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AI Startup Valon Tells New Hires To Learn Without AI Before Using It

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AI startup Valon has introduced a policy requiring most new employees to learn their jobs without artificial intelligence before they are allowed to use the technology, as concerns grow that widespread reliance on AI could weaken workers’ judgment and leave companies paying heavily for tools that employees may be using unnecessarily.

Andrew Wang, Valon’s CEO and cofounder, introduced the policy last month after giving employees broad access to AI tools and reviewing how they were being used. He said employees were frequently turning to the most expensive models for relatively simple tasks, raising concerns about both soaring computing costs and the effect on employees’ ability to understand their work.

“By doing the basic work, rather than relying on AI, you start to form an understanding,” Wang, a former Goldman Sachs analyst, told Business Insider.

The policy is an unusual position for Valon, a New York-based company that builds mortgage-servicing software powered by AI agents. The company employs about 320 people and has made artificial intelligence central to its products and operations.

“It’s a weird decision for a company that is at the frontier of AI usage,” Wang wrote in a blog post explaining the policy.

But Wang said the decision followed a pattern he observed after employees were given unrestricted access to AI. When he asked why they were using the most powerful models for basic assignments, employees told him the systems were almost always correct.

For Wang, that answer was itself a warning sign.

He said employees could become less inclined to question AI-generated answers or develop the expertise needed to recognize when a system is wrong. That creates a potential problem for companies deploying increasingly capable AI systems: workers may become more productive in the short term while losing the underlying knowledge required to supervise those systems effectively.

Under Valon’s policy, new hires in almost every part of the business, including senior employees, must initially work without AI. They can begin using AI only after their managers determine that they understand their responsibilities well enough to identify incorrect AI output.

Engineers are exempt because Valon requires all code to undergo peer review before it is released. Wang said functions such as finance and human resources do not have equivalent safeguards, making unrestricted AI use more difficult to justify.

The policy also highlights a less obvious cost of the AI boom. While companies have focused heavily on how much AI can save by automating work, the technology can create additional costs when employees use powerful models for tasks that do not require them.

Wang said Valon’s annualized spending on AI tokens is now expected to fall to roughly $4 million to $5 million this year, from an estimated $15 million to $20 million previously.

The savings come alongside what Wang considers a more important benefit: new employees are now asking experienced colleagues for help rather than asking an AI system to solve problems for them. That interaction recreates an older form of workplace training in which junior employees acquire institutional knowledge by observing experienced colleagues, performing basic tasks and gradually taking on more complicated responsibilities.

The issue is becoming bolder as companies deploy AI across entry-level functions that traditionally served as training grounds for young workers. If AI takes over those tasks immediately, employees may reach more senior positions without having developed the practical judgment that those assignments were intended to teach.

The concern extends beyond Valon.

A September 2025 survey by BetterUp and Stanford’s Social Media Lab found that 40% of 1,150 full-time U.S. desk workers had received AI-generated work from a colleague during the previous month. Respondents said dealing with each instance took nearly two hours on average. That suggests companies can incur a hidden productivity cost when employees submit AI-generated material that colleagues must check, correct, or rewrite.

The emergence of the term “meat proxies” reflects the growing frustration with this behavior. The phrase, popularized by German software developer Niklas Gruhn in an August 3 blog post, describes people who effectively act as intermediaries for unchecked AI output, passing machine-generated work to others without adequately reviewing it.

For companies, the central issue is not necessarily whether employees should use AI, but whether they have sufficient expertise to supervise it.

That could get into play more as AI agents move from generating text and code to carrying out multi-step tasks with limited human intervention. The more responsibility companies delegate to AI, the greater the need for employees who understand the underlying processes well enough to detect errors and intervene when systems go off course.

Valon’s approach points to a reversal of the assumption that faster AI adoption is always better. Instead of measuring success simply by how much work AI can perform, Wang is placing greater emphasis on whether employees understand the work being automated.

The policy has not faced significant internal opposition, according to Wang. He said experienced employees have generally welcomed it because they had been spending time correcting poor-quality AI-generated work produced by newer hires.

Still, the approach has drawn criticism from some AI enthusiasts, including people who responded to a LinkedIn post in which Wang described the policy.

Wang’s response is straightforward: “If you have a much better idea here of how to make sure people learn, please tell me.”

Valon’s experiment could offer an important lesson for companies racing to integrate AI into their operations. The technology may reduce the need for humans to perform routine tasks, but eliminating those tasks entirely could also eliminate some of the mechanisms through which workers acquire expertise.

China’s CXMT to Supply Latest LPDDR6 Chips for Xiaomi’s New Foldable Phone

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China’s top memory chipmaker, ChangXin Memory Technologies (CXMT), will supply its latest LPDDR6 DRAM chips for Xiaomi’s upcoming flagship foldable smartphone, marking a significant step in Beijing’s push to build a more self-sufficient semiconductor supply chain.

CXMT said on Saturday that it has begun mass production of LPDDR6 memory and will supply the chips for Xiaomi’s new 18 Fold smartphone, which is scheduled for release in September. Xiaomi confirmed the partnership on its official Weibo account.

The deal brings together two of China’s most important efforts to reduce reliance on foreign semiconductor suppliers. Xiaomi is developing its own smartphone processors, while CXMT is rapidly expanding its capabilities in advanced memory, a market dominated globally by Samsung Electronics and SK Hynix.

LPDDR6 is CXMT’s most advanced DRAM technology for mobile devices. Its introduction comes less than a year after the company began mass production of LPDDR5, highlighting the pace at which the Chinese chipmaker is attempting to close the technology gap with established global competitors.

The development is notable because Xiaomi is also expected to use its latest in-house 3-nanometre processor, the Xring O3, in the new foldable phone. The processor is designed to support LPDDR6 memory.

Together, the use of a domestically produced advanced memory chip and Xiaomi’s proprietary processor is expected to give the Chinese smartphone maker greater control over key components in a premium device category where Huawei currently holds a strong position in China.

Xiaomi’s move into high-end foldables comes as Chinese smartphone manufacturers seek to capture more of the premium market and reduce exposure to overseas chip suppliers such as Qualcomm and MediaTek. Xiaomi previously said devices powered by its first proprietary Xring O1 processor had surpassed 1 million cumulative shipments across smartphones, tablets and watches.

CXMT’s financial performance also illustrates the rapid expansion of its business. In its first earnings report since listing, the company reported a sharp turnaround to profit in the first half of the year, while revenue surged 874% year on year to 150.3 billion yuan ($22.36 billion), according to the company.

CXMT said it had also shipped samples of LPDDR6 chips to customers for use in mobile devices, servers and smart cars. The expansion beyond smartphones is significant because memory is a critical component across the artificial intelligence, automotive and data-center industries. The company is seeking to establish itself as a credible domestic alternative to the world’s leading DRAM producers at a time when China is facing extensive U.S. restrictions on access to advanced semiconductor technology and equipment.

CXMT’s progress has also brought increased scrutiny from Washington. On Friday, the company sued the U.S. Department of Defense after being placed on a U.S. list of companies that Washington says are aiding China’s military.

The timing of the Xiaomi partnership gives CXMT an important commercial showcase for its latest technology. A successful deployment of LPDDR6 in a high-profile flagship device could help demonstrate that Chinese memory manufacturers are moving beyond lower-end applications and into increasingly sophisticated consumer electronics.

The arrangement offers Xiaomi a way to deepen control over the semiconductor components inside its most advanced smartphones. For China’s semiconductor industry, it marks another link in an increasingly domestic hardware stack, from processors and memory to the finished device.

The larger challenge will be whether CXMT can sustain its technological progress at scale and compete with Samsung and SK Hynix on performance, yields, cost, and production capacity. The Xiaomi 18 Fold is expected to provide an early test of how far that effort has advanced.

Bitcoin’s Correlation With Gold Tops 50% as Nasdaq Link Weakens, Grayscale Says

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Bitcoin is showing signs of a stronger alignment with traditional safe-haven assets as its relationship with gold strengthens, while its correlation with technology stocks continues to weaken.

According to Grayscale, Bitcoin’s correlation with gold has risen above 50%, highlighting a potential shift in how investors view the cryptocurrency amid changing market conditions and broader macroeconomic uncertainty.

In a note published around August 27, 2026, Grayscale Head of Research Zach Pandl reported that Bitcoin’s rolling 90-day correlation with gold has climbed above 50%, up from near zero at the start of the year.

At the same time, its correlation with the Nasdaq 100 has fallen from more than 60% to roughly 33%. The shift marks a notable change from the past year, when Bitcoin often moved in tandem with growth and AI-related equities.

Analysts suggest the change may reflect renewed investor attention on Bitcoin’s scarcity, monetary independence, and potential role as a store of value.

On the other hand, Grayscale frames the development as a possible return of the debasement trade, the idea that investors buy scarce assets such as gold and Bitcoin to protect against the long-term erosion of fiat currency purchasing power.

The macro backdrop supports the narrative. U.S. federal debt recently surpassed $40 trillion, and long-term Treasury yields have risen meaningfully over the past year amid ongoing fiscal deficits.

“Bitcoin has no central issuer, its issuance rules are transparent, and its maximum supply is fixed at 21 million tokens,” Pandl noted. In an environment where the long-term purchasing power of fiat currencies is being reassessed, he argued, Bitcoin can serve as a scarce, liquid alternative alongside gold.

Still, the current levels represent one of the stronger gold-Bitcoin links on record in recent years and a clear decoupling from the Nasdaq compared with earlier in 2026.

Market Implications

If the trend holds, it could support the case for Bitcoin as a portfolio diversifier rather than simply a leveraged bet on technology and risk appetite. Institutional investors who already allocate to gold may find the improved correlation profile more compelling for modest Bitcoin allocations.

However, Bitcoin remains far more volatile than gold and continues to face crypto-specific risks, including regulatory developments and liquidity conditions. Correlation shifts do not guarantee future price performance or a permanent change in market regime.

The data, drawn primarily from Bloomberg sources as of late August 2026, underscores a potential evolution in how the market prices Bitcoin less as “tech beta” and more as digital scarcity.

Whether the shift proves durable will depend on the path of fiscal policy, interest rates, and broader risk sentiment in the months ahead.

Outlook

Looking ahead, Bitcoin’s strengthening correlation with gold could become an important indicator of how the market perceives the asset.

If concerns over fiscal deficits, rising debt levels and fiat currency debasement persist, Bitcoin could continue attracting demand from investors seeking scarce assets outside the traditional financial system.

A sustained decline in Bitcoin’s correlation with the Nasdaq 100 could also strengthen the argument for its inclusion as a portfolio diversifier.

If the cryptocurrency continues to trade more independently of technology stocks, institutional investors may increasingly view Bitcoin as a complementary asset to gold rather than simply another high-beta risk asset.

U.S. GDP Growth Slows to 1.5% as PCE Inflation Hits 3.7%

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The American economy is moving through a landscape where the road ahead appears increasingly narrow. In the second quarter, U.S. gross domestic product grew at an annualized rate of 1.5%.

While the Personal Consumption Expenditures price index climbed 3.7% year over year in July. The figures paint a delicate economic portrait: growth is losing some of its force, yet inflation remains stubbornly alive beneath the surface.

GDP is often described as the heartbeat of an economy, and at 1.5%, that heartbeat has not stopped. Businesses are still producing, households are still spending, and economic activity continues to expand.

But the rhythm is softer than the rapid pace associated with periods of powerful economic acceleration. The figure suggests an economy navigating moderation rather than momentum.

Yet inflation refuses to disappear quietly. The 3.7% annual increase in the PCE price index is significant because PCE remains one of the Federal Reserve’s most closely watched measures of inflation.

Prices continuing to rise at such a pace means consumers are still confronting an economy where their money does not stretch as far as it once did. The economic landscape therefore carries a strange contradiction: the engine is slowing, but the heat inside it remains intense.

This combination creates a difficult equation for monetary policymakers. When growth weakens, the natural instinct is to consider whether financial conditions should become easier.

Lower interest rates can encourage borrowing, investment and consumption, potentially breathing new life into an economy losing momentum. But persistent inflation complicates that path. If policymakers loosen monetary policy too aggressively while prices remain elevated, they risk allowing inflationary pressure to regain strength.

The Federal Reserve therefore finds itself walking a narrow bridge between two cliffs. On one side lies slowing growth, which can eventually threaten employment, corporate earnings and consumer confidence. On the other lies persistent inflation, which can erode purchasing power and force interest rates to remain restrictive for longer.

For financial markets, this tension can be equally consequential. Investors often interpret slower economic growth as a reason to anticipate monetary easing, particularly when they believe inflation is moving toward the central bank’s long-term objective.

But when inflation remains elevated, expectations can shift quickly. Treasury yields, equities, the dollar, gold and cryptocurrencies can all respond to changing assumptions about the future path of interest rates.

The numbers therefore tell a story larger than two percentages. The 1.5% GDP growth rate whispers of an economy beginning to exhale. The 3.7% PCE reading answers with the persistent crackle of inflation.

Neither figure alone defines America’s economic future, but together they reveal an economy caught between cooling demand and lingering price pressure.

This is the delicate season of economic transition, when yesterday’s strength has not entirely disappeared and tomorrow’s weakness has not yet arrived. Policymakers must read the signals carefully, because every decision carries consequences.

For consumers, businesses and investors alike, the coming months may be less about spectacular growth or dramatic contraction and more about balance. The American economy continues forward, but its footsteps have become measured.

The question is whether inflation will finally surrender before growth loses too much momentum. For now, the economic horizon remains neither storm nor sunshine, but twilight—a place where the light of expansion fades gradually while the heat of inflation still burns.

Bitcoin Falls Below $77,000, $200 Million Long Positions Liquidated After Kelvin Warsh Comment on Inflation

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Bitcoin’s price has declined significantly, reigniting fear across the cryptocurrency market as the flagship asset falls below closely watched levels.

BTC came under renewed selling pressure after Federal Reserve Chair Kevin Warsh struck a hawkish tone on inflation at the Jackson Hole symposium, warning that the central bank still has work to do before inflation is firmly back on track toward its 2% target.

His remarks pushed expectations for a September rate hike higher, strengthening the dollar and Treasury yields while weighing on risk assets.

According to Bloomberg, the comments pushed short-term Treasury yields higher and cooled off some of the week’s risk-on momentum.

The reaction was swift in the crypto market, with Bitcoin falling below $77,000 and leveraged traders facing a wave of liquidations, roughly $200 million in bullish positions were caught on the wrong side of the move, within a 60-minute window, according to real-time market alerts.

The move pushed the price as low as approximately $76,900 during the session before a partial recovery. The decline followed a more than 20% climb from mid-August lows near $62,000–$64,000, with Bitcoin briefly reaching highs above $81,300 earlier in the week.

Resistance in the $80,000–$81,500 zone proved difficult to clear, and profit-taking combined with elevated leverage on the long side accelerated the pullback. Cascading liquidations in the derivatives market amplified the downward pressure as forced selling hit leveraged positions.

On August 28, Bitcoin opened near $80,300, traded as high as $81,300–$81,500, and closed the day around $77,800–$77,900, marking a roughly 3% daily decline.

By the morning of August 29, the price was consolidating in the $77,400–$77,500 range. The broader crypto market saw additional liquidations totaling hundreds of millions across major assets during the sell-off.

This episode highlights the continued role of leverage in short-term Bitcoin price swings. After a strong short-covering rally earlier in the month that forced billions in short liquidations, traders quickly rebuilt long exposure.

When momentum stalled, those positions became vulnerable to even modest percentage moves. Support levels near $76,500–$77,000 are now being closely watched, while a reclaim of $80,000 and higher remains the near-term hurdle for bulls seeking to resume the upward trend.

Market participants continue to monitor derivatives data, ETF flows, and broader risk sentiment for signals on whether the correction deepens or stabilizes.

As Bitcoin trades below the $80,000 critical zone, Crypto analyst Benjamin Cowen stated that the next one to two weeks could determine whether the rally is a true breakout or another bear market takeout.

He says that the market is now focused on whether Bitcoin can hold above the low to-mid $80,000s, with his key line being $85,000.

If Bitcoin starts accepting on multiple weekly closes in the mid-80s, it really calls into question the validity of the continuation of the bear market”, Cowen said.

Also, prominent crypto analyst Michael Van Poppe revised his view on Bitcoin after a swift rejection at $78,000, indicating short-term weakness instead of the expected quick bounce.

He highlights $75,800–$76,200 and $74,000 as key support zones likely to attract buying interest and serve as accumulation levels if the downtrend persists, referencing similar liquidation wicks from the prior week.

Amidst Bitcoin price decline Strategy CEO Michael Saylor on X, highlighted the attractive yields offered by MicroStrategy’s securities, arguing that the company’s Bitcoin-backed capital strategy can deliver significantly higher returns than traditional fixed-income investments.

In a chart titled “Effective Yield” and dated August 27, 2026, Saylor showed MicroStrategy’s preferred securities outperforming comparable credit ETFs. The chart placed STRD at 13.54%, STRC at 12.24%, STRK at 10.85%, and STRF at 9.75%, compared with 5.77% for HYG and yields below 6% for several other credit ETFs.

The comparison underscores Saylor’s broader “Bitcoin Standard” thesis, in which corporate structures leverage Bitcoin holdings to create income-generating securities with yields that can exceed those available in conventional fixed-income markets.

Through MicroStrategy’s strategy, Saylor continues to position Bitcoin not only as a long-term store of value but also as an asset that can underpin innovative forms of corporate financing and potentially generate enhanced returns for investors.

Outlook

The near-term outlook for Bitcoin remains mixed as traders assess whether the latest pullback is a healthy correction or the beginning of a deeper reversal.

The $75,800–$77,000 region has emerged as an important support zone, with a sustained break below it potentially exposing BTC to further downside toward the $74,000 level highlighted by analysts.

Traders are likely to remain sensitive to Federal Reserve policy expectations, ETF flows, Treasury yields, the U.S. dollar and derivatives positioning. Continued deleveraging could create additional short-term volatility, although a reduction in excessive leverage could also provide a healthier foundation for a subsequent recovery.