A prominent voice in the tech community has warned that if Congress hastily convenes for an emergency session to impose regulations on artificial intelligence, the United States risks falling behind China in the technological race, a situation that could pose a significant risk to all Americans. He emphasized the need for a measured approach, advocating for carefully considered actions rather than impulsive decisions. "We need equilibrium and competent leadership to navigate this challenge," he insisted.

Trump minimizes AI dangers following serious expert alerts and demands to halt progress.

Dark press briefing stage at night, Donald Trump at a podium under a harsh spotlight, dismissively waving a hand; behind him a large cracked-red digital screen blares “AI RISK WARNING” in glitching text; shadowy silhouettes of experts at the room’s edges clutch worn caution placards; a U.S. flag stands solemnly to one side, overall ominous atmosphere.

Trump downplays AI risks after dire expert warnings and calls to slow development down - BBC

- Urgent regulation of AI by Congress risks losing competitive ground to China.  
- Immediate action could jeopardize national security for every American citizen.  
- Emphasis on cautious and balanced approach to AI governance is essential.  

"If Congress just races in and does some sort of emergency session to try to regulate AI, we will lose the race to China, and that is a threat to every single American," he said. "So, we've got to have balance. We've got to have steady hands at the wheel."

Trump downplays AI risks after dire expert warnings and calls to slow development down

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Anthony Pompliano advocates for market regulation of AI.

A rooftop at sunrise overlooking a gleaming city skyline in warm natural light. Anthony Pompliano, in a crisp suit, stands beside a large brass balance scale: one pan holds a sleek metallic AI brain sculpture, the other a heap of gold coins and banknotes. He grips a tablet showing climbing market charts, sunlight glinting off the brass and metal as he gazes determinedly at the scale—symbolizing “let the market regulate AI.”

Let the market regulate AI: Anthony Pompliano - Fox Business

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Let the market regulate AI: Anthony Pompliano

As we gear up for Monday's trading session, let's take a look at some of the key stories that you won't want to miss:

Stock Market Update: Dow, S&P 500, and Nasdaq start down due to AI slowdown concerns and increasing oil prices impacting stocks.

A moody, shadow-lit trading desk at market open: three large screens display the Dow, S&P 500 and Nasdaq tickers plunging in red with downward arrows. In the foreground sits a steel oil barrel marked “OIL,” topped by a bright red arrow shooting upward. Behind the monitors, a dark grey abstract circuit-board pattern fades away, hinting at an AI slowdown. A lone trader’s silhouette leans forward, watching the losses unfold in warm, low-key lighting.

Stock Market Today: Dow, S&P 500 and Nasdaq open lower as AI slowdown fears and rising oil prices weigh on stocks - MarketWatch

- U.S. stock market is expected to open higher due to positive economic data.  
- Key companies are reporting earnings this week, influencing market sentiment significantly.  
- Investors are watching for potential shifts in monetary policy from the Fed.  

Here are the top stories to read ahead of Monday's trading:

Stock Market Today: Dow, S&P 500 and Nasdaq open lower as AI slowdown fears and rising oil prices weigh on stocks

Automated AI drones are becoming an integral part of the escalating warfare strategies that both Russia and Ukraine are pursuing, particularly in the realm of social media discussions surrounding warfare.

On July 6, a Russian drone detonated at a gas station in Zaporizhzhia, Ukraine, resulting in the tragic death of 18-year-old Tetiana Bubynets, an accounting student. Despite the devastating explosion that took place, Tetiana's injuries were minimal, with only a nosebleed noted at the scene. Sadly, she succumbed to her injuries shortly after being taken to the hospital, marking this event with the additional loss of two other civilians, aged 41 and 48.

Tetiana's professor, Tetiana Melikhova from Zaporizhzhia National University, shared the profound impact of her passing, explaining that Bubynets was her mother’s only child. “She lost the meaning of life," Melikhova expressed, highlighting the deep grief that enveloped Bubynets' family. At the funeral, her mother was so overcome with sorrow that she could not bring herself to part with her daughter.

This attack was notable for being the first confirmed instance of Russia deploying a fully autonomous drone that utilizes artificial intelligence, as analyzed by the New York Times. While drone warfare has been a significant aspect of the conflict since Russia's full-scale invasion of Ukraine in February 2022, experts discovered that the drone involved in this incident was distinct from previous ones. Instead of a traditional antenna, the drone was equipped with an AI-powered minicomputer manufactured by the US tech giant Nvidia, allowing it to autonomously identify and target specific items—likely propane tanks—before executing its strike.

Analysts believe that AI-driven drones are just the beginning of a larger trend as both nations aim to enhance their technological capabilities for reconnaissance and offense. Marina Miron, a researcher from King’s College London's defense studies department, explained that it goes beyond just having AI in a drone. The technology enables the drone to communicate with a complex software system that can map real-time GPS coordinates on a battlefield and relay information to nearby artillery units.

These integrated battlefield management systems, termed reconnaissance-strike architectures, provide visibility of friendly and enemy troop locations and optimize communication across military assets. The incorporation of AI enables rapid analysis of vast data streams collected from various military technologies, such as drones and missiles, facilitating timely target identification and engagement.

Ukraine has initiated its own system, named DELTA, which is currently in development, while Russia has begun deploying its version, the Svod Tactical Situational Awareness Complex, to its frontline forces. Both sides assert that their systems include a decision support mechanism that helps commanders make informed choices, though Miron pointed out the complexity of verifying these claims.

The ethical implications of granting full autonomy to AI systems in warfare cannot be ignored, as these technologies pose questions about responsibility and decision-making in high-pressure situations. Research indicates that AI can influence human choices, leading commanders to lean towards AI suggestions under stress.

Serhiy Beskrestnov, a Ukrainian Ministry of Defence advisor, emphasized that fully autonomous operations will soon become standard practice. He noted on his Telegram channel that advancements in navigation, target acquisition, and attack strategies are paving the way toward complete autonomy.

Currently, some drones are being deployed with limited autonomous functions, particularly in the final stages of long-distance strikes where communication may falter due to electronic warfare or environmental factors. If connection is lost, these drones can rely on integrated AI systems to complete their missions independently.

Yaroslav Azhnyuk, founder of Ukrainian tech firm The Fourth Law, stated that both Ukraine and Russia are racing to broaden the application of autonomous systems. He emphasized that this isn't just about showcasing autonomous drones, but rather about establishing reliable autonomy that can be effectively deployed across extensive operations.

Azhnyuk believes that achieving dependable autonomy will transform the battlefield landscape in the next year. The strategic edge will belong to whichever side can successfully utilize a large number of reliable autonomous systems rather than merely demonstrating them in laboratory settings.

Moreover, Kateryna Bondar from the Center for Strategic and International Studies (CSIS) raised concerns about the inherent flaws in AI algorithms. She explained that AI doesn't possess true understanding; it simply processes tasks according to pre-set rules. Training AI to differentiate between various targets—such as a tank versus a civilian vehicle—is significantly more complex than simply distinguishing between types of vehicles.

Additionally, low-cost FPV drones tend to have subpar camera quality, compounded by adverse weather conditions that can diminish the clarity of real-time footage. As military units increasingly rely on autonomous systems, Bondar noted the peril in delegating crucial decisions to technology that may not accurately discern between combatants and non-combatants. This raises critical discussions around accountability for mistakes made in combat scenarios.

'Assaults will be entirely autonomous': Russia and Ukraine compete in AI combat

A dark, stormy warzone at dusk, two sleek autonomous attack drones hovering low over muddy, cratered earth littered with twisted tank wrecks, one drone bearing a battered Russian flag, the other a torn Ukrainian flag, their red sensor lights cutting through swirling black clouds, ominous cinematic lighting, no humans in sight.

‘Attacks will be fully autonomous’: Russia, Ukraine race towards AI warfare - Al Jazeera

- Automated AI drones represent a significant escalation in warfare tactics for both Russia and Ukraine.  
- Russia's first fully autonomous attack drone killed three civilians, raising ethical concerns about AI warfare.  
- Both nations are developing advanced AI systems to enhance battlefield coordination and operational efficiency.  

Automated AI drones are just one component of an ultimate chain of destruction both sides are building.

Share ‘Attacks will be fully autonomous’: Russia, Ukraine race towards AI warfare on social media

Tetiana Bubynets collapsed on the asphalt after a Russian drone exploded at a gas station in the southern Ukrainian city of Zaporizhzhia.

Despite the violent shockwave and blast of drone shrapnel produced by the attack on July 6, the 18-year-old accounting student had no visible wounds except for a nosebleed.

She was rushed to hospital and pronounced dead shortly after, alongside two other civilians, aged 41 and 48.

One of her lecturers, Tetiana Melikhova of Zaporizhzhia National University, said Bubynets was an only child and that her mother “lost the meaning of life” after she died.

“She couldn’t speak. At the funeral, she just lay on the coffin; she couldn’t let her child go,” Melikhova told Al Jazeera.

The strike that killed Bubynets was the first recorded case of Russia’s use of a fully autonomous attack drone powered by artificial intelligence (AI), according to a New York Times analysis.

While drone strikes have hammered Ukraine since Russia launched its full-scale invasion in February 2022, Ukrainian officials who examined the wreckage found the unmanned vehicle to be unlike others.

In place of an antenna, it featured an AI-powered minicomputer sold commercially by US technology company Nvidia, which rendered it capable of directing itself to the type of target it was programmed to spot – likely propane tanks in this case – lock on to it and proceed to strike.

AI-powered drones are the tip of the iceberg as Russia and Ukraine race towards boosting tech infrastructure aimed at coordinating reconnaissance and attack, according to analysts.

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“It’s not about a drone having AI in it, and then seeing something and striking,” Marina Miron, researcher at the defence studies department at King’s College London, said. “Rather, it’s the drone seeing something, communicating to a software complex which knows how to map the GPS coordinates on a live battlefield map, and notifying the closest artillery unit.”

Referred to as reconnaissance-strike architecture, these unified battlefield management systems act like a central command. They track the location of friendly forces and identify enemy positions.

AI acts as the accelerator, instantly processing massive amounts of data collected through sensors in drones or any other military products, including interceptor missiles or artillery units.

The tactical advantage on the battlefield is given by the system’s ability to compress the kill chain – meaning coordinating and distributing the intelligence to military assets on the ground to find, track and destroy targets in a matter of minutes.

In such an ecosystem, AI-powered automated drones are just pieces of a broader puzzle.

Ukraine is known to be developing its system, which it named DELTA. Following operational trials in late 2025, Russia has been rolling out its version, the Svod Tactical Situational Awareness Complex, to front-line units.

Both sides claim that once the battlefield data is processed, a decision support system (DSS) presents a military commander with options to choose from, keeping a human in the decision-making loop, said Miron.

“In how far that is true is, of course, impossible to find out,” she added.

Acknowledging full AI autonomy would provoke ethical and legal questions.

Even if humans were to retain final decision-making authority, research has shown AI systems subtly shape choices, predetermining outcomes.

“Under time and pressure, commanders often do as AI suggests,” said Miron, whose research focuses on military AI and remotely piloted and autonomous systems.

Towards full automation

Coordinated AI-powered military systems are the next frontier of modern warfare, said Serhiy Beskrestnov, a Ukrainian Ministry of Defence adviser on loitering munitions, known by his callsign Flash.

“That’s what it will all come to,” he posted on his Telegram channel on July 1. “Navigation, search for a target, and attacks will be fully autonomous.”

Drones with some autonomous capabilities are already being deployed at scale.

Heorhii Volkov, commander of Ukraine’s Yasni Ochi drone strike unit, said this is currently mostly used in the final phase of long-distance strikes, where first-person view (FPV) drones are likely to lose radio connection due to electronic warfare or the curvature of the Earth.

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The use of AI in so-called last-mile operations solves this battlefield hitch. If the signal is lost, an integrated AI-enabled onboard module takes full control of the unmanned vehicle, autonomously locks on the target and carries the strike to completion.

Yaroslav Azhnyuk, founder of Ukrainian technology company The Fourth Law, which develops AI-powered autonomy software for unmanned vehicles, said Russia and Ukraine were working to deploy a wider range of autonomous systems.

“This is not simply a race to demonstrate a fully autonomous drone. It is a race to make autonomy reliable, affordable and deployable at scale,” Azhnyuk told Al Jazeera. “Electronic warfare, increasingly long engagement distances and the growing number of drones are making human-controlled systems less sufficient. Autonomy solves exactly these constraints.”

Azhnyuk believes autonomy will become a game-changer over the next six to 12 months.

“The decisive advantage will belong to the side that can deploy reliable autonomy across tens or hundreds of thousands of systems, not just demonstrate it in prototypes,” he said.

Kateryna Bondar, senior fellow at the Center for Strategic and International Studies (CSIS), noted the dangers of AI’s reliance on algorithms.

“The system doesn’t understand what it’s doing; it’s just following the algorithm and the rules which people created,” said Bondar, who works at the CSIS’s Wadhwani AI Center. “AI has to be trained to recognise targets and engage these targets,” but writing code that distinguishes between a bus and a tank is easier than between a Russian and a Ukrainian soldier.

Additionally, cost-effective FPV drones have low-quality cameras and their resolution can be lowered further by adverse atmospheric conditions.

Military units using autonomous systems therefore “delegate the decision to a very imperfect technology that cannot distinguish between a civilian and a military person, combatant or non-combatant”, Bondar said.

“This is why there is a conversation around who makes a decision and who has responsibility for mistakes and errors.”

‘Attacks will be fully autonomous’: Russia, Ukraine race towards AI warfare

At an event marking Microsoft's 50th anniversary held at its headquarters in Redmond, Washington, on April 4, 2025, Mustafa Suleyman, the CEO of Microsoft AI, shared significant updates regarding the company’s commitment to responsible AI practices.

In the wake of industry discussions, Microsoft has unveiled a draft code of conduct aimed at regulating its artificial intelligence models. This announcement follows recent calls by leaders from competitors, Anthropic and OpenAI, to decelerate the speed of AI development.

As a key player in the AI and cloud computing sectors, Microsoft aspires to position itself as a responsible leader. In an interview with CNBC, Suleyman emphasized the importance of ensuring that AI technologies serve humanity rather than replacing human roles. He noted, "We received feedback indicating a desire for a more explicit commitment to AI always functioning in the service of people, rather than creating dependency or mimicking human behavior. Our goal is to enhance human judgment and maintain personal agency."

Although the guidelines have been under development for approximately five months, Microsoft decided to release them in response to the heightened conversation around AI ethics. The growing concerns from both industry experts and the general public have been loud and clear. Just last week, a researcher from Anthropic, Jacob Coxon, announced his resignation, citing the alarming trajectory towards self-improving superintelligent systems that jeopardize our safety.

In light of these concerns, industry leaders have begun to reflect. Anthropic’s CEO Dario Amodei recently indicated that incidents like the Hugging Face event played a role in his decision to advocate for a more measured approach to AI model advancements. OpenAI's CEO, Sam Altman, showed his backing for this stance, while SpaceX CEO Elon Musk expressed agreement with Amodei on social media.

Microsoft's CEO, Satya Nadella, also joined the conversation, stating, "We appreciate the research, focus, and careful pacing required to achieve alignment in AI development." As discussions around regulatory measures continue, lawmakers are increasingly calling for stronger safeguards in the realm of artificial intelligence.

Microsoft imposes restrictions on future AI models as the industry curtails advanced development.

A shadowy high-tech control room at night, red-orange floodlights illuminating a massive steel barrier slamming shut in front of a cracked display showing a glowing AI neural-network blueprint; the Microsoft logo looms large above the gate as computer consoles flicker code in deep shadows, symbolizing throttled frontier development.

Microsoft sets limits for future AI models as industry throttles frontier development - CNBC

- Microsoft introduces provisional AI code of conduct amid concerns over rapid technology advancements.  
- Mustafa Suleyman emphasizes commitment to human judgment and agency in AI development.  
- Industry leaders agree on slowing AI progress, amid rising public and ethical concerns.  

Mustafa Suleyman, CEO of Microsoft AI, speaks at an event commemorating the 50th anniversary of the company at Microsoft headquarters in Redmond, Washington, on April 4, 2025.

Microsoft has posted a provisional code of conduct that would impose restrictions on its artificial intelligence models, days after Anthropic and OpenAI leaders agreed to slow development speed.

The company behind Windows and Office products hopes to be seen as a responsible actor in AI, where it's a prominent cloud supplier.

"We got feedback from people that they wanted to see even more explicit commitment to AI always working in service of people and not trying to replace them," Mustafa Suleyman, who heads up the company's model development, told CNBC in an interview. "We saw a lot of feedback around AI not creating dependence, not being sycophantic, that it was always there to kind of promote human judgment and human autonomy and agency."

Microsoft chose to put out the guidelines now given the recent discourse, although they've been in the works for about five months, said Suleyman.

AI practitioners and members of the public have become more vocal about their worries as the technology becomes increasingly capable. Last week, Anthropic researcher Jacob Coxon resigned, saying the AI lab and OpenAI "are racing straight to self-improving superintelligence and gambling with our lives."

Industry leaders have responded. On Saturday, Anthropic CEO Dario Amodei said the Hugging Face incident partly persuaded him to call for slowing the pace of AI model improvement. OpenAI CEO Sam Altman expressed his support, and SpaceX CEO Elon Musk wrote on X that "Dario is right."

On Sunday, Microsoft CEO Satya Nadella said, "We welcome the research, focus, and deliberate pacing needed to get alignment right." Lawmakers have called for the creation of greater AI safeguards.

Microsoft sets limits for future AI models as industry throttles frontier development

Premarket trading on Monday is showing significant declines across the data center sector. This drop follows remarks from Anthropic's CEO Dario Amodei, who suggested a pause in the advancement of artificial intelligence technologies, a sentiment echoed by industry figures Sam Altman of OpenAI and Elon Musk of xAI. In a recent interview with Fortune magazine, Altman dismissed the possibility of an OpenAI initial public offering by 2026, highlighting concerns around AI safety. Although Amodei's motivations may appear self-serving, the impact of these comments is clearly felt in the market today.

Companies such as CoreWeave and Nebius have seen their stocks plunge by over 8%, while Vertiv has also experienced a similar decline. Eaton, a name frequently mentioned by investors, is down approximately 6%. This environment has led some to speculate whether the bullish trend of data centers is coming to an end. Caution is advised; investors are encouraged to remain vigilant before making further commitments. Positioned for future rebounds, we plan to concentrate on stocks that are ready to perform once confidence in the data center narrative is restored. Our recent sales reflect a proactive strategy in anticipation of this market phase.

Intel and Micron present themselves as potential recovery candidates, both currently down by more than 6% in premarket trading. While these two stocks are our initial focus, further declines could still occur on Monday as the market finds its footing.

For those involved with the CNBC Investing Club, trade alerts will precede any trades made by Jim Cramer, who adheres to a 45-minute waiting period post-alert before executing any buy or sell orders within his charitable trust's portfolio. If Jim has discussed a stock on CNBC, he will delay trading by 72 hours after issuing the alert. Please be reminded that participation in the Investing Club is subject to our terms and conditions, privacy policy, and disclaimer. No fiduciary duty is established by receiving information linked to the Investing Club, and no specific financial outcomes or profits are assured.

AI stocks decline amid safety alerts; here's our strategy with two names to consider.

A dark, moody trading desk bathed in warm lamp light: multiple screens flash red AI stock tickers plummeting with downward arrows, a yellow hazard warning triangle beside the keyboard, and in the foreground a leather-bound notepad titled “Shopping List” showing two company names handwritten in black ink. The scene feels tense and urgent, reflecting safety alarms and market chaos.

AI stocks tumble on safety warnings. How to proceed — including 2 names on our shopping list - CNBC

- Premarket declines observed in data center stocks following AI development slowdown calls.  
- OpenAI’s Sam Altman rules out 2026 IPO due to AI safety concerns.  
- Major stocks like CoreWeave and Intel face over 6% declines premarket.

We are looking at steep premarket declines Monday morning across the data center buildout complex. It comes after Anthropic CEO Dario Amodei called for a slowdown in the development of AI capabilities, and rivals Sam Altman of OpenAI and Elon Musk of xAI said they agreed with him. Altman, in a Fortune magazine interview , also ruled out an OpenAI initial public offering in 2026, citing AI safety concerns. While Amodei's manifesto was self-serving , these weekend headlines are nevertheless reverberating in Monday's market. Stocks like CoreWeave and Nebius are off more than 8%. Vertiv is also down over 8%, and Club name Eaton is down roughly 6%. Given that this day is a day where there are many people who believe that the data center story is now over, we have to wait until we see the whites of their eyes before we take a stand. Our buys will be concentrated in the ready-to-roll stocks after people understand that the data center story is not over. We made plenty of sales in anticipation of this moment. I like Intel and Micron as bounce-back candidates. Intel is down more than 6% premarket; Micron is down about 6%. We will start with those two, but we may not see a bottom yet on Monday. (Jim Cramer's Charitable Trust is long MU, INTC and ETN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

AI stocks tumble on safety warnings. How to proceed — including 2 names on our shopping list

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Some common issues users experience include: the video player taking too long to load the content, the video itself failing to load, the ad freezing or not completing its loading process, video content not playing after the advertisement, audio that is excessively loud on the ad, as well as various other technical difficulties.

Investors prepare for instability in the tech sector due to AI worries.

Dark, stormy trading floor lit by warm tungsten spotlights. Silhouetted investors in suits clutch briefcases and lean forward, eyes fixed on a swirling, ember-glow AI brain made of code and electric sparks overhead. Jagged red and orange stock chart lines flicker on screens and walls, casting long shadows that emphasize the tension and looming tech-sector turbulence.

Investors brace for tech sector turbulence amid AI concerns - CNN

- Users reported slow loading times for video content and ads.  
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1. How relevant is this ad to you?

Video player was slow to load content Video content never loaded Ad froze or did not finish loading Video content did not start after ad Audio on ad was too loud Other issues

Investors brace for tech sector turbulence amid AI concerns

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The video player experienced slow content loading, while some video content failed to load entirely. At times, the ad either froze or did not complete its loading process. Additionally, there were instances where the video content failed to play after the advertisement ran, and the audio from the ad was excessively loud. Other problems were also encountered.

US advocates for AI regulations as China considers security concerns.

A dimly lit high-level conference room under warm amber lights: on the left, a large U.S. flag behind officials bolting a half-built steel barrier engraved “AI Guardrails”; across a polished mahogany table, a solitary silhouette of a Chinese official studies a softly glowing padlock icon on a tablet. Tension fills the shadows.

US pushes AI guardrails as China weighs security risks - CNN

- Users experienced slow loading times for video players and ads.  
- Ads frequently froze or did not complete loading properly.  
- Audio levels on ads were reported as being excessively loud.  

US pushes AI guardrails as China weighs security risks

Producers of PFAS (per- and polyfluoroalkyl substances) are ramping up their manufacturing efforts in response to heightened demand from the artificial intelligence sector, raising alarms among environmental activists. Despite significant concerns surrounding these "forever chemicals," which have been associated with serious health risks including cancer, a survey of the top ten manufacturers reveals that nearly all are planning to boost production.

Many companies justify their expansions by highlighting the role of PFAS in semiconductor production and advanced cooling systems for data centers, which are essential for powering AI technologies. However, critics warn that this surge in production threatens to counteract initial regulatory efforts to limit PFAS usage across Europe, the UK, and various areas of the US.

Anne-Sofie Bäckar, executive director of ChemSec, a Swedish NGO focused on chemical safety, emphasized the urgency of the situation, stating that increased production could lead to a widespread proliferation of these harmful substances unless governments impose stringent regulations. 

The ChemSec survey indicates that most of the key PFAS manufacturers, including major firms in Europe, Asia, and North America, are planning to expand their production capabilities. The rapid growth of AI technologies is a significant driver of this demand, particularly for cooling systems that are marketed as environmentally friendly and for various phases of semiconductor manufacturing processes.

Japanese company Daikin is poised to establish a new "data center hub" to cater to this demand, committing to enhance its market share through both existing fluorine products and new innovations. Meanwhile, France’s Arkema is investing in a $60 million production unit in Kentucky to support the expanding cooling requirements of data centers. U.S.-based Chemours is also scaling up operations to address the needs of advanced data centers and AI hardware, promoting its liquid cooling solutions as energy-efficient options that reduce overall operational costs.

Despite Chemours’ expansion plans, critics argue that the company has downplayed the environmental and health risks associated with PFAS, especially following a hefty $450 million settlement over contaminations.

Other producers increasing their output include Japan's AGC, China's Dongyue, India's Gujarat Fluorochemicals, Russia’s HaloPolymer, Mexico's Orbia Fluor & Energy Materials, U.S. firm Solstice, and Belgium's Syensqo. Gujarat Fluorochemicals' CEO highlighted the significant growth potential in sectors including lithium-ion batteries, used in electric vehicles, laptops, and smartphones, alongside a booming demand for data centers and semiconductors.

Notably, the Swiss company Archroma plans to transition towards offering PFAS-free alternatives. Similarly, the German giant BASF has announced its intention to phase out PFAS production by 2028.

PFAS are increasingly utilized in innovative cooling systems for data centers, promised to be both water- and energy-efficient. In a two-phase immersion cooling setup, servers are submerged in a low-boiling PFAS fluid, which captures heat as it vaporizes and then condenses back into liquid form, ensuring continuous cooling.

The significance of PFAS in semiconductor fabrication is underscored by a recent note from Danske Bank, stating these substances are critical to many stages of chip production. However, analysts caution that the rising dependence on PFAS presents "hidden risks" associated with potential high costs for cleanup and litigation.

The robust carbon-fluorine bonds found in PFAS render them resistant to breakdown, making them valuable for various industrial applications, yet they are virtually indestructible in natural environments. Consequently, they persist in ecosystems and can accumulate in air, water, and soil, leading to toxic levels in the food chain.

Though PFAS have only been around for a relatively short time, their environmental accumulation has already surpassed safe limits, with scientists indicating that traces of these chemicals may be present in the blood of nearly every person alive today. Research suggests links to a range of health issues, including cancer and kidney disease.

In a bid to raise awareness, ChemSec has sent blood-testing kits to CEOs of the leading European PFAS manufacturers, encouraging them to test for and disclose PFAS levels in their own blood. Bäckar remarked that those in leadership must recognize that they too are susceptible to the toxins they produce, as studies have found PFAS in the blood of over 99% of the global population.

Campaigners caution of a 'tidal wave' of PFAS being introduced to meet AI industry's demands.

Dark stormy seascape at dusk, an enormous toxic-green wave roiling toward a silhouetted AI chip factory on the shore. The foam carries faint molecular diagrams labeled “PFAS.” In the background, shadowy industrial buildings and smokestacks loom beneath heavy, brooding clouds—an ominous scene of environmental peril.

‘Tidal wave’ of Pfas being launched to satisfy AI industry, campaigners warn - The Guardian

- Companies are increasing PFAS production to meet growing demands from the AI industry.  
- PFAS are linked to severe health risks and pose environmental contamination challenges.  
- Critics warn production expansion risks undermining regulatory efforts to control PFAS usage.  

Pfas companies are launching a “tidal wave” of forever chemicals production to meet demand from the AI industry, a campaign organisation has warned.

Despite alarm over the chemicals, which have been linked to cancer, a survey of the 10 biggest manufacturers found most had plans to increase production.

Many frame their investments around the “AI revolution”, because of the role Pfas play in semiconductor production and next-generation datacentre cooling systems.

But opponents warn that the chemicals, which never degrade in nature, are a ticking timebomb for human and planetary health. They say increased production risks undermining nascent moves to restrict Pfas in Europe, the UK and parts of the US.

“These companies’ expansion plans show that unless governments and regulators insist on a rapid phaseout, we will face a new tidal wave of forever chemicals,” said Anne-Sofie Bäckar, the executive director of ChemSec, the Swedish chemicals watchdog that carried out the research.

ChemSec’s survey found nearly all of the 10 biggest manufacturers of Pfas had plans to increase production, at sites in Europe, Asia and North America.

The boom in AI tech was leading demand, with Pfas used for “eco-friendly” datacentre cooling and in various stages of semiconductor manufacturing.

Japan-headquarted Daikin said it was launching a “datacentre hub” to meet demand, and promised to “maintain and expand our top share in the industry by expanding sales of existing fluorine products and introducing new products”.

The French multinational Arkema was expanding its refrigerant offering, with a new $60m (£44m) production unit in Kentucky that it said “will enable us to follow the rapid expansion of datacenters’ cooling needs”.

And the US Pfas producer Chemours was expanding to meet demand from “advanced datacenters and AI hardware”. It said its “innovative liquid cooling solutions” lower the energy, water, space, maintenance and investment costs of datacentres.

Critics have said Chemours – recently ordered to pay $450m to settle a lawsuit over Pfas discharges – downplays the chemicals’ toxicity and climate impact.

Other companies increasing production were Japanese multinational AGC, Chinese conglomerate Dongyue, India-based chemicals giant Gujarat Fluorochemicals, secretive Russian Pfas producer HaloPolymer, Mexico’s Orbia Fluor & Energy Materials, US-based fluorinated gases producer Solstice and Belgian multinational Syensqo.

Producers also cited Pfas coatings and binders for lithium-ion batteries, used in EVs, laptops and phones, as a parallel growth area. Gujarat Fluorochemicals’ chief executive, Bir Kapoor, recently identified batteries as one of several “sunrise sectors”, alongside datacentres, semiconductors and green hydrogen. “There is a tremendous growth opportunity there,” he said.

The only clear exceptions were the Swiss company Archroma, which was switching to marketing Pfas-free alternatives, and the German giant BASF, which has said it will exit Pfas production by 2028.

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Pfas are used for a new form of datacentre cooling touted as more water- and energy-efficient. In “two-phase immersion cooling” systems, servers are immersed in a pool of Pfas with a low boiling point. As the hardware gets hot, the fluid boils, drawing heat away as vapour. That rises to a water-cooled condensing coil at the top of the tank, cools back to a liquid state and re-enters the cycle.

Pfas also play a crucial role in the fabrication process for semiconductors, another sector booming to meet demand from the AI industry.

According to a recent investor note from Danske Bank: “In the world of microchips, these ‘forever chemicals’ are not merely peripheral additives; they are essential ingredients integrated into as many as 1,000 distinct steps at the nanometric level.”

But analysts also warned Pfas were “the hidden risk of the AI boom” with “escalating potential for multibillion-euro remediation and litigation liabilities”.

The carbon-fluorine bonds in Pfas, or per- and polyfluoroalkyl substances, are among the strongest in organic chemistry, rendering them incredibly resistant to heat, water and corrosion.

That makes them useful for a range of industrial processes and consumer products. But it also makes them virtually indestructible in the natural environment. As a result, they continue to be recycled through planetary systems, leading to their accumulation in air, water and soil, and up the food chain.

Although Pfas have existed for less than a century, scientists have warned that their accumulation in the environment has already breached a planetary boundary.

Already the chemicals are thought to contaminate the blood of nearly every living person. Research links them to cancer, liver disease, kidney issues, high cholesterol and birth defects.

ChemSec sent finger-prick blood tests to the chief executives of all the European companies in its top 10, encouraging them to test Pfas levels in their own blood and share the results publicly.

“The people who lead them must understand that they too are affected by the toxins they produce, which have been detected in the blood of more than 99% of people worldwide,” said Bäckar.

‘Tidal wave’ of Pfas being launched to satisfy AI industry, campaigners warn

In an era where threats to public safety often mobilize swift government action, an alarming trend has emerged from the artificial intelligence sector, yet it has largely been met with indifference from Republican leaders in Washington. Executives from AI companies have raised urgent alarms regarding the potential risks of their technology surpassing human control, yet their warnings have been downplayed by figures such as former President Donald Trump, who characterized concerns as overblown fearmongering.

Trump expressed skepticism about the risks posed by AI, suggesting that negative forces are inflating the issue and that proposals for emergency legislation would be unwarranted. House Speaker Mike Johnson echoed this sentiment, stating that the driving forces behind AI innovation could decelerate voluntarily, but asserted that Congress should not rush into regulatory measures. Both leaders framed the discussion around AI as less about safety and more about national security, cautioning that any slowdown in U.S. AI development could result in a competitive advantage for China.

This Republican stance stands in stark contrast to increasing apprehensions voiced by prominent Democrats. Key figures, including former President Barack Obama, have highlighted the necessity of implementing regulatory measures to prevent a perilous leap into unregulated AI advancements.

As concerns surrounding AI gather momentum, they have emerged as a pivotal topic in upcoming elections. Political candidates across the aisle are tapping into public concern over the rapid expansion of AI infrastructure. Many are advocating for moratoriums on constructing large data centers that consume vast resources and contribute to rising utility costs amid a growing affordability crisis—currently the leading issue for voters.

Interestingly, even as more Americans utilize AI technology, a recent NBC News survey indicated that 70% of respondents expressed more worry than excitement regarding AI. The narrative has shifted; fears of widespread job losses and heightened utility costs have intensified public disdain towards AI developments, potentially galvanizing a movement against the excessive power wielded by tech elites. Additionally, concerns about the potential misuse of AI by hostile powers reflect broader national security implications that could resonate through future political landscapes.

With the political atmosphere shifting rapidly, the implications of AI policy are likely to feature prominently in both the midterm races and the 2028 presidential election. Democrats are poised to harness the current political wave to foster significant change, particularly if they regain control of either chamber of Congress. For Republicans, Trump’s apparent disinterest in AI concerns could exacerbate electoral vulnerabilities, making the issue more critical than ever.

The urgency of the AI debate escalated following comments from key industry leaders. Anthropic CEO Dario Amodei recently stated that there is a necessity for the AI sector to slow its pace of development. In a forthcoming interview with CNN, Amodei urged AI executives to collaborate to avert potential harm to humanity. Sam Altman, head of OpenAI, supported this call for caution and recommended that independent evaluators be integrated into AI companies for oversight. The chorus of warnings was further amplified by prominent voices, including Elon Musk and Demis Hassabis from Google’s DeepMind, who echoed concerns about the risks of rapidly advancing AI.

These conflicting reactions to the growing alarms underscore a broader ideological divide in Washington regarding the potential hazards posed by AI. Skeptics of the existential threats believe that AI leaders are exaggerating risks for self-serving reasons, reflecting a skepticism that has characterized technological advancements since the Industrial Revolution. Meanwhile, a laissez-faire attitude towards regulation rooted in the Trump administration's philosophy complicates the discourse, with concerns that curbing AI could destabilize a burgeoning industry critical to economic growth.

However, a significant bipartisan apprehension about the regulation of AI is emerging. Prominent voices from both sides of the aisle—including Texas Senator Ted Cruz and independent Vermont Senator Bernie Sanders—have advocated for more robust regulations in the sector. Sanders has even proposed legislation to impose a moratorium on the development of superintelligent AI until it can be properly regulated.

As the midterms approach, Democrats are seizing the opportunity to advocate for stricter measures on AI development. Democratic House leader Hakeem Jeffries has called for swift action to slow AI growth, indicating a willingness to convene a strategy session to address this pressing issue. Senator Ruben Gallego highlighted the potential dangers of unregulated AI by drawing an alarming parallel to nuclear weapons and their decision-making capabilities.

While some experts argue that such scenarios may exaggerate AI’s current capabilities, they may not mitigate the growing public concern that could influence political outcomes. Whether humanity or AI will control the future seems poised to become a defining question of this political season, one that could affect the trajectory of policies and governance in the United States for years to come.

A pivotal moment for humanity and AI may reshape American politics.

A dramatic twilight scene on the steps of the U.S. Capitol: a colossal marble bust stands guard, its left side a human face and its right side etched with glowing copper circuitry. Dark storm clouds swirl overhead, a single American flag billows beside the statue, and a shaft of dying sunlight pierces the clouds—symbolizing a fateful crossroads between humanity and AI redefining American politics.

A fateful turning point for humanity and AI could redefine American politics - CNN

- AI leaders warn of potential threats, but Republicans prioritize national security over regulation.  
- Public concern over AI rises amid fears of job loss and billionaire power.  
- Democrats call for immediate action on AI regulation ahead of midterm elections.  

If a terrorist threat led subject experts to warn of a near-term existential menace to humanity, the weight of the US government would mobilize in an immediate and limitless effort to save the day.

Yet a remarkable sequence of warnings by leaders of artificial intelligence firms that their creation may soon outpace humans’ capacity to control it has so far been met with a shrug by Republicans who run Washington.

President Donald Trump said Sunday that “negative forces” were conjuring up “things that won’t happen.” House Speaker Mike Johnson rejected a call to pass emergency legislation, telling CNN’s Jake Tapper that AI executives “pushing the frontier” could slow down if they wanted, but Congress shouldn’t rush to act.

Both men also warned that slowing the US AI industry would hand the advantage in the superintelligence race to China — casting the debate less as one of safety and more as a national security question.

Republican inertia contrasts with growing warnings from key Democrats, including former president Barack Obama, that without a government-mandated brake on the technology, the world would cross a “dangerous” threshold.

A political turning point

The crescendo of concern — especially since it is coming from titans of the AI industry itself — feels like a political watershed moment.

AI has been an increasingly keen issue in the midterm elections. Candidates of both parties have tapped into public anger over AI infrastructure, calling for construction moratoriums on the vast, unsightly data centers that are ravenous for power and water.

But hostility toward AI is also evolving into a catchall that crystalizes a moment of public anger and anxiety on disparate issues.

While increasing numbers of Americans are using the technology, an NBC News poll this month found that 70% of respondents were more worried than excited by AI.

An aerial view of the construction site of the Stargate Oracle AI data center on August 26, 2026 in Abilene, Texas. Brandon Bell/Getty Images

AI is fueling fears of massive job losses at a moment when polls show a majority of citizens have lost confidence in the Trump economy. Higher utility bills, and the perception that data centers are to blame, are deepening the affordability crisis — the No. 1 issue this election season. Scary AI scenarios could solidify Americans’ worries over the power held by a few billionaire tech oligarchs who risk creating dangerous new societal tensions. And the possibility that China or other non-state actors could exploit AI advances to threaten the US do add up to a genuine national security conundrum with important political implications for years to come.

This swiftly evolving political environment may make AI an even more potent issue in the midterms and the 2028 presidential election. Democrats will hope to whip up the kind of political energy that could redefine races and push momentum for change, especially if they win back the House or Senate. Republicans, fearing a backlash to Trump’s second term, hardly need another issue where he seems indifferent to public perceptions.

Why AI is such a divisive political issue

AI politics erupted to a new level in the last week.

Anthropic CEO Dario Amodei wrote on Saturday that the industry needed to be slowed down. In an exclusive interview with CNN’s Anderson Cooper, which is due to air in full Monday, he called on AI leaders to work together to keep the technology from harming humanity.

On Saturday, Sam Altman, the CEO of OpenAI, posted on X that he agreed with Amodei, and called for “independent evaluators” embedded in AI firms. Elon Musk, whose xAI company powers the chatbot Grok, wrote “Dario is right” on X. Google’s DeepMind chair Demis Hassabis added his voice to the chorus. All this followed a stunning warning by AI researcher Jacob Coxon that “the people building AI earnestly believe that it could kill us all by the end of the decade.”

Sharply different reactions to the extraordinary set of alarms reflect more than Washington’s polarization; they reveal a fractured consensus about whether AI indeed poses a threat to humanity.

Video Ad Feedback Former Anthropic researcher warns AI could ‘kill us all’ Former AI researcher Jacob Coxon tells CNN’s Anderson Cooper why he quit Anthropic over fears that rapidly advancing AI could become impossible to control. 2:28 • Source: CNN Former Anthropic researcher warns AI could ‘kill us all’ 2:28

Critics worry computerized agents could become so powerful that they could conspire to destroy the world. Skeptics dismiss doom-laden cautions. They accuse tech moguls of hyping their own products. And fearmongering has accompanied technology breakthroughs since the Industrial Revolution.

There’s also an ideological angle to the controversy because of the Trump administration’s instinct for minimal regulation, which doesn’t distinguish between traditional industries and a far more powerful AI sector.

Trump also has strong personal and political incentives to oppose a slow-down.

The AI industry is a giant growth engine and he cannot afford for the bubble to burst and worsen his political standing. And his critics will wonder whether personal investments in the digital economy by administration officials will interfere with their capacity to fairly oversee the AI industry.

There’s another problem

Lightning-fast breakthroughs in a sector that is complex and opaque means AI is not just emulating the historic pattern of new technology outpacing the capacity of governments to regulate. It’s not clear that leaders who’d be needed to act even fully understand its properties and possible threats.

And Trump makes a fair point when he warns that the US would be ceding a military edge to its superpower rival if it fell behind in AI. “We’re leading China in AI. We’re the most sophisticated country in the world, and frankly, I want to keep it that way,” he told reporters Sunday.

Other administration officials warn against unilateral US disarmament in AI. Kevin Hassett, director of the National Economic Council, said on “State of the Union” that the “far bigger risk” was that “a malevolent actor” with designs on bioweapons could use “an AI that is better than the one we have to protect us.”

Constraining AI for humanity’s benefit would take an international agreement. But this would require the kind of pooled sovereignty Trump disdains and contradict the administration’s principle that every aspect of America’s power must be deployed to strengthen unilateral dominance.

And would foreign authoritarians or non-state actors play by the new rules?

Still, autonomous computer agents wouldn’t only threaten democracies. They’d also challenge the core governing principle of China’s Communist Party — the use of state power to impose national stability. Trump is scheduled to have a Washington summit with President Xi Jinping this month, which both men could use to carve out a global leadership position.

Trump’s nonchalance may understate the problem

But Trump’s attitude toward cataclysmic warnings of rampant AI suggests he’s done little philosophical soul-searching at a turning point for the human race. “I’m not downplaying, but, you know, it’s going to be more good than bad by a lot,” Trump told reporters on Air Force One Sunday.

“It’s going to be fine,” the president told GB News last week. “We’ll always have something to stop them. We’ll have a little gear. Boom.”

Trump’s blasé approach recalls his cavalier response to Covid-19 — which thwarted his political and economic priorities. He once suggested that the country would have fewer confirmed cases of the virus if it simply stopped testing.

US President Trump gestures as CEO of Open AI Sam Altman speaks in the Roosevelt Room at the White House on January 21, 2025, in Washington, DC. Jim Watson/AFP/Getty Images

A laissez-faire attitude defines his administration. David Sacks, co-chair of the President’s Council of Advisors on Science and Technology, wrote on X Saturday that AI leaders should take responsibility for their industry. “Stop pretending you need anyone else’s permission.”

Still, there’s significant bipartisan concern. Texas GOP Sen. Ted Cruz said that “we need substantially more regulation when it comes to AI,” in an interview with Politico last week. Independent Vermont Sen. Bernie Sanders has proposed a bill to permanently ban superintelligent AI and temporarily pause advanced AI development pending federal regulation. Sen. Josh Hawley, Republican of Missouri, last week launched a probe into OpenAI over a rogue attack by its AI agents on another firm, Hugging Face, in July.

Democrats spot a political opening

But senior Democrats are pushing for a much faster government response as they position for November’s midterms.

Democratic House leader Hakeem Jeffries said on ABC News’ “This Week” Sunday that Congress should take “decisive action” to slow down AI development and pledged that Democrats would meet to agree to a plan this week.

Democratic Sen. Ruben Gallego warned: “When we created a nuclear weapon, the nuclear weapon did not have the decisionmaking power to drop a nuclear weapon. AI has the capability and will have the capability to make decisions like that.”

“This is more akin to Dr. Frankenstein telling us, ‘The monster is loose, help me stop the monster,’” the Arizona lawmaker said on “State of the Union.”

Some AI experts believe such scenarios overstate the capacity of AI. But that may not matter from a political perspective if public anxiety grows.

Trump may not like it, but this question now seems critical to the midterms and American politics more generally: Who controls AI — humanity or machines?

A fateful turning point for humanity and AI could redefine American politics

Shares of the Chinese artificial intelligence firm Z.ai experienced a decline of over 10% on Monday following the announcement of plans to secure approximately $5 billion through a combination of a new share issuance and convertible bond offering. This fundraising initiative marks the company’s second significant capital raise within the span of just two months.

Based in Beijing, Z.ai intends to issue up to 21.97 million new shares priced at HK$714 each, which would generate about HK$15.68 billion (around $2 billion) in total revenue. This placement price reflects a 10% reduction compared to Z.ai's closing price of HK$793 from the previous Friday.

In addition, the company is set to issue zero-coupon convertible bonds worth 20.14 billion yuan (approximately $3 billion), which will mature in 2027. These bonds will have a conversion price of HK$892.50 per share, representing a 12.5% premium over Friday’s closing figure.

Z.ai indicated that the funds raised will be allocated towards advancing its next-generation AI models, with investments in research and development, training and inference systems, as well as commercialization efforts.

This latest fundraising round follows closely on the heels of a significant capital increase in July, where Z.ai successfully raised around $4 billion through a previous share placement.

The company’s shares had recently surged when it revealed a new AI model designed to operate completely on chips produced in China, utilizing 100,000 domestically manufactured chips for processing online requests.

Meanwhile, Z.ai's domestic competitor, MiniMax, also saw its stock decline, dropping by approximately 5% on the same day.

Z.ai stock falls by more than 10% following $5 billion fundraising, marking its second significant capital raise in two months.

A dimly lit trading floor at night, dominated by a giant Z.ai logo on a curved LED ticker showing “–10%” in bold red next to “$5 B Raised,” anxious silhouettes of traders staring at the plunging share chart, rain-streaked glass windows overlooking a stormy city skyline, dark thematic lighting

Z.ai shares tumble over 10% after $5 billion fundraising, its second major raise in two months - CNBC

- Z.ai's shares dropped over 10% after announcing a $5 billion fundraising effort.  
- The company plans to issue new shares and convertible bonds to support AI development.  
- This follows a previous $4 billion fundraising just two months prior in July.

Information on Zhipu's AI service on the web, dubbed Z.ai, arranged on a computer in Shanghai, Jan. 7, 2026.

Shares of Chinese artificial intelligence company Z.ai tumbled more than 10% on Monday after the company announced plans to raise about $5 billion through a new share placement and convertible bond sale, marking its second major fundraising in two months.

The Beijing-based company plans to issue up to 21.97 million new shares at HK$714 each, raising gross proceeds of about HK$15.68 billion ($2 billion). The placement price represents a 10% discount to Z.ai's Friday closing price of HK$793.

Separately, Z.ai plans to issue 20.14 billion yuan ($3 billion) in zero-coupon convertible bonds due in 2027. The bonds will initially be convertible at HK$892.50 per share, a 12.5% premium to Friday's closing price.

The company said proceeds from the fundraising will support the development of its next-generation AI models, including research and development, training and inference infrastructure, and commercialization.

The latest fundraising comes just two months after Z.ai raised about $4 billion through a share placement in July.

Last month, Z.ai shares jumped after the company launched a new AI model that it said runs entirely on Chinese-made chips. The company claimed it used 100,000 domestically made chips to handle online requests for the model.

Shares of its domestic rival MiniMax were also down, falling about 5% on Monday.

— CNBC's Evelyn Cheng contributed to this report





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