AI-generated images cause stock market crash

Fake news, real market crashes

For several minutes on Monday, eerie footage of black smoke billowing from what appeared to be a government building near the Pentagon sparked investor fears, sending stocks plummeting.

Fast response from experts rejected the photo Possibly an artificial intelligence-enhanced fake, the market rebounded quickly. But it points to one of the big concerns behind the government’s enthusiasm to regulate AI. The technology could be used to create panic and spread misinformation, with dire consequences.

This may have been the first time AI-generated images moved the market According to Bloomberg. The photo, which claims an explosion near the Pentagon, first appeared on Facebook. This information was then rapidly disseminated to Twitter via accounts with many followers, such as financial news site ZeroHedge (marked with a blue check his mark through the Twitter Blue subscription service) and Kremlin-controlled RT. spread to

Within minutes, internet sleuths began debunking the image, and ZeroHedge and RT removed the image from their accounts shortly after, while Facebook blocked access to the original post. Still, the incident highlights how even unsophisticated impersonation can spread misinformation quickly, especially through trusted social media channels.

Regulators have warned about exactly this kind of problem.

• SEC Chairman Gary Gensler said last week that criminals could use AI to exploit “vulnerabilities” in the financial system.

• And the FTC has warned about how AI-generated deepfake images and cloned voice systems could be used to trick people into new kinds of fraud schemes.

A more powerful threat may be approaching. OpenAI CEO Sam Altman (whose Senate testimony on AI shook Washington last week) and two executives said in a blog post Monday that these systems could become “superintelligence” within a decade. ” could be realized.

In response, they said, the world government should consider creating an International Atomic Energy Agency-like regulator that could inspect, audit, and, if necessary, restrict systems beyond a certain level of capability. “Decisions about the governance and implementation of the most powerful systems require strong public oversight,” write Altman and his colleagues.

AI isn’t necessarily terrible for stocks, but it’s worth noting. Investors have inflated the market cap of companies associated with the technology, including Alphabet, Meta, Microsoft and chip maker Nvidia.

As of last week, seven stocks accounted for 85% of the S&P 500’s gains this year, according to Morgan Stanley Wealth Management.All but one of the members of that group are heavily invested in his AI.

Still, many of those stocks are vulnerable to disruption by AI. At a conference in San Francisco on Monday, Bill Gates said why. “I will never go to a search site again,” he said. “I will never go to productivity. I will never go to Amazon again.”

what is going on here

TikTok is suing Montana over its video app ban. The Chinese-owned company argued in federal court that its efforts to block operations within state borders were unconstitutional. Meanwhile, The Information reports that TikTok’s cloud provider, Oracle, is restricting access to the app’s source code, underscoring claims that the company’s plans to meet U.S. data privacy concerns are moving forward. will be overturned.

Western states sign agreement to conserve Colorado River. Arizona, California and Nevada to temporarily reduce water withdrawals from drought-stricken rivers in exchange for $1.2 billion in federal payments to irrigated districts, cities and Native American tribes in three states. agreed. But the pact only lasts until 2026, and future droughts could further deplete the river’s supply.

Glenn Youngkin is reportedly reconsidering his presidential bid. Axios said the Republican governor of Virginia had previously ruled out running for office in 2024, but has changed his mind. He is backed by Republican donors who want a more moderate alternative to Donald Trump, who is leading in Republican polls.

E. Gene Carroll is seeking new damages from Donald Trump. The author, who won $5 million from the former president earlier this month after a jury found her guilty of sexual abuse and defamation, said the former president insulted her at a CNN town hall on May 10. , which is now asking for a “very substantial” additional payment. Carroll’s lawyers accused Trump of continuing to slander her clients.

Investors continue to flee cryptocurrencies. According to digital asset investment firm CoinShares, last week saw the fifth straight week of investor exodus from cryptocurrency assets, totaling $232 million. The decline in enthusiasm for cryptocurrencies was evident at industry event Bitcoin Miami, where attendance this year was halved compared to 2022.

How New Energy Regulations Affect Debt Trading

With the White House and House Republicans continuing negotiations on a deal to raise the debt ceiling and Treasury Secretary Janet Yellen reiterating that domestic funding could be exhausted by next week, the unlikely issue is key to negotiations. It is a good point.

Changes to how energy projects are approved (called “licensing” in Washington parlance) have been a focus of lawmakers from both parties over the past year. Still, the two countries disagree on how to review the process, and it’s unclear whether the issue can be resolved before a deal to avoid a U.S. debt default.

The permit has bipartisan support. Lawmakers say the current regime could take as long as a decade to get approval for major new energy projects, while Canada and the European Union have regulations designed to start projects within three years. claims.

However, what each party wants to achieve with the permission is different.

• For Republicans (and West Virginia Democrat Senator Joe Manchin, who was a key player in passing the Inflation Control Act last year), the overhaul would mean accelerating fossil-fuel projects such as coal-fired power plants.

• For Democrats, it would lead to faster approval of clean energy projects and the construction of high-voltage power lines from those facilities.

A major issue is federal preemptive power. Currently, states can reject transmission projects through their territory, hampering the country’s energy transition plans. Proponents argue that giving the federal government preemptive power would speed up renewable energy adoption, especially where it is not being generated.

Manchin’s new bill, backed by the White House, allows states to approve interstate transmission projects before the Federal Energy Regulatory Commission intervenes, giving the Federal Energy Regulatory Commission central authority over licensing Or set a deadline for refusal.

But in recent negotiations, Republicans have proposed resolving federal preemptive powers in the future, and Democrats are concerned about meeting the IRA’s clean energy goals.

Either way, time is ticking. Ms Yellen on Monday stepped up the wording of her warning about the debt ceiling, saying it was not “likely” but “extremely likely” that the U.S. would run out of cash by early June. House Speaker Kevin McCarthy said a deal was needed this week to avoid a default.

Other debt ceiling news includes: How extreme weather in California hastened the likelihood of a debt default, and why Republican demands for cuts to the IRS could deepen the federal budget shortfall by about $120 billion.

“My strength is the same. When I lose that kind of enthusiasm, I think I should quit.”

— Jamie Dimonthe CEO of JPMorgan Chase responded to questions about who would replace him at the bank’s Investor Day on Monday.

Aggregate the vast amount of evidence against Bankman Freed

As FTX founder Sam Bankman-Fried awaits trial, federal prosecutors are amassing the largest body of evidence ever accumulated in a white-collar securities fraud case.

Authorities have already collected more than six million pages of evidence, according to The Times. (Her 2004 lawsuit against Martha Stewart, by comparison, contained her 525,000 pages.) Here’s some of the content of that evidence list.

• the contents of Bankman-Fried’s Google Accountwhich alone equates to 2.5 million pages.

• a Caroline Ellison’s Notebook, was a longtime lieutenant and sometimes girlfriend of Bankman Freed, who ran FTX’s sister company, trading firm Alameda Research. (She has pleaded guilty to fraud and is cooperating with the prosecution.)

• a Ryan Salame cell phonean FTX executive whose $4 million home in Maryland was raided by FBI agents last month.

• 4 laptopsAmong them was former FTX executive Gary Wang (who also cooperated with the prosecution), which was packed with data that FBI experts had trouble deciphering.

Many of FTX’s corporate records are kept by Sullivan & Cromwell Law Firm, which took over control of the company after it filed for bankruptcy, and has so far reportedly filed for bankruptcy, including document investigation costs. It claims $55 million.

speed reading

Information of sale

• Chevron has agreed to buy shale oil producer PDC Energy for $6.3 billion to focus on U.S. energy production. (WSJ)

• Japan’s Mizuho has agreed to buy struggling American boutique investment bank Greenhill for $550 million. (Bloomberg)

• Activist investor TCS Capital, which owns a 4% stake in Yelp, has demanded that the recommended site sell itself. (WSJ)

• ‘Shareholder activists drag corporations into America’s culture wars’ (WSJ)

policy

best of the rest

• Amatriciana fans look away: Pasta prices are skyrocketing in Italy, prompting an emergency government meeting and calling on consumers to ‘pasta strike’. (CNBC)

• “Your company doesn’t want you to take Ozempic for weight loss. Here’s why.” (WSJ)

• Amazon founder Jeff Bezos reportedly proposed to his girlfriend Lauren Sanchez aboard a giant yacht. (The Mail Online)

• Plastic recycling has the unintended consequence of releasing microplastics into the atmosphere and water supplies. (wapo)

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