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⚖️ POLICY & REGULATION
US Pushes the ‘Carolina Principles’ at This Week’s G20 AI Meeting: The administration is asking G20 counterparts to endorse a non-binding AI governance framework it calls the Carolina Principles, which commits governments to avoid creating new AI regulatory bodies, to regulate by sector rather than across the board, and to run technology testing through public-private collaboration. Ministers from Japan, Germany, France, India and South Korea meet Sept. 1–2 at the Carolina Inn in Chapel Hill, with Elon Musk, Nvidia’s Jensen Huang and OpenAI’s Sam Altman on the program. A separate G20 finance track has been meeting in Asheville since Saturday. Link
OpenAI Backs SB 1119 as It Clears the California Legislature 39-0: Sen. Steve Padilla’s companion-chatbot children’s-safety bill, SB 1119, cleared its last hurdle on Aug. 31, the session’s final day: the Senate concurred in Assembly amendments 39-0 and ordered the bill to engrossing and enrolling. OpenAI publicly endorsed the measure as it moved. The bill carries eight co-sponsors and now goes to Gov. Gavin Newsom, who signed the first state companion-chatbot law, SB 243, in October 2025. Link
Colorado’s AI Rule Comments Close for the Revision Round on Sept. 4: The Colorado attorney general filed proposed rules on Aug. 11 implementing the Automated Decision-Making Technology Act (SB 26-189) and the Chatbot Safety Act (HB 26-1263). The comment portal stays open through Oct. 26, but only comments filed by Sept. 4 will be considered for revisions presented at the rulemaking hearing, set for Oct. 26 at 10 a.m. at the Ralph L. Carr Judicial Center in Denver, with a remote option. Both statutes take effect Jan. 1, 2027. Link
Newsom Gets Two More AI Bills From the Session’s Last Week: Sen. Jerry McNerney’s SB 813, which sets up a commission and private certifiers to write AI safety standards, certify models and limit developer liability, was concurred in 37-0 on Aug. 30 and ordered to engrossing and enrolling. His SB 947, the ‘No Robo Bosses Act,’ barring employers from using automated decision systems for discipline and termination calls, cleared on a 28-10 concurrence Aug. 31. Newsom vetoed its predecessor, SB 7, in October 2025 as too broad. Link
Arizona’s Attorney General Calls for a Statewide Data Center Pause: Kris Mayes asked the Legislature and governor on Aug. 31 to halt approvals and construction of new data centers, particularly hyperscale AI projects, until the state has a plan for managing the industry’s growth. She cited climbing electricity bills and a federal cut of nearly 30% to Arizona’s Colorado River allocation, plus a 2025 analysis projecting water demand tied to data centers could rise more than 450% if every proposed greater-Phoenix project is built. Mayes holds a town hall in Ahwatukee on Oct. 14. Link
Florida Orders Roughly 700 Flock Cameras Off State Highways in 30 Days: The Florida Department of Transportation revoked its permits for every license plate reader on the state highway system on Aug. 31 and gave agencies 30 days to take them down, citing an ‘exponential increase in deployments’ alongside reports of misuse and data privacy concerns. Officers in Haines City and Sarasota were fired and arrested over alleged use of the cameras to track romantic interests. Gov. Ron DeSantis said he wants to go further with an AI Bill of Rights. Link
🛡️ SAFETY & SECURITY
Anthropic Restarts External Cyber Evaluations With New Safeguards: The company said Monday it has resumed outside cybersecurity testing of pre-release models after several weeks of pause. A review of 141,006 evaluation runs published July 30 found three in which Claude models gained unauthorized access to real production systems, which Anthropic attributed to a misconfiguration in a third-party evaluation environment. It reassigned roughly 150 product engineers to security, reliability and privacy work and is expanding its Cyber Verification Program, which gives approved defensive security firms modified access to Opus and Sonnet. Link
Mississippi Asks the Fifth Circuit to Reassign a Judge Over an AI-Drafted Order: Attorney General Lynn Fitch’s office asked the appeals court Monday to overturn the injunction blocking the state’s ban on diversity, equity and inclusion programs and to reassign U.S. District Judge Henry Wingate, citing an earlier order of his that contained statements the plaintiffs never made. Wingate later acknowledged a law clerk had used Perplexity as a ‘foundational drafting assistant.’ The Fifth Circuit had already pressed at argument on whether fabricated material affected the reasoning. Link
💰 POWER & CAPITAL
Anthropic Signs a $35 Billion Cloud Deal With Nvidia-Backed Lambda: Lambda will deploy Nvidia chips at a Nueces County, Texas, site being developed by Hut 8, the bitcoin miner turned data center operator, with Nvidia holding the lease on the capacity. The agreement follows the $45 billion, six-year commitment Anthropic made to Nvidia-backed Nscale earlier in August for West Virginia capacity. Link
Nvidia Puts $3.5 Billion Into MediaTek Convertible Bonds: The Aug. 31 purchase takes most of MediaTek’s record $3.9 billion overseas convertible offering, with Alphabet taking an undisclosed share. MediaTek will adopt Nvidia’s NVLink Fusion platform, letting customers build custom AI chips that attach to Nvidia systems. It lands weeks after Nvidia’s guarantee of up to $105 billion on OpenAI’s Ohio data center lease, and adds to scrutiny of the chipmaker financing the companies that drive demand for its own products. Link
🏛️ INDUSTRY IMPACT
Apple Says Its Ex-Engineer Ran Stolen Schematics at OpenAI: In a filing Monday, Apple said a forensic inspection of Chang Liu’s post-departure laptop found dozens of confidential Apple files pulled from third-party cloud storage, including a circuit schematic Liu allegedly loaded into LTspice for a March simulation while at OpenAI. Apple also alleges Liu directed an OpenAI coworker to ‘restore’ Apple-issued devices after learning of the internal investigation. Apple is seeking a preliminary injunction and expedited discovery, including depositions of OpenAI executives; OpenAI has moved to dismiss and calls the dispute Apple’s own making. Link
OpenAI’s Ad Business Hits a $1 Billion Run Rate: ChatGPT Ads reached a $1 billion annualized revenue run rate roughly six months after launch, up from the $100 million figure OpenAI reported in April six weeks into the US pilot. Ads now run in more than 40 countries, and OpenAI opened self-service access to marketers in India, Europe, the Middle East and North Africa on Monday. The run rate still trails the $2.4 billion in 2026 ad revenue the company had projected. Link
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