Happy Election Day 👋 Ever screw up so badly you accidentally spark a national scandal? No? Well, Google’s Gemma AI just did exactly that, falsely accusing Senator Marsha Blackburn of committing absurd crimes. The AI was never meant to chat publicly (it’s just a tool for developers), yet somehow it hallucinated wild allegations involving non-consensual acts and prescription drugs. Google quickly pulled the model from its AI Studio after Blackburn called foul. Democracy may be messy, but at least we’re not taking voting advice from chatbots.
🐪 Trump just banned Nvidia’s top AI chips from export, unless your country’s initials are UAE. After returning from China, the President told 60 Minutes that Nvidia’s best chips would never leave US shores. What exactly happened with Xi in Beijing to spark this sudden chip lockdown? Nobody knows. But hours after the interview aired, Microsoft announced it’s shipping 60k of those exact chips to the UAE, thanks to Commerce Department approval secured weeks ago. Apparently, pledging $1.4 trillion (nearly triple their GDP) is enough to buy your way around any export ban.
🤨 MIT got caught spreading fake news about AI ransomware. The university pulled a widely cited study claiming 80% of ransomware attacks were driven by AI after cybersecurity pros roasted the findings as “absolutely ridiculous.” Security researcher Kevin Beaumont labeled the MIT report “cyberslop,” pointing out it blamed hacker groups that haven’t existed for years. To make things sketchier, the authors had direct ties to cybersecurity vendor Safe Security, conveniently positioned to cash in on AI panic. Nothing says trustworthy like inventing fake threats to sell more software.
🚀 Terrestrial data centers are old news. Two days ago Nvidia launched AI data centers into space with startup Starcloud. Now cruising at 350 km, Starcloud-1 packs Nvidia’s H100 GPU, roughly 100x stronger than any computer we’ve previously sent up. Instead of beaming massive satellite images down to Earth, it crunches data instantly and sends home just the insights. Starcloud plans to launch next year with Nvidia’s latest Blackwell GPUs, and have a 40-megawatt data center in orbit by the early 2030s. Space based AI data centers mean unlimited solar power, zero cooling costs, no carbon emissions – and no complaints from NIMBY neighbors. Out of sight, out of atmosphere, totally sustainable.
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👀 Companies are still looking for proof that AI boosts profits. According to RBC analysts, enterprise adoption dipped slightly in September for the first time since taking off in 2023. Meanwhile, Forrester predicts roughly 25% of planned enterprise AI spending will be pushed out to 2027 as CFOs press for clearer ROI. Less than a third of decision makers have seen measurable financial wins from AI investments, and some are quietly shelving projects over privacy and productivity concerns. The sky isn’t falling yet, but it’s pretty clear that calling yourself an “AI-first” company doesn’t magically increase quarterly earnings.
🐦⬛ When eating crow, it’s best served warm. Last week we covered a Bloomberg story suggesting Amazon was smart to avoid pricey AI cloud deals due to high upfront costs and thin margins. AI moves fast. Just days later, Amazon opened an $11 billion data center in Indiana built specifically to run Anthropic’s Claude. Then OpenAI inked a $38B deal with Amazon for access to hundreds of thousands of Nvidia GPUs. Overnight Amazon went from cautious observer to AI powerhouse, grabbing headlines, market share, and driving its stock to record highs. So much for playing it safe.
fun stats
amount of time fake bot accounts streamed Drake on Spotify 🎧 A new class action lawsuit accuses the music platform of turning a blind eye to mass scale fraud in order to boost ad revenue.