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⚖️ POLICY & REGULATION
Pentagon Sought An OpenAI Model With "Minimal Refusal Rates": Files released in a Freedom of Information Act suit show a contract modification, version P00003 of the prototype deal worth up to $200 million over two years, calling for "OpenAI Mission Models" built to turn down military requests as rarely as possible. A Justice Department lawyer first told The Intercept the document was the signed version; after the outlet contacted OpenAI, Pentagon spokesman Jacob Bliss said the phrase "does not appear in any active Department of War contract," and OpenAI's Nate Evans said the company rejected that language in a draft. The bill that would put statutory limits on that ask, Sen. Elissa Slotkin's S 4113, has sat in Senate Armed Services since March 17 with no cosponsors. Link
Australia Would Let Users Switch Off The Algorithm: Prime Minister Anthony Albanese announced on Sept. 8 a "My Feed, My Way" requirement inside the government's Digital Duty of Care legislation: platforms must notify every user over 16 and let them choose between an algorithmic feed and one showing only accounts they follow. The same bill would shield under-16s from content promoting eating disorders, misogyny, pornography and dangerous stunts, with penalties up to A$109.2 million (about US$78.6 million). Instagram, Facebook, TikTok, YouTube and Snapchat are the named targets; no introduction date was given. Link
House Democrats Settle On A Data Center Attack Line: A House Majority PAC memo reported Sept. 6 lays out two themes for the fall: tie Republican incumbents to data center donors and to the industry's tax breaks in last year's reconciliation law, and frame the facilities as drivers of higher electric rates and water use. The PAC is targeting 11 battleground districts, with Midwest seats held by Ohio's Max Miller and Mike Carey and Michigan's Tom Barrett and John James at the top of the list. A July Politico poll found 41% of adults oppose a data center within three miles of home against 24% in support, up from 28% opposition in January. Link
The bill that answers the Pentagon's "minimal refusal" ask has been parked in Armed Services since March
S 4113, the AI Guardrails Act of 2026, by Sen. Elissa Slotkin (D-Mich.), introduced March 17 and referred to the Senate Armed Services Committee, where it sits with zero cosponsors. It would bar the Defense Department from using AI to launch nuclear weapons, to surveil or target people inside the United States without a clear legal basis, or to run lethal autonomous weapons without human oversight, with a one-year waiver the Secretary can request under strict criteria and prompt reporting to Congress. Docket Room puts its odds of advancing at about 4%. If the contract language in today's lead story ever resurfaces, this is the vehicle a Senate office would reach for.
STATES
Georgia's PSC Takes Data Center Comment In Savannah On Sept. 15: The Public Service Commission will hold its administrative session and a public forum with three minutes per speaker and a livestream on the commission's YouTube channel. Commissioner Alicia Johnson, who lives in Savannah, proposed moving the session south after the PSC approved Georgia Power's 3.2-gigawatt contract for OpenAI's 1,400-acre Project Camellia in Effingham County. A separate data center town hall runs Sept. 14 in Springfield. Link
Nevada's AG Polls Ratepayers On NV Energy's Data Center Plan: Attorney General Aaron Ford's Bureau of Consumer Protection opened an online survey, in English and Spanish, on NV Energy's integrated resource plan in PUCN Docket 26-05007, asking about data center growth, bills, reliability and the proposed generation projects. The bureau is running the survey because the Public Utilities Commission of Nevada ruled that a post-filing consumer session was not in the public interest. NV Energy has told regulators data centers could account for 64% of state power demand by 2046. Link
Hawaii County Defers Its AI Data Center Ban To October: The Windward Planning Commission voted 4-0 on Sept. 4 to hold Bill 170, Councilwoman Heather Kimball's measure declaring industrial-scale data centers "not a permitted use in the County," until its Oct. 1 meeting in Hilo. Planning Director Jeff Darrow floated a 10,000-square-foot ceiling for permitted facilities, with anything larger needing a use permit. More than 40 testimonies ran mostly in favor, several asking for tighter language. Both planning commissions owe the County Council recommendations by Nov. 4. Link
🛡️ SAFETY & SECURITY
UN Rights Chief Calls For Binding AI Red Lines: Opening the Human Rights Council's 63rd session in Geneva on Sept. 7, High Commissioner Volker Türk said he shares industry insiders' view that advanced AI could pose an "existential risk to humanity" and asked the countries that host AI development or sit in its supply chains to agree on what the technology must never be permitted to do, backed by independent verification. He singled out AI that escapes its testing environment or resists shutdown as "too powerful," and urged a prohibition on weapons that take lives without human involvement, citing reports of fully autonomous drones used by Russia in Ukraine. Link
China's Top Court Sets Liability Rules For Deepfakes And AI Pricing: Guidelines issued by the Supreme People's Court on Sept. 7 make it unlawful to create or distribute a recognizable digital replica of someone's face or voice without consent, attach liability to AI-generated false claims that damage reputation, and expose businesses that use algorithms to charge different customers different prices without justification. Service providers become liable if they are notified of infringing output and fail to act, users who deliberately prompt harmful content face liability, and courts may issue injunctions where AI content threatens irreversible harm. Link
💰 POWER & CAPITAL
Seoul Picks A 6.3-Gigawatt Texas Gas Plant As Its First $350 Billion Project: Trade Minister Park Jung-sung told lawmakers in a closed-door briefing on Sept. 7 that a $22.3 billion gas-fired plant at Encinal, Texas, would be the first project under Korea's US investment framework, starting with 1.4 gigawatts of gas turbines and adding up to 4.9 gigawatts of combined-cycle capacity in stages as data center demand materializes. The figure splits the difference between Seoul's $19.8 billion offer and Washington's $25 billion ask; a memorandum of understanding could be signed as early as Sept. 18. The ministry says it cannot confirm details while talks continue. Link
Ireland Floats Cheap Gas For Data Centers That Accept Cutoffs: The Commission for Regulation of Utilities is consulting on a discounted gas tariff for new data centers that agree to be curtailed during severe cold, when they would power down, postpone loads or switch to diesel backup. The regulator's analysis found that 17 planned facilities seeking gas connections would draw the equivalent of six large gas-fired power plants, or 2.6 million homes, and that winter shortfalls could reach 9% to 18%. Gas Networks Ireland is legally bound to accommodate the applications; no decision has been made and the discount size is undisclosed. Link
OpenAI Anchors Two Malaysian Data Centers With Firmus: The Australian operator signed a multi-year deal announced Sept. 8 making OpenAI the anchor tenant for two Malaysian sites built on Nvidia's Vera Rubin systems, pushing Firmus's contracted capacity past 900 megawatts. Firmus was valued above $10.5 billion in an August round backed by Nvidia, Blackstone, Jane Street and Coatue, and is reported to be preparing an IPO. Neither side disclosed the contract value. Link
🏛️ INDUSTRY IMPACT
Publishers And Agents Claim Slices Of The Anthropic Settlement: Authors expecting their $3,000 per pirated title from the $1.5 billion Bartz settlement are getting notices that a publisher or literary agent has also claimed the payment. The terms split in-print titles 50-50 with the publisher and give self-published or reverted works entirely to the author, yet mystery writer April Henry found a publisher claiming books whose rights reverted 17 years ago, and Writer Beware's Victoria Strauss reports agents, who hold no rights, filing claims. Authors Guild CEO Mary Rasenberger blames bad recordkeeping; authors can dispute an allocation through the claims administrator. Link
Clifford Quits ARIA Five Days After Joining Anthropic: Matt Clifford said on Sept. 7 he will step down as founding chair of the UK's Advanced Research and Invention Agency, reversing last week's plan to hold the post alongside his new job running Anthropic's government affairs outside North America. He stays through Nov. 6 while the science department recruits a successor. Commons science committee chair Chi Onwurah, who had called the dual role a clear conflict of interest, welcomed the exit but said "important questions remain" about how it was approved in the first place. Link
Financial Activities Shed 11,000 Jobs In August: The losses fell mostly in finance and insurance, even as overall payrolls rose 162,000, and the sector is down 121,000 jobs from its peak a year ago. Census survey data puts finance and insurance AI adoption at 33.9%, second only to the information sector's 39.7%, and economists cite AI alongside elevated interest rates. Roles requiring cybersecurity or AI skills are still being filled. Link
Huang Declares "AGI Has Arrived" On GPT-6 Astra: Nvidia's chief executive posted on Sept. 6 that OpenAI's new model, trained on more than 100,000 Grace Blackwell NVLink72 systems, marks the arrival of artificial general intelligence, and that another 400,000 GPUs are coming online. Astra went to a limited preview on Sept. 3 and to paid users the next day in a restricted version that refuses some cybersecurity prompts; OpenAI claims 98% on FrontierMath Tier 4 and 99.9% on ARC-AGI-3. Read the claim as a sales pitch as much as a milestone: Huang has declared AGI before. Link
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