AI rules in New York, ads in ChatGPT and power for AI
AI launches, business news and the market in one short read, each with its date and the original source. Plain words, no hype.
Kosdaq · Korea small caps
+2.98%
Nikkei 225 · Japan
+1.05%
Topix · Japan
+0.92%
S&P/ASX 200 · Australia
+0.57%
Kospi · Korea
−0.89%
AI4 stories
NYC Council · Oct 5
10
AI bills heard by the New York City Council
Top story · Oct 5 · CBS New York
New York City held a hearing on 10 AI bills
What it means for you: If you use AI tools with New York customers, watch these bills: rules on chatbot data and testing would reach the vendors you buy from first.
Full story
The New York City Council met on Monday to hear testimony on 10 bills about AI, with OpenAI, Google and Meta among the companies testifying. The bills include third-party checks of AI systems, a way for a person to shut an AI model down, chatbot data privacy and a ban on unauthorized AI depictions of public officials. Speaker Julie Menin asked the companies whether they would bear legal responsibility if one of their models caused serious financial harm.
What it means for you: ChatGPT is becoming an ad channel, so it is worth knowing how your products and your competitors show up there.
Full story
OpenAI said it will start testing visual ads during image generation in ChatGPT later in October, in the US, with a first group of advertisers. The ads are labeled and kept separate from the image being made. OpenAI also added ways for advertisers to measure results, through partners such as Hightouch, Tealium and LiveRamp, and said ChatGPT reaches 1.2 billion people a week.
Cohere released North 2, with agent memory and spending caps
What it means for you: Spending caps per user and per agent are the control to ask any AI vendor for before an agent can run up a bill.
Full story
Cohere launched North 2, a platform for business AI agents that remember context between sessions and pull a person in when a step needs approval. Admins can track token use down to each user and agent and cap it. It runs on premises, in a private cloud or fully offline, connects to Slack, GitHub, SharePoint and OneDrive, and Cohere plans to add PitchBook, S&P Global and FactSet.
new nuclear capacity Google will buy over 20 years
Oct 6 · Google Cloud
Google signed a 20-year nuclear power deal
What it means for you: Power is becoming a long-term cost of running AI, and the largest companies are locking it up for decades.
Full story
Google agreed to buy 890 megawatts of new nuclear capacity from Constellation for 20 years, made by upgrading 11 existing reactors in Illinois, Pennsylvania and New Jersey, with the first upgrade expected by 2028. A separate 15-year deal covers 2,700 megawatts. Constellation will invest more than $4.3 billion, and the two companies will use Google Cloud and Gemini Enterprise for grid planning and equipment monitoring.
The AI stories today are about who controls the systems: a city asking for testing and an off switch, an agent platform selling spending caps, and a chatbot turning into an ad channel. The business news is about costs, with prices and long-term rates both high. Together they make the same case we make on every build: know what a tool costs to run and who can stop it.
Business3 stories
ISM Services · Oct 5
74
prices index for services in September, highest since July 2022
Oct 5 · ISM via PR Newswire
Service businesses paid the highest prices since 2022
What it means for you: If your own costs rose this fall, you are not alone, and it is a good month to review your prices and your suppliers.
Full story
The ISM Services index was 54.9 in September, down from 55.4 in August and growing for a 27th month. Its prices index rose to 74, the highest since July 2022, and fuel was reported up in price for an eighth month. The employment index moved back above 50, to 50.1, for the first time in three months.
10-year yield at its peak on Monday, highest since 2002
Oct 5 · CNBC
The 10-year Treasury yield touched its highest level since 2002
What it means for you: Long-term borrowing, from mortgages to equipment loans, tends to follow this yield, so plans that count on cheaper credit soon may need a second look.
Full story
During Monday's session the 10-year Treasury yield reached 5.349%, its highest since April 3, 2002, before last trading at 5.307%. The 30-year yield touched 5.703% earlier in the day. Traders put the odds that the Federal Reserve holds rates at its next meeting at nearly 82%, and the minutes of its September meeting are due Wednesday.
Truckers and farmers can use cheaper dyed diesel on highways
What it means for you: If you run trucks or pay freight, ask your carriers whether this lowers your fuel surcharges before year end.
Full story
President Trump signed an executive order on Monday evening that temporarily allows truckers and farmers to use red-dyed diesel, which is exempt from highway fuel taxes and is usually kept for farm use. Related taxes on the fuel are deferred through the end of this year. The order aims to bring down record-high fuel costs.
Asia closed mostly higher after a record day for U.S. tech
Tuesday, October 6: percent change
Asia closes, Tuesday
Kosdaq · Korea small caps+2.98%
Nikkei 225 · Japan+1.05%
Topix · Japan+0.92%
S&P/ASX 200 · Australia+0.57%
Kospi · Korea−0.89%
U.S. close, Monday
S&P 500 tech sector · record close+0.7%
Our view: Asian stocks followed Monday's gains in AI-linked U.S. shares, while bond yields eased slightly from multi-decade highs. With yields this high, a rise in borrowing costs can quickly reverse moves like these.
Full story
On Tuesday, Japan's Nikkei 225 rose 1.05% to close at 70,683.98, the Topix added 0.92% and Australia's S&P/ASX 200 gained 0.57% to 8,735.7. South Korea's Kospi fell 0.89% to 6,941.39 while the small-cap Kosdaq rose 2.98%; mainland China was closed for a holiday. On Monday the tech sector of the S&P 500 closed at a record, up 0.7%, and early Tuesday, not at a close, the 10-year Treasury yield had eased 5 basis points.
This is a summary of the news, not investment advice. Markets move, and past moves do not predict the next one.
If you run one of these
Real estate: Real estate was among the service industries reporting growth in September, but a 10-year yield at a 2002 high is the number your buyers' mortgage rates follow.
Investment trackers: North 2 plans connections to PitchBook, S&P Global and FactSet, so agents that read market data inside your own systems are getting closer.
Family offices: North 2 can run fully offline with per-user spending caps, the setup to ask about before an agent sees private holdings.
Free, any time
Ask us anything about AI for your business. Or send us the one task your team repeats every week, and we will tell you what we would automate first.