Welcome back to your daily memorandum talking tech, business, AI, markets, and more. 🗞️

In today’s edition, we are tackling the following:

🏛️ California lawmakers pass AI safety bill SB 53, but Newsom could still veto.
💬 OpenAI board chair Bret Taylor says we’re in an AI bubble.
💰 Via raises $492.9M in IPO, and German automakers go on the offensive.
📉 China's economic slowdown worsens in August, missing retail expectations.
💧 Australia's data centre boom relies on vague water usage plans.

TECHNOLOGY

• California lawmakers pass AI safety bill SB 53, but Newsom could still veto

  • California's state senate approved SB 53, which requires large AI companies to disclose safety protocols and creates whistleblower protections.

  • The bill now awaits Governor Newsom's signature after he vetoed a stricter AI safety bill last year.

  • Companies earning under $500 million annually face lighter disclosure requirements, while larger firms must provide detailed safety reports.

• Trump expected to push TikTok sale deadline extension again past September

  • The Trump administration is expected to extend the September 17 deadline for ByteDance to divest TikTok's US assets again.

  • Progress on the TikTok deal remains slow, requiring Beijing's approval for sharing the app's prized algorithm with buyers.

  • US-China trade talks in Spain will address TikTok, but no deal is expected before the current deadline.

• OpenAI board chair Bret Taylor says we’re in an AI bubble

  • OpenAI board chair Bret Taylor agrees with Sam Altman that many will lose significant money in AI investments.

  • Taylor believes AI will transform the economy and create massive value while acknowledging we're currently in a bubble.

  • He compares today's AI landscape to the dot-com bubble, where many failed but underlying predictions were ultimately correct.

BUSINESS

• Markets prepare for Fed rate cuts with bullish bets facing potential risks

  • Investors question whether Federal Reserve officials will challenge market expectations for extended interest rate cuts.

  • Quarter-point rate reduction appears certain on Wednesday, with a slight possibility of a half-point cut amid slowing jobs.

  • Markets have priced in continued rate reductions through 2026 to prevent potential economic recession risks.

• Via raises $492.9M in IPO, and German automakers go on the offensive

  • German automakers VW, Mercedes, and BMW showcased new electric vehicles at Munich's IAA conference, targeting Chinese competition.

  • Chinese companies like BYD nearly doubled their European market share while German brands struggle in EV categories.

  • Rimac Technology unveiled solid-state battery packs promising 10% to 80% charging in under 10 minutes by 2027.

• Nasdaq Composite clearly outperformed as the overachieving sibling last week

  • Nasdaq achieved 5 consecutive all-time closing highs while the S&P 500 and Dow Jones finished lower on Friday.

  • Tech-heavy index gained 2% weekly, outpacing S&P 500's 1.6% rise and Dow's 1% weekly increase.

  • OpenAI deals drove market momentum, with Oracle, Broadcom, and Nvidia shares benefiting from the AI narrative.

MARKETS

WORLD

• China's economic slowdown worsens in August, missing retail and industrial expectations

  • Retail sales grew only 3.4% in August, missing analyst estimates of 3.9% and slowing from July.

  • Industrial output growth dropped to 5.2% marking the worst performance since August of last year.

  • Fixed-asset investment expanded just 0.5% sharply declining from 1.6% growth in January through the July period.

• Australia's data centre boom relies on vague water usage plans

  • Sydney authorities approved all 10 data centre applications without requiring measurable water reduction plans from developers.

  • Approved data centres will consume 9.6 gigalitres annually, representing nearly 2% of Sydney's maximum water supply.

  • Data centres could consume up to 25% of Sydney's available water by 2035, according to projections.

• Pakistan rupee's rally faces risk as floods worsen dollar shortage nationwide

  • Pakistan's deadly floods have worsened the existing dollar shortage, intensifying concerns about greenback hoarding among dealers.

  • Many bank branches and exchange outlets suspended operations after being submerged by devastating flood waters.

  • Dollar scarcity at exchange outlets threatens Pakistan's rupee's recent rally, according to foreign exchange dealers.

CONTENT

• Ethan Smith shares how to get ChatGPT to recommend your product

  • SEO expert Ethan Smith discovered ChatGPT traffic converts 6 times better than Google search traffic.

  • Smith developed a 7-step playbook for ranking number one in ChatGPT using answer engine optimization strategies.

  • Three effective AEO tactics include optimized landing pages, YouTube videos, and authentic Reddit comment engagement.

• Google DeepMind CEO Demis Hassabis discusses AI creativity and the golden science age

  • Nobel Prize winner Demis Hassabis reflects on Google DeepMind's role within Alphabet and breakthrough achievements.

  • Discussion covers Genie 3 world model robotics advances, AI science breakthroughs, and measuring AGI progress.

  • Hassabis explores creative tools democratization, Nano-Banana technology, and Isomorphic Labs' contribution to the scientific golden age.

• Fully autonomous robots are much closer than you think, according to Sergey Levine

  • Top robotics researcher Sergey Levine predicts robots will run households entirely autonomously by his median estimate of 2030.

  • Levine believes we're approaching a self-improvement flywheel breakthrough for general-purpose robot development and widespread deployment.

  • Discussion focuses on foundation models for robotics and scaling data, plus hardware for a full robotics explosion.

FUTURISM

• Chinese EV companies challenge traditional European car manufacturers in Europe

  • Chinese automakers Xpeng and GAC announced ambitious plans to aggressively expand their operations across Europe.

  • Traditional European brands like Mercedes and BMW are fighting back, but may not be responding quickly enough.

  • Chinese electric vehicle manufacturers position their cars as technology-advanced options with competitive pricing strategies.

• Vibe coding turns senior developers into AI babysitters, but it's worthwhile

  • Developer Carla Rover cried for 30 minutes after restarting her project due to faulty AI-generated code.

  • 95% of surveyed developers spend extra time fixing and verifying problematic AI-produced programming code daily.

  • Senior programmers act as AI babysitters, handling hallucinated packages, security risks, and unexpected code deletions.

• Is the humanoid robot industry ready for its ChatGPT moment?

  • AI-powered humanoid robot companies are rolling out products across industries, believing their ChatGPT breakthrough moment has arrived.

  • Technology could potentially transform global labor processes if it works effectively, according to SemiAnalysis analyst Reyk Knuhtsen.

  • Many experts remain skeptical about mass public adoption happening soon, citing numerous technological and practical hurdles.

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EXTRAS

• Richard Li's FWD plans $900M bond buyback using new debt financing

  • Hong Kong billionaire Richard Li's FWD Group offers to buy back existing $900 million bond holdings.

  • The insurer seeks to improve capital structure and reduce borrowing costs through the debt refinancing strategy.

  • The company commenced a tender offer to purchase outstanding 8.4% notes due 2029 for cash using planned debt.

• Israel intensifies Gaza City bombing as Secretary Rubio arrives for talks

  • Israeli forces destroyed at least 30 residential buildings in Gaza City, forcing thousands from their homes.

  • Secretary of State Marco Rubio arrived Sunday to discuss the conflict's future and hostage release negotiations with Netanyahu.

  • Arab states will hold an emergency meeting on Monday following Israel's airstrike targeting Hamas leadership in Qatar.

• Malaysia requests Google's assistance in investigating blackmail threats targeting government officials nationwide

  • Malaysia will seek Google's help in investigating sex video blackmail threats targeting officials and lawmakers nationwide.

  • Communications Minister Fahmi Fadzil was among those targeted by the coordinated blackmail campaign via email.

  • The government plans to request Google's assistance since the threatening messages were sent through email platforms.

AND MORE

• Lossless audio beats Spotify streams, but improvements over high-quality are subtle.

• People increasingly seek spiritual guidance from AI chatbots for personal advice.

• Scarlet transforms Shakespeare's work into an animated fantasy epic adventure.

• xAI reportedly fired 500 workers from its data annotation team recently.

• Need to scale an AI team quickly? Athyna delivers vetted talent globally in under a week.*

• Exit 8's director found inspiration watching people play the original game.

• Karen Hao discusses AI empire, AGI evangelists, and belief system costs.

• Apple announced iPhone 17, iPhone Air, and AirPods Pro 3 at the hardware event.

• Owen Cooper becomes the youngest ever male Emmy winner for Adolescence.

• Hike shuts down as India cracks down on real-money gaming.