AI Regulation

Sen. Amy Klobuchar warned that the White House’s new executive order—directing the Attorney General to challenge state AI statutes and the Commerce Department to catalog “onerous” regulations—is “the wrong approach” and likely illegal. The move, backed by OpenAI, Google and Andreessen Horowitz, aims to curb state‑level AI bans but faces criticism from consumer groups and legal experts who say it can’t preempt state law and will spark lawsuits. Meanwhile, state laws in Colorado and California push for consumer protections, and the order also permits limited Nvidia chip sales to China, adding market uncertainty.

US markets paused for Thanksgiving, and with three hours left in November the S&P 500, Dow and Nasdaq are projected to end the month in negative territory, breaking six‑month and seven‑month rally streaks. Historical November gains are missing, hinting that seasonal cues are fading. Futures were flat, while Europe’s Stoxx 600 rose modestly. Alibaba launched low‑priced AI glasses, challenging Meta, and Apple faces a potential multi‑billion‑dollar fine in India over App Store policies. Analysts see only single‑digit S&P growth in 2026, as tech growth hinges on regulatory shifts and niche AI opportunities.

New York is becoming a key battleground for AI regulation. Congressional candidate Alex Bores, a supporter of the Responsible AI Safety and Education (RAISE) Act, is being targeted by a super PAC, “Leading the Future” (LTF), backed by tech industry figures. LTF advocates for federal AI laws over state-level regulations, arguing that strict rules could stifle innovation and harm U.S. competitiveness. The RAISE Act, awaiting approval, mandates safety protocols and incident reporting for large AI entities, prompting debate over balancing innovation with risk mitigation and potentially setting a national precedent.

Thursday saw market volatility amid mixed economic signals and AI sector reassessment. Nvidia’s initial surge reversed, impacting major indices. Jobs data presented a contradictory picture, with strong hiring but rising unemployment. Gap’s marketing campaign boosted sales, while Washington considers federal AI regulation. Joby sued Archer, highlighting competition in the air taxi industry.

A bipartisan super PAC, “Leading the Future,” backed by AI industry figures, is targeting NY Assemblymember Alex Bores, a Democrat running for Congress. The PAC opposes Bores’ AI safety regulations, particularly the RAISE Act, arguing it could hinder U.S. competitiveness. The PAC advocates for a national AI framework instead of state-level laws. Bores defends his stance, emphasizing the need for informed regulation. The clash highlights the debate over AI governance, balancing innovation and risk mitigation. The PAC plans to expand its operations nationwide to influence AI policy.

This report summarizes five key market stories. First, AI startup Anthropic is navigating regulatory debates, facing criticism over its stance on AI legislation. Second, Netflix’s Q3 earnings missed estimates due to a tax dispute, but it’s expanding into merchandise. Third, Warner Bros. Discovery indicates potential sale amid restructuring and streaming price hikes. Fourth, consumers are experiencing “discount burnout,” impacting Black Friday expectations. Finally, Jana Partners partnered with Travis Kelce to acquire a stake in Six Flags, aiming to enhance shareholder value and guest experience.

Over 850 experts, including AI pioneers and tech leaders, signed a statement urging a pause on “superintelligence” development, citing societal risks like economic disruption and even human extinction. They advocate for public consensus and scientific proof of safety before proceeding. The debate reveals a growing divide between AI proponents and those demanding regulation, reflecting concerns over control, alignment, and potential unintended consequences of AI surpassing human intellect. Even figures leading AI companies have expressed anxieties about the perils of superintelligence. A survey indicates public support for cautious, regulated AI development.

This week’s market narratives include: scrutiny of regional banks like Zions due to NDFI loan concerns, reminiscent of the SVB collapse; an AWS outage disrupting services like Disney+ and impacting airlines; contrasting views on AI regulation between Anthropic and OpenAI; auto industry navigating inflation and supply chain issues ahead of key earnings reports; and a resurgence of “vintage” appeal among young consumers, boosting trading card and retro apparel sales, exemplified by Gildan’s Comfort Colors’ growth.

AI startup Anthropic faces increased scrutiny from the U.S. government amidst competition with OpenAI. David Sacks, Trump’s AI czar, accuses Anthropic of promoting a regulatory framework aligned with “the Left’s vision,” criticizing their safety-focused approach as “fear-mongering.” This contrasts with OpenAI’s close ties to the White House. Anthropic, founded by former OpenAI employees prioritizing AI safety, advocates for stricter regulation, differing from OpenAI’s lighter touch preference. Despite tensions, Anthropic holds government contracts and maintains its commitment to safety.

Amid rising AI concerns, states are enacting regulations, prompting Senator Blackburn to urge federal preemption. California’s recent AI measures, including chatbot safeguards, contrast with vetoed stricter conditions. Blackburn calls for federal action, citing the inability to pass preemptive legislation on children’s online safety due to tech company resistance. She advocates for comprehensive consumer privacy, data protection against LLMs, and safeguards against unauthorized AI use of personal likeness, emphasizing adaptable regulations focused on “end-use utilizations” reflecting fast AI changes. Parental concerns over AI’s impact on children are also rising.