Top stories today:

1. Fed cuts rates by 50 bps, in 1st since 2020
2. Alibaba launches Qwen2.5 family of open weights AI models
3. X changes network provider to restore access in Brazil despite ban
4. Meta, Spotify warn EU could lose 10% GDP growth over AI regulations
5. Solana unveils Seeker, its 2nd gen. crypto smartphone

0. Data and calendar

1. Fed cuts rates by 50 bps, in 1st since 2020, as Powell hints at further 25 bps cuts

• 11 to 1 was the vote by the FOMC to lower the federal funds rate by 0.50%, with the 1st dissent since 2022.

• “We don’t think we’re behind. You can take this as a sign of our commitment not to get behind,” Powell said.

• Likely no more 50 bps cuts: “I do not think that anyone should look at this and say, ‘Oh, this is the new pace.’”

The FOMC’s updated dot plot suggests two more rate cuts in 2024

• Markets price in -75 bps of cuts in 2024.

M&A activity is expected to be boosted after this rate cut

3. Alibaba launches Qwen2.5 family of open weights AI models ranging between 0.5-72B parameters

Qwen2.5-72B outperforms Llama-3.1-70B and Mistral-Large-V2 on certain benchmarks:

• Apache 2.0 open license for most models, except the 3B and 72B variants, which have restrictions for companies with more than 100M MAUs.

The Qwen models appear heavily censored, giving errors when asked about sensitive topics about Chinese history

Qwen2.5-3B manages to score above 65 on MMLU with only 3B parameters

Qwen2.5-Coder (1.5B–32B) is specifically designed for coding and was trained on 5.5T tokens

4. X changes network provider to restore access in Brazil despite ban

X said it expected to be inaccessible in Brazil again shortly, though it continued to “work with the Brazilian government to return very soon:”

• X is reportedly using Cloudflare to route its traffic in Brazil.

• Brazilian regulator Anatel evaluating X’s blocking again.

• Earlier this month, Brazil blocked X over an ongoing fight with Elon.

5. Meta, Spotify, others warn EU could lose 10% of GDP growth by falling behind on AI

• 24+ executives wrote an open letter on Thu., being coordinated by Meta.

• Europe may reap fewer AI rewards than other regions, the executives noted.

• “Europe has become less competitive and less innovative,” the letter said.

• Apple and Meta have delayed AI rollouts in Europe due to regulations.

6. Solana unveils Seeker, its 2nd gen. crypto smartphone, with better battery, lighter weight design

• Token 2049: where Solana unveiled the Seeker.

• 2025 release, with presales available until Sep. 21.

• 140K+ presales across 57 countries, with many investors betting the phone’s included tokens will pay for the phone itself.

• $450 Early Founder price.

• The phone includes dApp Store 2.0 with improved app discoverability.

7. YouTube launches AI for short videos, dedicated place to promote small creators

• 6-sec AI videos will be generated using Veo.

• A new Inspiration tab for AI-led concepts announced.

• Auto-dubbing will also leverage AI on the platform.

A new Communities section has been announced with AI tools for creator-fan interactions

YouTube Hype was debuted to help promote creators with 500K subscribers

• “Hype this video” will appear to let viewers push a video for the Hype section.

• 100 videos with the most “Hype” points will hit the leaderboard.

8. UN details “global AI governance” suggestions in new report

Very few countries are participating in global AI governance talks:

The UN’s AI advisory body made 7 recommendations for AI governance:

1. An international scientific panel on AI

2. Policy dialogue on AI governance

3. AI standards exchange

4. Capacity development network

5. Global fund for AI

6. Global AI data framework

7. AI office within the Secretariat

The UN argues for AI standards exchange saying there has been a “proliferation” of AI standards with “no common language”

9. Software engineer employment shrinking after hitting peak in Oct. 2019

10. Interesting videos, posts, and memes

11. Other headlines

AI

• Apple Intelligence will support German, Italian, Korean, others in 2025.

• Global AI safety meeting to be convened by U.S. in SF on Nov. 20-21.

• T-Mobile partners with OpenAI to bring AI-based customer service.

• OpenAI hires former Coursera executive to expand AI use in classrooms.

• LinkedIn confirms training AI on user data by default.

Tech

• Microsoft ties up with Anduril to improve army combat goggle system.

• Ghost encrypted cybercrime platform dismantled by global police, 51 arrested.

• Ampere, an Oracle-backed chipmaker, explores potential sale.

• Rocket Lab aborts satellite launch after countdown hits zero.

Tech & law

• Apple to face EU warning on opening up iPhone operating system.

• Google offered to sell part of ad tech business, not enough for EU.

• U.S. Senate committee questions tech executives about election threats.

• Microsoft’s acquihire of Inflection won’t be scrutinized under EU merger rules.

• Kids Online Safety Act advances through House committee.

• Nintendo, The Pokémon Company sue Palworld maker Pocketpair.

Biotech

• Upstream Bio files for $100M IPO.

• Novo Nordisk bets $600M on NanoVation’s ex-liver g

• Zantac’s second cancer trial ends with hung jury.

• Carlyle seeking $2.1B market value for Japan’s Rigaku in IPO: sources.

• FDA scraps adcomm for Applied's rare disease drug.

• NIH grants up to $100M yearly for pandemic preparedness network.

Business

• Tupperware lenders fight over assets, including brand name.

• India eclipsing China in MSCI Global stock gauges to drive foreign flows.

Crypto

• Bitget seals “multi-million dollar” deal with La Liga.

U.S. politics

• Iranian hackers sent Trump information to Biden camp: U.S. authorities.

• House GOP rejects Speaker Johnson’s funding bill.

• Trump drops to 52% odds on Nate Silver’s forecast, 46% on Polymarket.

World

• Hezbollah walkie-talkies explode in Lebanon in 2nd wave of blasts.

• Israel sees “new phase” in war with regional Islamist groups after Lebanon blasts.

• Saudi Crown Prince won’t recognize Israel without Palestinian state.

• U.S. keeps missile system in Philippines amid rising China tensions.

• Indian ammunition enters Ukraine despite protests from Moscow.

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