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Palo Alto Networks CEO Nikesh Arora has highlighted the urgent need for companies to modernize their cybersecurity infrastructure to combat AI-driven threats. "Nothing that was deployed seven or 10 years ago is prepared or ready to handle AI at machine speed," Arora said during an interview with CNBC. He said that there is approximately $1 trillion of global cybersecurity debt that needs addressing to defend against automated attacks. Arora identified the emergence of Anthropic's Mythos model earlier this year as a turning point, because it could be easily used to exploit software vulnerabilities. “I've been trying for eight years to tell customers they're not ready, and [Anthropic CEO Dario Amodei] did it in one event, just by launching Mythos,” Arora said.

 

CNBC

OpenAI has said that its upcoming Astra AI model is the company's first to reach the "Critical" cybersecurity capability threshold under its Preparedness Framework. The model is capable of independently discovering and exploiting zero-day vulnerabilities across hardened systems without human guidance, crossing a cybersecurity threshold that until recently belonged largely to expert hacking teams.

 

CNBC

CoinDesk

U.S. manufacturing activity continued to expand in August, but at a slower pace, with the Institute for Supply Management's manufacturing PMI falling to 54.6 from 55.6 in July, as new orders weakened and supply-chain pressures persisted. The new orders index declined to 53.7 from 56.7, while the factory employment measure fell to 51.2 from 52.8, although manufacturing continues to benefit from investment in artificial intelligence infrastructure and could receive further support as businesses replenish inventories. Supply constraints remained significant, with supplier deliveries slowing further, while the input prices index held at an elevated 71.1, suggesting continued inflationary pressure. Susan Spence, chair of the ISM manufacturing business survey, who authored the report, said she’s “starting to see warning signs” for the sector, in new orders, order backlogs, and imports. Relatedly, the final S&P Global manufacturing PMI for August was unchanged from July, at 53.9. Production increased for a 15th consecutive month, although growth slowed to its weakest pace since February, while new orders continued to rise and export orders declined for a 14th straight month.

 

Investing

Bloomberg

Market Watch

Reuters

U.S. Treasury Secretary Scott Bessent has urged G20 countries to consider tariffs and other measures to protect jobs and manufacturing from an influx of cheap imports, particularly from China, after the U.S. raised its own trade barriers. Bessent argued that China’s record $1.2tn trade surplus in 2025 is hindering global economic growth, while the Trump administration is considering an additional 7.5% tariff on Chinese imports following the Supreme Court’s rejection of its previous sweeping global tariffs. However, the Tax Foundation estimated that tariffs introduced during 2025 increased U.S. retail prices for imported consumer goods by roughly 7% relative to pre-tariff trends.

 

US News and World Report

Sony Music Publishing and Warner Chappell Music have filed a lawsuit against Anthropic alleging the company misused "tens of thousands" of copyrighted works. The lawsuit claims that Anthropic illegally downloaded lyrics to train its AI models, breaching copyright law. Anthropic recently settled a copyright case brought by U.S. authors which cost the company $1.5bn. Sony and Warner asserted in the filing: "Anthropic clearly considers that to be just the cost of doing business given that its entire business model continues to be built on copyright theft." Anthropic's spokesperson said: "We disagree with the publishers' claims and we intend to defend ourselves robustly in court."

 

Reuters

The Guardian

The Securities and Exchange Commission (SEC) has increased examinations of investment firms behind special purpose vehicles (SPVs), asking registered investment advisers to demonstrate that their funds genuinely own, or have exposure to, shares in the private companies they market to investors. The heightened scrutiny follows investor complaints and increased promotion of SPVs around high-profile companies, including SpaceX and Anthropic, amid concerns about whether investors are receiving the exposure they expect. The SEC’s reviews can involve document requests and in-person examinations, and come as problems emerge in the sector, including a fund that promoted pre-IPO SpaceX exposure but later told investors the shares had been sold before public trading began.

 

Reuters

Wall Street Journal

OpenAI's ChatGPT will be classified as a very large online search engine under the EU Digital Services Act (DSA), requiring it to comply with stricter regulations. The European Commission also announced that social media forum Reddit and gaming platform Roblox would be classified as very large online platforms. All three will therefore face extra obligations such as removing illegal content and protecting the privacy and security of children. Non-compliance could result in fines of up to 6% of global revenue.

 

Financial Times

Reuters

The Daily Telegraph

The ongoing dispute between South Korea and U.S.-based retailer Coupang is straining diplomatic relations, according to congressional and White House officials. Allegations of discrimination against Coupang following a data breach have led to calls for potential tariffs on South Korea. The South Korean government has dismissed these claims, asserting that its alliance with the U.S. remains strong. Chris Stewart, a former congressman, noted that the issue transcends a mere commercial dispute, underscoring the importance of the U.S.-South Korea relationship.

 

CNBC

Unions representing nearly two-thirds of U.S. memory-chip maker Micron's Taiwan staff in Taoyuan and Taichung may strike unless the company overhauls its bonus system and shares more of its profits with workers. Taiwan is Micron's largest manufacturing base, and any stoppage could disrupt chip supply. Unions representing workers in the two cities say that they had nearly 10,000 members among Micron's roughly 15,000 employees there. More than 80% of surveyed members backed strike action, the unions said.

 

Reuters

Global issuance of zero-interest convertible bonds is set for a record year, driven by AI companies attracting investors looking to gain exposure to the fast-growing sector. Dealogic reports $72bn in zero-coupon convertibles issued this year, nearing the previous record of $73bn for 2025. High borrowing costs have also provided an incentive for firms to seek innovative financing solutions, with zero-coupon bonds now accounting for 41% of all convertible issuance.

 

Bloomberg

Financial Times

MapQuest has risen to the top of Apple’s U.S. App Store free-app rankings after refusing to rename Lake Ontario as “Lake America”, following an executive order from President Donald Trump directing the U.S. government to adopt the new name. MapQuest has publicly said it will retain the historic name, while Google Maps has switched to “Lake America” for U.S. users but continues to show “Lake Ontario” in Canada. Apple Maps was still displaying “Lake Ontario” as of September 1st. Canadian Prime Minister Mark Carney has rejected the proposed change, saying Canadians will continue to use the lake’s centuries-old name.

 

USA Today

The Hill