Apple to join OpenAI funding round: WSJ

Good morning. Here's what happened overnight and what you need to know today.

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1.

AI alliance: Apple is in talks to invest in OpenAI, in a move that could solidify key ties with its AI partner and gain ground on the AI race, The Wall Street Journal reported citing unnamed sources. The investment would form part of a new OpenAI fundraising round valuing the ChatGPT creator above USD100 billion ($146.92 billion), which is led by Thrive Capital, the paper said. Microsoft is also expected to participate in the funding deal. The talks follow Apple’s partnership with OpenAI to integrate ChatGPT into its ecosystem. (The Wall Street Journal)

2.

Healthy pulse: The US economy showed new signs of resilience, with weekly initial jobless claims data falling and second-quarter GDP growth revised higher, powered by robust consumer spending. US jobless claims fell by 2,000 to 231,000 for the week ending August 24, which was slightly below the expected 232,000, according to the Labor Department. The four-week average, which smooths out weekly volatility, dropped by 4,750 to 231,500, while the number of people receiving benefits rose slightly to 1.868 million. Meanwhile, the Bureau of Economic Analysis revised GDP growth for the April to June period upwards to 3%, from a preliminary estimate of 2.8%. The revision showed Americans are spending a lot more than previously estimated. However, that was offset by downward revisions in business spending, residential investment, and government outlays. (Capital Brief)(DOL)(BEA)

3.

AI code: California lawmakers passed a contentious AI safety bill, known as SB 1047, mandating costly and rigorous safety testing for large-scale AI models and a kill switch for models that go rogue. The law targets systems that require substantial computer power or cost more than USD100 million to train, although no current AI models have reportedly hit that threshold. The bill is awaiting a final vote in the state senate before it must be signed by Governor Gavin Newsom by 30 September. It includes provisions for kill switches, third-party audits, whistleblower protections, and gives the state attorney general authority to sue non-compliant developers. Tech giants Google and Microsoft have opposed the bill, but it has the support of Tesla's Elon Musk. It comes as the US AI Safety Institute said OpenAI and Anthropic had signed deals with the US government to research and test AI models. (The Guardian)(Reuters)

4.

Sino patents: The US Defence Department, NASA and other government agencies have funded research leading to more than 1,000 patents for China-based inventors since 2010, Reuters reported citing patent data. The patents include some in sensitive fields such as biotechnology and semiconductors, the agency said. The Department of Health and Human Services funded 356 of these patents, while the Department of Defense contributed nearly 100, and NASA also played a role despite restrictions on cooperation with China, the report says. The US Patent and Trademark Office provided the data to the House of Representatives' select committee on China. (Reuters)

5.

Deutsche chill: German inflation fell sharply in August to its lowest rate since 2021, largely due to declining energy prices, adding pressure on the European Central Bank to cut interest rates again next month. The harmonised inflation rate (HICP) in Europe’s largest economy dropped to 2% from 2.6% in July, falling below the European Central Bank's target. The national inflation rate for August was lower than economists' expectations, which had forecast 2.3%. Core inflation remained steady, however, and strategists warn inflation could rebound later this year, potentially rising towards 3%. (The Wall Street Journal)

6.

Harris swing: US polls published Thursday showed Vice President Kamala Harris is leading her Republican presidential race rival Donald Trump by between 4 to 5 percentage points. A Reuters/Ipsos poll conducted between 19-22 August showed Harris leading Trump 45% to 41%, as the Democratic candidate gained support among women and Hispanic voters while Trump kept an edge among white voters and men. Meanwhile, a USA TODAY/Suffolk University survey from 25-28 August showed the gap at 48%-43%, an eight-point turnaround since late June when Trump led Biden. That poll saw big swings among younger voters, Hispanics, Black and white low-income voters. The latter group now favour Harris 58%-35%, the paper said. It comes as Harris prepares for a critical test on Thursday in her first interview since seizing the Democratic nomination. (USA Today)(Reuters)

7.

Trump tactics: Former US President Donald Trump has stirred controversy in the past 24 hours with a barrage of inflammatory moves and statements. Amid concerns over clashes with Arlington National Cemetery staff over prohibited photos during a recent visit, Trump has promoted crude jokes about Vice President Kamala Harris, falsely accused her of staging a coup, and circulated QAnon tributes. Trump also released digital trading cards and pieces of his debate suit for sale. His erratic behaviour, marked by distractions and provocative remarks, mirrors his 2016 campaign style and is raising concerns among Republicans about his focus. (Reuters)(CNN)((The Washington Post)

8.

Vax break: The Israeli military and Hamas have agreed to three separate three-day pauses in fighting across the Gaza Strip to facilitate a polio vaccination campaign for about 640,000 children, Reuters reported. The World Health Organization (WHO) said the campaign will start on Sunday, with pauses scheduled from 6:00am to 3:00pm local time. The vaccinations will begin in central Gaza, followed by southern and northern regions, with a potential extension of the humanitarian pause if necessary. The campaign comes after WHO confirmed the first polio case in Gaza in 25 years. The Israeli military's humanitarian unit (COGAT) said the vaccination campaign would be conducted in coordination with the Israeli military. (Reuters)