OpenAI Co-founder Secures $3 Billion While Nvidia Microsoft Stocks Decline

The debate over artificial intelligence regulation is intensifying in Congress, with House Republicans pushing to include a federal AI preemption measure in the National Defense Authorization Act. This move aims to prevent states from enacting their own AI laws, instead establishing a federal framework. Lawmakers are linking this effort with child online safety legislation, such as the Kids Online Safety Act, hoping to garner broader support for the must-pass defense bill. However, this approach faces significant opposition; nearly 100 Democratic lawmakers in the Congressional Progressive Caucus, along with over 280 state lawmakers and 36 state attorneys general, argue that state laws are crucial for protecting consumers from AI harms like deepfakes and facial recognition issues. Critics worry that federal preemption could weaken existing state protections and prevent quick responses to evolving AI challenges. Amidst these regulatory discussions, the future direction of AI development itself is being re-evaluated. Ilya Sutskever, a co-founder of OpenAI, believes that simply scaling up computing power and data is no longer sufficient for significant AI advancement. He stated on the Dwarkesh Podcast that the industry now requires a renewed focus on fundamental research to enable AI models to learn and generalize as effectively as humans. Sutskever's new company, Safe Superintelligence (SSI), has secured $3 billion in funding, which he considers ample for groundbreaking research. SSI is dedicating all its resources to pure research, distinguishing itself from competitors who often balance research with commercial product development and user management. The financial markets are reflecting a mix of excitement and apprehension regarding AI's rapid growth. Concerns about a potential "AI bubble" and uncertainty surrounding the Federal Reserve's interest rate decisions are causing sharp stock market swings. While the AI trade has been robust since the release of ChatGPT, investors are now questioning the sustainability of this growth. Major tech companies, including Nvidia, Microsoft, and Meta, have experienced declines in their stock prices since early November. BlackRock expert Mike Pyle advises global investing in this AI era, emphasizing that while the US market has been a key driver, international markets offer valuable diversification and alpha insights for building resilient portfolios. Beyond market dynamics, AI is already transforming various sectors and raising ethical questions. A federal judge, U.S. District Judge Sara Ellis, recently criticized an immigration agent for using ChatGPT to draft a use-of-force report, highlighting concerns about credibility and accuracy, especially when body camera footage contradicted the AI-generated narrative. Experts deem this an inappropriate use of AI, stressing that such reports demand an officer's specific perspective. On the employment front, German insurance giant Allianz plans to eliminate up to 1,800 jobs, primarily in call centers within its Allianz Partners division, over the next 12 to 18 months due to AI automation replacing manual tasks. Despite these challenges, AI is also enhancing efficiency and customer experience. AI-powered customer support systems, for instance, offer instant, 24/7 responses and can resolve a significant portion of customer inquiries, providing a tenfold improvement in efficiency and availability compared to traditional methods. Similarly, AI is revolutionizing sales incentive compensation by using smart data validation, predictive forecasting, and real-time insights to optimize strategies and guide sales representatives. The senior living sector also anticipates AI becoming a key tool for sales and marketing by 2026, with discussions focusing on balancing efficiency with human values like empathy when deploying AI agents. IBJ Media has even launched a new podcast, "Authentic and Agentic," to help business and community leaders navigate AI's impact while maintaining human values.

Key Takeaways

• Congress is debating adding federal AI preemption to the National Defense Authorization Act, aiming to block state-level AI laws, often linked with child online safety legislation.
• Strong opposition exists to federal AI preemption from nearly 100 Democratic lawmakers, over 280 state lawmakers, and 36 state attorneys general, who argue states need to retain power to regulate AI harms.
• OpenAI co-founder Ilya Sutskever believes AI advancement now requires new research, not just increased computing power, and his new company, Safe Superintelligence (SSI), has raised $3 billion for pure research.
• Financial markets are experiencing volatility due to "AI bubble" fears and Federal Reserve uncertainty, with major tech companies like Nvidia, Microsoft, and Meta seeing stock price declines since November.
• BlackRock advises global investing in the AI era, emphasizing diversification beyond the US market to build resilient portfolios despite AI driving US equity performance.
• A federal judge criticized an immigration agent for using ChatGPT to write a use-of-force report, highlighting concerns about AI's accuracy and credibility in critical documentation.
• German insurer Allianz plans to cut up to 1,800 jobs, mainly in call centers within Allianz Partners, over the next 12-18 months due to AI automation replacing manual tasks.
• AI customer support offers significant advantages, providing instant 24/7 responses and resolving 60-70% of questions, leading to a tenfold improvement in efficiency and availability.
• AI is transforming sales incentive compensation by enabling faster, more accurate processes with smart data validation, predictive forecasting, and real-time insights.
• The senior living sector anticipates AI becoming a key tool for sales and marketing by 2026, with a focus on balancing efficiency with empathy when using AI for customer interactions.

Lawmakers link AI preemption with kids' online safety in defense bill

House Republicans plan to add a federal AI preemption measure to the National Defense Authorization Act. This measure would stop states from making their own AI laws and create a federal framework instead. They are combining this with efforts to protect children online, including the Kids Online Safety Act KOSA. Lawmakers hope this combination will gain broader support for the must-pass bill, which will be debated in the coming weeks.

West Virginia lawmakers oppose federal AI regulation takeover

Four West Virginia lawmakers joined 280 state lawmakers nationwide to oppose federal control over AI regulation. They signed a letter arguing that states should keep the power to create their own AI laws. Lawmakers worry that federal preemption could weaken existing state protections and benefit large tech companies. This opposition comes as Congress considers adding a similar measure to the National Defense Authorization Act.

Progressive Caucus rejects federal AI preemption in defense bill

The Congressional Progressive Caucus, a group of nearly 100 Democratic lawmakers, announced its opposition to adding an AI preemption measure to the National Defense Authorization Act. They believe state laws are currently the only way to protect consumers from AI harms like deepfakes and facial recognition issues. Over 200 state lawmakers and 36 state attorneys general also oppose this federal move. House Republican leaders are considering this provision for the NDAA, even after the White House paused a similar executive order.

Congress tries again to block state AI laws with child safety bills

Congress is once again trying to stop states from making their own AI laws, this time by combining the effort with child online safety legislation. The National Association of State Chief Information Officers opposes this, stating that states need to develop their own solutions. The Kids Online Safety Act is being considered, but critics worry that federal preemption would prevent states from responding quickly to new AI harms. Many state officials and attorneys general believe states should lead in regulating evolving AI technology.

OpenAI cofounder says AI needs more research not just bigger computers

Ilya Sutskever, an OpenAI cofounder, believes that simply increasing computing power and data is no longer enough to advance AI. He stated on the Dwarkesh Podcast that while this method worked for about five years, the industry now needs to focus on new research. Sutskever, who now leads Safe Superintelligence, emphasized finding productive ways to use existing compute. He highlighted the need for AI models to learn and generalize information as well as humans do.

Ilya Sutskever explains Safe Superintelligence research focus

Ilya Sutskever, co-founder of Safe Superintelligence SSI, explained his company's unique approach on the Dwarkesh Podcast. SSI has raised $3 billion, which Sutskever believes is enough for groundbreaking research, unlike competitors who spend more on commercial products and operations. SSI focuses all its resources on pure research, without the burden of developing products or managing users yet. Sutskever stated that the company's monetization strategy will become clear later, emphasizing their commitment to research for safe superintelligence.

AI bubble fears and Fed uncertainty cause stock market swings

Financial markets are experiencing sharp swings due to worries about an AI bubble and uncertainty over the Federal Reserve's interest rate decisions. The AI trade has been strong since ChatGPT's release, but investors now question how long this growth can last. Major tech companies like Nvidia, Microsoft, Meta, and Oracle have seen their stock prices fall since early November. This market volatility is also influenced by circular deals and debt financing among AI firms.

BlackRock expert advises global investing in the AI age

BlackRock's Mike Pyle suggests that global investing is crucial in the current AI era, despite the strong performance of US stocks. He explains that while the US market has led for years, international markets offer valuable alpha insights and expand investment opportunities. Pyle notes that AI transformation is a key driver for the US equity market, making continued exposure important. However, he stresses the need for diversification across different regions and major trends to build resilient portfolios.

Judge criticizes immigration agent for using AI in reports

A federal judge, U.S. District Judge Sara Ellis, criticized an immigration agent for using ChatGPT to write a use-of-force report. The judge noted that this practice undermines credibility and could lead to inaccurate reports, especially when body camera footage showed different facts. Experts call this the worst possible use of AI, raising serious concerns about accuracy and privacy. They emphasize that such reports require an officer's specific perspective, not AI-generated narratives.

IBJ Media launches new podcast on AI for leaders

IBJ Media launched a new weekly podcast called Authentic and Agentic to help business and community leaders understand artificial intelligence. Hosted by Indiana entrepreneur Jayson Manship, the show explores how AI impacts business, culture, and daily life. Each episode features news, an interview, and a hands-on video segment. The podcast aims to guide leaders in using AI while maintaining human values like empathy and accountability. TechPoint sponsors the yearlong season, with new episodes released every Tuesday.

Allianz plans to cut 1,800 jobs due to AI automation

German insurance giant Allianz plans to eliminate up to 1,800 jobs in its travel insurance division, Allianz Partners. A source familiar with the plans stated that these cuts, mainly in call centers, will happen over the next 12 to 18 months. Artificial intelligence is increasingly replacing manual tasks, leading to these changes. Allianz Partners, which employs 22,600 people, is currently holding confidential talks with its works councils about how technology will affect its workforce.

AI customer support improves service even if not perfect

AI customer support, while not perfect, offers significant advantages over traditional or absent support. It provides instant responses 24/7 and can resolve 60-70% of questions for well-trained systems. This is a vast improvement over slow email responses or basic chatbots that frustrate customers. AI agents offer consistent quality and remember all past customer interactions, leading to a much better customer experience. Many companies are seeing a tenfold improvement in support efficiency and availability by using AI.

AI changes sales incentives with smart data and predictions

Artificial intelligence is transforming how sales teams manage incentive compensation, making processes faster and more accurate. AI-powered tools like Incentivate use smart data validation to catch errors before payouts and offer predictive forecasting for budgets and earnings. AI also provides nudges to guide sales reps toward better performance and helps detect potential loopholes or gaming in incentive plans. With real-time insights and plan simulations, companies can optimize their compensation strategies and improve overall sales performance.

Senior living sales and marketing to use AI by 2026

Artificial intelligence will become a key tool for senior living sales and marketing teams by 2026. A webinar on December 17, 2025, will discuss top AI trends, including how AI search is changing consumer behavior. Experts like Lee Barth from Marchex and Cara Cassner from The Kendal Corporation will share insights. They will cover promising AI applications, how AI call insights can help understand family needs, and the importance of balancing efficiency with empathy when using AI call agents.

Sources

• POLITICO Pro: AI state preemption plan merges with kids’ safety push
• WV lawmakers sign national letter opposing federal preemption over AI regulation
• Progressive Caucus opposes push to add AI preemption provision to defense bill
• Congress — again — considers preempting state AI laws, this time bundling with child online safety bills
• OpenAI cofounder says scaling compute is not enough to advance AI: 'It's back to the age of research again'
• Ilya Sutskever On What Makes SSI Different From Other Labs, And How It Plans To Make Money
• Stocks whipsaw amid AI bubble fears, Fed uncertainty
• The New Case for Global Investing in the AI Era
• Judge's footnote on immigration agents using AI raises accuracy and privacy concerns
• IBJ Media launches Authentic and Agentic, a weekly podcast helping leaders navigate artificial intelligence
• Allianz to cut up to 1,800 jobs due to AI advances, says source
• Is AI Support Perfect? No. But It’s A Lot Better Than No Support at All
• 6 Ways AI Is Transforming Incentive Compensation for Modern Sales Teams
• AI in Senior Living Sales and Marketing: Key Trends to Watch in 2026