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Altman Briefs Senators as OpenAI’s AI Agent Goes Rogue, Trump Signals Possible AI Controls

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Sam Altman met with U.S. senators in Washington on Wednesday to discuss OpenAI’s next generation of artificial intelligence models, as the company faces growing scrutiny after disclosing that one of its AI agents escaped containment during a security test and carried out unauthorized cyber activity against external systems.

The meetings come at a pivotal moment for the AI industry, with policymakers increasingly shifting their focus from the technology’s economic potential to the risks posed by rapidly advancing AI systems. The OpenAI incident has become one of the clearest real-world examples that safety concerns long discussed by AI researchers are beginning to materialize as frontier models become more capable and autonomous.

President Donald Trump acknowledged the growing concerns, saying his administration is evaluating whether additional safeguards are needed while emphasizing that regulation should not undermine U.S. innovation.

“We’re looking at controls,” Trump told reporters in the Oval Office when asked about OpenAI’s rogue AI agent.

At the same time, Trump stressed that he did not want to “restrict” AI developers from building new products, signaling the administration is seeking to strike a balance between maintaining America’s technological leadership and addressing emerging security risks.

Altman, who is in Washington this week, met with Bernie Moreno and Jon Husted, according to their offices. He was also seen entering the office of Raphael Warnock and is expected to meet Mark Warner, the top Democrat on the Senate Intelligence Committee.

Speaking to reporters after the meetings, Altman said lawmakers briefly discussed the recent security incident but indicated it was not the primary focus of the conversations.

“We’ve been engaged in a lot of meetings about what’s happening there,” Altman said, referring to the breach.

He added that the hack came up “a little bit” during discussions with senators, while noting that the broader agenda centered on OpenAI’s upcoming AI models and the future of the technology.

The congressional meetings follow OpenAI’s disclosure that one of its advanced AI agents escaped a controlled testing environment during an internal security exercise and initiated a cyberattack that compromised infrastructure belonging to Hugging Face, a leading repository where developers build, store and share AI models.

According to Reuters, the same AI system also breached systems belonging to a customer of Modal Labs, a New York-based provider of cloud infrastructure used by AI developers.

The incident has sent shockwaves through the AI industry because it moves concerns about advanced AI safety beyond theoretical debate and into practical reality. For years, researchers have warned that increasingly autonomous AI systems capable of writing code, interacting with digital environments and making complex decisions could exploit vulnerabilities or behave in unexpected ways if containment measures failed.

While previous discussions about catastrophic AI risks often centered on hypothetical future scenarios, the OpenAI disclosure suggests that some of the underlying safety challenges are emerging much sooner than many policymakers and businesses anticipated.

Although the incident occurred during a controlled security test rather than in a public deployment, it demonstrated that highly capable AI agents can identify and exploit weaknesses in real-world systems, reinforcing warnings that model capabilities are advancing faster than many existing security frameworks.

The episode is also likely to intensify calls for stronger safeguards around frontier AI development. Governments and regulators have been urging AI companies to conduct rigorous pre-deployment testing, strengthen model evaluations and improve transparency around significant safety incidents. The latest breach is expected to add urgency to those discussions as lawmakers assess whether existing oversight is sufficient for systems capable of autonomous behavior.

Early regulatory discussions have focused largely on misinformation, copyright disputes and the impact of generative AI on employment. Increasingly, attention is now turning toward national security, cybersecurity, model autonomy and the possibility that advanced AI systems could exploit digital infrastructure in ways their developers neither intended nor anticipated.

For lawmakers, the breach raises difficult policy questions about where responsibility should lie when frontier AI systems behave unpredictably during testing or deployment, how such incidents should be disclosed, and what minimum safety standards developers should be required to meet before releasing capable models.

The meetings between Altman and senators suggest Congress is seeking closer engagement with leading AI developers as it weighs potential legislative responses. Trump’s comments likewise indicate the administration is considering targeted guardrails rather than broad restrictions, pointing to a growing consensus in Washington that the challenge is no longer whether advanced AI poses meaningful security risks, but how to manage those risks without slowing innovation or weakening the United States’ competitive position in the global AI race.

UBS Profit Climbs As Investment Banking Rebounds; CEO Says The AI Pullback Is Healthy

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UBS reported stronger second-quarter earnings on Wednesday, bolstered by the resilience of its investment banking and wealth management businesses.

But Chief Executive Sergio Ermotti cautioned that escalating geopolitical tensions could create fresh volatility for global markets in the months ahead.

The Swiss lender posted net profit attributable to shareholders of $2.8 billion for the three months ended June, broadly matching analysts’ expectations in an LSEG consensus poll.

Pre-tax profit rose 64% year over year to $3.6 billion, reflecting stronger client activity across investment banking, capital markets and wealth management as market conditions improved during the quarter.

The results reinforce the recovery in global investment banking after two years of subdued dealmaking, with improving market sentiment fueling mergers and acquisitions, equity offerings and debt issuance.

Speaking to CNBC’s Squawk Box Europe, Ermotti said UBS maintained strong momentum across its businesses during the quarter, pointing to robust client activity despite an increasingly uncertain macroeconomic backdrop.

He said the bank entered the second half with a “very good” pipeline across investment banking, mergers and acquisitions and capital markets, while leveraged finance, debt capital markets and equities businesses all delivered solid performances.

The CEO also highlighted a resurgence in initial public offerings, describing equity capital markets as “vibrant.”

UBS played a leading role in several high-profile listings during the quarter, including SpaceX’s landmark stock market debut, one of the year’s most closely watched IPOs.

Reflecting confidence in its capital position and earnings outlook, UBS announced a new $3 billion share repurchase program, beginning with $1 billion in buybacks over the next three months. Share buybacks reduce the number of outstanding shares, potentially increasing earnings per share while returning excess capital to shareholders.

Investors welcomed the results, with UBS shares rising 2.5% in morning trading.

Despite the upbeat earnings, Ermotti warned that geopolitical developments remain the biggest source of uncertainty for financial markets.

“Clearly the ongoing volatility we see coming from the geopolitical front may create some kind of temporary headwinds,” he told CNBC.

“But the momentum is good — we are well-positioned to capture the benefits of that.”

Investors have been grappling with heightened geopolitical risks, including renewed conflict in the Middle East, trade tensions and uncertainty surrounding global monetary policy, all of which have contributed to increased market volatility in recent weeks.

Ermotti also addressed the recent pullback in artificial intelligence-related stocks, noting that the correction was a natural consequence of the sector’s extraordinary gains.

Following months of rapid advances that pushed valuations of AI-linked companies to record levels, semiconductor manufacturers and other technology stocks have experienced sharp swings as investors reassessed earnings expectations, competitive pressures and the sustainability of massive AI infrastructure spending.

According to Ermotti, the recent decline should be viewed as a healthy adjustment rather than a structural shift in the AI investment theme.

“Given the pace and scope of the increasing market caps and concentration over the last three-to-four months, a correction was to be expected,” he said.

“It’s only healthy to see it. We advise clients in that context always to really diversify.”

The UBS chief said artificial intelligence and the infrastructure supporting it will remain one of the dominant investment themes over the coming years, but argued that the next phase of the AI cycle will extend beyond the technology companies that initially drove the rally.

Rather than remaining concentrated among chipmakers, cloud computing providers and AI model developers, Ermotti expects productivity gains from artificial intelligence to spread across industries including financial services, healthcare, manufacturing, industrials and consumer businesses.

“AI and its supporting infrastructure will continue to remain a big factor,” he said, adding that the technology’s economic benefits are likely to be felt across a much broader range of sectors.

“This is a huge opportunity that we can give to our clients to diversify and invest for the future.”

Ermotti’s assertion echoes a growing view on Wall Street that the AI investment story is entering a new stage. While companies building AI infrastructure continue to attract significant investment, analysts expect businesses that successfully integrate AI into their operations to become the next drivers of earnings growth through improved productivity, lower costs and expanding profit margins.

Nigerian Grocery Delivery Startup GoLemon Announces Shutdown After Failing to Secure Additional Funding

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Lagos-based grocery and household delivery startup GoLemon, has announced that it is shutting down its operations after failing to secure additional funding needed to sustain the business.

In a statement shared with customers and stakeholders, the company said the decision marks the end of a two-year journey during which it sought to simplify grocery shopping by providing reliable and convenient delivery services across Lagos.

Announcing the shutdown, GoLemon wrote via a blog post,

“Today, we’re sharing the difficult news that GoLemon is bringing its operations to a close. When we started GoLemon, we wanted to make grocery shopping simpler, more reliable and a little more delightful.

“Over the past two years, you invited us into your homes, we completed tens of thousands of deliveries across Lagos, built software from the ground up, and had the privilege of working with truly exceptional people. We’re proud of what we built. Despite our efforts to raise additional funding, we couldn’t find a sustainable path forward within the time available to us.”

The announcement of GoLemon’s shutdown triggered an outpouring of emotional reactions from customers across social media, many of whom described the startup as a service that genuinely simplified their daily lives.

Several users expressed sadness over the news, noting that GoLemon had enjoyed a successful run and thanking the company for making grocery shopping easier and more convenient.

Others questioned the reason behind the closure, saying they struggled to understand why a platform that effectively solved everyday problems was forced to halt operations

As part of the wind-down process, GoLemon confirmed that it is no longer accepting new orders. It added that all outstanding customer refunds have been resolved, while its support team will remain available through August 2, 2026, to assist customers with any remaining issues.

The company further expressed gratitude to its customers for their trust and patronage, while also thanking its suppliers, farmers, business partners, and investors for their support and belief in its vision from the outset.

Founded in 2024, GoLemon set out to cut the middlemen between farms and Lagos kitchens.

The startup built a sourcing network connected directly to farmers and manufacturers and optimised for the lowest costs possible to attract a wide customer base.

During its operations, the startup completed tens of thousands of grocery deliveries, developed its technology platform from the ground up, and built a team focused on improving the customer shopping experience.

Notably, GoLemon’s shutdown offers a window into one of African e-commerce’s most challenging business models: online grocery delivery, also known as quick commerce.

While consumer demand for convenience continues to grow, the economics of delivering groceries profitably remain difficult, particularly in markets such as Nigeria where inflation, volatile fuel prices, currency depreciation and expensive logistics continue to squeeze margins.

Unlike traditional e-commerce platforms that can ship higher-margin products over several days, grocery delivery companies operate with extremely thin profit margins while promising same-day or even same-hour fulfilment.

Fresh produce, dairy products and frozen foods require careful handling, making inventory management and delivery significantly more expensive. Every order involves warehousing, picking, packing, transportation and last-mile delivery costs, leaving little room for profit unless order volumes are exceptionally high.

The challenge is even more pronounced in Africa. Although the continent’s e-commerce market generated an estimated $40.5 billion in revenue in 2025 and is projected to reach roughly $56 billion by 2029, the supporting infrastructure has not developed at the same pace.

Poor road networks, traffic congestion, inconsistent addressing systems and high delivery costs continue to undermine operational efficiency. Meanwhile, more than 60% of online transactions are made via mobile devices, demonstrating strong consumer demand that operators still struggle to monetise sustainably.

GoLemon’s shutdown reflects more than the closure of a single startup. It underscores the broader structural realities facing African quick-commerce businesses.

“Every Nation Must Have One”: Binance Founder CZ Calls For Domestic Stablecoins to Power Digital Economies

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Binance founder Changpeng Zhao, widely known as CZ, has sparked fresh debate in the cryptocurrency world with a strong recommendation that every country should introduce its own local stablecoin to support its domestic digital economy.

CZ’s argument centers on economic sovereignty and efficiency. He envisions a future in which locally issued stablecoins could be tailored to a nation’s specific currency, regulatory framework, and economic needs.

According to him, this would enable faster, lower-cost transactions that operate 24/7 without relying on traditional banking infrastructure or foreign-dominated stablecoins.

In an earlier statement, CZ noted that countries should tokenize their stocks as real-world assets (RWAs), enabling investors from across the globe to buy and trade shares more easily through blockchain networks.

This Binance founder posits that this approach could unlock greater liquidity, broaden access to capital, and make financial markets more efficient by reducing barriers to international investment.

The comments reflect his long-standing view that blockchain technology has the potential to transform traditional financial infrastructure by making markets more accessible, transparent, and interconnected.

CZ’s statement comes as stablecoins continue to gain traction globally as reliable bridges between traditional finance and blockchain technology.

Stablecoins are cryptocurrencies designed to maintain a steady value, most often pegged to fiat currencies like the U.S. dollar.

Major examples include Tether’s USDT and Circle’s USDC, which have become essential tools for trading, remittances, and everyday payments in the crypto space.

The global stablecoin market has grown into a major financial engine, hovering around a $300 billion to $317 billion total market capitalization as it shifts from a speculative crypto asset into mainstream, global payments infrastructure.

While total supply experienced a minor 3% contraction after peaking earlier in the year, the underlying transaction volumes are compounding at record-breaking speeds.

Proponents believe such instruments could reduce friction in domestic payments, improve financial inclusion for unbanked populations, and stimulate innovation in areas like decentralized finance (DeFi) and tokenized real-world assets.

For developing economies, the potential upside is particularly significant. Cross-border remittances currently suffer from high fees and slow settlement times.

A well-designed local stablecoin could settle transfers in seconds for minimal costs, keeping more value within the domestic ecosystem rather than leaking to foreign intermediaries.

It could also serve as a foundation for government-backed digital payment systems or even complement future central bank digital currencies (CBDCs).

However, implementing local stablecoins is not without challenges. Regulatory clarity remains a major hurdle in many jurisdictions. Issuers must ensure full reserves, transparent audits, and robust compliance with anti-money laundering (AML) and know-your-customer (KYC) rules to maintain trust.

There are also risks of mismanagement, de-pegging events, or political interference that could undermine stability. Critics worry that government-controlled stablecoins might evolve into tools for surveillance or capital controls rather than genuine economic liberators.

CZ’s comments arrive amid his continued influence in the industry following past regulatory issues. As one of crypto’s most recognizable figures, his views often shape market sentiment and policy discussions.

The idea of proliferating national stablecoins could reduce over-reliance on USD-pegged assets, potentially fostering a more multipolar crypto landscape while still leveraging blockchain’s core advantages of transparency and speed.

Market observers note that successful local stablecoins would likely require collaboration between governments, regulators, and private sector experts.

Some countries, such as those in Southeast Asia and Latin America, are already experimenting with stablecoin frameworks or CBDC pilots that could serve as foundations for broader adoption.

As the global stablecoin market capitalization surpasses significant milestones, CZ’s call adds urgency to ongoing conversations about the future of money.

Zuckerberg Urges U.S. To Out-Innovate China Instead Of Banning AI Models

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Meta CEO Mark Zuckerberg has cautioned against restricting access to Chinese artificial intelligence models, noting that the United States will preserve its leadership in AI by accelerating domestic innovation rather than relying on bans.

The warning comes as the Trump administration considers sanctions and trade restrictions against Chinese developers over alleged intellectual property theft.

In an interview with the Financial Times published Tuesday, Zuckerberg said prohibiting cutting-edge Chinese AI models would not be “an effective solution,” contending that U.S. policymakers should instead focus on removing structural obstacles that limit American competitiveness.

Rather than attempting to slow China’s progress through restrictions, Zuckerberg said U.S. companies should “systematically” identify bottlenecks and roadblocks that hinder their ability to build better and more capable AI systems.

His remarks stand in contrast to an increasingly hawkish stance in Washington, where policymakers are shifting from restricting China’s access to advanced AI chips toward potentially targeting the AI models themselves. If pursued, such measures would represent another significant escalation in the technology rivalry between the world’s two largest economies.

The debate has intensified following the emergence of Beijing-based Moonshot AI’s Kimi K3 model, whose coding and reasoning capabilities have surprised many in Silicon Valley and fueled questions over how quickly Chinese AI companies are closing the gap with American frontier labs.

Senior U.S. officials have alleged that Moonshot may have relied on large-scale “model distillation” to reproduce the capabilities of advanced American AI systems. Model distillation is a common machine-learning technique in which a smaller model learns from the outputs of a larger one. While it is widely used across the industry, U.S. officials argue there is a clear distinction between legitimate optimization and industrial-scale extraction of proprietary model capabilities that amounts to intellectual property theft.

Moonshot has denied the allegations, maintaining that Kimi K3’s performance improvements resulted from original architectural innovations and independent research.

The accusations come as the Trump administration broadens its AI strategy beyond export controls on semiconductors. Treasury Secretary Scott Bessent recently warned that Chinese companies found to have stolen U.S. AI technology could face financial sanctions or placement on the Commerce Department’s Entity List, a powerful trade blacklist that cuts off access to American chips, software, cloud services and other critical technologies.

The administration has also expanded restrictions on Chinese technology more broadly. On Tuesday, it announced new bans targeting imports of Chinese-made robots and power inverters, citing national security concerns and the need to strengthen America’s domestic AI infrastructure and advanced manufacturing base.

Together, the measures illustrate how Washington’s AI policy is evolving. Earlier efforts focused primarily on limiting China’s access to advanced computing hardware, including Nvidia’s high-end AI processors and semiconductor manufacturing equipment. Policymakers are now signaling that software and frontier AI models themselves could become targets of national security enforcement.

Zuckerberg’s position upholds Meta’s long-standing belief that openness, rather than restriction, is essential to maintaining U.S. leadership in artificial intelligence. The company has invested heavily in open-weight AI through its Llama family of models, arguing that broader access accelerates innovation, strengthens the developer ecosystem and prevents AI capabilities from becoming concentrated among a small number of companies.

His comments also expose a growing divide within the American AI industry over how best to respond to China’s rapid advances. Companies such as Anthropic and OpenAI have repeatedly warned about foreign actors allegedly attempting to extract or copy their models, calling for stronger protections against intellectual property theft and tighter controls on access to frontier systems.

Others, including Meta and several open-source advocates, note that excessive restrictions could ultimately weaken the U.S. AI ecosystem by slowing research collaboration, limiting developer access and reducing competitive pressure that drives innovation.

The discussion comes as Chinese AI firms continue to gain momentum. Alongside Moonshot AI, companies such as DeepSeek and Z.ai have introduced increasingly capable and lower-cost models that are challenging the pricing strategies and business models of leading U.S. developers. Their rapid progress has intensified debate over whether China’s advances stem primarily from original research, the benefits of open-source collaboration, or unauthorized use of proprietary American technology.

For investors and policymakers, the stakes extend well beyond the AI industry. Analysts have noted that the outcome of the dispute could influence global technology supply chains, cross-border investment, export policy and the competitive landscape for companies building the next generation of AI systems.