ET AI: US states oppose AI regulation ban in Trump tax bill
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Good morning Reader, Amazon's Alexa+ AI launch raises questions about user engagement. Meanwhile, US states are pushing back against AI regulation bans in Trump's tax bill. OpenAI's Codex challenges Google and Anthropic in AI coding, while IndiaAI receives 506 model proposals.
Google celebrates 150 million subscription users, aided by AI, as Elon Musk's Grok AI faces scrutiny over its focus on South Africa's racial issues. The future of artificial general intelligence remains uncertain, with experts suggesting it won't arrive soon.

In today's newsletter:

  • US states oppose AI regulation ban in Trump tax bill
  • Codex: OpenAI takes on Google Gemini, Anthropic with AI coding agent for ChatGPT
  • IndiaAI receives 506 foundation AI model proposals
  • Grok AI’s ‘white genocide’ claims row: All you need to know

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US states oppose AI regulation ban in Trump tax bill

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Attorneys general from 40 US states urged Congress to reject a 10-year ban on AI regulation proposed in Trump’s tax bill. They warn it would undermine existing state laws protecting against AI harms like deepfakes and bias. The bill also faces setbacks amid Republican divisions in Congress.

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Codex: OpenAI takes on Google Gemini, Anthropic with AI coding agent for ChatGPT

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OpenAI has launched Codex, an AI coding agent powered by codex-1, designed to assist software engineers with tasks like writing features, fixing bugs, and proposing pull requests. Available on ChatGPT Pro, Enterprise, and Team, Codex aims to improve coding workflows while incorporating safeguards against malicious use. Google DeepMind also enhanced Gemini 2.5 Pro with improved coding capabilities.

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AI Landscape Shifts: From Amazon's Alexa+ to Regulatory Tensions in the U.S.

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The Pulse

The AI sector is witnessing a mix of innovation and controversy, with Amazon's Alexa+ struggling for traction, while regulatory debates heat up in the U.S. The landscape is marked by significant advancements, yet ethical concerns and market readiness remain pressing issues.

How it's happening

Key players like OpenAI and Google are pushing boundaries with new AI tools, while Amazon's Alexa+ rollout faces challenges. Regulatory discussions intensify as states oppose a proposed ban on AI regulations, highlighting the need for balanced oversight amid rapid advancements.

Key takeaways

  • Amazon's Alexa+ rollout is slow, raising questions about user engagement.
  • OpenAI's Codex aims to enhance coding efficiency, competing with Googles Gemini.
  • U.S. states are pushing back against a proposed 10-year AI regulation ban.
  • India faces a talent gap in AI, with only one GenAI engineer for every ten roles.
  • Google leads in generative AI patents, surpassing IBM and Microsoft.

Notable actions

Amazon's Alexa+ has seen limited user feedback since its launch, while OpenAI's Codex is now available on ChatGPT. U.S. attorneys general are urging Congress to reject the AI regulation ban in Trump's tax bill, emphasizing the need for protective measures in AI development.

Grok AI’s ‘white genocide’ claims row: All you need to know

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Elon Musk’s Grok AI sparked controversy after making unsolicited claims about violence against white South Africans. The issue, linked to a rogue prompt edit, drew comments from OpenAI’s Sam Altman and many other X users. xAI has since pledged greater transparency, stricter internal controls, and round-the-clock monitoring to prevent future incidents and rebuild trust.

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Google hits 150 million users for subscription service with help of AI

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Google One has surpassed 150 million subscribers, a 50% rise since February 2024, driven by a new AI-focused plan. The service supports Alphabet’s shift from ad reliance, as AI disrupts traditional search. With ads harder to integrate into AI tools, Google is emphasising subscriptions to monetise its AI offerings.

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Special picks of the day

Google hits 150 million users for subscription service with help of AIWhy was Elon Musk's AI chatbot Grok preoccupied with South Africa's racial politics?Google overtakes IBM to lead in generative AI patents: ReportIndia has just one GenAI engineer for 10 open roles: Report

Around the web

  • OpenAI’s planned data center in Abu Dhabi would be bigger than Monaco
  • Google I/O 2025: What to expect, including updates to Gemini and Android 16
  • AI startup Cohere acquires Ottogrid, a platform for conducting market research
  • The Middle East Has Entered the AI Group Chat
  • Microsoft Cuts Off Access to Bing Search Data as It Shifts Focus to Chatbots
  • The Reason Murderbot’s Tone Feels Off

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