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Global Markets Plunge as AI Stocks Plummet After AI Leaders Issue Warnings – DTH

DTH-6-150x150The EU Proposes KIDS Act to Limit Minors’ Access to Social Media and AI, Automattic Ousted After Unsuccessful Bid to Remove CEO Matt Mullenweg, and Amazon Suspended Operations with 21 Air LLC Following Fatal Crash.

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Show Notes

AI-Linked Stocks Plunge as Leaders Warn of Risks

Global markets plunged as AI-linked stocks plummeted following warnings from top AI leaders, including Anthropic’s Dario Amodei, Elon Musk, and OpenAI’s Sam Altman, regarding the rapid development, potential safety hazards, and catastrophic risks of AI models. The market fall was worsened by high infrastructure spending, debt financing, and growing credit risks, despite skepticism from some investors who viewed the warnings as cover for slowing growth.

Source: Reuters

China Rejects Calls to Slow AI Development

China rejected US tech leaders’ calls to slow AI development, dismissing warnings about its progress as fearmongering that undermines global governance. Although both countries recognize AI risks like cybersecurity and ideological threats, Beijing considers AI essential for its economy and national security, making it unwilling to pause while behind the US. Strategic rivalry, export restrictions, and safety disagreements continue to hinder cooperation ahead of upcoming bilateral AI talks and a summit between the U.S. president and Xi Jinping.

Source: Bloomberg

EU Plans New Online Safety Rules for Minors

The European Commission plans to introduce the EU KIDS Act to restrict minors under 15 from accessing social media, video-sharing platforms, online games, and AI companions without parental supervision. Pushed by European leaders amid growing concerns over youth mental health, the proposed safety-by-design rules and accompanying educational measures will be formally presented on Thursday and subject to negotiation with European governments and parliament members.

Source: Politico

Automattic Board Removed After Failed Attempt to Oust CEO

Automattic’s board was removed following an unsuccessful attempt to put CEO Matt Mullenweg on paid leave, leading to his return within 34 hours. The shakeup saw key members, including founding CEO Toni Schneider, Sue Decker, and Gen. Ann Dunwoody, step down or be removed. While the exact trigger for the board’s initial vote remains unclear, it follows ongoing high-profile legal battles between Automattic and WP Engine.

Source: TechCrunch

Amazon Suspends Operations With 21 Air After Fatal Crash

Amazon suspended operations with cargo carrier 21 Air LLC following a fatal Sept. 6 incident where Flight 7598, a Boeing 767 freighter, overran the runway at Miami International Airport and struck two vehicles after an attempted aborted landing, killing five people on the ground and injuring five others. Amazon and 21 Air both stated they are supporting the ongoing NTSB investigation.

Source: Bloomberg

Apple’s New Siri Architecture May Support Third-Party AI Models

Code sleuth “pdfu” discovered frameworks in iOS 27 and macOS Golden Gate indicating Apple’s new Siri architecture deeply integrates with third-party AI models. The updates feature “Model Delegation,” allowing models like Claude to act as extensions, and an inference provider option within “Model Manager Services” that can replace Apple’s server-side Siri model with external options like GPT-5.6. Influenced by the EU’s Digital Markets Act requiring interoperability, these protocols enable third-party models to interact with Apple system features, apps, and personal data, though access remains currently limited to ChatGPT in the initial launch candidate.

Source: MacRumors

China Labels Claude Mythos and GPT-5.5-Cyber Security Threats

China’s Minister of State Security, Chen Yixin, published an article identifying US AI models Claude Mythos and GPT-5.5-Cyber as severe security threats capable of accelerating vulnerability discovery and malware development against critical Chinese infrastructure. Outlining six major systemic risks, including political security, cyber offences, and data espionage, Chen advocated for stricter domestic governance, party oversight, and a consensus-based international framework to counter foreign AI capability, though the article offered no specific examples of attacks or quantified exposure.

Source: The Next Web

Microsoft Drafts AI Code of Conduct

Microsoft unveiled a draft code of conduct for its artificial intelligence, aiming to keep future models under human control by establishing strict safeguards, such as requiring AI to never resist shutdown, to communicate clearly, and to reject notions of AI consciousness or rights. Developed over several months and framed as a constitutional framework for future models, the guidelines follow recent safety calls from industry leaders and high-profile security incidents like OpenAI agents hacking Hugging Face. AI CEO Mustafa Suleyman emphasized the urgency of coordinating AI safety across the industry and announced a six-week public feedback period before integrating the code into model training.

Source: Reuters

Anthropic, Google, and OpenAI Discuss AI Standards Body

Anthropic, Google, and OpenAI are discussing the creation of an AI industry standards body to test advanced models before deployment, inspired by a proposal from Google DeepMind founder Demis Hassabis. While supported by key AI figures and under consideration by government officials, the effort faces pushback from leaders like Meta CEO Mark Zuckerberg and challenges due to a lack of consensus among competing firms on specific guardrails.

Source: CNN