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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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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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