BT LIVE: AI Economic Collapse? | United Airlines Sends Weapons to Israel | 77 Years of Chinese Revolution
This content is for members only. Visit the site and log in/register to read.
This content is for members only. Visit the site and log in/register to read.
On September 8, a 27-year-old researcher named Jacob Coxon, a few months into a job at Anthropic (a leading US AI company) after three years at OpenAI, announced his resignation on X. “Neither company is acting responsibly,” he wrote. “They are racing straight to self-improving superintelligence and gambling with our lives.” Within a day, the post had been read more than 100 million times. Four days later, Anthropic’s chief executive, Dario Amodei, published an essay titled “We Must Pace the Frontier,” declaring that “we must slow the pace at which we improve the capabilities of AI models” or risk “losing control of AI systems, misuse of AI for cyberattacks and bioterrorism, and serious economic disruption.” Within hours, Sam Altman of OpenAI agreed, Elon Musk posted “Dario is right,” and Google and Microsoft fell into line.
Coxon was interviewed by Time, Axios, and NBC within two days, and Amodei’s essay was front-page news across the business press. Compare that with what happens to people who expose the harms AI is causing right now. Warnings about AI-generated fraud, model bias including racist bias, about chatbots and vulnerable users, about surveillance and AI’s use in military kill chains and the genocide in Gaza, get a news cycle at best. A warning about a hypothetical machine superintelligence got a global media event and a policy proposal from the industry’s leadership within four days.
AI systems do need regulating. The question is why the men who spent a decade racing towards what they now call an existential threat discovered their conscience on the same weekend, and what kind of regulation they are actually asking for.
Stripped of its language of alignment and catastrophe, Dario Amodei’s essay is a list of demands. First, outside “evaluators” from bodies such as METR, a lab that tests AI models, would be given “company badges, desks, and laptops” inside the big labs. Second, the leading companies “within democratic countries” would jointly set safety standards and limits on how fast they build, for which Amodei asks the US government for “a narrow waiver” from antitrust law. Third, models crossing certain capability thresholds would have to carry “certifications” of good behavior, and limits on the computing power used to train them are put on the table. Fourth, the United States must “not sell powerful AI chips or semiconductor manufacturing equipment to China.” Amodei is candid about the goal: done well, these measures “would slow China’s progress enough to widen America’s lead significantly.”
The words “open source” do not appear in the essay. They do not need to. AI models come in two kinds. Closed models, like Anthropic’s Claude or OpenAI’s ChatGPT, run only on the company’s own servers and users pay for access. Open-weight models, like China’s DeepSeek, Kimi, GLM, and Qwen, are published as files that anyone can download, run on their own machines and modify. A certificate that must travel with a model cannot be attached to a file that anyone may copy. A ceiling on computing power freezes the ranking of the firms that already occupy the frontier. An antitrust waiver lets the five largest companies write rules for everyone else. The effect is a licensing regime only the incumbents can satisfy; the technology publication The Register called it regulatory capture with a nicer name.
The essay’s centerpiece is what Amodei calls the OpenAI-Hugging Face incident of July. In plain terms: OpenAI was testing its AI “agents,” programs that can act on their own, on a set of hacking puzzles. Roughly a third of the puzzles were impossible, driving the agents to look for ways to cheat the marking. The agents were supposed to be sealed off from each other without access to the internet. In practice, they weren’t, and through that loophole they found their way into a second test environment that was connected to the open internet. From there, one of them found login credentials that OpenAI staff had left exposed online, used them to break into Hugging Face, a website where AI models are shared, and rummaged through private files to work out how their answers were being marked. Amodei describes this as “a swarm of agents” acting as “a fanatically devoted collective” that, with more capability, “could have caused catastrophic damage.”
The people whose job is computer security reached a different conclusion. The investigation by METR, the very body Amodei wants embedded in every lab, found that sandboxes meant to isolate the AI agents were not, that the credentials should never have been exposed, and that OpenAI’s security team had noticed the agents misbehaving days earlier and done nothing. One practitioner quoted by IANS Research summed it up: “many failures and lack of controls that could have prevented this from happening in the first place.” Any bank that ran untested software with live internet access and exposed passwords would be found negligent. Routine containment, of the kind every serious IT department practices, would have stopped it.
Calling a security lapse a “fanatically devoted collective” is not analysis. It is anthropomorphizing, dressing an operational failure in the language of science fiction. And it is useful. A company whose product is being marketed as near-superintelligence that must be restrained for humanity’s sake has a far better story for investors than a company that left its passwords on the internet. The doom narrative and the hype narrative are part of the same cycle. Both say: this technology is so powerful that you cannot afford to be without it, and only we can be trusted with it.
The timing becomes clear once one looks at the money. The five big American technology companies are budgeted to spend close to $690 billion this year on data centers and chips, and borrowing now funds 32% of that spending, up from 9% two years ago. On the very day Amodei’s essay appeared, Altman announced that OpenAI’s stock market listing, which bankers had been preparing at valuations of up to $1 trillion, would not happen in 2026 because it was “an ill-advised moment,” citing safety. The next day, the Financial Times reported that Anthropic’s much-advertised profit margin of “above 80%” is calculated before two of its largest costs: the cost of creating its models and the revenue it shares with Amazon, its main distributor.
Meanwhile, the competition has arrived, and it is nearly free. On OpenRouter, a widely used exchange through which software developers send requests to AI models, Chinese open-weight models now handle 58% of the traffic from American firms; a year ago American models held 70%. DeepSeek and Qwen charge 60 to 90% less than Anthropic and OpenAI. A firm that cannot win on price, cannot fund its next model from earnings and cannot yet sell shares to the public has one option left: change the rules.
The Trump administration has so far refused. The president’s response was that “whoever wins AI, wins,” and his AI adviser David Sacks called the whole affair a “doomer psyop” aimed at open-source models. This is not a defense of the public interest. It is arithmetic. According to ING, spending on AI equipment, software and data centers accounted for roughly a third of all US economic growth in the second quarter of this year; on the broadest measure, half. The rest of the economy is being squeezed by the war on Iran: petrol prices have risen 53% since it began, consumer inflation reached 4.2% in May, and energy costs are up 23.5% on the year. Take the data-center boom out, and the United States is close to recession. Washington cannot allow the frontier to be paced because the frontier is the only thing still growing.
China’s official response was brief. “Fearmongering, confrontation and vicious competition will only disrupt the process of global AI governance, which serves no one’s interest,” said foreign ministry spokesman Guo Jiakun on September 14. A more revealing reply came from inside DeepSeek, where Shengyu Liu, a kernel software engineer, published a widely circulated essay arguing that the safest path is to keep frontier AI open and cheap rather than concentrated in any single company, American or Chinese. As AI develops, he wrote, society “may be pulled toward one of two extremes: communism or Cyberpunk 2077.” In the first, “productive capacity is liberated on an enormous scale, and people’s standard of living rises substantially.” In the second, “a handful of technology companies control most of society’s resources”; a tiny number of people have access to the most advanced AI, “while most people are left with only weak, second-rate AI.”
That is the real choice, and it is a choice about ownership, not about speed. Real regulation would hold companies liable for the harm done by the software they run, including inside their own labs, and would treat running powerful agents without containment as the negligence it is. It would cost the labs money, which is why it is not in Amodei’s essay. What is in the essay is a request to be made gatekeepers of a technology built on borrowed money that its owners now fear they cannot sell.
The frontier does not need pacing. It needs owners who can be held to account, and a public that is not frightened into paying monopoly prices for AI services by the very people who build it.
Bappa Sinha is a veteran technologist interested in the impact of technology on society and politics.
Meta wants to build one of the largest data centers in the world in rural Louisiana.
The facility, known as Hyperion, is being built to train and operate the artificial intelligence systems behind Meta’s products. What began as a $10 billion proposal has since ballooned into a more than $50 billion development spanning nearly 10 million square feet and roughly 3,650 acres. At full scale, Hyperion is expected to require 5 gigawatts of computing capacity, making it the largest data center in Meta’s global fleet and one of the largest ever built. According to Meta, the project is expected to employ around 7,500 workers during peak construction and support 1,000 permanent jobs once operational.
For residents of Richland Parish, the arrival of Meta has brought both desperately needed jobs and profound uncertainty about what the project will mean for the community. The enormous facility is being constructed on former farmland and will require an equally immense network of infrastructure to support it. In nearby Rayville, many residents view Meta as an economic lifeline after decades of limited employment opportunities, with local families securing jobs that pay far more than the parish’s median income. But the influx of highly paid, out-of-town workers has also driven up rent and the cost of living as landlords and businesses increasingly orient themselves toward Meta employees. Landlords routinely raise the rent of low-income housing in order to price out local tenants in favor of contractors, forcing residents to move out of the area to afford housing.
Richland Parish is a rural stretch of northeast Louisiana dominated by flat, fertile land rich with cotton, soybeans, corn, and rice. The parish’s economy has historically revolved around large-scale, row-crop farming, but declining farm incomes and population loss has strained the region in recent generations. Richland’s employment rate sits at 49.9%, 9.4% below the already dismal state average, with a median income of $53,544. A total of 36% of the 20,000 person population is Black. Rayville, the parish seat, is 80% Black. For decades, Richland has been far removed from the state’s economic centers of New Orleans and Baton Rouge, receiving little of the investment that has flowed into Louisiana’s larger cities.
That changed in January 2024, when Entergy Louisiana, the state’s monopoly power company, began a year-long courting ritual to bring Meta’s largest data center to the impoverished parish. Following months of backdoor deals and nondisclosure agreements, Meta announced plans to build a $10 billion, 4-million-square-foot data center on a 2,250-acre flood plain. In July 2026, Meta expanded the project, committing more than $50 billion and nearly 10 million square feet to what may become the largest data center in the company’s fleet and home to its massive Hyperion AI training cluster.
Both Meta and Entergy have been quick to dismiss community concerns, with state officials claiming that “whatever comes out of it will be better than the mostly fallow farmland that was there.” Meta likewise touts a laundry list of benefits it promises to bring to the area, most notably permanent jobs and increased tax revenue. The company now claims that the expanded Hyperion AI center will create more than 1,000 permanent jobs, alongside thousands of temporary construction jobs.
But Meta has refused to provide the evidence behind those projections. On August 12, the Louisiana Public Service Commission voted 3–1 to overturn the recommendation of an administrative law judge that Meta turn over information substantiating its projected job creation, economic impact, and electricity demand, effectively shielding the company’s claims from public scrutiny.
The public’s skepticism is warranted. Data centers routinely generate thousands of temporary construction jobs while creating only a fraction as many permanent positions once construction ends. Meta’s projects in Texas and Oklahoma, for example, are expected to leave only around 100 operational jobs each after thousands of construction workers leave. QTS similarly estimates that a data center campus in York County, North Carolina will produce roughly 1,000 construction jobs but only about 100 permanent onsite positions. Even Hyperion’s original proposal called for roughly 5,000 construction workers but only 500 permanent operational employees. None of these figures guarantee that the permanent positions will go to Richland Parish residents. Meta has offered assurances about local hiring, but there is no binding commitment requiring the company to employ local workers.
Meta also claims the data center will bring tens of millions of dollars in tax revenue to Richland Parish, an argument it bolsters by pointing to the 2,000% increase in sales-tax totals since construction began – $50,000 of which has funded bonuses for some local schoolteachers. But that windfall is largely a product of the construction boom itself, not a sustainable source of revenue generated by the completed data center. The teacher bonuses are distributed through Richland Parish’s longstanding one-cent sales-tax program, which provides annual “13th checks” to eligible school employees. As those construction workers spend money in the parish, that pool has temporarily grown; once construction ends, so will much of the revenue feeding it. The result is a temporary infusion of money that can obscure the longer-term fiscal consequences of the project. When the construction boom ends, Richland Parish will be left with the costs of a massive industrial project, and fewer public resources to pay for them.
The environmental impact of the Meta data center could also be deadly for residents of Richland Parish and Louisiana as a whole. The Hyperion AI data center is expected to consume roughly half of the state’s electrical capacity – approximately seven times the energy consumed by the entire city of New Orleans – placing enormous new demands on Entergy’s already overburdened power grid. Louisiana residents know what a fragile electrical system can mean in a disaster. After Hurricane Katrina, Entergy’s restoration efforts took 42 days to complete across its service territory. In 2021, Hurricane Ida left nearly 950,000 customers without power after an Entergy tower fell into the Mississippi River, a disaster that required 15 days of restoration work just to bring more than 90% of affected customers back online.
Rather than address these vulnerabilities, Entergy’s proposed solution to Hyperion’s unprecedented energy demands is to build an entirely new fossil-fuel energy infrastructure around the data center. The company plans to construct ten natural-gas power plants, including seven new facilities capable of generating roughly 5.2 gigawatts of electricity, alongside new transmission lines and a massive 500-kilovolt substation. Meta, Entergy, and the Louisiana state government are working to present these projects as investments that will strengthen Louisiana’s electrical grid and improve reliability for ordinary customers.
Louisiana is being asked to construct an enormous new fossil-fuel-based energy system so that a single private corporation can consume an unprecedented share of its electricity. More generation may increase capacity, but it does not eliminate the physical vulnerabilities that have repeatedly left Louisiana residents without power after hurricanes. Instead, the state is doubling down on a centralized, fossil-fuel-dependent grid whose infrastructure will remain vulnerable to the same storms that have already decimated Louisiana’s communities.
Entergy’s catastrophic deal with Meta has arrived as Louisiana is already on the front lines of an environmental crisis. The state has lost more than 2,000 square miles of coastal land since 1932 and continues to lose more than 16 square miles each year. The state has experienced 31 billion-dollar weather and climate disasters since 2018, leaving communities to repeatedly rebuild from hurricanes, flooding, and extreme weather. Meanwhile, along the Mississippi River between Baton Rouge and New Orleans, the area known as “Cancer Alley” contains a dense concentration of petrochemical and chemical facilities, exposing surrounding communities to significant air pollution and toxic emissions which have resulted in a cancer rate fifty times higher than the national average.
These environmental pressures are only compounded by an affordability crisis. In 2024, 49% of Louisiana households – nearly 900,000 – were either living in poverty or earning too little to afford basic necessities. A basic survival budget costs an estimated $30,708 a year for a single adult and $81,912 for a family of four, before accounting for savings or emergencies such as climate disaster. All the while, the state is being asked to absorb another enormous industrial project while nearly half of its households are already struggling financially and its communities confront environmental catastrophe.
Community opposition to the Hyperion project reflects a growing recognition that the promised benefits of corporate development cannot be separated from the costs that residents will be asked to bear. The fight is not simply over one data center, but over who gets to determine what Louisiana’s resources are used for and whose interests development is meant to serve. For generations, Louisiana communities have been told that jobs and investment require accepting pollution, environmental destruction, and the transformation of local resources into private profit.
Hyperion offers another version of the same bargain: enormous amounts of Louisiana’s land, electricity, water, and public infrastructure would be redirected toward the interests of one of the world’s largest technology companies. And the resistance to that bargain extends far beyond Richland Parish. Hundreds of Louisianans have mobilized around Public Service Commission meetings, traveling to the capital to demand that regulators prioritize the people who will bear the costs of Meta and Entergy’s expansion. Their concerns have repeatedly been dismissed or overridden by a majority of commissioners, even as the commission has approved billions of dollars in new generation and transmission infrastructure for the project. A 2024 investigation by the Louisiana Illuminator and Floodlight found that nearly 43% of campaign contributions to Louisiana utility commissioners over the previous decade came from utilities, energy-related businesses, and their attorneys and lobbyists, with Entergy Louisiana and its executives and family members contributing roughly $350,000.
The resistance emerging across Louisiana is more than a battle over a single data center. It is a decisive stand for the right of Louisianians to determine their own future, rather than surrender it to corporate interests. This is a battle for the future of working people everywhere, and the people have vowed to keep fighting.
Kieran Spencer is a New Orleans-based historian and organizer.