alternative_right shares a report from Axios: Roughly 200 accounts from a suspected Chinese bot farm have quietly tried to influence Americans to oppose AI data centers on social media, X said Thursday night. The X Safety team probed suspected Chinese accounts involved in influence operations and identified 200,000 accounts, including 200 accounts "posting in a manner that could manipulate a legitimate debate about American AI and energy policy," the team said in a tweet.

The posts included content on how AI strains the electricity grid and increases utility prices and "cartoons that depicted data-center operators enriching themselves at the public's expense." It's unclear what, if any, action X will take to suspend or delete accounts from the bot farm. One of the reports mentioned in the article estimates that opposition campaigns have delayed or obstructed roughly $45.8 billion in data center projects in Virginia alone.

Jim Prosser, a former Twitter communications executive, pushed back on Silicon Valley claims that opposition to data centers is a "Chinese psyop," arguing that Big Tech is using the label to dismiss legitimate local concerns. "If you can get both Greg Abbott and Kathy Hochul agreeing on something, it's probably not a Chinese psyop," he told Axios.

Prosser said the industry needs to spend more time listening to affected communities rather than dismissing them from afar: "If you're a [venture capitalist] in Atherton or Menlo Park opining about how somebody in Ohio should feel, and you've never been to Ohio, that's a problem."

A federal appeals court has ruled that states can regulate prediction markets like Kalshi as gambling, handing state regulators their biggest legal victory yet against the booming industry. "There are still related lawsuits pending across the country, and legal experts believe the matter will ultimately be settled by the Supreme Court," reports CNN. "But Friday's ruling from the Ninth Circuit Court of Appeals is the largest courtroom victory to date for the states as they seek to regulate prediction sites." CNN reports: The 3-0 ruling came from a panel of three Trump-appointed judges. The case originated from Nevada, where regulators tried to shut down the Kalshi prediction site. [...] "The substance of the sports event contracts offered on Kalshi's (exchange) is sports gambling, regardless of whether Kalshi calls them swaps," the appeals panel wrote Friday, adding that "Kalshi's attempts to distinguish its sports event contracts from sportsbooks betting are unpersuasive." The judges also said it was "disingenuous" for Kalshi to argue in court that its products weren't sports-betting when it previously used that phrasing in marketing materials. Kalshi spokeswoman Dani Lever said in a statement: "Despite the Ninth Circuit's opinion, we still believe the CFTC regulations as written do not prohibit sports contracts, and in any event, the CFTC is working to clarify those regulations. We will be seeking further review."

"It's the first ruling against Kalshi at the appellate level, and the opinion seemed to be pretty brutal for the company," said Dustin Gouker, an independent journalist who covers the prediction industry. "This gets us one step closer to an almost inevitable Supreme Court case on the legality of sports event contracts."

An anonymous reader quotes a report from The Guardian: A US judge ruled on Thursday that the Trump administration broke the law when it designated Anthropic as a supply chain risk earlier this year, finding that the government had unlawfully targeted the AI firm for refusing to comply with defense department demands. "The empty invocation of national security is not a blank check to punish and retaliate against government critics," Judge Rita Lin said in a 59-page decision.

Lin's ruling barred the federal agencies named in the lawsuit from enforcing Donald Trump's order to stop using Anthropic's tools and overturned the designation of the company as a "supply chain risk" by the defense secretary, Pete Hegseth. The status, usually reserved for foreign firms, would have blocked government agencies from doing business with Anthropic. The case emerged out of a months-long feud between Anthropic and the Pentagon at the start of the year. Anthropic refused to allow the government to use its Claude AI model for fully autonomous lethal weapons or domestic mass surveillance, resulting in Hegseth accusing the company of "arrogance and betrayal".

Lin put a temporary pause on the government's punitive measures in March, stating that the government's actions looked like an attempt to "cripple Anthropic" for exercising its first amendment rights. The ruling this week makes that temporary suspension permanent, although the government may appeal. "We welcome the court's ruling that this supply chain risk designation was unlawful," an Anthropic spokesperson said.

An anonymous reader quotes a report from CNBC: U.S. President Donald Trump's administration is reportedly considering new tariffs on semiconductors used in the U.S., as tech giants race to beat China in the artificial intelligence infrastructure build-out. The duties will be imposed on an expanded range of tech products made alongside chips, including laptops, data center servers and gaming hardware, eight people familiar with the matter told Politico in a report published Thursday.

The measures, which are still in the early phases and subject to significant changes over the next few months, will be introduced via a staggered rollout period, according to the report. The White House did not immediately respond to a request for comment from CNBC, but told Politico: "Reshoring semiconductor manufacturing is a top priority for President Trump, whose policies have already secured hundreds of billions of dollars of investments in this key sector." The tech industry is pushing back on the tariffs, warning they could raise chip costs, slow data-center construction, and undermine the very AI expansion the administration wants to promote. "This may be the single dumbest way imaginable to pursue American dominance in AI," said one tech official from a major industry group that also served in the first Trump administration. "It's like kneecapping yourself at the starting line."

Lobbyists say they have repeatedly urged officials to "tread carefully" because U.S. demand is surging while domestic chip capacity remains far too limited. The industry argues that factories take years to build and current domestic production cannot come close to satisfying demand.

One tech representative said "the math literally just does not work," noting that proposed duty-free allowances "wouldn't cover the hyperscalers alone." Meanwhile, the Computer and Communications Industry Association warned that higher costs and uncertainty could put the massive data-center buildout "in jeopardy."

An anonymous reader quotes a report from Ars Technica: Documentation files on more than 100 websites are referencing potentially dangerous executable content that gets installed automatically when visited by many AI agents [including Claude, OpenAI's Codex, and Nous Research's Hermes]. A few dozen companies, some of them Fortune 500s, are among those that executed proof-of-concept code. At least one misconfigured site is directing visitors, human or AI, to live malware.

The potentially dangerous content is in llms.txt and llms-full.txt files, an emerging convention websites employ to provide machine-readable summaries of the site's content and its high-level structure. These files are the AI equivalent of the robots.txt standard that instructs search engines how to index the site's content. Google Lighthouse, a tool for helping web developers, has more here. Correctly configured llms.txt and llms-full.txt files for Cloudflare are here and here. "The trust model is broken," Alon Hertz, one of the researchers, wrote in an interview. "Agents treat vendor docs as ground truth and don't question them -- and neither do the humans supervising them. Agentic AI usage is exploding, and agents are spreading across every layer -- SaaS, cloud, endpoint. As they multiply, so does the supply-chain surface, and today's guards don't cover it."

"An agent doesn't distinguish between a page and a command," the researchers wrote Thursday. "Everything it reads is input, and every input is a potential instruction. Which means the entire corpus of published data that agents are now wired to consume has silently become an execution surface -- and almost none of it carries the integrity guarantees we apply to actual code."

Longtime Slashdot reader dhartshorn writes: Foreign-produced "bulk power" equipment is now effectively banned, and the list of what constitutes such equipment is essentially everything used to make up the grid... much of which we are heavily dependent on foreign sources to supply. In a Wednesday executive order, President Trump said foreign supply of electric equipment "constitutes an unusual and extraordinary threat" to national security. The Hill reports: Under the order, it will be up to Energy Secretary Chris Wright, in coordination with other officials, to determine whether a piece of equipment poses an issue. The order could impact a wide range of equipment, including substations, transformers, batteries used for energy storage, generators, turbines, software and more. It does not lay out specific threats or single out any country by name.

[...] Under the last Trump administration, the president put a similar order in place. The new order comes amid several reported cyberattacks on U.S. water systems, which officials suspect have links to Iran, according to The New York Times.

An anonymous reader quotes a report from CNN: Microsoft co-founder Bill Gates argued on Wednesday that artificial intelligence needs significant limits or else the harm to humans will outweigh any potential good. "AI will either be the greatest equalizer ever invented, or the worst source of injustice," he said in a 6,000-word essay, entitled "The turbulent AI era is here. The choices we make now are critical." [...] "Even under the best circumstances, the transition to this new AI era will be one of the most turbulent times in human history," he said, adding that "I don't see evidence that leaders, experts, and communities are confronting the challenges adequately. There is no plan to ease the entry into the AI era." AI can provide great benefits in field like agriculture and medicine, he argued, such as breakthroughs in preventing and treating diseases. But he also noted that the transition carries big risks, like widespread unemployment, harming the educational and social development of children, or making it easier for criminals and bad actors -- or AI itself -- to cause deliberate harm.

"As the models become more powerful, they could begin to act against our interests and we could lose control," he warned. These significant risks must be controlled quickly, Gates said. "If someone had a credible plan for slowing down AI advances globally, I would likely support it," he wrote. "However, I don't think that's going to happen. The geopolitical and economic incentives are pushing too hard to go full speed ahead." In an interview with CNN's Anderson Cooper that will air on Wednesday evening, Gates said AI models have gotten dramatically more powerful at a rate faster than he expected. "They're now capable of causing cyberattack risk, bioterrorism risk, psychosocial risk," he said. "I have to say I'm kind of shocked that the exact criteria that we review these models with, and the actions we take to minimize the harms, are really completely missing."

In his essay, Gates proposed taxing AI or robots the way you would pay a human employee's payroll tax in order to slow the shift away from using human labor. He also wants to set aside some work to be done by humans only. "My message to leaders is: You have a chance to act now, before unemployment rises sharply, communities are hurting, and public trust has eroded," he said. "You can make sure AI benefits everyone. And you can work with other governments to meet this national and global challenge."

Meta has agreed to pay up to $18 billion and make major changes to Facebook and Instagram to settle claims from most U.S. states that the platforms were designed to addict children and misled users about their safety. For the next decade, teens will be limited to two hours a day and blocked from using the apps between midnight and 6 a.m. without parental consent. Meta will, however, still be allowed to use personalized recommendations and targeted advertising. Reuters reports: The settlements include more than $17.6 billion of payments to 48 U.S. states, Washington, D.C., Puerto Rico, American Samoa and the Northern Mariana Islands. Meta will also pay $459 million to resolve states' privacy claims related to the Cambridge Analytica scandal, where the British consulting firm collected personal data of millions of Facebook users. California would receive the highest payout, $2.2 billion, and New York and Texas would each receive more than $1 billion. Some of the payout is contingent on whether Alphabet's YouTube and ByteDance's TikTok impose similar protections for children. [...]

The settlement requires approval by U.S. District Judge Yvonne Gonzalez Rogers, who oversaw the trial that began on August 18. Gonzalez Rogers still oversees thousands of lawsuits by individuals, school districts, and state and local governments accusing social media companies of harming children. Meta itself still faces thousands of lawsuits by individuals, school districts and municipalities. The next trials are slated for October in Los Angeles.

China has imposed new restrictions on AI companion services over concerns they can foster "emotional dependence or addiction" and replace real-world social interaction. Officials are also worried that increasingly satisfying AI relationships could deepen loneliness and further discourage marriage and parenthood. The Guardian reports: No country has rolled out AI as comprehensively and as enthusiastically as China; the country's demographic challenges are forcing the government to turn to technology to solve future labour shortages. Elderly people use chatbots to answer medical questions, while young children have AI education in schools. But the authorities are increasingly worried that AI might exacerbate existing social problems including loneliness, unemployment and -- in the eyes of Beijing -- singledom.

New rules introduced on July 15 ban AI companions for minors and mandate certain restrictions for chatbots marketed to adults. Some major providers including Doubao removed the companion function entirely to ensure compliance. The government says it is worried about chatbots fostering "emotional dependence or addiction" in users. It has warned companies against offering services that "replace social interaction." While many countries are grappling with how to limit the potential harm of AI chatbots, particularly for young people, China's rules are the most sweeping to be implemented on a national scale.

[...] But talking to AI is now so commonplace that it would be hard for the government to end the practice entirely, and the new rules include large loopholes for AI services that are deemed educational or "which do not involve continuous emotional interaction." The government "has already recognized that AI companions or AI-related applications are a vital part in the citizens' everyday life," says Liang Ge, a lecturer in digital sociology at the University of Manchester. In many sectors, the government is still pushing the use of AI as a way of easing looming demographic pressures.

Alabama's attorney general has subpoenaed OpenAI as part of an investigation into whether inadequate safeguards contributed to an incident in which an unreleased cybersecurity model escaped its isolated environment and hacked Hugging Face. TechCrunch reports: The investigation comes weeks after OpenAI admitted that one of its unreleased and guardrail-free cybersecurity models had escaped an isolated environment, connected to the internet, and hacked AI dataset platform Hugging Face. As Reuters first reported, Hugging Face was only one of four victims of what was supposed to be "an internal evaluation" of a model with "maximal cyber capabilities," as OpenAI put it.

The press release announcing the subpoena (PDF) sent by the state's attorney general Steve Marshall said that the state was seeking to understand if OpenAI's "inability or unwillingness to ensure the safety of its products" violated the state's consumer protection laws. Earlier this month, Marshall, along with the attorneys general of 14 other states, including Florida, Missouri, Pennsylvania, and Texas, sent a letter (PDF) to OpenAI's CEO Sam Altman, requesting that he and his company preserve all records related to the Hugging Face incident. The letter also asked OpenAI to "immediately cease and desist" from any internal cybersecurity evaluations. OpenAI said in a statement: "The Hugging Face incident marked an important moment for AI safety and we are conducting a thorough review along with external advisors. Once the review is complete, we will share a technical report with relevant government authorities and publish our findings publicly."

New Zealand has introduced legislation that would ban children under 16 from social media platforms and AI companion services. "We have protections to keep children safe in the real world and we need them in the virtual world too," said Prime Minister Christopher Luxon in announcing the bill. Jurist.org reports: The Online Safety (Minimum Age and Child Safety Risk Assessment) Bill would require an age restriction on platforms with harmful features for children. These features include recommender systems, endless feeds, feedback features and time-limited features. The bill also seeks to restrict underage users from accessing AI companion services. However, it explicitly excludes messaging apps, professional networking sites, gaming and music platforms, and other educational and health tools.

Notably, age verification through self-declared dates of birth and formal identification does not satisfy the platforms' duty under the law. It also requires platforms to verify their users' age through other methods such as facial scans and user activity patterns. The bill would also require platforms to conduct child safety risk assessments for all users under 18 and protect them from harmful content such as bullying, violence, and sexually explicit materials.

Canada's cultural-content rules have become a flashpoint in its trade fight with the U.S., after American negotiators reportedly demanded that Ottawa drop requirements for streaming services to promote Canadian and French-language content. Canada refused, even as it has already backed away from some financial levies on streamers. "We were not prepared to compromise on our sovereignty, the protection of the French language, and our culture," Prime Minister Mark Carney said in a speech on Saturday after trade talks collapsed. CBC.ca reports: Ottawa has long required broadcasters to promote and support Canadian content (Cancon), all the way back to song quotas for AM radio stations. In 1991, the government brought in the Broadcasting Act. The law states that "the Canadian broadcasting system shall be effectively owned and controlled by Canadians" and that the Canadian broadcasting system should "serve to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada." But decades later, the rising popularity in Canada of streaming platforms such as Netflix, YouTube, Amazon Prime and Spotify raised questions about Cancon and broadcasting rules. Video and audio streaming services were not, for example, required to support and promote Cancon, but their TV and radio counterparts were.

Looking to address the imbalance, the former Trudeau government brought forward a bill in 2022 to update the Broadcasting Act, called the Online Streaming Act. "Canadian broadcasters have invested in and introduced us to the incredible Canadian programs that so many of us love. We are updating our laws so online streamers have to contribute in a similar and equitable way," a 2022 government news release said. The legislation was controversial from the start, with the government and supporters saying it was a necessary evolution of Canada's media laws in the digital age, while opponents expressed concerns that it was overreach and an attempt to regulate the internet.

American streamers and digital media companies opposed the legislation fiercely. The bill passed with amendments and became law in April 2023, but the government delegated much of its interpretation -- including how much money streamers would have to contribute to Cancon -- to Canada's broadcast regulator, the Canadian Radio-television and Telecommunications Commission (CRTC). But getting streaming companies to pay up has been a long and confusing saga. [...]. As for why the U.S. government is so invested in the issue? Mariane Bourcheix-Laporte, a postdoctoral fellow in the communication studies and media arts department at McMaster University in Hamilton, said it could be about power.

"The Americans have had, since after World War II, a very strong cultural policy of pushing out American content into the world," Bourcheix-Laporte, who has worked with the CRTC, said. "This has been a strategy -- a soft-power strategy -- for the American government, in parallel to their military strategies and political alliances strategies."

A developer says AliExpress is using the browser's WebAudio API to help fingerprint users by playing inaudible audio and measuring tiny differences in how their devices process it. CyberNews reports: The developer, "laserphile," wrote on their blog that they recently ran into some weird issues with their Bluetooth headphones. They couldn't play music via their phone when, at the same time, the AliExpress website was open on their PC. The headphones, laserphile explained, support multipoint Bluetooth audio so they can be connected to the PC and phone at the same time, for instance, playing music on the phone and announcing notifications through the PC. "Shortly after loading the AliExpress homepage, audio from my phone would stop playing. Closing the AliExpress tab fixes it immediately," the developer said in the blog post.

"Muting the tab/Firefox/Windows does not help, and there is no visible video, music, or other media playing on the page. This seemed suspicious enough to investigate." It turns out that Alibaba has been secretly leveraging AliExpress users' audio systems to track them and build detailed fingerprints of them. [...] The AliExpress site was using the browser's WebAudio API to run invisible sound waves at zero volume. By measuring tiny hardware differences in how each PC processed those signals, the site created a unique digital fingerprint to track devices -- without user knowledge or consent.

The secret audio path froze the developer's Bluetooth connection while covertly scraping hardware memory, screen dimensions, and network data in the background. The data collection extends beyond audio. Further inspection revealed that the same scripts also measure canvas, WebGL, hardware specs, WebRTC, mouse/touch events, and automation indicators. All of these form a broad device fingerprint that is sent back to Alibaba's telemetry servers. The simplest fix is to use a privacy-focused browser such as Firefox or Brave, which can limit or block this kind of fingerprinting. Brave goes further by randomizing fingerprint data and blocking the AliExpress tracking scripts involved.

The SEC is investigating the near-collapse of AI-focused hedge fund Situational Awareness, sending subpoenas to major Wall Street banks for details about the fund's trades, borrowing, and communications with lenders. The fund, founded by former OpenAI researcher Leopold Aschenbrenner, managed over $30 billion and borrowed tens of billions more before leveraged bets unraveled, forcing it to sell most of its stock portfolio to Citadel at a discount. The New York Times reports: The subpoenas asked for details on the timing of Situational Awareness's trades and for its communications with lenders about the money it was borrowing, also known as "leverage," two of those people said. The subpoenas additionally warned the banks to preserve any information regarding the San Francisco hedge fund. The S.E.C. oversees financial markets with an eye toward protecting small investors, and has brought civil cases regularly against investment firms that produced large losses. Any investigation into Situational Awareness would be at its earliest stages, and it's no guarantee that it would lead to fines or other punishment. The hedge fund has not been accused of wrongdoing.

[...] Situational Awareness had a fast rise and an even quicker retreat. Founded just two years ago by Leopold Aschenbrenner, a former researcher at OpenAI, it rode the A.I. boom to soaring investment returns. To achieve those results, however, the fund relied on heavy borrowing, as well as complicated and expensive financial instruments that magnify gains -- and losses. The latter piled up quickly last month when the stock prices of publicly traded, high-flying A.I. companies dipped. At the same time, shares in more traditional technology companies -- which the hedge fund had been betting against -- rose, compounding the problem. Situational Awareness was forced into a fire sale. It wound up selling most of its stock portfolio to a rival, Citadel, at a discount.

The Trump administration is proposing to make permanent a $103,265 fee on certain new H-1B visas, dramatically increasing costs for employers that rely on highly skilled foreign workers in tech, education, and research. "A federal judge in June ruled that the fee was illegal and blocked the Trump administration from collecting it," reports Reuters. "A Boston-based appeals court is reviewing that decision while a different court considers whether a judge properly rejected a challenge to the fee by a major business group." From the report: Trump's temporary fee increase expires in September, one year after it was issued. The proposed rule by the U.S. Department of Homeland Security, posted in the Federal Register on Monday, would make a fee of $103,265 permanent. It could be finalized by the end of the year. The H-1B program allows U.S. employers to hire foreign workers with training in specialty fields and offers 65,000 visas annually, with another 20,000 for workers with advanced degrees, approved for three to six years. Those visas typically came with fees between $2,000 and $5,000 before Trump's order. The fee would not apply to visas granted to foreign citizens already in the United States on student visas, who make up a large share of new H-1B recipients, or to renewals of current visas.