Technology
Hollywood has no idea what to do about AI
This is an excerpt of Sources by Alex Heath, a newsletter about AI and the tech industry, syndicated just for The Verge subscribers once a week.
This week, I got an up-close look at how far apart Silicon Valley and Hollywood are on what to do about AI.
First, at OpenAI DevDay, Sam Altman presented the new Sora app as a gift to content creators. If anything, he suggested, OpenAI was being too censorious by not allowing people to make even more kinds of AI videos.
“On the whole, creators, rights holders, people are very excited about the potential of this,” Altman said during a media Q&A in San Francisco on Monday that I attended. “They believe it will deepen connection. It’s kind of like a new generation of fanfiction.”
The next day, I arrived at Bloomberg’s Screentime event in Los Angeles to hear how media executives, agents, and studio heads felt about the AI meteor that’s heading their way. Sora had just hit 1 million downloads in the App Store and was top of mind for everyone. Altogether, I came away with the impression that Hollywood’s leaders still have no idea what to do about the risk AI poses, and they’re going to be steamrolled by technology that’s moving faster than they can comprehend.
Paramount Skydance CEO David Ellison called AI a “new pencil” to create with
I lost count of how many times a version of the phrase “we care about copyright” was invoked at Screentime like a prayer. At the same time, no one at the event wanted to specifically address the fact that OpenAI clearly trained on their IP without permission and unleashed a product that, at least initially, had no shame in making that clear. The fact that Hollywood’s leaders are unable to share a public perspective on this issue, or more importantly, what they are going to do about it, should be alarming to everyone working in the business.
While onstage, Netflix co-CEO Greg Peters completely dodged a question from Bloomberg’s Lucas Shaw about Sora specifically, and instead waxed about the more boring ways that AI is being used throughout nearly every part of the production process. Paramount Skydance CEO David Ellison also chose to tout the less controversial, tool-like aspect of AI, calling it a “new pencil” to create with. The only executive I heard come close to addressing the real issue on everyone’s minds was Warner Music CEO (and former YouTube exec) Robert Kyncl, who made clear that Warner’s content must be licensed to train on, and that there will be repercussions for those who don’t follow the rules.
It’s not surprising that the music industry has a stronger perspective than, say, the hemming and hawing about AI currently being done by the big talent agencies. The labels are better positioned to take on AI companies as a consolidated group of players who have navigated a version of this problem before with the rise of music streaming. Kyncl went so far as to predict that AI will benefit the music industry long-term, similar to how YouTube eventually solved its copyright problem and evolved into a major distribution platform for the entertainment industry.
He may be right about music specifically, but the lack of collective action from the rest of Hollywood means that the AI companies are poised to keep getting away with asking for forgiveness instead of permission. OpenAI’s decision to train Sora in this manner was a deliberate choice, not an accident, and it showed a complete lack of regard for the implications of sucking up everyone’s content to feed its AI. Altman is simply following the same playbook the tech industry has used in the past to achieve dominance, so who can blame him this time?
Technology
Defense secretary Pete Hegseth designates Anthropic a supply chain risk
This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.
Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic.
Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission – a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.
The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield.
Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable.
As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives.
Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.
In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.
America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.
Technology
What Trump’s ‘ratepayer protection pledge’ means for you
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When you open a chatbot, stream a show or back up photos to the cloud, you are tapping into a vast network of data centers. These facilities power artificial intelligence, search engines and online services we use every day. Now there is a growing debate over who should pay for the electricity those data centers consume.
During President Trump’s State of the Union address this week, he introduced a new initiative called the “ratepayer protection pledge” to shift AI-driven electricity costs away from consumers. The core idea is simple.
Tech companies that run energy-intensive AI data centers should cover the cost of the extra electricity they require rather than passing those costs on to everyday customers through higher utility rates.
It sounds simple. The hard part is what happens next.
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At the State of the Union address Feb. 24, 2026, President Trump unveiled the “ratepayer protection pledge” aimed at shielding consumers from rising electricity costs tied to AI data centers. (Nathan Posner/Anadolu via Getty Images)
Why AI is driving a surge in electricity demand
AI systems require enormous computing power. That computing power requires enormous electricity. Today’s data centers can consume as much power as a small city. As AI tools expand across business, healthcare, finance and consumer apps, energy demand has risen sharply in certain regions.
Utilities have warned that the current grid in many parts of the country was not built for this level of concentrated demand. Upgrading substations, transmission lines and generation capacity costs money. Traditionally, those costs can influence rates paid by homes and small businesses. That is where the pledge comes in.
What the ratepayer protection pledge is designed to do
Under the ratepayer protection pledge, large technology companies would:
- Cover the full cost of additional electricity tied to their data centers
- Build their own on-site power generation to reduce strain on the public grid
Supporters say this approach separates residential energy costs from large-scale AI expansion. In other words, your household bill should not rise simply because a new AI data center opens nearby. So far, Anthropic is the clearest public backer. CyberGuy reached out to Anthropic for a comment on its role in the pledge. A company spokesperson referred us to a tweet from Anthropic Head of External Affairs Sarah Heck.
“American families shouldn’t pick up the tab for AI,” Heck wrote in a post on X. “In support of the White House ratepayer protection pledge, Anthropic has committed to covering 100% of electricity price increases that consumers face from our data centers.”
That makes Anthropic one of the first major AI companies to publicly state it will absorb consumer electricity price increases tied to its data center operations. Other major firms may be close behind. The White House reportedly plans to host Microsoft, Meta and Anthropic in early March to discuss formalizing a broader deal, though attendance and final terms have not been confirmed publicly.
Microsoft also expressed support for the initiative.
“The ratepayer protection pledge is an important step,” Brad Smith, Microsoft vice chair and president, said in a statement to CyberGuy. “We appreciate the administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers.”
Industry groups also point to companies such as Google and utilities including Duke Energy and Georgia Power as making consumer-focused commitments tied to data center growth. However, enforcement mechanisms and long-term regulatory details remain unclear.
CHINA VS SPACEX IN RACE FOR SPACE AI DATA CENTERS
The White House plans talks with Microsoft, Meta and Anthropic about shifting AI energy costs away from consumers. (Eli Hiller/For The Washington Post via Getty Images)
How this could change the economics of AI
AI infrastructure is already one of the most expensive technology buildouts in history. Companies are investing billions in chips, servers and real estate. If firms must also finance dedicated power plants or pay premium rates for grid upgrades, the cost of running AI systems increases further. That could lead to:
- Slower expansion in some markets
- Greater investment in renewable energy and storage
- More partnerships between tech firms and utilities
Energy strategy may become just as important as computing strategy. For consumers, this shift signals that electricity is now a central part of the AI conversation. AI is no longer only about software. It is also about infrastructure.
The bigger consumer tech picture
AI is becoming embedded in smartphones, search engines, office software and home devices. As adoption grows, so does the hidden infrastructure supporting it. Energy is now part of the conversation around everyday technology. Every AI-generated image, voice command or cloud backup depends on a power-hungry network of servers.
By asking companies to account more directly for their electricity use, policymakers are acknowledging a new reality. The digital world runs on very physical resources. For you, that shift could mean more transparency. It also raises new questions about sustainability, local impact and long-term costs.
ARTIFICIAL INTELLIGENCE HELPS FUEL NEW ENERGY SOURCES
As AI expansion strains the grid, a new proposal would require tech firms to fund their own power needs. (Sameer Al-Doumy/AFP via Getty Images)
What this means for you
If you are a homeowner or renter, the practical question is simple. Will this protect my electric bill? In theory, separating data center energy costs from residential rates could reduce the risk of price spikes tied to AI growth. If companies fund their own generation or grid upgrades, utilities may have less reason to spread those costs among all customers.
That said, utility pricing is complex. It depends on state regulators, long-term planning and local energy markets.
Here is what you can watch for in your area:
- New data center construction announcements
- Utility filings that mention large commercial load growth
- Public service commission decisions on rate adjustments
Even if you rarely use AI tools, your community could feel the effects of a nearby data center. The pledge is intended to keep those large-scale power demands from showing up in your monthly bill.
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Kurt’s key takeaways
The ratepayer protection pledge highlights an important turning point. AI is no longer only about innovation and speed. It is also about energy and accountability. If tech companies truly absorb the cost of their expanding power needs, households may avoid some of the financial strain tied to rapid AI growth. If not, utility bills could become an unexpected front line in the AI era.
As AI tools become part of daily life, how much extra power are you willing to support to keep them running? Let us know by writing to us at Cyberguy.com.
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Technology
Here’s your first look at Kratos in Amazon’s God of War show
Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.
There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:
The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.
That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).
While production is underway on the God of War series, there’s no word on when it might start streaming.
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