Connect with us

Business

Trump signs an executive order to vet top AI models for national security risks

Published

on

Trump signs an executive order to vet top AI models for national security risks

President Trump signed an executive order Tuesday directing the federal government to establish a voluntary early review process for the country’s most advanced artificial intelligence models, following a months-long internal battle over how aggressively Washington should move to regulate the fast-growing technology.

Under the order, companies are asked to allow government agencies, including the National Security Agency and representatives of the Defense Department, to evaluate cutting-edge models up to 30 days before they are released to the public. The order stops short of mandating participation and explicitly bars the creation of any new licensing or permitting for AI models.

“The main question is whether this is the start of a continued government clamp down and response to continued AI capabilities, or whether this is a one-off, limited, and truly voluntary act,” said James Sanders, research associate at the Center for a New American Security, a Washington, D.C., think tank.

“It’s unclear how voluntary this will stay and how voluntary it will be in practice as the AI labs try to maintain good relationships with the U.S. government,” he said.

The order represents a reversal for Trump, less than two weeks after he scuttled a version of the policy that gave the government a 90-day review period — and, more broadly, for an administration that came to power promising to strip away AI guardrails, a posture that slowly created fractures within the GOP.

Advertisement

In the executive order, Trump appeared to frame a need to foster AI technologies while taking into account national security. “As these capabilities evolve, my Administration will continue to work closely with industry to ensure that the best and most secure technology is deployed rapidly to confront any and all threats to our country,” he said in the order.

The step set off immediate debate about whether Trump’s plan would be an effective approach. It formalizes an existing practice in which top AI companies share models with external evaluators and government players before deploying them publicly, but raises questions about how voluntary it will be and how the government will choose which labs to target.

David Sacks, who previously served as Trump’s AI advisor, called the 30-day window a “game changer,” arguing that the shorter timeline would allow companies to engage with the government without slowing down new model releases.

“In the AI race, every day counts,” Sacks wrote in a post on X.

Mark Carroll, director of Engineering at Amazon Web Services Annapurna Labs, places his hand on a compute sled of the new Trainium3 system at Annapurna Labs in Austin, Texas, on February 3. Tech titan Amazon is working to step out of Nvidia’s shadow with custom “Trainium” chips designed specially for machine learning as billions of dollars are poured into artificial intelligence.

Advertisement

(Mark Felix / AFP via Getty Images)

Dean W. Ball, Trump’s former AI advisor, characterized the order as a victory for the AI “safety contingent” and a loss for Sacks and others who promote a more accelerated approach. He called the order a mistake, saying it could be a first step toward a federal licensing requirement for AI models.

“All for a benefit that is barely articulable; what, exactly, is the intelligence community going to do in 30 days to make the models safer?” Ball wrote on X.

The signing of the executive order occurred amid growing tensions among Republicans over AI, job loss and data center construction, including fear among a significant portion of Trump’s supporters that artificial intelligence could eliminate jobs or become a security threat. Polling in May had shown strong support among Republicans for a framework like the one outlined in Trump’s executive order.

Advertisement

The growing split among Republicans over AI was clearly visible in Florida on Monday, where James Uthmeier, the state’s Republican attorney general, sued OpenAI over the alleged risks of ChatGPT, citing the use of the bot by a gunman in a shooting at Florida State University last year.

Meanwhile, Rep. Byron Donalds — the Trump-endorsed candidate to succeed Gov. Ron DeSantis — said Monday that he did not agree with Trump on AI policy, indicating he supported state-led regulation, a shift for a candidate who had been backed by the AI industry earlier in the year.

A poll released by Americans for Responsible Innovation, a nonprofit advocating for a federal framework for AI policy, found that the majority of Republican voters polled supported the type of plan laid out in Trump’s executive order. Seventy-one percent also said independent security testing should be required by law for advanced AI systems.

When Trump took office, his administration pivoted away from Biden-era policies requiring AI companies to test their AI models and share safety results with the government before public release, reversing the U.S. posture on regulation.

That changed after Anthropic — acting on its own initiative — brought its Claude Mythos Preview model to senior White House officials, a move that exposed vulnerabilities in its software and raised concerns about the potential need for safety-testing of AI models before broad public release.

Advertisement

The White House attempted to downplay the executive order as a regulatory move, emphasizing in a post Tuesday that the federal government would not conduct sweeping oversight and the process outlined in the executive order would be voluntary.

“We are NOT conducting oversight of all new models, as that level of government overreach would have chilling effects on free speech and innovation,” the White House Office of Science and Technology Policy posted on X.

Trump’s signing of the order prompted calls from those who support stricter AI regulation for Congress to take steps beyond Trump’s plan. Thus far, Congress has not passed any major legislation to regulate artificial intelligence.

“Congress should take the structure this order creates, make participation mandatory, and extend it beyond cyber threats to the full range of risks the most capable models present,” Riki Parikh, policy director of the Alliance for Secure AI, a nonprofit that promotes safeguards for AI, said on X, saying the order’s voluntary framework “isn’t enough.”

Progressives, including Gov. Gavin Newsom and Vermont Sen. Bernie Sanders, said the executive order was too weak and slammed Trump for flip-flopping on regulation.

Advertisement

Some experts suggested the distinction between voluntary and mandatory sharing of their cutting-edge technology may be crucial.

“No company is formally required to participate, but if a developer wants to sell frontier AI systems to the federal government, participation may soon become the price of entry,” Jessica Tillipman, a professor who studies contracting law at George Washington University, wrote in a post on X.

The administration’s approach was welcomed by industry leaders, including Microsoft President Brad Smith, who said the order was “an important step toward advancing innovation while protecting the security of the American public.”

Anthropic endorsed the order and called it “an important step in strengthening America’s leadership in AI.” The company said it was looking forward to supporting the implementation of the program.

Ceballos and McDaniel reported from Washington, Christopher from Los Angeles. Times staff writer Michael Wilner contributed to this report.

Advertisement

Business

Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination

Published

on

Commentary: How right-wing anti-transgender attacks led to a Supreme Court ruling upholding sex discrimination

At the Supreme Court, the unfounded fear of boys masquerading as girls in youth sports rolled the clock back on gender equality.

On the surface, the Supreme Court’s June 30 opinion upholding state laws barring transgender girls from women’s and girl’s sports teams looks like a victory for women’s rights.

The 6-3 opinion by Justice Brett M. Kavanaugh certainly presents itself that way. “Females and males have inherent physical differences relevant to athletic performance,” Kavanaugh wrote. “Therefore, in contact sports, forcing female athletes to compete against males can create significant safety risks.” He also asserted that “forcing female athletes to compete against males can undermine competitive fairness.”

The ruling applied to prohibitions enacted in Idaho and West Virginia against “biological” males’ participation on women’s teams in public schools. Federal judges in both states overturned the bans. The Supreme Court majority restored them. The ruling essentially upholds similar bans enacted in 25 other states.

There was no record of any transgender person participating in school sports in the State, let alone any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.

— Justice Sonia Sotomayor, demolishing the Supreme Court’s argument in favor of banning transgender girls from girl’s sports

Advertisement

Kavanaugh, like Donald Trump and others in the anti-transgender camp, maintained that one’s gender is an immutable fact of life, established even before birth.

Anything else, Trump stated in an executive order he issued on inauguration day 2025, could only be the product of “gender ideology extremism.” The U.S., his order stated, recognizes “two sexes, male and female. These sexes are not changeable and are grounded in fundamental and incontrovertible reality.” That’s a “biological truth,” he declared.

In his own version of this overconfident and factually insupportable conclusion, Kavanaugh wrote: “As all agree, females and males have inherent physical differences relevant to athletic performance.”

Advertisement

Science recognizes that some people are “born with sex traits that don’t fit into typical male or female patterns,” to cite a discussion on the Cleveland Clinic web page on the topic “intersex.” The condition “may involve chromosomes, hormones, reproductive organs or genitals.”

From a psychological standpoint, medical science recognizes “gender dysphoria” as a real condition often requiring counseling and medical intervention such as the use of puberty blockers and hormones to stave off the development of secondary sex characteristics until the condition can be resolved.

No one disputes that there are physical differences between the sexes. Few would dispute that on average or even at the median, males may be bigger and more powerful than females, or that in certain contact sports the difference may be telling and on occasion dangerous.

But that’s not the same as asserting that the physical differences between males and females invariably mean that men will invariably prevail over women in all competitions or that their participation will endanger women.

The International Olympic Committee — in a policy statement Kavanaugh cited incompletely — says that in “most running and swimming events,” males have a 10% to 12% advantage over women. That’s a range that would accommodate the full spectrum of outcomes — transgender females win, cisfemales win, they tie. (The “cis” prefix denotes those living consistent with their birth gender.)

Advertisement

West Virginia and Idaho addressed this ambiguity by banning transgender women from all girls’ teams. So under their rules transgender girls can’t play football or soccer with cisgirls. But what’s the argument in favor of banning them from the 100-yard dash, or cross-country track, or diving, or archery?

But something else is going on here. The Supreme Court’s ruling was almost preordained, given the years-long campaign by conservatives to demonize transgender individuals as if they’re members of an alien species.

It will be recalled that during his presidential campaign, Trump spun a despicable fantasy in which children were kidnapped in school and secretly subjected to sex-change operations.

Trump’s executive order wiped out policies aimed at protecting transgender adults from discrimination. He moved to outlaw gender-affirming medical therapies for anyone under 19 by cutting off federal funding for healthcare institutions that provide such care.

He banned transgender individuals from serving in the military and ordered federal prison officials to move transgender inmates into the general populations consistent with their birth genders, which exposes them to physical assault. (Federal Judge Royce Lamberth of Washington, D.C., has blocked the government from transferring three transgender women into the male prison population or terminating their hormone treatments.)

Advertisement

I wrote during Trump’s first term, when his anti-transgender policies were still gestating, that the goal was to show that “one can target any community, as long as it doesn’t have a strong political voice or political power. These are the actions of bullies and cowards, pretending to be strong.”

Last year, the Supreme Court struck its first blow against transgender rights by upholding a Tennessee law banning transgender care, including puberty blockers and hormone therapy, for minors. Similar laws have been enacted in 25 other states. The majority in that ruling by Chief Justice John G. Roberts Jr. was identical to the one in the June 30 ruling — Roberts, Kavanaugh, and Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett.

Who are the targets of this ideological campaign? They number only about 1.6 million U.S. adults, or one-half of 1% of the U.S. population. About 300,000 adolescents ages 13 to 17, or 1.4%, identify as transgender, according to a study by UCLA School of Law.

In West Virginia, as Justice Sonia Sotomayor observed in her dissenting opinion, “there was no record of any transgender person participating in school sports in the State, let along any ‘problem’ with transgender students … creating unfair competition or unsafe conditions.”

In endorsing the flat bans directed at transgender women in Idaho and West Virginia, Kavanaugh argued that any attempt to implement case-by-case judgments of students’ requests to join sports teams inconsistent with their biological gender would create “an enormous practical and administrability problem.”

Advertisement

Is that so? That wasn’t the case in Maine, where the annual K-12 population is more than 170,000. There, a committee was charged with determining whether a student’s participation in a sport consistent with their gender identity but inconsistent with their biological sex would “result in an unfair athletic advantage” or present a risk of injury to others. The committee held 56 hearings from 2013 through 2021, or an average of seven per year. During the entire time span, only four involved transgender girls. (The outcome of those hearings couldn’t be learned.)

It was Maine’s policy, one might recall, that provoked a confrontation between Trump and Maine Gov. Janet Mills at the White House last year, when Trump threatened to withhold federal funding from the state unless it barred transgender students from competing on women’s sports teams. “We’ll see you in court,” Mills snapped.

Whether the Idaho and West Virginia laws genuinely protect girls from unfair competition is questionable. (The Idaho law is styled the “Fairness in Women’s Sports Act.”) In practice, the laws may subject women in public schools to “invasive sex verification procedures,” as educational expert George Theoharis of Syracuse University wrote after the court ruling.

They’re also based on a retrograde view of women as fragile creatures needing men’s protection, Theoharis wrote — “the same logic that has historically been used to justify excluding women from making their own healthcare decisions and girls from rigorous math and science; that physically demanding work is simply beyond them.” (There don’t appear to be any state laws barring transgender women from competing in men’s sports.)

Becky Pepper-Jackson, the plaintiff in the West Virginia case, in which she is identified only as B.P.J., is the only transgender girl who sought to join girl’s teams — track and cross-country — in the state. That was in 2021, just after West Virginia passed its law and she was about to enter sixth grade. She didn’t appear to pose any competitive risk to others on the track and cross-country teams she applied to join — her lawyers told the Supreme Court that on those no-cut teams, she “came in near the back.”

Advertisement

Anyway, she had not gone through male puberty, which theoretically might have endowed her with a competitive advantage, because she had been taking puberty blockers and female hormones.

Thanks to the court’s ruling, Sotomayor observed in a dissent joined by Justices Elena Kagan and Ketanji Brown Jackson, West Virginia can deny Becky access to school sports “because it thinks they have an inherent athletic advantage, even if the facts show that they do not.”

B.P.J., Sotomayor wrote, “cannot practice on girls’ teams, even if she would not take anyone’s spot in an eventual competition, even if everyone who tries out for the team makes it, and even if having the chance to participate could aid immensely in treating B. P. J.’s gender dysphoria.”

So whose interest was really protected by the Supreme Court?

Advertisement
Continue Reading

Business

Orange County real estate investor pleads not guilty in $100 million bank fraud case

Published

on

Orange County real estate investor pleads not guilty in 0 million bank fraud case

An Orange County real estate investor accused of criminally defrauding an Arizona bank of nearly $100 million pleaded not guilty Monday and remains in custody.

Mahender Makhijani, 44, of Corona del Mar — who also was ordered by an arbitrator to pay $1.34 billion in a separate civil fraud case — was arraigned in Santa Ana federal court on two charges.

He is accused of bank fraud and making a false statement to a bank in a June 8 case involving a $100 million real estate loan made by Phoenix-based Western Alliance Bank. He was taken into custody on June 10.

Makhijani is accused of providing bogus collateral for the October 2024 loan now in default. In a civil lawsuit, Western Alliance said the outstanding balance as nearly $99 million.

Prosecutors say he falsified title insurance policies that showed the bank would have a first lien on the underlying collateral if the loan went bad, when in fact it did not.

Advertisement

A trial was set for August 11 before U.S. District Judge David O. Carter in Santa Ana.

Michael Schachter, his criminal defense attorney, did not respond to messages seeking comment.

In the civil case, an arbitrator in May ordered Makhijani to pay Laguna Beach real estate mogul Mohammad Honarkar $1.34 billion after ruling he had fraudulently induced him into a 2021 joint venture — and then wrested control and lost to creditors more than two dozen properties Honarkar had owned.

Makhijani has not been criminally charged in that case, but prosecutors alleged in an affidavit in support of the bank fraud charges that he used “force and threats” in his dealings with Honarkar and others — including taking over the landmark Hotel Laguna in 2023 that Honarkar was renovating.

Prosecutors sought to hold Makhijani without bail after his arrest.

Advertisement

The affidavit noted he is a legal Indian immigrant with a home and bank accounts in that country, has access to private jets and threatened to “run away” if caught in a difficult situation.

The request was denied and he was granted $500,000 bail.

However, Makhijani remains in custody after a hearing sought by prosecutors last month before Magistrate Judge Autumn Spaeth.

The judge declined to accept a $450,000 cashier’s check submitted by a Makhijani associate for the bail, finding insufficient proof the source of the funds was legitimate, according to court records.

Makhijani is not prominent outside Orange County real estate circles, but he established a thriving distressed-assets business over the last decade that attracted prominent Southern California real estate investors.

Advertisement

Prosecutors said it paid for a lifestyle that included two multimillion-dollar homes in Corona del Mar, a luxury apartment in Newport Beach and various luxury vehicles.

As of last month, prosecutors had not fully traced his assets, which they believe are not held in his name and some of which may be in India.

The businessman employed an array of shell companies and strawmen to sign documents on his behalf, and to stand in for him as operators of his companies, according to the affidavit.

Makhijani told an associate he took extra precautions because wanted to insulate himself from litigation and that “they were sharks in the distressed world who took advantage of people,” the affidavit stated.

Advertisement
Continue Reading

Business

Many indie festival films struggle to get distribution. Alamo Drafthouse is trying to change that

Published

on

Many indie festival films struggle to get distribution. Alamo Drafthouse is trying to change that

Dine-in movie theater chain Alamo Drafthouse Cinema is launching a new initiative to show unreleased independent films that had successful festival runs, a move that comes as specialty films have struggled to gain distribution.

The Alamo Exclusives program, announced Wednesday, will give limited theatrical runs to films that showed at festivals including Sundance, the Toronto International Film Festival, Tribeca Festival and South by Southwest festival, as well as Alamo’s own Fantastic Fest.

The idea is to help showcase films that received critical acclaim, but did not secure distribution or acquisition deals. The chain will not acquire these films, but instead will enter into agreements with filmmakers to exhibit their films on Alamo Drafthouse screens. By showing these films to audiences on the big screen, these films could get the momentum they need for further opportunities.

The program’s first film will be the documentary “Butthole Surfers: The Hole Truth and Nothing Butt,” which debuted last year at South by Southwest and chronicles the history of the punk rock band.

Advertisement

The film will be shown in Alamo Drafthouse theaters for a limited time later this summer.

The Austin-based chain, which is owned by Sony Pictures, has a long history of curating indie films for its audiences, giving Alamo Drafthouse confidence that its viewers want to see these kinds of movies, company chief executive Michael Kustermann said in a statement.

“Time and again, they’ve shown they’ll come out to support bold, original films when given the opportunity,” he said. The new Alamo Exclusives “gives us another way to champion filmmaker-driven films that deserve to be discovered and connect them with the wider Alamo Drafthouse audience.”

The initiative comes at a difficult time for indie films. Since the pandemic upended the movie business, traditional studios and distributors have had less appetite for risk, including betting on smaller indie films out of festivals.

And as the 2023 dual writers’ and actors’ strikes thinned out theatrical lineups, that aversion to uncertainty became a push for reliable and profitable hits.

Advertisement

“Too many incredible films premiere at festivals and then never receive the theatrical life they deserve,” Lisa Dreyer, director of Fantastic Fest and film innovation at Alamo, said in a statement. “We are actively searching for films across all genres, from horror to comedy, to everything in-between, to champion in this new, exciting way.”

Continue Reading
Advertisement

Trending