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EU Puts ChatGPT Under the DSA's
Strictest Rules, California Cuts a Data
Center Rate Deal at Adjournment, North
Dakota Takes Testimony
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POLICY & REGULATION
California Cuts a Data Center Deal Hours Before Adjournment: Sen. Steve
Padilla and Assemblymember Rick Chavez Zbur finalized terms Friday on
legislation ordering the California Public Utilities Commission to create a
separate electricity rate class for data centers, including who pays for new
generation and infrastructure upgrades. Zbur’s AB 2383 was read a third time,
amended and returned to second reading on Aug. 28; Padilla’s SB 886 had Joint
Rule 61(b)(16) suspended the same day to clear a floor vote. The Legislature
adjourns today, and lobbyists for Google, Meta, Amazon, Anthropic and OpenAI
have worked both bills all session. Link
EU Puts ChatGPT Under Its Strictest Platform Rules: The European Commission
designated ChatGPT a very large online search engine and Reddit and Roblox very
large online platforms under the Digital Services Act — the first time an AI
chatbot has crossed the threshold. OpenAI reported 159 million average monthly
EU users of ChatGPT’s search function, Reddit 57.2 million and Roblox roughly 48
million, all past the 45-million trigger. The three have four months, to the end of
November, to complete systemic-risk assessments covering illegal content,
minors and electoral integrity, with fines up to 6% of global annual turnover. Link
Bailey Tells the G20 Frontier AI Is a Cyber Risk to the Financial System: In a
two-page letter released Monday to G20 finance ministers and central bank
governors, Financial Stability Board chair and Bank of England Governor Andrew
Bailey called frontier AI’s effect on cyber risk “the most immediate concern” for
the global financial system, pointing to concentration among third-party service
providers. He wrote that many jurisdictions lack protocols governing the
development, release and deployment of advanced models. The letter landed
ahead of G20 meetings in Asheville, North Carolina. Link
The bill California’s data center deal actually rides on
AB 2383 — Electricity: data centers, Assemblymember Rick Zbur, three co-
sponsors. Passed the Assembly, then read a third time and amended on
Aug. 28 as the deal came together. It orders the CPUC to create a distinct
retail classification and rate schedule for large energy-use facilities by
Jan. 1, 2028, requires utilities and community-choice aggregators to sign
service and energizing-cost contracts, and bars these facilities from net
metering. Most trackers still show it in second reading — the Legislature
adjourns today.
Open AB 2383 on Docket Room
STATES
North Dakota Takes Public Testimony on AI and Data Centers This Morning:
The Legislature’s Artificial Intelligence and Data Center Committee meets at 9
a.m. today at the Capitol, with presentations from policy experts, the energy
industry and state utility and pollution regulators. Public comment is set for
11:15 a.m. The committee was created in June and meets again through the end
of October, with several data center projects proposed in the state. Link
Warnock Calls for a Statewide Georgia Data Center Moratorium: After meeting
Effingham County residents opposed to OpenAI’s 3.2-gigawatt Project Camellia,
Sen. Raphael Warnock called for a statewide pause on data centers. He said it
could be lifted project by project only where a developer guarantees no increase
to water or electric bills, no non-disclosure agreements or “sweetheart tax
giveaways,” and no air, water, noise or light pollution. Link
Critics Say Xcel Wrote a Loophole Into Colorado’s Data Center Tariff: Xcel
Energy’s large-load tariff filing, Docket No. 26AL-0137E, drew a Colorado PUC
hearing on Aug. 25 and objections that its negotiation process would let data
center contracts stay confidential. The commission is requiring Xcel to negotiate
on set principles — upfront fees, 15-year contracts, minimum bills, security
deposits and early-exit fees — and may approve or modify the plan by year
end. Link
Utah Cannot Say What Its Data Center Tax Break Costs: Utah’s sales tax
exemption for qualifying large data centers is applied at the point of sale, so the
state collects no data on revenue forgone each year; State Auditor Tina Cannon
confirmed the figure is not readily available. Utah is one of roughly 14 states
offering such a break that cannot produce the number, against reported annual
losses of $1.9 billion in Virginia and $1.3 billion in Texas. Link
SAFETY & SECURITY
NHS Watchdog Warns AI Scribes Are Getting Drugs and Diagnoses Wrong:
England's health regulator warned that ambient AI scribes used to transcribe
clinical consultations are recording the wrong names for drugs and diagnoses.
The warning lands as US states, including Rhode Island, write consent and opt-out
rules for the same tools. Link
Japan Asks for a Record $55.6 Billion Built on Drones, AI and Missiles: The
defense ministry disclosed an 8.9 trillion yen ($55.6 billion) request Monday, the
last in a five-year, 43 trillion yen plan, organized around preparing for "new ways
of warfare," sustaining a prolonged conflict and strengthening the defense
industrial base. It seeks an AI-supported decision-making process for Joint
Operations Command, AI-enhanced video analysis to cut surveillance manpower,
unmanned attack drones launched from above and below water, and underwater-
launched hypersonic missiles. Link
POWER & CAPITAL
Candidates in Both Parties Are Rewriting Their Data Center Positions: Data
center siting has moved from a zoning question to a campaign liability, and
candidates across the spectrum are recalibrating how loudly they back the
projects. The scramble is now shaping midterm strategy in states where power
bills and land use collide. Link
Build American AI Opens a Multimillion-Dollar Ad Front in Three States: The
pro-AI 501(c)(4) launched an ad campaign Monday in Kansas, Ohio and Wisconsin
defending data center development, framing restrictions as a gift to China. The
group is tied to Leading the Future, a super PAC that has raised between $100
million and $140 million from AI-sector donors, and is backing candidates who
favor streamlined permitting and stable regulation. Link
Europe Adds AI Compute With a €390 Million Order From France's Bull: The
order expands Europe's shared AI computing network and is one of the larger
single public compute purchases on the continent this year. It follows a run of
sovereign-compute commitments aimed at reducing dependence on US
hyperscalers. Link
Big Tech Booked $160bn in Gains on Stakes in Other AI Companies: Alphabet,
Amazon, Nvidia and Microsoft booked more than $160 billion in unrealized gains
in the second quarter on their stakes in private AI companies, more than double
the roughly $69 billion the quarter before. The gains are paper, not cash:
Alphabet alone reported $97.9 billion in other income, and every holder would
have to write the position down if a company like Anthropic went public below
its private mark. Link
INDUSTRY IMPACT
US Builds Barriers Around Drones and Robots as China Keeps the Scale:
Washington is layering export controls and procurement restrictions around
drones and robotics, but Chinese manufacturers retain the volume and supply
chain that set global prices. The gap is the same one that decided solar and
batteries. Link
The Human Cost Behind Robotaxi Autonomy: Remote operators and roadside
crews remain a load-bearing part of driverless fleets, and their working
conditions are becoming a labor and regulatory question rather than a technical
footnote. Link
PRODUCTS & SIGNALS
Debian Votes to Let Contributors Code With AI: The eight-option ballot we
flagged last week closed Friday, and Debian will permit AI-assisted contributions,
one of the first formal policies of its kind from a major distribution. The proposal
to ban all generative-AI contributions outright lost; licensing and provenance
obligations still fall on the contributor. Link
Google Undercuts Anthropic and Microsoft on Price: Google moved on price
with a budget tier aimed squarely at Anthropic and Microsoft, pushing enterprise
AI toward a cost fight rather than a capability one. Link
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