ITK Daily | May 2

ITK Daily | May 2

AUKUS, RFK Jr., Musk vs. Bezos, Concerts, Adrian Newey, plus 1,000 more actionable insights.

ITK Daily is geopolitical business news + intelligence for comms pros.

Always Be Communicating.

Happy Thursday.

Here’s today’s ITK Daily:

*** Globalization + Geopolitics ***

Why Xi Jinping is afraid to unleash China’s consumers: The pressure on Beijing to find a new growth model is acute but the president seems resistant to deeper economic reform. FT

Over 90 percent of Americans see China as a rival or adversary of the United States, and a whopping eight in 10 Americans hold a negative opinion of China, according to a new study from the Pew Research Center.

China is using TikTok to ‘spy on’ Americans, say 46% of people polled: The Reuters/Ipsos poll showed that Republicans were more likely than Democrats to think China was using the app to sway US opinions.

Analysis: Xi Jinping sends a message but no flowers to Antony Blinken: China's symbolism indicates that relations with US.are deteriorating further. Nikkei

Report: China’s propaganda units harvest data from overseas tech firms: Beijing’s propaganda engine is pulling data from Chinese tech firms, including popular shopping and gaming apps with hundreds of millions of US users, researchers say. WP

US imposes sanctions on Chinese companies for aiding Russia’s war effort: NYT reports the penalties came after top Biden administration officials warned China not to help Moscow restock its arsenal to attack Ukraine.

Beijing braces for a rematch of Trump vs. China: Officials are preparing for the potential of more turbulent US relations and another trade war should Trump get re-elected. WSJ

Is Bougainville the next battleground between China and the US? WP

China flexes muscle at sea as new aircraft carrier starts trials: NHK reports the move follows water cannon blasts on Philippine ships, islet tensions with Japan.

China launches rockets from sea in bid to win the space race: Offshore launches can improve takeoff positioning and save money on transporting rockets, but there are logistical challenges. Bloomberg

As South Korea comes knocking — will AUKUS become the Asian NATO? Several Pacific nations are interested in joining Britain, America and Australia’s security pact to work on weapons and tech. Is it worth China’s wrath? The Times

South Korea explores defense tech cooperation with AUKUS: NHK reports Seoul's defense and foreign ministers discuss deeper collaboration in Australia.

Japan weighs regulating AI developers, following US and EU: Tokyo faces challenge of balancing safety and innovation. Nikkei

Fortune: Japan has had so many bear attacks in the past year it’s turning to AI to act as a warning system

Bloomberg: Microsoft’s CEO adds AI for Thailand on southeast Asia tour

+ OpenAI backer to set up Azure data center in kingdom

+ Global tech firms jockey for position in fast-growing region

Bloomberg: US and Saudis near defense pact meant to reshape Middle East

+ Plan would offer incentives for Israel to end war with Hamas

+ Accord would pave the way for Saudis to get advanced weapons

In Russia’s backyard, Georgians protest against Moscow-inspired ‘foreign agents’ bill: WSJ reports government opponents say proposals for a restrictive new political-funding law represent a Russian ploy to weaken growing ties between the ex-Soviet state and Europe.

France shows its anger on May Day ahead of Paris Olympics: WP reports demands for wage hikes, chants for Gaza and a smattering of calls to extinguish the Olympics flame echoed in the streets of Paris on Wednesday, as traditional May Day labor rights marches melded with pro-Palestinian protests and anti-Olympics sentiment.

May Day: Police say 120,000 march in France, union claims 200,000: Le Monde reports there were skirmishes between police and protesters in Paris, with 45 arrests made in the capital.

Rishi Sunak's last card against a predicted electoral defeat: immigration: Le Monde reports the British prime minister is counting on the Safety of Rwanda Act, passed by the Parliament on April 23, to boost the Conservative Party's popularity ahead of the local elections on May 2, where polls predict a Labour victory.

6m tonnes: The amount of steel that Britain produces annually, down from 30m in 1970.

Artemis Accords signatories will meet in Montreal this month to discuss best practices and guidelines for responsible and sustainable space exploration. The annual meeting for the 39 nations who have signed onto the non-binding agreement is a follow-on to last year’s gathering in Poland and will allow officials to come together ahead of the IAC meeting in Milan this fall.  

Why the military can’t trust AI: Large language models can make bad decisions—and could trigger nuclear war. Max Lamparth + Jacquelyn Schneider

+ When they tested LLMs from OpenAI, Anthropic and Meta in situations like simulated war games, the pair found the AIs suggested escalation, arms races, conflict — and even use of nuclear weapons — over alternatives.

+ "It is practically impossible for an LLM to be taught solely on vetted high-quality data," Schneider and Lamparth write.

+ The Space Force paused use of generative AI in September 2023.

***  US Politics + Elections ***

WSJ: Marjorie Taylor Greene to force vote next week on ousting Speaker Mike Johnson

Biden’s electoral college challenge: How demographic change is scrambling the geography of the 2024 presidential race. 
Ronald Brownstein

Federal money is all over Milwaukee. Biden hopes voters will notice. NYT reports White House officials have barnstormed Wisconsin to make the connection between big changes and their signature laws.

Politico: RFK Jr. is all over conservative media. Trump’s camp is concerned.

The Republicans who still haven’t endorsed Donald Trump: Economist reports more than a quarter of the Senate Republican caucus has yet to endorse Trump. Even in the less august House of Representatives, more than 18% of Republicans have yet to offer official endorsements. 

Adults, not students, are America’s problem: Campus protests are being routinely mishandled. Edward Luce

United coordinated with Senators, lobbyists to undercut Delta Bloomberg

The tech billionaires who helped ban TikTok want to write AI rules for Trump: The tech moguls and defense contractors behind the Hill and Valley Forum aim to expand their impact, prepping an executive order that would dismantle the Biden administration’s rules on artificial intelligence. WP

ICYMI: Yesterday, Senators Mark Warner (D-VA) and Thom Tillis (R-NC) introduced the Secure Artificial Intelligence Act of 2024, which aims to enhance the tracking and processing of security and safety incidents and risks associated with artificial intelligence.

The Center for AI Policy (CAIP) wholeheartedly endorses Senator Warner's and Senator Tillis' proposed legislation.

Please note a quote from CAIP's executive director was included in the press release announcing the Secure Artificial Intelligence Act of 2024.

"AI security is too big of a task for any one company to tackle alone," said Jason Green-Lowe, Executive Director of the Center for AI Policy. "AI developers have much to learn from each other about how to keep their systems safe, and it's high time they started sharing that information. That's why the Center for AI Policy is pleased to see Congress coordinating a standard format and shared database for AI incident reporting. We firmly support Senator Warner and Tillis's new bill."

You can access the full press release and information on the proposed bill here.

*** Disruption + Innovation ***

How AI is testing the boundaries of human intelligence: Welcome to AI v the Mind, a new series from the BBC that will explore the limits of artificial intelligence by pitting it against the most powerful thinking machines on the planet – the human brain. BBC

Most brain monitors sold to consumers don't keep your data private: New Scientist reports a survey found data privacy problems with the vast majority of 30 companies that sell neurotechnology devices to consumers. New US state laws aim to change that.

Bloomberg: Microsoft boosts responsible AI team from 350 to 400 personnel

+ Tech companies are under pressure to make sure AI is safe

+ Company disclosed headcount in new AI transparency report

AI startup Anthropic debuts Claude chatbot as an iPhone app: Bloomberg reports the OpenAI rival is pushing more aggressively to make its chatbot available to users no matter where they are.

Five myths about generative AI that leaders should know: Experts from Wharton and the “Magnificent Seven” tech companies debunk five misconceptions about gen AI that could stand in the way of implementation. K@W

AI is helping automate one of the world’s most gruesome jobs: Bloomberg reports advances in computer vision and machine learning allow robots to perform some of the high precision tasks required to butcher beef and chicken.

Bloomberg: AI to reduce, alter staffing at 1 of 4 Texas firms, survey shows

+ About 11% of firms say AI to reduce employment: Dallas Fed

+ Workers in low- and mid-skill jobs will see biggest impact

The last stock photographers await their fate under generative AI: Digital photography ravaged the business of taking and licensing commercial photos. Some fear AI will kill it off entirely. WSJ

The Financial Times’ deal with OpenAI highlights an uneasy future for both media and tech: The nontransparent nature of the licensing agreements could spell bad news for smaller publications. FC

Amazon gets more fuel for AI race: Capital spending will go up ‘meaningfully,’ but record operating margins driven by retail, cloud and advertising ease the pain. WSJ

Fortune: For AI startups, a billion-dollar dilemma: Why lofty valuations could be a hurdle in the race for talent

+ @tomfgoodwin: Good joke from the FT comments today: What's an AI startup?  It's a data center with a liar standing in front of it. The AI hype bubble seems absolutely nuts now, it’s like the whole world is an episode of Silicon Valley.

Microsoft to power data centres with big Brookfield renewables deal: FT reports the purchase of 10.5GW of electricity highlights rising energy needs of AI and cloud computing.

+ The energy expenditure of data centers by 2026 is expected to equal Japan’s total electricity usage.

Intel is betting $28 billion on making Ohio a global chips capital: The stagnating chipmaker is attempting a comeback with massive spending on new factories and lots of help from the Biden administration. Bloomberg

Roblox is rolling out virtual billboards with video advertisements.

Exxon to close megadeal; Pioneer CEO to be barred from Exxon board: WSJ reports the $60 billion deal is set to close following a deal with the Federal Trade Commission, which plans to allege Pioneer CEO Scott Sheffield discussed coordinating oil-production levels with other producers and OPEC.

BP goes deeper into Gulf of Mexico, after triumphs and tragedy: WSJ reports while rivals bank on big new plays in Guyana and Namibia, the new BP CEO is focused on heartland waters off the coast of Louisiana and Texas.

Elon Musk vs. Jeff Bezos is America’s new moon race: The billionaires’ dueling space companies anchor NASA's plan to bring astronauts to the moon for the first time in a half-century. Bloomberg

Brazil’s Embraer plots a new 737-sized jet to rival Boeing: WSJ reports he Brazilian aircraft maker has been sounding out potential partners and financial backers on plans for a new narrow-body aircraft.

Fortune: Pennsylvania vs. Perrier: Your beloved mineral water is actually a soda, court rules

*** Culture ***

Concert ticket system is 'broken,' say artists. But some experts say targeting resellers isn't the fix: More than 250 artists signed a letter last Thursday calling out 'predatory' re-sellers. CBC

Art isn’t supposed to make you comfortable Jen Silverman

Who are the hosts of the Met Gala? This year, Anna Wintour, Zendaya, Jennifer Lopez, Chris Hemsworth and Bad Bunny will head up the gala taking place on Monday.

*** Sport ***

Adrian Newey’s Red Bull exit could have domino effect that upturns F1 grid Giles Richards

Ayrton Senna: 30 years since F1 lost its uncompromising, complex genius Giles Richards

Who is Stan Smith? New film uncovers tennis and footwear legend: The former player, once a world No 1, also inspired a defining Adidas shoe and is the subject of a revealing new documentary. Guardian


Enjoy the ride + plan accordingly.

-Marc