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NSA, CISA And FBI Name Six Chinese Labs Running Industrial-Scale Distillation Of US Models: A joint cybersecurity advisory issued Sept. 8 says DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have extracted billions of tokens across millions of requests from Claude, GPT, Gemini and Grok models since at least late 2024, routing traffic through multiple providers and API aggregators to dodge single-point detection, "likely with Chinese government awareness." The agencies call the campaigns the core of those companies' development strategy, not a supplement, and ask US labs to monitor subscription-to-usage ratios, subtly degrade responses to suspected distillation traffic and share indicators across model providers and cloud platforms. Beijing's foreign ministry told Washington on Sept. 9 to "refrain from making unfounded accusations," weeks before Trump and Xi are due to meet. Link

Anthropic Quits ITI Over The Trade Group's Push To Strip Chip Export Bills From The NDAA: The company is severing ties with the Information Technology Industry Council, whose members include Google, OpenAI and Nvidia, after ITI wrote to the House and Senate Armed Services Committees urging them to drop three export-control measures from the defense bill: the AI OVERWATCH Act, the Chip Security Act and the MATCH Act. All three cleared House Foreign Affairs with lopsided bipartisan votes and sit in the Senate NDAA managers' package after White House technical assistance. It adds to Anthropic's split from OpenAI and Google on state safety legislation and its refusal to sign the industry's open-weights letter. Link

Virginia's Subramanyam Files Four Bills To Set National Data Center Rules: Rep. Suhas Subramanyam, whose 10th District hosts more data centers than any in the country, introduced a package on Sept. 8 that would require states to set special electricity rates for large-load customers, covering existing as well as future facilities, keep data centers and transmission lines away from homes, schools and historic parks, and condition approvals on measured water use, energy demand and effects on neighbors and national security. A companion ask has the Department of Homeland Security help bury transmission lines. "They're becoming a Trojan horse for our community," he said. Link

FDA Gets Its First Deputy Commissioner For Technology And AI: HHS named Jared Seehafer to the newly created post on Sept. 8, making him the agency's senior leader for technology, software and AI strategy, in the same announcement that made acting drug chief Michael Davis and biologics chief Karim Mikhail permanent and put Bret Koplow over the Center for Tobacco Products. The role sits above the chief AI officer position FDA filled last year. Link

Healey Makes Local Consent A Precondition For Any Massachusetts Data Center Over 25 Megawatts: An executive order signed Sept. 8 bars state agencies from advancing permits for data centers with peak demand above 25 megawatts unless the developer has a community benefits agreement with the host municipality that meets state standards and complies with the administration's Data Center Framework: bring your own clean energy or pay fees returned to ratepayers, show sufficient water and wastewater capacity, and minimize emissions. The order also prohibits non-disclosure agreements between state agencies and data center developers. "Unless a community says yes to a data center, we're saying no," Healey said. Similar guardrails, added by Sen. Vanna Howard to the energy affordability bill SB 3166, are in conference committee. Link

Florida's AG Wants Criminal Liability For Companies Whose Chatbots Take Part In Crimes: James Uthmeier said at a Tampa press conference on Sept. 8 he will ask lawmakers to make any company with "practical control" over an AI product's design, training, deployment and safety settings criminally liable when the product participates in a crime, with penalties running from fines and restitution to court-ordered monitorship and suspension of operations in Florida. No bill text or sponsor exists yet, and absent a special session nothing moves before the regular session opens in March 2027. The proposal builds on his investigation of OpenAI, opened in April and widened into a criminal probe over ChatGPT's use by the alleged FSU shooter. Link

Kotek Backs A Data Center Moratorium She Cannot Impose, While Hobbs Rejects One She Could: Oregon's governor told a rally at the Capitol on Sept. 8, "I support a moratorium until we make sure that any data center development is done on our terms," then conceded that only the Legislature can enact a statewide pause and asked lawmakers to "step up next year." What she can do she did: state agencies must immediately stop processing easements, leases, land-use permits and sales of state-owned land for data centers and report status by Sept. 14. Republican challenger Christine Drazan says Kotek already has the authority. In Arizona the same day, Gov. Katie Hobbs said "I don't believe that a state moratorium is the right approach," turning down Attorney General Kris Mayes' Aug. 31 call. Link

Tennessee's Revenue Department Cannot Say What Its Data Center Tax Break Costs, So A Lawmaker Wants A Three-Year Freeze: Rep. Aftyn Behn (D-Nashville) said Sept. 8 she will file a 2027 bill halting new data center exemption certificates for three years while the Department of Revenue reports the annual cost, names the facilities holding certificates and tracks compliance and revocations. The department confirms 25 active certificates and says it does not track the revenue forgone. Qualifying centers, at $100 million invested and 15 jobs, buy servers, repair services and backup power equipment sales-tax free and pay a 1.5% rate on electricity. Link

Oshkosh Joins Wisconsin's Moratorium Wave With A Unanimous 12-Month Pause: The Common Council voted Sept. 8 to stop receiving or approving permits, zoning approvals, conditional use permits and site plans for any facility of 10,000 square feet or more whose primary use is storing or processing data, for up to a year while the city writes data-center-specific zoning. Winnebago County adopted its own 12-month pause in August, Manitowoc and Dane counties and Sheboygan have done the same, and the Eau Claire County administration committee voted unanimously the same evening to begin drafting a hyperscale moratorium. Link

Britain Will Legislate Device-Level Nudity Blocks After Apple And Google Miss Starmer's Deadline: Culture Secretary Lisa Nandy told the Commons on Sept. 8 that the three-month window the prime minister gave the two companies in June to switch on operating-system-level safeguards had closed without agreement, and that legislation is now "almost certain." The bill would require devices assigned to under-18s to block sexually explicit images at the camera, in downloads and across messaging apps, going beyond today's opt-in warnings, and may reach retailers and others in the supply chain. Nandy gave no timetable beyond "as soon as we can." Link

Anthropic Skipped The UK's Pre-Release Testing For Mythos 5.1: Claude Mythos 5.1, the cyber- and life-sciences-focused model distributed through trusted-access programs rather than public release, went only to vetted US organizations before launch, the first time Anthropic has bypassed the AI Security Institute, the Financial Times reported. Anthropic says it is "co-ordinating with the US government to expand access to a broader set of domestic and international partners as quickly as possible"; the Cabinet Office said AISI "continues to collaborate closely with industry partners, including Anthropic." AISI's pre-deployment testing is voluntary, and the report describes no agreement obliging Anthropic to submit. Link

An Anthropic Pretraining Researcher Resigns, And The Alignment Lead Agrees With Him: Jacob Coxon, who spent three years on pretraining at OpenAI and then Anthropic, quit this week with a post on X saying "neither company is acting responsibly. They are racing straight to self-improving superintelligence and gambling with our lives." Anthropic's alignment science lead Evan Hubinger replied that he personally puts the odds of AI killing all humans within a decade above 10% and that the company does "not yet have a plan to solve alignment for superintelligence." Anthropic pointed to its own research on the need for tools to deliberately pace the frontier. Link

DOE Closes A $1.9 Billion Loan To Restart Iowa's Duane Arnold Reactor For Google: The Office of Energy Dominance Financing closed the loan to NextEra on Sept. 8 to bring the 615-megawatt plant, shut since a 2020 derecho, back online by 2029 subject to Nuclear Regulatory Commission approval. Google contracted for the plant's output under a 25-year agreement last October; NextEra CEO John Ketchum says just 50 megawatts is reserved for the local cooperative. DOE projects about 1,500 construction jobs and 450 permanent positions. Link

ERCOT Conditionally Clears 4.2 Gigawatts Of Galaxy Data Centers Under Batch Zero: Galaxy said Sept. 8 that five Texas projects received conditional Batch Zero large-load classifications: Helios I (800 MW) and Helios II (830 MW) as base load, which the system-wide study models without further allocation, and Caspian (700 MW), Selene (900 MW) and Helios III (1,000 MW) as studied load, which compete for whatever transmission capacity the study finds. The classifications stay conditional while ERCOT audits every project under Gov. Abbott's Aug. 3 directive, a process the grid operator expects to take several months. Link

Google Commits €13 Billion To Finland, Anchored By A 22-Year Nuclear Contract: The two-year, 2027-28 program announced Sept. 9, Google's largest single investment in Europe at about $15.1 billion, expands data centers at Hamina, Kajaani, Muhos and Vaala and pairs them with a 22-year contract with Fortum supporting the life extension of the Loviisa nuclear plant, new onshore wind and a 94-megawatt battery. Google projects 37,000 jobs supported during construction and €3.6 billion a year added to Finnish GDP. Link

Judge Cannon Sends Florida's Suit Against OpenAI And Altman Back To State Court: The U.S. District Court in Fort Pierce remanded the attorney general's June lawsuit to the 10th Judicial Circuit in Highlands County on Sept. 8, finding OpenAI had not shown a federal forum was required: Florida pleads only its Deceptive and Unfair Trade Practices Act and cites COPPA as one basis for those claims rather than suing under it. The complaint alleges OpenAI marketed ChatGPT as safe while ignoring internal warnings and offers "no gatekeeping or age verification mechanism whatsoever" on the free tier. A state jury in a rural circuit is now the venue. Link

CCIA Puts The FCC's Covered List Expansion At $7.7 Billion, Against The Commission's $489 Million: The trade group's research center estimates the rules the FCC adopted July 22, plus the additions of power inverters and advanced robotics to the Covered List days later, will cost US businesses $5.3 billion over five years, rising to $7.7 billion if pending proposals are adopted. The FCC's own estimate covered only the July rules. CCIA's chief economist Trevor Wagener argues a regime aimed at foreign adversaries rather than production location would save more than $4 billion while keeping trusted allied suppliers, a distinction that matters for the transformers, optical gear and batteries data center operators buy. Link