Caracal Daily | August 2

Caracal Daily | August 2

Caracal Daily is geopolitical business news + intelligence for comms pros.

Geopolitics is disrupting every business and industry. Caracal is here to help.

Always Be Communicating.

Happy Friday.

Here’s today’s Caracal Daily:

*** Ross Rant ***

EU's AI Act: Balancing innovation + rights

The European Union's landmark AI Act has officially come into force, marking a significant step in balancing innovation with protecting European citizens' rights. 

This pioneering legislation, the first globally, sets out comprehensive rules for AI systems, particularly powerful ones like OpenAI's ChatGPT. 

The AI Act aims to govern how companies develop, use, and apply AI. The urgency for these regulations grew with the rapid rise of generative AI technologies, such as ChatGPT, Dall-E, and Midjourney, which can produce human-like text and images from simple prompts. 

The EU AI Act aims to provide clear guidelines for businesses and innovators while ensuring robust safeguards for individuals.

For the full post and actionable insights - click here.

*** Globalization + Geopolitics ***

Bomb smuggled into Tehran guesthouse months ago killed Hamas leader: An explosive device hidden in a heavily guarded complex where Ismail Haniyeh was known to stay in Iran was what killed him, according to an NYT investigation.

+ “The bomb had been hidden approximately two months ago in the guesthouse… The guesthouse is run and protected by the Islamic Revolutionary Guards Corps and is part of a large compound, known as Neshat, in an upscale neighborhood of northern Tehran.”

Israel’s spies take their revenge: After the humiliation of October 7, intelligence services are hitting back where their enemies feel safest. FT

AP: Ukraine receives first F-16 fighter jets to bolster defenses against Russia, officials tell

US Aid is flowing to Ukraine again. Can it turn the tide of the war? Ukraine’s morale is improving on two fronts — at least for now. Politico

Russia released Wall Street Journal reporter Evan Gershkovich and former US Marine Paul Whelan in a major multi-country prisoner swap.

+ President Biden finalized the prisoner swap 1 hour before he dropped out of the presidential race

+ This was  the largest prisoner exchange since the depths of the Cold War

WP: Biden: Prisoner swap ‘a feat of diplomacy

Inside the secret negotiations to free Evan Gershkovich: The effort to bring home The Wall Street Journal reporter and others unfolded on three continents, involving spy agencies, billionaires, political power players, and his fiercest advocate—his mother. WSJ

In world first, EU's sweeping AI law enters into force: The European Union's landmark law on artificial intelligence came into force on Thursday, which Brussels vows will drive innovation while protecting citizens' rights. AFP

+ "With our artificial intelligence act, we create new guardrails not only to protect people and their interests, but also to give business and innovators clear rules and certainty," European Commission President Ursula von der Leyen said.

The EU’s AI Act is now in force TC

700 companies keen to join Pact to prepare for AI law: Some 700 companies have shown interest in joining the AI Pact – which are preparatory commitments to help businesses get ready for the incoming AI Act – a spokesperson for the European Commission told Euronews. With the Pact, the Commission aims to let businesses anticipate the AI Act with voluntary commitments and share ideas through workshops organized by the EU executive’s AI Office.

Spain’s Valencia region, one of Europe’s most popular beach destinations, is cracking down on short-term vacation rentals as officials nationwide grapple with growing anger over mass tourism.

UAE blocked meetings with leading AI firm amid China fears, House committee says: The dispute marks growing concern from lawmakers’ over the Middle East and its potential role as a conduit for China. Politico

Microsoft scales back AI partnership with Emirati firm amid concerns over China ties: Politico reports the US tech giant intends to restructure a sensitive part of its partnership with UAE-based G42, following concerns on the Hill about Chinese IP theft.

Chinese companies are winning the global south: Their expansion abroad holds important lessons for Western incumbents. Economist

Does China prefer Harris or Trump? Why Chinese strategists see little difference between the two. Wang Jisi, Hu Ran + Zhao Jianwei

Suspected Chinese hackers hit Taiwanese research center: Bloomberg reports passwords among data stolen from government-affiliated institute.

A Canadian warship passed through the Taiwan Strait on Wednesday in what Ottawa called a commitment to an open Indo-Pacific – and in what China called an undermining of peace.

India and Vietnam to enhance defense cooperation: Nikkei reports Pham Minh Chinh becomes first Vietnamese prime minister to visit India in a decade.

Bloomberg: Kim Jong Un wades into North Korean floods in hands-on propaganda drive

+ State media finding new ways to show Kim taking control

+ Damage could be worse than reported as cadres get blamed

France's North African dilemma: By adopting Rabat's position on the Western Sahara, Paris has made a major diplomatic shift, marking the failure of its reconciliation policy with Algiers. Le Monde

In Mali, Ukraine's shadow behind rebels at war with Wagner's Russian mercenaries: Le Monde reports, according to corroborating sources, the Ukrainian authorities are collaborating with the pro-independence fighters operating in the north of the country, providing them with strategic information and training them in the use of drones.

Mali rebels claim to have killed at least 130 soldiers, Russians in July clashes: AFP reports Mali's Tuareg rebels announced on Thursday that they had killed at least 131 Malian soldiers and Russian Wagner mercenaries during intense clashes in late July. Despite the heavy losses, Russia reaffirmed its commitment to supporting the Malian junta, emphasizing ongoing military and socioeconomic cooperation.

Exxon almost walked away from its $1 trillion oil discovery: A few geoscientists pushed a reluctant energy giant to take a chance on Guyana. Bloomberg

Bloomberg: US patience ‘running out’ on Venezuela vote as sanctions weighed

+ US government recognizes Venezuelan opposition candidate Edmundo González as the presidential election winner.

Bloomberg: Maduro’s crackdown thrusts old ally Lula into global hotseat

+ Biden, Venezuela opposition seek Lula’s support after election

+ Brazil leader has not recognized result or backed fraud claims

Argentina will use AI to ‘predict future crimes’ but experts worry for citizens’ rights: Guardian reports President Javier Milei creates security unit as some say certain groups may be overly scrutinized by the technology.

***  US Politics + Elections ***

95: The number of days until the 2024 election.

The fight of Trump’s political life: Kamala Harris has the wind at her back. Her strengths became clearer in the past two weeks. Peggy Noonan

+ @Scaramucci: Don’t be surprised if Donald Trump drops out of the race.

GOP pollster shows tight race: A new round of surveys from Republican pollster Public Opinion Strategies:

MI: Harris 45%, Trump 45%

PA: Harris 48%, Trump 45%

WI: Harris 48%, Trump 46%

AZ: Trump 48%, Harris 43%

NV: Trump 46%, Harris 45%

Economist: The Kamala Harris effect on the polls has been dramatic

Harris ditches Biden’s message: The Democratic Party didn’t just change their nominee, they have changed their message in the final hundred days before the election,” Axios reports. President Biden wanted to make his campaign about ‘democracy’ and Jan. 6, but Vice President Kamala Harris wants it to be about ‘freedom’ and the ‘future.'

CNBC: Pennsylvania Gov. Shapiro cancels Hamptons fundraiser, days before expected Harris VP reveal

+ BREAKING: @NBCNews is reporting that Pete Buttigieg met with Kamala Harris' vetting team and is on the final VP shortlist. Let's go.

Democratic convention will host hundreds of online influencers: WP reports welcoming stars of TikTok, YouTube and other platforms to the party’s convention in Chicago could add to a recent surge in online support for Kamala Harris.

AP: Obama and Bush join effort to mark America’s 250th anniversary in a time of political polarization

The House and Senate have begun their summer break and aren’t scheduled to return to Washington until Sept. 9. 

Senators propose “Digital replication right” for likeness, extending 70 years after death: ARS Tech reports th law would hold US individuals and firms liable for ripping off a person's digital likeness.

How AI chatbots could improve civic engagement in the 2024 election: Election officials have the authority and responsibility to ensure voters have access to the best possible tools for making informed decisions. So why isn’t AI part of the equation? FC

The Cybersecurity and Infrastructure Security Agency named Lisa Einstein its first-ever chief artificial intelligence officer.

DC welcomes ex-OpenAI board member after Sam Altman drama: Helen Toner is building a reputation in the nation’s capital as a trusted expert on artificial intelligence. Bloomberg

OpenAI says ‘dedicated’ to safety in letter to US lawmakers: OpenAI, responding to questions from US lawmakers, said it’s dedicated to making sure its powerful AI tools don’t cause harm, and that employees have ways to raise concerns about safety practices.“Our mission is to ensure artificial intelligence benefits all of humanity, and we are dedicated to implementing rigorous safety protocols at every stage of our process,” Chief Strategy Officer Jason Kwon said Wednesday in a letter to the lawmakers. Bloomberg

OpenAI pledges to give US AI Safety Institute early access to its next model TC

A Wharton professor is now the go-to reviewer for AI products: Ethan Mollick conducts “weird experimentation” with chatbots to help people navigate a crowded market of AI products. Bloomberg

Politico: Crypto interests drop $13M on lobbying in first half of 2024

*** Disruption + Innovation ***

NASA is beginning its next simulated Mars mission.

NASA says it is “evaluating all options” for the safe return of Starliner crew: ARS Tech reports that SpaceX is actively working on a plan to fly Starliner's crew home.

Inside Volkswagen’s $130 billion EV battle Fortune

Inside America’s small, perfectly formed ‘tourist cabins’: Two entrepreneurs hope to kick-start a revival of the wooden lodges that played a key role in the invention of the great American road trip. FT

Agriculture tech company Agrovision has raised $100 million for its farms growing blueberries, raspberries, blackberries and more— seizing on a broader trend of growth in US berry consumption. The funding round, led by Aliment Capital, values Los Angeles-based Agrovision at more than $1 billion. The company sells fruit under its Fruitist and Big Skye labels, which are available at some branches of retailers including Costco, Trader Joe’s and Sprouts.

Why Americans are snubbing McDonald’s and Starbucks CNN

It’s no surprise McDonald’s is struggling Alexander Larman

Columbia professor says McDonald’s can blame its sales woes on an election-stoked vibecession Fortune

CNBC: Taco Bell to roll out AI drive-thru ordering in hundreds of locations by end of year

+ Yum Brands said hundreds of Taco Bell locations in the US will use artificial intelligence in drive-thru lanes by the end of 2024.

AI startup Suno says music industry suit aims to stifle competition: In a new court filing, company said it trained software on tens of millions recordings. Bloomberg

Fortune: Only an AI breakthrough can help humans live longer, argues drug developer: ‘We need a ChatGPT moment in longevity’

BI: Amazon has discussed a 'DoctorAI' tool to automate routine healthcare tasks

Reddit is acquiring Memorable AI, a startup that uses generative artificial intelligence to help marketers create better ads, in its first acquisition since going public in March.

Sources say TikTok was paying Microsoft nearly $20 million monthly to use OpenAI models in the cloud.

xAI approached startup Character AI about an acquisition.

Amazon is reportedly considering a takeover bid for Covariant, which makes AI software for robots.

Apple’s iPhone sales slip, but investors still expect AI rally: WSJ reports the iPhone maker is preparing to release “Apple Intelligence” in the fall, which investors hope will lead users to upgrade their phones.

Bloomberg: Apple predicts boost from AI features after uneven third quarter

+ Customers will have ‘compelling’ reason to upgrade, CEO says

+ Sluggish China revenue marred strong performance last quarter

FC: Move over Google and Microsoft: Amazon’s putting $16.4 billion to develop cloud and gen AI infrastructure

Meta, Microsoft, and Google blew blinding amounts of AI smoke during earnings—here’s what we actually learned Fortune

Media groups seek a new profit model with AI: Industry seeks to avoid painful experience with online gatekeepers such as Google and Facebook. Richard Waters

AI can learn a lot from its biological predecessors: Synthetic data risks ‘model collapse’ but may spur renewed interest in robotics. John Thornhill

Many people fear AI. They shouldn't. David Brooks

Intel shares fall 20% on plans to cut 15,000 jobs: FT reports US chipmaker says it will also reduce capital spending as its turnaround strategy hits another setback.

AI’s future in grave danger from Nvidia’s chokehold on chips, groups warn: ARS Tech report anti-monopoly groups want DOJ to probe Nvidia’s AI chip bundling, alleged price-fixing.

*** Culture ***

How I learnt to stop scrolling: It took a silent retreat to reboot my relationship with smartphones and social media. FT

Museums must defend their right to treasures: Pious arguments about modern collections ignore our curiosity about long-dead bodies and the darker side of history. Stephen Bush

Today: 77th Edinburgh Festival Fringe, the internationally acclaimed arts festival featuring hundreds of theatre, cabaret, comedy, and music shows, starts in the Scottish capital.

*** Sport ***

A global gold rush is changing sport: Fans may be cooling on the Olympics, but elsewhere technology is transforming how sport is watched. Economist

The reason you’re hooked on obscure sports at the Paris Olympics? Artificial intelligence Fortune

Top soccer leagues and broadcasters send letter to X demanding more action against illegal content: AP reports the letter, which was obtained by The Associated Press, had 14 signatories, including the Premier League, Spanish league, Bundesliga, Italian league, DAZN, Sky, beIN, DirecTV and Movistar Plus+. Soccer governing bodies UEFA and CONMEBOL also signed the letter.

Bordeaux relegated to French fourth-tier after bankruptcy: AFP reports former French Ligue 1 champions Bordeaux have been relegated a further division down to France's fourth-tier National 2 after going into receivership, the French football federation (FFF) announced Thursday.

Chariot racing in Rome, the forerunner of the sports industry: In the capital of the Roman Empire, 150,000 spectators would flock to the Circus Maximus to watch chariot drivers from various factions, the first genuine star athletes of the ancient world. Le Monde


Enjoy the ride + plan accordingly.

-Marc 

Marc A. Ross | Chief Communications Strategist @ Caracal