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The AI talent war is out of control.
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Today’s Agenda

AI Is Everywhere

Let’s say you helped invent a revolutionary ice cube that stays frozen forever. Everyone from food manufacturers to Big Pharma wants to get their hands on the recipe. Your boss — let’s call her Pam Saltman — says your company’s sole mission is to ensure that your ice cubes benefit all of humanity. You love that idea, but when a recruiter for your main competitor offers you $300 million — enough money to buy the entire Red Hot Chili Peppers catalog — you’re tempted to hop jobs, even though forever-frozen ice is just one aspect of their business. Do you sell out, or do you stick with the feel-good mission of your current employer?

That’s the question that Dave Lee says is gripping Silicon Valley in its no-holds-barred talent war for AI: “OpenAI’s pitch to prevent its workers from leaving is to make the case that artificial general intelligence is the company’s one and only true goal, and every part of its work is dedicated to achieving it, whereas those working on Meta’s AI will spend at least some of their time thinking about how it can be used to better serve up shoddy viral videos to your grandmother.”

Read between the lines and it’s clear that Sam Altman wants his employees to feel that they’re not just collecting a paycheck, they’re collecting a conscience, too. Yet even the best intentions can’t stop bad things from happening. Parmy Olson says “people are forming strong emotional bonds with [ChatGPT], sometimes exacerbating feelings of loneliness. And others are having psychotic episodes after talking to chatbots for hours each day.”

Perhaps, then, the line between good AI and evil AI should be decided by regulators, not companies. Gautam Mukunda says there is no federal apparatus that oversees AI, something that needs to change. His big idea? A dual-mandate agency tasked with regulating and promoting AI, similar to how the FAA works. “This agency could certify AI systems (particularly those in high-risk applications), set safety standards, conduct safety audits and investigate accidents,” he writes.

Such an agency would likely be welcome news to college students and faculty around the world. In Asia, Catherine Thorbecke notes how educators are having a hard time keeping pace with how AI should be used in the classroom: “Even if some teachers discourage the use of AI, it has become almost unavoidable for scholars doing research in the internet age. Most Google searches now lead with automated summaries. Scrolling through these should not count as academic dishonesty,” she argues.

Of course, there’s always the blunt-yet-effective option of banning technology in the classroom entirely: 

Mary Ellen Klas says cellphone bans are gaining nationwide popularity, for good reason: “A growing body of research has found that the more time children and their developing brains spend on smartphones, the greater the risk of negative mental health outcomes — from depression, to cyberbullying, to an inability to focus and learn,” she writes. And that’s before AI promised a “doom loop of loneliness.”

Juntos Somos Más Fuertes

Elsewhere in distressing maps, you have this Bloomberg News analysis showing all the new facilities the Trump administration is using to detain people:

“Trump’s obsession with ridding the country of immigrants had already gone too far — and now he has the funds to take his crackdown even further,” writes Patricia Lopez. Hidden within the “Big, Beautiful Bill” the president signed on July 4 was a $100 billion payday for ICE and border control, an amount so astronomical that the Cato Institute’s David J. Bier says “they are going to be shoveling money out the door with very little oversight or checks on how it is to be spent.” To give you some context, the previous budget for ICE’s detention facilities was $3.43 billion. Now Homeland Security Secretary Kristi Noem gets $45 billion to try and keep 100,000 beds filled for the next four years.

Trump claims those beds will be occupied by the “worst of the worst,” yet Patricia says many of them will be filled by non-criminals: farmers, day laborers, construction workers, hotel maids — the people who willingly take the lowest-paying jobs. Jobs that Justin Fox says are needed to power the economy. Notice how the list of suburbs with the highest foreign-born population share in the US correspond with some of the country’s most dynamic cities: Miami, New York, Los Angeles, San Francisco, San Jose and Boston.

Now compare that with a list of cities with the smallest foreign-born populations:

Notice a pattern? “These low-immigration cities are very nice places, but none has a median household income above the national median of $77,719, and that’s almost certainly not a coincidence. Immigrants to the US tend to congregate in and around the country’s most productive, most expensive cities,” Justin writes. “This, in turn, has helped counteract the ‘spatial misallocation of labor’ caused by too-scarce housing in such places ... making the US economy a bit more productive and all of us, on average, better off.”

So, to to be clear: ICE now has an annual budget that, by some calculations, is larger than Israel’s entire defense budget. And it will spend it on crackdowns that will eventually make the US economy less productive and less dynamic, something the American public definitely didn’t sign up for.

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Telltale Charts

While Lara Williams says Europe is baking under extreme temperatures, Andrea Felsted says people are purchasing … parkas? No, really: “Despite the summer heat, average weekly TikTok posts featuring parkas rose 188% between June 1 and July 1, compared with the previous month” and “searches for parkas on secondhand marketplace Depop rose 1,850% in June, compared with the year-earlier period.” Luckily, it’s not because of some new weight-loss fad or Arctic travel hack. Instead, it’s because the band Oasis kicked off its highly anticipated reunion tour on Friday in Cardiff and people are splurging on ’90s fashion. “Retailers are jumping on what is being dubbed ‘Wonderwall Summer,’” she explains. Sounds like a recipe for heat stroke but what do I know!

What makes Tesla’s stock go up and down? That’s the question Liam Denning sought to answer in his latest column. Looking at the 10 biggest relative moves so far this year, he found “most of those days when Tesla thumped the market, the stock acted as a supercharged avatar for broader enthusiasm rather than being moved by some outsized event specific to the company … Conversely, Tesla’s most underwhelming days tend to coincide with bad news specific to the company’s core EV business.” Case in point? On Sunday, President Trump called Elon Musk a “train wreck” in a post about dismantling the EV mandate. By Monday, Tesla’s share price had tanked — perhaps that should be the 11th annotation to this chart.

Further Reading

Policymakers have reason to worry about turbulence in “risk-free” Treasuries. — Bloomberg’s editorial board

Asia’s richest tycoon is welcoming US cargo with open arms. — Andy Mukherjee

If Trump really wants lower interest rates, he’s doing it all wrong. — Bill Dudley

Instead of celebrating a breakthrough HIV drug, aid groups are scrambling to keep the infected alive. — Lisa Jarvis

It's impossible to make one person the world's best chef. — Howard Chua-Eoan

When the finance minister of the world’s sixth-largest economy cries in public, it’s more than a “tough day.” — Rosa Prince

Crypto and bank startups look like they could run straight toward the Silicon Valley Bank trap. — Paul J. Davies

If you thought golden shares were a relic of the 1980s, think again. — Chris Hughes

The real-life Formula One should be more like Apple’s new F1 movie. — Adam Minter

The era of greenwashing is giving way to defense-washing. It won’t make Europe stronger. — Lionel Laurent

ICYMI

Tragic floods in Texas kill more than 90 victims.

TikTok is working on a new app ahead of sale.

The Jeffrey Epstein saga continues.

Kickers

Australia’s mushroom murder. (h/t Christine Vanden Byllaardt)

Who needs an alarm clock when you have Percy the peacock?

Cardi B’s crow couture. (h/t Andrea Felsted for the last two kickers)

Facebook job ads are not to be trusted.

Is Wakuku the next Labubu?

Notes: Please send the bird in borrowed feathers and feedback to Jessica Karl at jkarl9@bloomberg.net.

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