Silicon Valley moves to influence AI policy

Silicon Valley insiders are preparing to pour over $100 million into next year’s US midterm elections to influence AI policy. The super-PAC Leading the Future, backed by Andreessen Horowitz and Greg Brockman, seeks to impact AI policy and limit strict regulation.

Leading the Future targets battleground states such as California, New York, Illinois, and Ohio. The PAC intends to fund campaigns, run extensive social media ads, and focus on politicians who support innovation-friendly ‘guardrails’ rather than heavy-handed regulation.

The initiative draws inspiration from the crypto industry’s political playbook, which successfully backed candidates aligned with its interests.

The group’s structure combines federal and state PACs with a 501(c)(4) organisation, offering flexibility and influence over both major parties. High-profile backers include Marc Andreessen, Greg Brockman, Joe Lonsdale, and Ron Conway.

Their collective goal is to ensure AI development continues without regulatory barriers that could slow American innovation and job creation.

Silicon Valley’s strategy highlights the increasing role of tech money in politics, reflecting a shift in donor priorities. The PAC’s influence may become a decisive factor in shaping AI legislation, with potential implications for the industry and broader US policy debates.

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CZ outlines vision for crypto and AI integration

Binance founder Changpeng ‘CZ’ Zhao shared his vision for crypto’s future, connecting digital assets with AI and recent policy changes. At WebX in Tokyo, CZ praised US crypto policy under Trump, highlighting stablecoin legislation and the Genius Act while opposing central bank digital currencies.

He argued that embracing innovation is crucial to remaining competitive globally.

CZ predicted that crypto will become the natural medium of exchange for AI, bypassing traditional fiat, banks, and credit cards. He envisaged hundreds or thousands of AI agents per person, generating a surge of microtransactions via programmable blockchain networks.

According to CZ, blockchains’ APIs are better suited than banks for interfacing with AI-driven economic activity.

Since stepping down from Binance, CZ has focused on education and advisory work. His Giggle Academy already serves 50,000 children, aiming to digitise 18 years of schooling at a fraction of government costs.

He advises at least 12 governments on crypto regulation and adoption. He also plans to mentor founders and back early-stage projects through his investment firm EZ Labs, emphasising ethical practices and long-term value creation.

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AI controversy surrounds Will Smith’s comeback shows

Footage from Will Smith’s comeback tour has sparked claims that AI was used to alter shots of the crowd. Viewers noticed faces appearing blurred or distorted, along with extra fingers and oddly shaped hands in several clips.

Some accused Smith of boosting audience shots with AI, while others pointed to YouTube, which has been reported to apply AI upscaling without creators’ knowledge.

Guitarist and YouTuber Rhett Shull recently suggested the platform had altered his videos, raising concerns that artists might be wrongly accused of using deepfakes.

The controversy comes as the boundary between reality and fabrication grows increasingly uncertain. AI has been reshaping how audiences perceive authenticity, from fake bands to fabricated images of music legends.

Singer SZA is among the artists criticising the technology, highlighting its heavy energy use and potential to undermine creativity.

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xAI accuses Apple and OpenAI of blocking competition in AI

Elon Musk’s xAI has filed a lawsuit in Texas accusing Apple and OpenAI of colluding to stifle competition in the AI sector.

The case alleges that both companies locked up markets to maintain monopolies, making it harder for rivals like X and xAI to compete.

The dispute follows Apple’s 2024 deal with OpenAI to integrate ChatGPT into Siri and other apps on its devices. According to the lawsuit, Apple’s exclusive partnership with OpenAI has prevented fair treatment of Musk’s products within the App Store, including the X app and xAI’s Grok app.

Musk previously threatened legal action against Apple over antitrust concerns, citing the company’s alleged preference for ChatGPT.

Musk, who acquired his social media platform X in a $45 billion all-stock deal earlier in the year, is seeking billions of dollars in damages and a jury trial. The legal action highlights Musk’s ongoing feud with OpenAI’s CEO, Sam Altman.

Musk, a co-founder of OpenAI who left in 2018 after disagreements with Altman, has repeatedly criticised the company’s shift to a profit-driven model. He is also pursuing separate litigation against OpenAI and Altman over that transition in California.

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Musicians report surge in AI fakes appearing on Spotify and iTunes

Folk singer Emily Portman has become the latest artist targeted by fraudsters releasing AI-generated music in her name. Fans alerted her to a fake album called Orca appearing on Spotify and iTunes, which she said sounded uncannily like her style but was created without her consent.

Portman has filed copyright complaints, but says the platforms were slow to act, and she has yet to regain control of her Spotify profile. Other artists, including Josh Kaufman, Jeff Tweedy, Father John Misty, Sam Beam, Teddy Thompson, and Jakob Dylan, have faced similar cases in recent weeks.

Many of the fake releases appear to originate from the same source, using similar AI artwork and citing record labels with Indonesian names. The tracks are often credited to the same songwriter, Zyan Maliq Mahardika, whose name also appears on imitations of artists in other genres.

Industry analysts say streaming platforms and distributors are struggling to keep pace with AI-driven fraud. Tatiana Cirisano of Midia Research noted that fraudsters exploit passive listeners to generate streaming revenue, while services themselves are turning to AI and machine learning to detect impostors.

Observers warn the issue is likely to worsen before it improves, drawing comparisons to the early days of online piracy. Artists and rights holders may face further challenges as law enforcement attempts to catch up with the evolving abuse of AI.

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Celebrity Instagram hack fuels Solana meme coin scam

The Instagram accounts of Adele, Future, Tyla, and Michael Jackson were hacked late Thursday to promote an unauthorised meme coin. Posts showed an AI image of the Future with a ‘FREEBANDZ’ coin, falsely suggesting ties to the rapper.

The token, launched on the Solana platform Pump.fun, surged briefly to nearly $900,000 in market value before collapsing by 98% after its creator dumped 700 million tokens. The scheme netted more than $49,000 in Solana for the perpetrator, suspected of being behind the account hijackings.

None of the affected celebrities has issued a statement, while Future’s Instagram account remains deactivated. The hack continues a trend of using celebrity accounts for crypto pump-and-dump schemes. Previous cases involved the UFC, Barack Obama, and Elon Musk.

Such scams are becoming increasingly common, with attackers exploiting the visibility of major social media accounts to drive short-lived token gains before leaving investors with losses.

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Senior OpenAI executive Julia Villagra departs amid talent war

OpenAI’s chief people officer, Julia Villagra, has left the company, marking the latest leadership change at the AI pioneer. Villagra, who joined the San Francisco firm in early 2024 and was promoted in March, previously led its human resources operations.

Her responsibilities will temporarily be overseen by chief strategy officer Jason Kwon, while chief applications officer Fidji Simo will lead the search for her successor.

OpenAI said Villagra is stepping away to pursue her personal interest in art, music and storytelling as tools to help people understand the shift towards artificial general intelligence, a stage when machines surpass human performance in most forms of work.

The departure comes as OpenAI navigates a period of intense competition for AI expertise. Microsoft-backed OpenAI is valued at about $300 billion, with a potential share sale set to raise that figure to $500 billion.

The company faces growing rivalry from Meta, where Mark Zuckerberg has reportedly offered $100 million signing bonuses to attract OpenAI talent.

While OpenAI expands, public concerns over the impact of AI on employment continue. A Reuters/Ipsos poll found 71% of Americans fear AI could permanently displace too many workers, despite the unemployment rate standing at 4.2% in July.

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Google claims Gemini uses less water and energy per text prompt

Google has published new estimates on the environmental footprint of Gemini, claiming a single text prompt uses about five drops of water and 0.24 watt-hours of electricity. The company says this equates to 0.03 grams of carbon dioxide emissions.

According to Google, efficiencies have reduced Gemini’s energy consumption and carbon footprint per text prompt by factors of 33 and 44 over the past year. Chief technologist Ben Gomes said the model now delivers higher-quality responses with a significantly lower footprint.

The company argued that these figures are significantly lower than those suggested in earlier research. However, Shaolei Ren, the author of one of the cited papers, said Google’s comparisons were misleading and incomplete.

Ren noted that Google compared its latest onsite-only water figures against his study’s highest total figures, creating the impression that Gemini was far more efficient. He also said Google omitted indirect water use, such as electricity-related consumption, from its estimates.

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South Korea unveils five-year AI blueprint for ‘super-innovation economy’

South Korea’s new administration has unveiled a five-year economic plan to build what it calls a ‘super-innovation economy’ by integrating AI across all sectors of society.

The strategy, led by President Lee Jae-myung, commits 100 trillion won (approximately US$71.5 billion) to position the country among the world’s top three AI powerhouses. Private firms will drive development, with government support for nationwide adoption.

Plans include a sovereign Korean-language AI model, humanoid robots for logistics and industry, and commercialising autonomous vehicles by 2027. Unmanned ships are targeted for completion by 2030, alongside widespread use of drones in firefighting and aviation.

AI will also be introduced into drug approvals, smart factories, welfare services, and tax administration, with AI-based tax consultations expected by 2026. Education initiatives and a national AI training data cluster will nurture talent and accelerate innovation.

Five domestic firms, including Naver Cloud, SK Telecom, and LG AI Research, will receive state support to build homegrown AI foundation models. Industry reports currently rank South Korea between sixth and 10th in global AI competitiveness.

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Court filing details Musk’s outreach to Zuckerberg over OpenAI bid

Elon Musk attempted to bring Meta chief executive Mark Zuckerberg into his consortium’s $97.4 billion bid for OpenAI earlier this year, the company disclosed in a court filing.

According to sworn interrogations, OpenAI said Musk had discussed possible financing arrangements with Zuckerberg as part of the bid. Musk’s AI startup xAI, a competitor to OpenAI, did not respond to requests for comment.

In the filing, OpenAI asked a federal judge to order Meta to provide documents related to any bid for OpenAI, including internal communications about restructuring or recapitalisation. The firm argued these records could clarify motivations behind the bid.

Meta countered that such documents were irrelevant and suggested OpenAI seek them directly from Musk or xAI. A US judge ruled that Musk must face OpenAI’s claims of attempting to harm the company through public remarks and what it described as a sham takeover attempt.

The legal dispute follows Musk’s lawsuit against OpenAI and Sam Altman over its for-profit transition, with OpenAI filing a countersuit in April. A jury trial is scheduled for spring 2026.

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