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‘Intelligence too cheap to meter’ is AI’s next frontier, Sam Altman says

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In a high-profile fireside chat at the Federal Reserve in Washington, DC, OpenAI CEO Sam Altman sat down with Fed Vice Chair Michelle Bowman to sketch a sweeping vision of artificial intelligence and its implications for finance, employment, and society at large. The conversation, at the Fed’s Integrated Review of the Capital Framework for Large Banks Conference, covered the acceleration of AI adoption, productivity booms, looming risks, and why Altman thinks banks—and regulators—must rethink their approach to innovation.

Altman recounted the astonishing velocity of AI development and acceptance. “Only five years ago, AI was still thought of as something that was in the distant future,” he remarked, highlighting the dramatic changes since ChatGPT’s launch in November 2022. Since then, AI has leaped from niche to necessity, with new models achieving “gold-level performance” in tasks once reserved for elite human experts.

Productivity stories are pouring in from scientists and engineers: “We’re now hearing from scientists saying they’re two, three times more productive. We’re hearing from computer programmers that say they’re 10 times more productive. That’s completely changed what it means to write software.”

Altman captured the phenomena with a striking phrase: “It does in fact look like we’re about to deliver on ‘intelligence too cheap to meter.’ We’ve been able to drive down the cost of each unit of intelligence by more than a factor of 10 each year for the last five years.” He described a personal anecdote where a coding task, once days of work for an expert, was now solved by AI in five minutes for “less than a dollar’s worth of compute tokens.”

AI will make the phrase ‘AI company’ obsolete

Bowman, addressing a room of industry leaders, pressed Altman on the potential for AI to remake productivity in finance and beyond. Altman compared AI’s societal impact to the invention of the transistor: “The value sort of diffused throughout all of society as a massive productivity win.” He predicted the phrase “AI company” would soon sound outmoded, as every product and service would be expected to integrate intelligence by default.

Early adopters in finance are already deep in experimentation. Despite initial skepticism, institutions like Morgan Stanley and Bank of New York have embraced AI for critical functions. “Some of our biggest early enterprise partners turned out to be financial institutions,” Altman said, noting that they’ve figured out how to use the technology for critical processes.

On job disruption, Altman was candid about the uncertainty: “No one knows what happens next.” While predicting that some classes of jobs will vanish and others will emerge, he insisted that increased productivity historically leads to more, not less, human aspiration and creativity.

“There are cases where entire classes of jobs will go away. There are entirely new classes of jobs that will come.” He said he thinks that process will look like “most of history,” where humans and economies have adapted to the tools that technology creates.

“It turns out people seem to want unlimited stuff. Have a huge desire to express their creativity and be useful to people,” Altman continued. He added he’s “still waiting for that promise from the industrial revolution that we only had to work four hours a week and got to play on the beach and hang out with our kids,” he said, seemingly referring not to 19th-century forecasts on the future of work but 20th century economist John Maynard Keynes’ famous predictions about the future of work.

The panel did not wade into Keynes’ prediction that a 15-hour workweek would be achieved by the time of Keynes’ hypothetical grandchildren, as they would have been alive during the period leading up to 2030, almost exactly the current time. The conversation also didn’t expand into the subject of tariffs, protectionism or outsourcing, as the history of the decline of American manufacturing and the “China shock” of the 21st century suggest history is not a linear line in technological and economic disruption.

A future full of AI risk, even ‘fraud’

Altman also issued blunt warnings on the risks of AI, particularly synthetic fraud and impersonation, noting, “AI has fully defeated most of the ways that people authenticate currently other than passwords.” He urged banks and society to move away from voice- or image-only authentication methods and to prepare for new waves of cybercrime.

He described three broad risk categories: bad actors exploiting superintelligence, loss-of-control incidents (as sci-fi warns), and a subtler threat where society becomes so dependent on AI that human oversight, decision-making, and even government governance could degrade. “Emotional over-reliance,” especially among youth, is already emerging as a concern.

Throughout the conversation, Altman urged governments and businesses to move quickly but mindfully in adopting AI, stressing the importance of regulation that enables innovation rather than stifling it. He drew parallels to historical anxieties over calculators and Google, pointing out that such tools ultimately allowed people to focus on higher-level skills.

He also described how AI could become a global equalizer, especially in developing markets with limited access to professionals: “In a lot of the developing world, the alternative to a ChatGPT doctor is not a real doctor, it’s nothing at all, and then you’d definitely rather have this.”

In closing, Altman highlighted the rapid shift to advanced “reasoning models” in AI and invited financial leaders and government to embrace this new wave. “Government has got to embrace this technology, and we’ll be able to do everything better.”

For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 



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Hero bystander who tackled Bondi gunman praised by Trump, Ackman

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A bystander who rushed and disarmed one of the Bondi Beach attackers has won praise from leaders around the world, including US President Donald Trump and hedge fund billionaire Bill Ackman, who announced a reward program for community heroes.

Extraordinary footage of the civilian’s actions began circulating on social media on Sunday, shortly after two men, later identified as a father and son, started shooting into a crowd gathered to celebrate the first day of Hanukkah. The massacre has left at least 16 people dead in the worst terrorist attack in Australia’s history. 

Read More: Sixteen People Killed in Bondi Beach Hanukkah Terror Attack 

In the mobile-phone video, which has not been verified by Bloomberg News, one of the attackers is standing near a tree and firing. A few meters away, a crouched man emerges from behind a parked car. He grabs the shooter from behind and wrestles the weapon from his hands. Local media named the bystander as Ahmed el Ahmed, a 43-year-old father-of-two from south Sydney. He was shot twice and is being treated in the hospital, according to reports.

He was also soon lauded for his feat. Trump said at the White House that Ahmed had saved many lives and expressed “great respect” for him. In Sydney, New South Wales Premier Chris Minns went further, describing Ahmed’s wrestle with the shooter as “the most unbelievable scene I’ve ever seen.”

“That man is a genuine hero and I’ve got no doubt there are many, many people alive tonight as a result of his bravery,” Minns said at a press conference late Sunday.

Australian Prime Minister Anthony Albanese also praised Ahmed, and other bystanders who helped treat victims in the immediate aftermath of the shooting. 

“People rushing towards danger to show the best of the Australian character,” Albanese told reporters Monday. “That’s who we are, people who stand up for our values.” 

Pershing Square Capital Management’s founder Ackman called Ahmed  “a brave hero” and said his hedge fund firm would establish a reward program for people who had carried out similar acts.

The top donor to a gofundme page set up for the “hero” who tackled the shooter is listed as William Ackman, who gave $99,999. More than $170,000 has been raised so far. 

Salesforce Inc. Founder and Chief Executive Officer Marc Benioff also expressed his gratitude for Ahmed in a post on X.



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A ‘new era’ in the housing market is about to begin as affordability finally improves

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Next year should mark a shift in the housing market after years of largely being frozen in place, according to Mike Simonsen, chief economist at top residential real estate brokerage Compass.

Home sales flatlined amid unaffordable conditions after rising demand collided with tepid supply growth, pushing up home prices. Would-be buyers became so discouraged that demand cooled and remains slow.

Prices are now becoming more favorable for house hunters, a trend that should continue in 2026 and change the narrative in the housing market.

“In the next era, that story flips. So sales are starting to move higher, but prices are capped or maybe down. Incomes are rising faster than prices, and so affordability improves for the first time in a bunch of years,” Simonsen told CNBC on Friday. “It’s not a dramatic improvement, but it’s the start of the new era.” 

His view echoes a recent report from Redfin, which also cited stronger income and weaker homes prices as it predicted a “Great Housing Reset” in 2026.

In addition to potential buyers giving up on finding an affordable home, sellers have been giving up on finding someone willing to buy at the price they want.

As a result, the number of homes that were withdrawn from the market jumped this year. In June, these so-called delistings shot up 47% from a year earlier.

Simonsen said listing withdrawals tend to be owner-occupied homes, meaning they could be latent demand as well as supply. That’s because two transactions would be needed: owners want to buy a new home but must sell their current one.

“In an environment where conditions improve a little bit, we actually estimate that that’s a representation of shadow demand—people that want to move, people that have delayed moves for maybe four years now,” he said, adding that there are about 150,000 such homeowners.

His housing market outlook for a new era of improving affordability doesn’t depend on a steep drop in mortgage rates. In fact, a plunge might spur so much demand that prices would overheat.

Simonsen expects rates to stay in the low-6% range, allowing sales to grow while also keeping home prices in check as more inventory comes on the market.

The price environment is already showing auspicious signs for prospective buyers. More than half of U.S. homes have dropped in value over the last year, but homeowners can still sell with a net gain as values are up a median 67% since their home’s last sale, accordion to data from Zillow.

And a separate report fromZillow found that homebuyers are getting record-high discounts. While the typical individual discount remains $10,000, desperate sellers are increasingly offering multiple reductions as muted demand leaves homes on the market for longer. As a result, the cumulative price cut in October hit $25,000.

“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement last month. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”



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Attacker who killed US troops in Syria was a recent recruit to security forces

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A man who carried out an attack in Syria that killed three U.S. citizens had joined Syria’s internal security forces as a base security guard two months earlier and was recently reassigned amid suspicions that he might be affiliated with the Islamic State group, a Syrian official told The Associated Press Sunday.

The attack Saturday in the Syrian desert near the historic city of Palmyra killed two U.S. service members and one American civilian and wounded three others. It also wounded three members of the Syrian security forces who clashed with the gunman, interior ministry spokesperson Nour al-Din al-Baba said.

Al-Baba said that Syria’s new authorities had faced shortages in security personnel and had to recruit rapidly after the unexpected success of a rebel offensive last year that intended to capture the northern city of Aleppo but ended up overthrowing the government of former President Bashar Assad.

“We were shocked that in 11 days we took all of Syria and that put a huge responsibility in front of us from the security and administration sides,” he said.

The attacker was among 5,000 members who recently joined a new division in the internal security forces formed in the desert region known as the Badiya, one of the places where remnants of the Islamic State extremist group have remained active.

Attacker had raised suspicions

Al-Baba said the internal security forces’ leadership had recently become suspicious that there was an infiltrator leaking information to IS and began evaluating all members in the Badiya area.

The probe raised suspicions last week about the man who later carried out the attack, but officials decided to continue monitoring him for a few days to try to determine if he was an active member of IS and to identify the network he was communicating with if so, al-Baba said. He did not name the attacker.

At the same time, as a “precautionary measure,” he said, the man was reassigned to guard equipment at the base at a location where he would be farther from the leadership and from any patrols by U.S.-led coalition forces.

On Saturday, the man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards, al-Baba said. The attacker was shot and killed at the scene.

Al-Baba acknowledged that the incident was “a major security breach” but said that in the year since Assad’s fall “there have been many more successes than failures” by security forces.

In the wake of the shooting, he said, the Syrian army and internal security forces “launched wide-ranging sweeps of the Badiya region” and broke up a number of alleged IS cells. The interior ministry said in a statement later that five suspects were arrested in the city of Palmyra.

A delicate partnership

The incident comes at a delicate time as the U.S. military is expanding its cooperation with Syrian security forces.

The U.S. has had forces on the ground in Syria for over a decade, with a stated mission of fighting IS, with about 900 troops present there today.

Before Assad’s ouster, Washington had no diplomatic relations with Damascus and the U.S. military did not work directly with the Syrian army. Its main partner at the time was the Kurdish-led Syrian Democratic Forces in the country’s northeast.

That has changed over the past year. Ties have warmed between the administrations of U.S. President Donald Trump and Syrian interim President Ahmad al-Sharaa, the former leader of an Islamist insurgent group Hayat Tahrir al-Sham that used to be listed by Washington as a terrorist organization.

In November, al-Sharaa became the first Syrian president to visit Washington since the country’s independence in 1946. During his visit, Syria announced its entry into the global coalition against the Islamic State, joining 89 other countries that have committed to combating the group.

U.S. officials have vowed retaliation against IS for the attack but have not publicly commented on the fact that the shooter was a member of the Syrian security forces.

Critics of the new Syrian authorities have pointed to Saturday’s attack as evidence that the security forces are deeply infiltrated by IS and are an unreliable partner.

Mouaz Moustafa, executive director of the Syrian Emergency Task Force, an advocacy group that seeks to build closer relations between Washington and Damascus, said that is unfair.

Despite both having Islamist roots, HTS and IS were enemies and often clashed over the past decade.

Among former members of HTS and allied groups, Moustafa, said, “It’s a fact that even those who carry the most fundamentalist of beliefs, the most conservative within the fighters, have a vehement hatred of ISIS.”

“The coalition between the United States and Syria is the most important partnership in the global fight against ISIS because only Syria has the expertise and experience to deal with this,” he said.

Later Sunday, Syria’s state-run news agency SANA reported that four members of the internal security forces were killed and a fifth was wounded after gunmen opened fire on them in the city of Maarat al-Numan in Idlib province.

It was not immediately clear who the gunmen were or whether the attack was linked to the Saturday’s shooting.



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