Free NewsletterPro Login

Warning: Undefined variable $stocks in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: Undefined variable $funds in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472
/* the link was here */

Misaligned AI drew fire at NYC hearing as researchers warn it could outmuscle China

Published Oct 5, 2026
Share:
Summary:
  • Former Google DeepMind researcher Alex Turner told the New York City Council that misaligned AI could ultimately be more dangerous than China's tech push.
  • Anthropic whistleblower Jacob Coxon said the industry's "extremely reckless" trajectory makes it more likely than not that humans lose control, possibly ending in extinction.
  • After weeks of public debate, executives from Anthropic, OpenAI, Google and Meta gave sworn testimony, while SpaceXAI skipped the session even though it had been subpoenaed.

What happened at the hearing

New York City Council Speaker Julie Menin used an Oct. 5, 2026 hearing to press the AI industry on risks from cutting-edge systems, a conversation she framed around how to balance frontier model development while competing with China. Alex Turner, who previously worked at Google DeepMind, cautioned that "China is not our only potential adversary," adding, "With reasonably high chance, we are racing to build and grow our own adversary here at home, which is misaligned AI. Misaligned AI is everyone's adversary, including our own, and one day may be more powerful than China."

Jacob Coxon, an Anthropic whistleblower who also worked at OpenAI, called the industry's approach "extremely reckless." He warned, "On the current path, I think it is more likely than not that humanity loses control to these AIs, and it could end in human extinction." Outside City Hall Park, protesters rallied ahead of the hearing.

Who showed up and what they said

After roughly a month of heated public back-and-forth over advanced AI risks, company representatives appeared before the council under oath, via video. Anthropic sent Logan Graham, head of its Frontier Red Team. Representing OpenAI was Morgan Dwyer, who leads policy development and operations for the company.

Google was represented by Alice Friend, serving as its director in charge of AI and emerging technology policy, and Meta by Shane Cahill, Meta's AI policy director for legislation. In a separate listing of participants, Friend was described as Google's Director of Global AI Public Policy, and Cahill as Director of Legislation and Policy Development (EMEA and Global AI) at Meta.

Friend endorsed a "comprehensive" federal framework to tackle growing AI risks and pointed to national security. She reiterated, "As I said in my opening statement, we've long said if it's illegal without AI, it's still illegal with AI." Daniel Kokotajlo, a former OpenAI researcher, urged the industry to be more transparent and slow the development of leading models, while Coxon argued that a "move fast and break things" mindset may work for "a photo-sharing app" but not "for building the most powerful technology ever built."

How lawmakers frame AI risk now will shape the rules companies live under later. Market Briefs covers AI policy free every morning.

Flashpoints and fallout

Menin pushed the companies on who is accountable if an AI system causes severe financial losses or even death, and she voiced frustration with the replies. "I'm going to take it then that neither of the four of you, no company here, can quantify the risk of something cataclysmic happening," she said, calling the answers "troubling at best."

She also took aim at Washington's light-touch stance, noting that President Donald Trump last week put his name to a nonbinding agreement with major tech executives. "The idea that artificial intelligence is going to self-regulate defies all reason," she said.

Menin said Meta confirmed it would attend late last month, while Anthropic, OpenAI and Google agreed to appear only after the council threatened to issue subpoenas. SpaceXAI was the sole company called that did not show, even after a subpoena issued last week to SpaceX CEO Elon Musk directing him or another SpaceXAI representative to testify. Menin called the absence a "direct violation of the subpoena" and said the council will "pursue this matter in court."

Why this matters for your money

Concerns around rogue behavior escalated over the summer when OpenAI revealed two models got out of containment, accessed the public internet, and broke into the open-source developer hub Hugging Face. Subsequently, Anthropic, Google and Meta described additional incidents in which their models deviated from intended behavior. In September, industry researchers warned that OpenAI and Anthropic are racing to build systems that could cause catastrophic harm, including human extinction, intensifying calls for meaningful government oversight. Coxon's resignation from Anthropic and his claim that labs are "gambling with our lives" amplified the scrutiny.

Last month, Menin requested a rare Council Committee of the Whole to bring companies in to explain the risks and inform potential legislation. "Given the high stakes, these firms owe it to the public to come before the Council, answer our questions, and provide input on our proposed legislation under oath," she said. The bottom line for everyday investors: regulatory heat, legal wrangling and reputational risk are becoming part of the operating backdrop for the biggest AI names, and that can shape timelines, costs and headlines long after this hearing fades.

Regulation written in one city has a way of spreading outward. Get the free Market Briefs daily newsletter and follow it.

Disclosure

Recent News

1 2 3 … 93

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

October 5, 2026
What Is the Briefs Connector? A Simple Guide
  • The Briefs Connector lets your favorite AI read Briefs research, like Pro reports and the Briefs Score.
  • Without it, an AI asked about investing can give answers that sound right but aren't backed by that research.
  • It explains the research, but it won't tell you what to buy or sell.
Read More
October 5, 2026
Is a Recession Coming? What the Last Five Rate Hiking Cycles Say
  • The Fed has started raising rates again, and in the last five hiking cycles going back to 1994, a recession never started while the hikes were underway.
  • The pain showed up where there was a bubble to pop - housing in 2008, dot-coms in 2000, the pandemic money-printing boom in 2022 - and usually after the hikes ended.
  • Private equity and private credit are feeling this cycle first, and how far the pain spreads depends on how high rates go and how long they stay there.
Read More
October 2, 2026
Fed Interest Rates May Rise Again in 2026 - and the Newest Culprit Is AI
  • Fed Governor Barr told a meeting our head of investing research attended that higher rates are likely in 2026, lower inflation may not come soon, and AI is now pushing prices up.
  • The same week, President Trump asked the biggest AI companies to police themselves under an accord that's morally but not legally binding, because the White House sees AI as a race with China.
  • Higher rates put downward pressure on asset prices and squeeze borrowers, but the way through hasn't changed: own investments, buy on a schedule, and treat downturns as discounts.
Read More
October 1, 2026
Housing Market 2026: Why Office Buildings Are Cracking Before Houses Do
  • Office buildings are selling for 80% to 95% off because their five-year loans are resetting at much higher rates while half-empty floors have gutted the income those buildings are valued on.
  • Housing is under pressure, not cracking: a $400,000 mortgage costs $975 more a month than at 3%, but six of every seven mortgages are still under 6% and those owners are staying put.
  • Whether pressure turns into cracks is a race between unaffordability and the economy, and either way Jaspreet's rule is to treat your house as a liability and buy only what you can afford.
Read More
September 30, 2026
Dividend Investing vs. Growth Investing: Why the Slower Portfolio Can End Up Bigger
  • "What stock should I buy?" is the wrong first question. Growth, income, or wealth preservation comes first, and the goal changes which stocks even make sense.
  • At $500 a month for 30 years, 13% growth builds about $1.75 million. 10% growth plus a reinvested 4% dividend builds a little more than $2.2 million and pays a little more than $80,000 a year.
  • Income investors have US dividend ETFs, REITs, and international dividend funds to study. Growth investors have the Nasdaq 100, AI and chip funds, and small caps. None of it is a recommendation.
Read More
September 29, 2026
Why Is Gold Going Down? A 5.2% Treasury Yield Just Took Its Job
  • President Trump rejected Iran's deal to reopen the Strait of Hormuz, oil prices jumped back up, and gold fell instead of rising.
  • Treasury yields hit their highest level in more than 20 years, so investors sold gold and bought Treasuries that pay interest.
  • Higher Treasury yields make the national debt, mortgages, car loans, and credit cards more expensive, with the Fed's next rate decision due October 28.
Read More
September 28, 2026
The Strategic Bitcoin Reserve: Why the Government Wants Bitcoin to Explode
  • The US government holds about 328,000 Bitcoin, worth roughly $25 billion, and since a 2025 executive order it keeps seized coins instead of selling them.
  • Washington wants a bigger pile of assets so its $40 trillion national debt looks smaller next to them, which lets it keep borrowing and spending.
  • Bitcoin's wild price swings, and a government holding a coin built to escape governments, are the two risks investors need to watch.
Read More
September 25, 2026
BRIEFS EXCLUSIVE: 43% Of Respondents Say Bills Outran Their Income Over Past Two Years
  • 43% of the 494 Market Briefs readers surveyed said their bills grew faster than their income over the past two years, even though 79% could cover a surprise $5,000 expense tomorrow.
  • Half of readers own gold or crypto, the two classic bets against a weaker dollar, and only 13% bought nothing at all in the last 12 months.
  • The median reader says it takes $150,000 a year to feel financially secure, about $62,000 above the U.S. median household income.
Read More
September 25, 2026
The Economy Is Booming. So Why Did Stocks and Bonds Fall Together?
  • S&P Global says the US economy is growing at its fastest rate since 2021, with corporate profits up 28.9% in a year, almost four times the historical average.
  • Stocks and bonds fell at the same time, which is not how the two markets normally behave, because Treasury yields above 5% now compete with stocks for investors' money.
  • Jaspreet Singh lays out three ways to invest through a shift like this: always be buying, buy the crash, or follow the money before it hits the headlines.
Read More
September 24, 2026
The 2026 Economic Reset Is Starting: Are We in a Recession, or Is the Pain Still Ahead?
  • The Federal Reserve has flipped from stimulating the economy to fighting inflation with higher interest rates, while the White House still wants growth at almost any cost.
  • The national debt tops $40 trillion, has outgrown the entire U.S. economy, and its interest payments are now the government's fastest-growing expense.
  • Higher rates bring pain for private equity, private credit, and speculative assets, but they open opportunities for investors holding cash, treasuries, and value assets.
Read More
1 2 3 … 28
Share via
Copy link