled a new ongoing series, Fortune AIQ, dedicated to navigating AI’s real-world impact. Our third collection of stories explores how businesses across virtually every industry are putting AI to work—and how their particular field is changing as a result.

  • How Walmart, Amazon, and other retail giants are using AI to reinvent the supply chain—from warehouse to checkout. Read more
  • Meet the legacy players and upstarts using AI to reinvent the energy business. Read more
  • AI isn’t just entering law offices—it’s challenging the entire legal playbook. Read more
  • How a bulldozer, crane, and excavator rental company is using AI to save 3,000 hours per week. Read more
  • AI is already touching nearly every corner of the medical field. Read more

AI IN THE NEWS

Nvidia AI chips worth $1B smuggled to China after Trump export controls. According to a Financial Times investigation, more than $1 billion worth of Nvidia’s advanced AI chips—including the banned B200—flooded into China over a three-month period through a thriving black market, despite tightened U.S. export controls under Trump. The Financial Times uncovered a network of Chinese distributors reselling the chips—often in ready-made server racks—from U.S. suppliers like Supermicro, with no indication those companies were aware of the diversion. Although it’s legal to receive restricted chips in China, the sellers and shippers are violating U.S. rules. The workaround includes using Southeast Asian countries and secondary suppliers to funnel in high-end hardware, showing how U.S. controls may be generating inefficiency and profits for middlemen, rather than stopping China’s AI ambitions. In a response to CNBC, Nvidia said that datacenters built with smuggled chips are a “losing proposition” and that it does not support unauthorized products.

Elon Musk says he is bringing back video-sharing app Vine in AI form. Elon Musk announced on X that the social network would revive the beloved short-form video app Vine “in AI form,” nearly nine years after it was shut down. While details remain scarce, the move aligns with Musk’s long-teased interest in bringing Vine back—and could position the platform to capitalize on the rise of AI-generated content, which currently excels at short-form formats like Vine’s original six-second clips.

Walmart is overhauling its approach to AI agents. Walmart is streamlining its sprawling AI agent strategy, consolidating dozens of independently built tools into four unified “super agents,” according to the Wall Street Journal. Each will serve a core group—customers, employees, engineers, or suppliers—by bundling multiple behind-the-scenes agents into a single, simplified interface. The shift comes after growing internal complexity led to a fragmented user experience. “It became very clear that we could dramatically simplify,” said CTO Suresh Kumar, noting that the change reflects both widespread adoption of AI at Walmart and strong executive backing.

FORTUNE ON AI

Exclusive: Who covers the damage when an AI agent goes rogue? This startup has an insurance policy for that – by Sharon Goldman

Google’s AI Overviews are cutting off the oxygen to the web – by Beatrice Nolan

Elon Musk says Tesla will start adding vehicles it doesn’t directly own into its robotaxi network next year – by Jessica Mathews

How Walmart, Amazon, and other retail giants are using AI to reinvent the supply chain—from warehouse to checkout – by Sharon Goldman

Meet the companies using AI to reinvent the energy business – by Alexandra Sternlicht

AI CALENDAR

July 26-28: World Artificial Intelligence Conference (WAIC), Shanghai. 

Sept. 8-10: Fortune Brainstorm Tech, Park City, Utah. Apply to attend here.

Oct. 6-10: World AI Week, Amsterdam

Oct. 21-22: TedAI San Francisco.

Dec. 2-7: NeurIPS, San Diego

Dec. 8-9: Fortune Brainstorm AI San Francisco. Apply to attend here.

EYE ON AI NUMBERS

88%

That’s how many Gen Z study participants said they were confident in detecting AI-generated content, according to a new study by from Socialtrait, an AI-powered consumer insights platform. Eighty-four percent of millennials said the same. But even tech-savvy participants admitted their real success rates are actually often closer to 40%.

The study authors said that this gap—that is, Americans significantly overestimate their ability to detect AI-generated misinformation—is likely to make people more vulnerable to digital manipulation. Yet, younger Americans, despite being the most confident and digitally engaged, are also the most frequent sharers of AI-generated content. Eighty-seven percent of millennials and 80% of Gen Z respondents reported sharing AI-created material.



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Epstein grand jury documents from Florida can be released by DOJ, judge rules

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A federal judge on Friday gave the Justice Department permission to release transcripts of a grand jury investigation into Jeffrey Epstein’s abuse of underage girls in Florida — a case that ultimately ended without any federal charges being filed against the millionaire sex offender.

U.S. District Judge Rodney Smith said a recently passed federal law ordering the release of records related to Epstein overrode the usual rules about grand jury secrecy.

The law signed in November by President Donald Trump compels the Justice Department, FBI and federal prosecutors to release later this month the vast troves of material they have amassed during investigations into Epstein that date back at least two decades.

Friday’s court ruling dealt with the earliest known federal inquiry.

In 2005, police in Palm Beach, Florida, where Epstein had a mansion, began interviewing teenage girls who told of being hired to give the financier sexualized massages. The FBI later joined the investigation.

Federal prosecutors in Florida prepared an indictment in 2007, but Epstein’s lawyers attacked the credibility of his accusers publicly while secretly negotiating a plea bargain that would let him avoid serious jail time.

In 2008, Epstein pleaded guilty to relatively minor state charges of soliciting prostitution from someone under age 18. He served most of his 18-month sentence in a work release program that let him spend his days in his office.

The U.S. attorney in Miami at the time, Alex Acosta, agreed not to prosecute Epstein on federal charges — a decision that outraged Epstein’s accusers. After the Miami Herald reexamined the unusual plea bargain in a series of stories in 2018, public outrage over Epstein’s light sentence led to Acosta’s resignation as Trump’s labor secretary.

A Justice Department report in 2020 found that Acosta exercised “poor judgment” in handling the investigation, but it also said he did not engage in professional misconduct.

A different federal prosecutor, in New York, brought a sex trafficking indictment against Epstein in 2019, mirroring some of the same allegations involving underage girls that had been the subject of the aborted investigation. Epstein killed himself while awaiting trial. His longtime confidant and ex-girlfriend, Ghislaine Maxwell, was then tried on similar charges, convicted and sentenced in 2022 to 20 years in prison.

Transcripts of the grand jury proceedings from the aborted federal case in Florida could shed more light on federal prosecutors’ decision not to go forward with it. Records related to state grand jury proceedings have already been made public.

When the documents will be released is unknown. The Justice Department asked the court to unseal them so they could be released with other records required to be disclosed under the Epstein Files Transparency Act. The Justice Department hasn’t set a timetable for when it plans to start releasing information, but the law set a deadline of Dec. 19.

The law also allows the Justice Department to withhold files that it says could jeopardize an active federal investigation. Files can also be withheld if they’re found to be classified or if they pertain to national defense or foreign policy.

One of the federal prosecutors on the Florida case did not answer a phone call Friday and the other declined to answer questions.

A judge had previously declined to release the grand jury records, citing the usual rules about grand jury secrecy, but Smith said the new federal law allowed public disclosure.

The Justice Department has separate requests pending for the release of grand jury records related to the sex trafficking cases against Epstein and Maxwell in New York. The judges in those matters have said they plan to rule expeditiously.

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Sisak reported from New York.



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Miss Universe co-owner gets bank accounts frozen as part of probe into drugs, fuel and arms trafficking

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Mexico’s anti-money laundering office has frozen the bank accounts of the Mexican co-owner of Miss Universe as part of an investigation into drugs, fuel and arms trafficking, an official said Friday.

The country’s Financial Intelligence Unit, which oversees the fight against money laundering, froze Mexican businessman Raúl Rocha Cantú’s bank accounts in Mexico, a federal official told The Associated Press on condition of anonymity because he was not authorized to comment on the investigation.

The action against Rocha Cantú adds to mounting controversies for the Miss Universe organization. Last week, a court in Thailand issued an arrest warrant for the Thai co-owner of the Miss Universe Organization in connection with a fraud case and this year’s competition — won by Miss Mexico Fatima Bosch — faced allegations of rigging.

The Miss Universe organization did not immediately respond to an email from The Associated Press seeking comment about the allegations against Rocha Cantú.

Mexico’s federal prosecutors said last week that Rocha Cantú has been under investigation since November 2024 for alleged organized crime activity, including drug and arms trafficking, as well as fuel theft. Last month, a federal judge issued 13 arrest warrants for some of those involved in the case, including the Mexican businessman, whose company Legacy Holding Group USA owns 50% of the Miss Universe shares.

The organization’s other 50% belongs to JKN Global Group Public Co. Ltd., a company owned by Jakkaphong “Anne” Jakrajutatip.

A Thai court last week issued an arrest warrant for Jakrajutatip who was released on bail in 2023 on the fraud case. She failed to appear as required in a Bangkok court on Nov. 25. Since she did not notify the court about her absence, she was deemed to be a flight risk, according to a statement from the Bangkok South District Court.

The court rescheduled her hearing for Dec. 26.

Rocha Cantú was also a part owner of the Casino Royale in the northern Mexican city of Monterrey, when it was attacked in 2011 by a group of gunmen who entered it, doused gasoline and set it on fire, killing 52 people.

Baltazar Saucedo Estrada, who was charged with planning the attack, was sentenced in July to 135 years in prison.



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Elon Musk’s X fined $140 million by EU for breaching digital regulations

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European Union regulators on Friday fined X, Elon Musk’s social media platform, 120 million euros ($140 million) for breaches of the bloc’s digital regulations, in a move that risks rekindling tensions with Washington over free speech.

The European Commission issued its decision following an investigation it opened two years ago into X under the 27-nation bloc’s Digital Services Act, also known as the DSA.

It’s the first time that the EU has issued a so-called non-compliance decision since rolling out the DSA. The sweeping rulebook requires platforms to take more responsibility for protecting European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines.

The Commission, the bloc’s executive arm, said it was punishing X because of three different breaches of the DSA’s transparency requirements. The decision could rile President Donald Trump, whose administration has lashed out at digital regulations, complained that Brussels was targeting U.S. tech companies and vowed to retaliate.

U.S. Secretary of State Marco Rubio posted on his X account that the Commission’s fine was akin to an attack on the American people. Musk later agreed with Rubio’s sentiment.

“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an attack on all American tech platforms and the American people by foreign governments,” Rubio wrote. “The days of censoring Americans online are over.”

Vice President JD Vance, posting on X ahead of the decision, accused the Commission of seeking to fine X “for not engaging in censorship.”

“The EU should be supporting free speech not attacking American companies over garbage,” he wrote.

Officials denied the rules were intended to muzzle Big Tech companies. The Commission is “not targeting anyone, not targeting any company, not targeting any jurisdictions based on their color or their country of origin,” spokesman Thomas Regnier told a regular briefing in Brussels. “Absolutely not. This is based on a process, democratic process.”

X did not respond immediately to an email request for comment.

EU regulators had already outlined their accusations in mid-2024 when they released preliminary findings of their investigation into X.

Regulators said X’s blue checkmarks broke the rules because on “deceptive design practices” and could expose users to scams and manipulation.

Before Musk acquired X, when it was previously known as Twitter, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts, such as Beyonce, Pope Francis, writer Neil Gaiman and rapper Lil Nas X.

After he bought it in 2022, the site started issuing the badges to anyone who wanted to pay $8 per month.

That means X does not meaningfully verify who’s behind the account, “making it difficult for users to judge the authenticity of accounts and content they engage with,” the Commission said in its announcement.

X also fell short of the transparency requirements for its ad database, regulators said.

Platforms in the EU are required to provide a database of all the digital advertisements they have carried, with details such as who paid for them and the intended audience, to help researches detect scams, fake ads and coordinated influence campaigns. But X’s database, the Commission said, is undermined by design features and access barriers such as “excessive delays in processing.”

Regulators also said X also puts up “unnecessary barriers” for researchers trying to access public data, which stymies research into systemic risks that European users face.

“Deceiving users with blue checkmarks, obscuring information on ads and shutting out researchers have no place online in the EU. The DSA protects users,” Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security and democracy, said in a prepared statement.

The Commission also wrapped up a separate DSA case Friday involving TikTok’s ad database after the video-sharing platform promised to make changes to ensure full transparency.

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AP Writer Lorne Cook in Brussels contributed to this report.



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