Reuters - Republicans are making Muslims a campaign issue in the 2026 US midterm

Republicans are making Muslims a campaign issue in the 2026 US midterms

  • Senate hopeful El-Sayed draws attacks nationwide
  • Texas, Alabama races spotlight anti-Islam rhetoric
  • Critics say rhetoric unfairly targets Muslims
  • Republicans say concerns involve security, extremism

WASHINGTON, Sept 8 (Reuters) - Republican Vice President JD Vance called Abdul El-Sayed, a Muslim and a Democrat running for the U.S. Senate in Michigan, "very, very evil" at a rally last week, accusing him of defending terrorism because of remarks he made after a March attack on a suburban Detroit synagogue.

In Texas, Republican Governor Greg Abbott, in a close ​race for another term, attacked a proposed Muslim-led development and called for an investigation into what he described as efforts to create “sharia courts,” a claim disputed by developers and civil rights groups.

In Alabama, where Muslims make ‌up less than half a percent of the population, U.S. Senator Tommy Tuberville, a Republican running for governor, warned that “the enemy is inside the gates,” referring to what he called radical Islam.

MUSLIMS BECOME A CAMPAIGN ISSUE

The comments reflect an effort to make Muslims and Islam part of the election debate ahead of the November 3 midterms that will determine whether Democrats can wrest control of Congress from President Donald Trump's Republican Party.

Critics say the rhetoric unfairly targets Muslims, while Republicans say they are raising legitimate concerns about security, extremism and the role of religion in public life.

Abbott campaign spokesman Eduardo Leal said the Texas governor's ​actions regarding the development were aimed at alleged illegal conduct, not religious beliefs.

Muslims number about 5.5 million people in the United States, up from 2.4 million in 2007, according to Pew Research Center, opens new tab. They account for about 1.6% of the country's ​population.

Muslim Americans have achieved a series of political milestones in recent years, building on the election of several Muslims to the U.S. House of Representatives. New York City elected its first Muslim ⁠mayor, Zohran Mamdani, last year, while El-Sayed could become the first Muslim elected to the U.S. Senate. In Virginia, Ghazala Hashmi became the first Muslim woman elected to statewide office when she won the lieutenant governor's race.

The rhetoric has spread to House races as ​well.

Republican Representatives Keith Self and Chip Roy, both of Texas, have organized a "Sharia Free America Caucus" and Republican Representative Randy Fine of Florida has introduced legislation that he says will "tackle the rise" of sharia law in the United States.

Aides to Fine did not respond ​to requests for comment.

EL-SAYED AT CENTER OF DEBATE

As the only Muslim running for statewide office in the country, the American-born El-Sayed has been the focus of anti-Islamic rhetoric around the country.

Vance's criticism centered on comments El-Sayed made after a man drove a vehicle into a suburban Detroit synagogue in March while children were in the building. El-Sayed condemned the attack but also said of the assailant that "hurt people hurt people," noting that some of the man's relatives in Lebanon had recently been killed in an Israeli airstrike.

El-Sayed later said the remarks may have been misconstrued and apologized.

In response to Vance's attack, El-Sayed said ​last month: "Evil is ripping healthcare away from working people in exchange for tax breaks for billionaires. Evil is making people pay more for groceries and gas while pushing for trade wars and actual war. Evil is dividing people for your own gain."

El-Sayed has faced ​Republican criticism for associating with Hasan Piker, a left-wing social media influencer who has said the United States deserved the September 11, 2001, attacks.

In a podcast interview El-Sayed discussed the feelings of isolation some Americans experience, which he blamed on cellphones and social media, and contrasted it with ‌the sense of ⁠community his relatives in Egypt enjoy.

In response, Tuberville posted on X, “If you hate America so much, go live in Egypt.”

Aides to the Tuberville campaign did not respond to requests for comment.

DEBATE OVER POLITICAL MOTIVES

The public has doubts about Trump, whose approval rating is stuck at around 33%. Their top concerns: the high cost of living, the U.S.-Israeli war on Iran and Trump's tariffs on foreign goods.

Public attitudes toward Israel have shifted, particularly among Democrats, with polls showing growing sympathy for Palestinians and increasing opposition to U.S. military aid.

Aaron Hughes, a University of Rochester religious studies professor and scholar of Islam and Judaism, said the increased focus on Muslims comes as Republicans struggle to gain political traction on issues such as the cost of living, the Iran war and immigration.

"If you can wrap yourself in the flag ​and you can criticize Muslims and Islam that means you don't ​really have to deal with the issues," he said in ⁠a telephone interview, calling it "fear-mongering."

"You're taking this gross characterization of a community and making connections with Hamas, with Iran ... I find it most shocking that there's this conflation," he said.

The rhetorical attacks occur, Hughes noted, despite many Muslims holding conservative beliefs that dovetail with Republican orthodoxy, such as opposition to some abortion procedures and same-sex marriage.

There is a history in the United States of targeting minorities ​in political campaigns, but the rhetoric has become sharper, according to experts.

Exactly two years ago, some Republicans running for public office, including Trump, spread the false claim that immigrant Haitians living in ​the small town of Springfield, Ohio, were ⁠eating pets.

"They're eating the dogs! The people that came in. They're eating the cats! They're eating ... the pets of the people that live there," Trump said in a 2024 presidential debate.

While Trump is not on the ballot, the public's low support for his performance could be a drag on his fellow Republicans.

Ashik Siddique, co-chair of the Democratic Socialists of America, said it would be wrong to hang Islamophobia on just one political party. "Unfortunately sometimes Democrats in leadership have also fed into this" anti-Islamic rhetoric, he said.

He was referring to a radio interview Andrew Cuomo ⁠did last October when ​running as an independent candidate in the New York City mayoral election before being defeated by Mamdani.

"Can you imagine Mamdani in the seat" during the September ​11, 2001, attack? Cuomo asked the show's host.

BEYOND THE CAMPAIGN TRAIL

The issue has extended beyond the campaign trail.

In August, Abbott urged a federal probe of two Texas airports over Islamic ritual washing facilities, arguing that government-owned airports could not favor one religion over another. Abbott's campaign rejected accusations that it was targeting Muslims because ​of their faith.

Houston's Democratic Mayor John Whitmire said the airports' ablution room and adjoining prayer room are "open to all travelers, employees and stakeholders" regardless of faith and that "nobody receives preferential access, and nobody is excluded."

>>> What to look at today - 9th of Sept 2026

Asian chip stocks extended their recent gains on sustained investor interest in the artificial-intelligence trade. Escalating hostilities in the Middle East pushed Brent crude toward $100 a barrel.   South Korea’s Kospi climbed 1.5%, led by gains in the nation’s two chip giants, SK Hynix Inc. and Samsung Electronics Co. The advance came after the Philadelphia Semiconductor Index, known as the SOX, rose 1.3% in US trading on Tuesday. The broad MSCI Asia Pacific Index gained 0.6%, with the information technology sector making the biggest contribution. Brent jumped as much as 1.8% to $99.68 a barrel after the US struck Iranian tankers near the vital crude-export hub of Kharg Island, stoking fears of deeper disruptions in the Strait of Hormuz. The global crude benchmark is up more than 60% this year and is closing in on the $100-a-barrel mark for the first time since July. Renewed attacks on energy infrastructure stemming from the war between Iran and the US risk keeping oil prices elevated and complicating the outlook for inflation and interest rates. Investors will be watching to see whether the latest escalation further disrupts supplies, with Friday’s US consumer-price report set to provide the next major test of expectations for a Federal Reserve rate increase at its Sept. 15-16 meeting. Asian semiconductor manufacturers extended their rally on optimism that they will be among the biggest beneficiaries of the rollout of AI technology worldwide. South Korea’s Kospi has risen 67% this year, making it the world’s best-performing major stock index. Oil was also boosted after Tehran responded to the US strikes by firing missiles at Jordan and warning ships in the Persian Gulf. All tanker crews near piers in Kuwait and Bahrain should “immediately abandon their vessels, whether at anchor or docked, as they will be targeted,” Iran’s state television reported, citing the Islamic Revolutionary Guard Corps. For oil prices, “the path of least resistance is a strong and steady grind higher,” said Darrell Fletcher, managing director for commodities at Bannockburn Capital Markets. “The fundamental picture for products remains bullish, with global inventories and reserves deteriorating. In the typical pattern, the US and Iran continue their counterattacks and warnings.” Elsewhere, the yen strengthened for a third day after US Treasury Secretary Scott Bessent challenged traders to counter his efforts to strengthen Japan’s currency, saying when he makes market calls these days he’s effectively doing so with inside information. The yen advanced 0.3% to 153.47 per dollar, while Bloomberg’s gauge of the greenback slipped 0.1%. Treasuries edged lower, with the yield on the US 10-year note climbing one basis point to 4.80%. In trade news, the US moved to ban some Canadian alcoholic beverages, dairy products and motorcycles, according to officials. Meanwhile, the European Union and Canada are pursuing a broader partnership spanning trade and security as they seek to counterbalance the global influence of the US and China. After a stronger-than-forecast US employment report last week, attention is turning to Friday’s inflation data for clues about future Fed policy. Economists expect CPI to have risen 0.4% in August, accelerating from a month earlier partly because of higher gasoline costs. Excluding volatile food and energy components, core CPI is projected to have increased a more moderate 0.2%, according to the median estimate in a Bloomberg survey. That would bring the annual measure of underlying inflation down to 2.4%, the smallest year-over-year increase since 2021. US After Hours INNV +13.1%, AVO +5.8% higher on earnings; CHYM +10.2% higher on Stride Bank acquisition and guidance; TTAN -21%, BRZE -13.2% and CASY -9.9% under pressure after earnings.

Nikkei -0.33% Hang Seng -0.35% CSI -0.12% Kospi +1.60% Shanghai -0.06% Shenzen -0.56%

Eur$ 1.1635 CNH 6.7051 CNY 6.7081 JPY 153.35 GBP 1.3553 CHF 0.8084 RUB 86.0071 TRY 48.4755 WTI$ 93.95 +0.96% Gold 4,387 -0.13% BTC 79,151 +0.62% ETH 2,504 +0.51%

S&P +0.13% Nasdaq +0.22% EuroStoxx -0.40% FTSE -0.37% Dax -0.47% SMI -0.69%

Macro :
- Portugal Government Survives Far-Right Chega No-Confidence Vote
- Panama Canal Sees Milder El Niño Impacts Compared With 2023-2024
- NASA Seeks Proposals to Explore Moon and Establish a Base

Keep an eye on :
- ADYEN NA : Adyen Plans to Expand India Operations, Reuters Reports
- AIR FP : Air Cairo Signs Firm Order for 15 Airbus A320neo Aircraft
- AMZN US : AT&T To Offer Amazon Leo Satellite Connectivity to Businesses
- ANTIN FP : Antin 1H Underlying Ebitda EU69.9M Vs. EU79.7M Y/y
- AG1 GY : AUTO1 CFO Wallentin Steps Down, Search for Successor Ongoing
- BX US : Blackstone's Head of Real Estate Is Leaving the Firm -- WSJ
- BA US : Boeing Delivers 51 Jets in August, Lowest in Four Months
- EN FP : Colas US Unit Wins €70M Reconstruction Contract at LA Airport
- BOL FP : Bolloré Plans to End Production of Bluebus Electric Buses
- Cognition IPO : Cognition Says It Raised Over $2b at a $48b Valuation
- DB1 GY : Deutsche Börse To Offer €600m Convertible Bonds Due 2031
- DOCM SW : DocMorris to Place About CHF100m Convertible Bonds Due 2031
- F US : Duffy Criticizes Ford CEO Farley Over Automaker’s China Ties
- GALP PL : Portugal Premier Says Looking Closely at Galp-Moeve Deal
- GIVN SW : Givaudan Strikes ‘Constructive Tone’ at Barclays Conference
- HOLN SW : Holcim Invests in Cloud Cycle; no Terms
- Hyrox : L Catterton-Led Group to Buy Controlling Stake in Hyrox: FT
- IDR SM : Spanish Defense Tycoon Plots Family IPO After Shock Indra Exit
- ITX SM : Inditex 1H Ebit Misses Estimates
- ITP FP : Interparfums 1H Operating Profit Beats Estimates
- MOVE SW : Medacta 1H Sales +9.7% at Constant FX, Confirms FY Outlook
- NESN SW : Nestle CFO Confident on Turnaround at Conference, Barclays Says
- NOC US : Northrop Grumman Wins $4.84 Billion U.S. Army Contract
- ORSTED DC : Andel Offers About DKK3B of Orsted Shares, Terms Show, Orsted Offering by Holder Andel Prices at DKK135.50/Share: Terms
- PSKY US : Paramount Skydance Requests State AGs, WGA Post Bond in Suit
- CFR SW : Richemont Names Anton Rupert Non-Executive Co-Deputy Chairman
- RIO LN : Rio Tinto Guinea Unit Starts Phased Opening of Port Facility
- RUSTA SS : Rusta 1Q Sales Above Estimates
- UCB BB : UCB’s CIMZIA Gets FDA Breakthrough Therapy Designation for APS
- VK FP : Vallourec, Aramco Sign Deal for Oil Country Tubular Goods

>>> Europe : Brokers Upgrades & Downgrades - 9th of Sept 2026

>>> Up
* Adecco price target raised to CHF 18.50 from CHF 16 at Morgan Stanley
* Kingspan Raised at JPMorgan, Selective in Building Materials
* Kinnevik Raised to Buy at SEB Equities; PT 74 kronor
* LVMH Raised to Outperform at Grupo Santander; PT 500 euros
* Thermo Fisher Raised to Buy at UBS

>>> Down
* Autoliv Cut to Hold, Dauch Boosted to Buy at TD Cowen
* Burberry Cut to Hold at HSBC; PT 1,200 pence
* Coloplast Cut to Underweight at JPMorgan
* Forterra plc price target lowered to 150 GBp from 170 GBp at Berenberg
* IQE price target lowered to 65 GBp from 70 GBp at Deutsche Bank
* LVMH Cut to Hold at HSBC; PT 490 euros
* NN Group Cut to Hold at ING; PT 74 euros
* Novartis Cut to Hold at Deutsche Bank; PT 120 Swiss francs
* Novartis ADRs Cut to Hold at Deutsche Bank
* SSH Communications Security Cut to Sell at Inderes; PT 2 euros
* Vend Marketplaces Cut to Equal-Weight at Morgan Stanley

>>> Initiation
* AstraZeneca Rated New Outperform at RBC; PT 14,500 pence
* Autotrader Group PLC Reinstated Sell at Stifel; PT 431 pence
* Birkenstock Rated New Market Perform at BMO; PT $35
* Deckers Outdoor Rated New Underperform at BMO
* Dick's Sporting Rated New Underperform at BMO
* Gens Aurea Rated New Neutral at BNP Paribas; PT 14 euros
* GSK Rated New Sector Perform at RBC; PT 1,975 pence
* Liberty Formula One Rated New Buy at Jefferies; PT $115
* Lululemon Rated New Underperform at BMO
* Nokian Panimo Rated New Reduce at Inderes; PT 2.40 euros
* Novartis Rated New Sector Perform at RBC; PT 120 Swiss francs
* Oklo Rated New Overweight at Piper Sandler on Growth Potential
* On Holding Rated New Market Perform at BMO
* Pasqal Holding Rated New Buy at Roth Capital Partners; PT $20
* Prosus Rated New Buy at Stifel; PT 50 euros
* Richter Rated New Neutral at Oddo BHF; PT 14,000 forint
* Rightmove Rated New Sell at Stifel; PT 356 pence
* Roche Rated New Outperform at RBC; PT 400 Swiss francs
* Sanofi Rated New Sector Perform at RBC; PT 80 euros
* Scout24 Rated New Buy at Stifel; PT 110 euros
* SMG Swiss Marketplace Group Rated New Buy at Stifel
* Steven Madden Rated New Outperform at BMO
* Urban Outfitters Rated New Market Perform at BMO
* Victoria's Secret Rated New Market Perform at BMO

>>> Call
* Givaudan Strikes ‘Constructive Tone’ at Barclays Conference
* JPMorgan Stays Cautious on MedTech, Coloplast Cut to Underweight
* Nike and Lululemon Both Rated New Underperforms at BMO
* Richter Undertaking Gradual Transformation, Oddo BHF is Neutral
* Scout24 Now a Top Pick at Morgan Stanley, Vend Marketplaces Cut

>>> Stoxx 600 Pre-Market Indications

  • Scout24 (G24 TH) +1.3%
    • Scout24 Rated New Buy at Stifel; PT 110 euros
  • Aurubis (NDA TH) +0.6%
  • Prudential (PRU TH) -1.1%
  • Orange (FTE TH) -1.1%
  • Puma (PUM TH) -1.2%
  • Zalando (ZAL TH) -1.2%
  • NN Group (2NN TH) -1.4%
    • NN Group Cut to Hold at ING; PT 74 euros
  • Beiersdorf (BEI TH) -1.6%
  • Telenor (TEQ TH) -1.7%
  • AUTO1 (AG1 TH) -2.2%
    • AUTO1 CFO Wallentin Steps Down, Search for Successor Ongoing
  • Coloplast (CBHD TH) -2.4%
    • JPMorgan Stays Cautious on MedTech, Coloplast Cut to Underweight
  • Inditex (IXD1 TH) -5.5%
    • Inditex 1H Ebit Misses Estimates

>>> TradeGate Pre-Market Indications

DAX:
  • Scout24 (G24 TH) +1.7%
    • Scout24 Rated New Buy at Stifel; PT 110 euros
  • Siemens (SIE TH) -0.7%
    • AXA, BNP Paribas, Deutsche Telekom, Prosus, SAP, Siemens: Vol
  • Infineon (IFX TH) -0.9%
    • Novartis Shares Suffer Sharpest Ever Drop: Stoxx 600 Sector Wrap
  • Daimler Truck (DTG TH) -0.9%
  • Deutsche Bank (DBK TH) -1%
    • Huge Deutsche Bank Calls, UK Miner Rolls: EMEA Options Snapshot
  • Beiersdorf (BEI TH) -1.4%
MDAX:
  • Schaeffler (SHA0 TH) +0.8%
  • Puma (PUM TH) -0.6%
    • Puma Trails Sector in Monthly Observed Sales: Bloomberg ALTD
  • Lufthansa (LHA TH) -0.7%
  • Deutz (DEZ TH) -0.8%
  • Thyssenkrupp (TKA TH) -0.8%
  • TUI (TUI1 TH) -1%
  • Porsche SE (PAH3 TH) -1%
  • AUTO1 (AG1 TH) -2%
    • AUTO1 CFO Wallentin Steps Down, Search for Successor Ongoing
SDAX:
  • Evotec (EVT TH) +2.7%
  • Carl Zeiss Meditec (AFX TH) -0.5%
    • JPMorgan Stays Cautious on MedTech, Coloplast Cut to Underweight
  • HelloFresh (HFG TH) -1.1%

TechCrunch : Hackers are stealing Claude tokens from subscribers Julie Bort 2:10

Hackers are stealing Claude tokens from subscribers

On August 4, Grant De Swardt, an independent AI consultant in East Sussex, U.K., noticed something strange going on with his Claude Max 20x account. He hadn’t been working that day, yet his token usage was climbing.

The next day, he disabled everything he had attached to Claude and did not work with it. Token consumption again increased. “In the clearest controlled interval, it increased from 45% to 55% while I performed no work, scheduled Cowork tasks were paused or completed, Dispatch/cloud execution was disabled, and there was no corresponding active local Claude Code task,” De Swardt told TechCrunch.

What was eating up his token allowance? He had no idea, so he contacted Anthropic and asked for an itemized list. Anthropic didn’t provide one, but it agreed something was off. It suspended his paid account, invalidated all of his sessions and server-side Claude Code tokens, and issued him a partial refund of £44.49 for the remaining time on his $200-per-month subscription.

The suspension wreaked havok on his business, he told TechCrunch. His job is to help small and mid-size businesses set up agents — a sort of forward-deployed engineer for hire — for tasks like automatically loading purchase-order data from emails into the accounting software.

As a sole proprietor, he relies on agents throughout his whole business, too: daily admin tasks, website design, coding. “Like everything is just running through AI these days,” he said.

After investigating, Anthropic told De Swardt it found the culprit: A compromised Claude session key was used to mint unauthorized Claude Code OAuth tokens. The company told him the account “appeared to have been used by an unauthorized-looking third-party service to handle activity for other people, but they could not determine how it obtained access,” he told TechCrunch. “They say the evidence is consistent either with credentials/session data being taken without my knowledge, or with the account having been connected to an outside service.”

In other words, a hacker was able to obtain access to De Swardt’s account and was covertly siphoning off his tokens. Because account support tracks total usage but not itemized usage, even upon request, this kind of theft could have gone on for months undetected.

He posted his experience on Reddit and after 80 comments, he discovered he was not alone. One person claimed that their account “was auto-upgraded without my consent, my credit card got charged, and the usage shot from 0% to 100% automatically without me even touching it.” Another saw usage go from 0 to 49% in 12 minutes, when all they had used it for was a couple of prompts and a web search.

One Claude user said their account burned through its max tokens every day for three days without them using it at all; this person then created a GitHub report about it. Like with the Reddit post, other users shared similar experiences there, too.

Two of them posted emails from Anthropic where the company had — to its credit — identified and warned them that their tokens were being stolen.

“We have recently become aware of a bad actor that is using common infostealer malware to steal Claude login sessions from people’s computers, then using those login sessions to access Claude accounts and consume their usage,” the email read. Infostealers are a type of malware that installs itself on a user’s computer and steals saved passwords, session data, and login credentials.

When Anthropic saw suspicious activity, it signed the users out, invalidated existing authorizations, issued some refunds, and warned them that they may have malware.

The company also said the malware didn’t come from using Claude itself. Such malware can be picked up from many sources online, from downloading infected software to clicking on infected ads.

Anthropic did not send De Swardt one of those emails. He insists he found no evidence that his computer was compromised and says he still has no way of determining how hackers gained access.

De Swardt’s Claude account was reinstated after about two weeks. But the difficulty of getting speedy help for the matter, plus the lack of an itemized usage, soured him on Claude. He cancelled his subscription in favor of Cursor and its ability to use multiple models, including more affordable open source options.

In his experience, these other models work as well as Claude. “It’s not that much different or better,” he said, adding that he can’t see going back “without [Anthropic] actually having resolved the issue in any way.”

He says Anthropic still lacks tools that allow users to see what’s consuming their tokens. “I don’t think there’s any way that these people can protect themselves.”

When asked for information on how users can identify misuse, Anthropic declined to comment.

TechCrunch : Cognition hits $48B valuation, signaling investors believe AI codin

Cognition hits $48B valuation, signaling investors believe AI coding is far from a winner-take-all market

Cognition, the startup developing coding assistant Devin, announced it raised $2 billion at a $48 billion valuation. The round, which comes just four months after Cognition’s previous fundraise at a $26 billion valuation, was led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir.

The startup’s soaring valuation signals that VCs still see room for multiple major players to capture meaningful market share in AI coding, one of the technology’s most significant applications. Cognition said that since announcing its last fundraise in May, its annualized run-rate revenue has grown from $492 million to $900 million. While the startup didn’t explain how it calculates that run-rate revenue, the metric is usually defined as a month’s top line multiplied by 12.

Cursor, another popular coding assistant, was in talks in April to raise capital at a $50 billion valuation before agreeing to sell to SpaceX for $60 billion later that month. At the time of the funding talks, Cursor’s annualized revenue had surpassed $2 billion. This means Cognition currently commands a higher revenue multiple than Cursor did in the spring.

Cursor ultimately sold to SpaceX largely because it was severely compute-constrained, according to investors familiar with its financials. It is unclear whether Cognition will face similar compute shortages.

Cognition leases an Nvidia server cluster that costs hundreds of millions of dollars annually, which could push its total cash burn to $800 million this year, The Information reported.

Like Cursor did before joining SpaceX, Cognition is training its own model based on open source alternatives. Over time, reducing its reliance on expensive third-party models from OpenAI and Anthropic will help cut costs and bring the company closer to breakeven.

Cognition is expected to reach $4 billion to $5 billion in annualized revenue by the end of 2026, according to The Information. By comparison, TechCrunch reported in the spring that Cursor was on track to surpass $6 billion by year-end. Still, it’s notable that a16z, a major backer of Cursor, which made a killing when it sold to SpaceX, is back to lead a round in a Cursor competitor.

Founded in 2024 by math prodigy Scott Wu, Cognition counts Mercedes-Benz, NASA, Goldman Sachs, and Citi among its major enterprise customers.

WSJ : Anthropic Researcher Quits Over ‘Out-of-Control’ AI Fears Concerns are ris

Anthropic Researcher Quits Over ‘Out-of-Control’ AI Fears
Concerns are rising inside AI labs that competition is pushing tech companies to race toward self-improving models that risk spiraling out of human control

  • Anthropic researcher Jacob Coxon is quitting the AI industry over fears that companies are racing to build uncontrollable, self-improving systems.
  • Coxon believes no company can responsibly develop artificial general intelligence without government intervention or a coordinated industry slowdown.
  • The departure comes as Anthropic prepares for an initial public offering, seeking a $2 trillion valuation.

An Anthropic researcher is quitting the artificial-intelligence industry over fears that the lab and its competitors are racing to build systems they won’t be able to control, a sign of mounting safety concerns within top AI companies.

Jacob Coxon, a researcher who specializes in training new AI models by having them consume vast amounts of data, said Tuesday that he is leaving the company because he doesn’t want to participate in an industrywide rush to build AI systems that can improve themselves, worried such systems could spiral out of control and destroy humanity.

The 27-year old Brit, who previously studied mathematics, said many of his industry colleagues now use phrases like “crunchtime” and “endgame” to describe the trajectory toward self-improving models.

“We’re on track for a lot of the most aggressive of these scenarios where by the end of next year things could be out of control already,” Coxon said, adding that safety trade-offs are inevitable when companies are competing against one another and Chinese upstarts.

Anthropic didn’t immediately comment on the departure. Chief Executive Dario Amodei and other company leaders have repeatedly warned about the risks of rogue AI models, and urged the industry to slow development.

Coxon said he left OpenAI earlier this year to join Anthropic because it is known for its model-safety efforts. But even though he found Anthropic’s safety efforts to be earnest, he now believes no company can responsibly develop AI that can outperform humans in a range of tasks, sometimes called artificial general intelligence, absent government intervention or a coordinated industry slowdown.

Recent hacks by models from OpenAI and Anthropic, some operating in collaborative swarms of agents, have illustrated how AI systems can adopt nefarious goals and try to conceal them from humans. Once the systems begin to improve on their own, Coxon said, he fears they could advance enough to refuse commands.

Coxon’s departure is one of the first examples of an Anthropic employee leaving over AI safety fears. A researcher working on safety left the company earlier this year to study poetry, warning that “the world is in peril.”

Several researchers have left OpenAI and other companies recently and in past years citing similar worries. Anthropic has built one of the largest AI platforms in part by claiming it gives priority to responsible AI development and invests heavily in the space.

Industry leaders have been warning that recent cyberattacks are a harbinger. OpenAI told reporters last week that its latest model represented artificial general intelligence and a big step up in capabilities.

“I think some things are going to go very wrong with cybersecurity unless people act quite urgently,” OpenAI CEO Sam Altman told Group of 20 officials last week at a summit in North Carolina.

“This is a time that calls for extreme caution. I am concerned no one is prepared for the consequences of a continued rapid rise in machine intelligence,” Jakub Pachocki, OpenAI’s chief scientist, wrote in a Sunday blog post advocating for a coordinated industry slowdown and government intervention.

Coxon, Pachocki and Amodei joined more than 1,000 AI researchers across the industry who recently signed a statement urging global government coordination on a system to slow AI development if a brake pedal is needed to control models capable of improving on their own. There are no federal AI regulations, and the Trump administration has given priority to a light-touch approach to maximize the economic benefits of AI, an environment critics say could lead to massive cyberattacks or other harms.

Sen. Bernie Sanders (I., Vt.) and Rep. Greg Casar (D., Texas), progressives who are two of the only lawmakers proposing AI guardrails, last week introduced legislation to permanently ban superintelligence and pause model development until an industry regulator established new rules.

Coxon’s departure comes with Anthropic gearing up for an initial public offering that is expected to be among the largest ever. The company is seeking a $2 trillion valuation and has emphasized responsible development of the technology when attracting investors. Amodei and company leaders have fought the Trump administration and other executives at times over practices they say don’t prioritize AI safety.

Anthropic uses an employee Slack channel to hold discussions about the powerful capabilities of their models, Coxon said, describing it as a reflection of how much influence AI companies have over the industry’s development.

“It’s kind of insane that it has to happen on the MacBooks of some engineers living in San Francisco instead of a bunker in the desert like where they were doing the Manhattan Project,” Coxon said.

WSJ : Melting Glaciers and Monster Floods Threaten Nepal’s Big Bet on Hydropower

Melting Glaciers and Monster Floods Threaten Nepal’s Big Bet on Hydropower
Investors have poured money into hundreds of water-powered plants—but those plans didn’t factor in growing instability in the Himalayas

KATHMANDU, Nepal—When a flood came roaring down from the mountains last year, Nepali engineer Santosh Adhikari narrowly escaped by scrambling to higher ground. Two weeks ago, another surge barreled down—this one bigger and faster, an unstoppable torrent of water, ice, rock, mud and horror.

The wave tore through the Rasuwagadhi hydropower plant where Adhikari served as the manager, ripping up steel and concrete defenses with explosive force and pouring into the project’s cavernous tunnels. Within seconds, it swallowed the cluster of buildings where the 34-year-old lived. Nothing remained except dark-gray sludge.

Rasuwagadhi was the first of nearly a dozen such installations—some active, others under construction—wrecked by the Aug. 26 disaster in Nepal. The roiling mass of water, unleashed by a glacial collapse, swept down the Trishuli river, devastating a roughly 40-mile corridor of dams that were supposed to drive economic growth for mountainous Nepal. Around 1,400 people have died overall and more than 5,000 are missing.

The tourism- and aid-dependent Himalayan nation, crisscrossed by snowfed rivers, has looked to hydropower as the answer to its energy needs and central to its development plans. Private investment has poured in, quadrupling installed capacity over the past decade. More than 210 projects currently under construction would expand that by 150%, according to industry estimates. The once chronically energy-starved country has even been exporting power in recent years.

The future of that strategy has come into question as a warming planet destabilizes Himalayan glaciers and river systems, increasingly putting human lives and billions of dollars at risk.


Last year’s flood began when water abruptly poured out of a glacial lake 20 miles upstream from Nepal’s border with China. The recent surge, at first thought to be the same, was something even more formidable.

It was sparked by the partial collapse of a glacier and some of its bedrock. That released an avalanche of ice and rock, initially triggering an earthquake report from the U.S. Geological Survey. After plummeting around 4,000 feet, the ice turned into a debris-laden flood that flowed into the Lhende Khola, a river coming down from Tibet, and later joined with the Trishuli river.

The deluge took the same path where power plants are concentrated. “That’s geography and opportunity, not negligence,” said Umesh Haritashya, a professor of geosciences and sustainability at the University of Dayton in Ohio, who is among the scientists studying the causes of the flood. “What’s changed is that the mountain is increasingly unstable, and the hazard is now much bigger, and reaches farther than the assumptions some of these projects were designed against.”

More than 2,000 hydropower workers were scattered across dams, riverside camps, underground power houses and miles-long tunnels when the flood hit. Rescue teams are racing to clear out the tunnels, choked with hardened mud and rock.


Rasuwagadhi’s acting chief executive, Pushkar Amatya, deployed crews and equipment in a last-ditch search for people who might be trapped in the facility’s transformer cavern, but found no one there. He is also searching for his own brother.

Amatya’s 31-year-old brother, Prabin, was an engineer at a hydropower plant under construction downstream. Amatya last heard from him in a text message the morning of the flood, asking if Rasuwagadhi was hit. He later learned from a friend of Prabin’s that the two had fled the surge together.

While the friend ran straight up the mountain, Prabin dashed diagonally across, putting him in the flood’s path.

Chaos of the cryosphere
River-straddling hydropower projects are built to handle monsoon floods, even heavy ones, but high-velocity debris flows are a different beast entirely.

The now-shattered Langtang Khola Hydro project was engineered to withstand a 100-year flood—which has only a 1% chance of occurring in any year and would raise the river level by around 20 feet at its narrow gorge, its managing director said. The recent flood swelled to 20 times that level.

A statistical approach, basing projections on how things have happened in the past, doesn’t work with climate change, said Pierre Biedermann, an environmental consultant for renewable energy projects.

When you have a rain-induced flood, you can calculate the likelihood of it happening again, he said. “But when you get a mountain collapse with a glacier and this kind of cataclysm, you cannot assign a likelihood to it,” Biedermann said.

The August flood was of a type that’s even more rare than glacial lake outburst floods, or GLOFs, and unlikely to be examined in risk assessments for existing projects.

“From my experience—I’ve looked at many of those reports—GLOFs are usually considered, but only to some degree,” said Wolfgang Schwanghart, a professor of geomorphology at Berlin’s Freie University. “The kinds of events that we have seen recently, I haven’t seen them being mentioned anywhere.”

At least a handful of them have taken place in the past five years. In 2021, an ice-and-rock avalanche in northern India killed more than 200 people and destroyed one hydropower project while severely damaging another. Last year, a partial glacier collapse wiped out the Swiss Alps village of Blatten. About 20 million metric tons of ice and rock traveled at a speed of over 120 miles an hour, according to an article published in the journal Nature.

Preliminary calculations based on the seismic signal the landslide produced indicate that the ice-and-rock avalanche in Nepal was likely 10 times the volume of the one in Blatten, said Schwanghart.

Scientists say that similar to the bursting of lakes formed by retreating glaciers, these collapses reflect a complex intersection of causes, including the effects of climate change. Vanishing ice and permafrost make glaciers more prone to snapping and the underlying bedrock more likely to fracture. A 2015 earthquake in Nepal that killed 9,000 people has also made the southern slopes of the Himalayas more unstable.

The largest hydropower project hit in the August disaster was the 216-megawatt Upper Trishuli 1, whose backers had commissioned extensive technical evaluations before breaking ground. Construction, which began five years ago, is being led by a state-owned South Korean company with financing from a host of international banks, including the World Bank’s International Finance Corporation.

A 2018 environmental assessment report identified an increase in the frequency and severity of floods as the project’s greatest climate risk, and said design modifications had addressed those concerns.

A flood in 2024 revealed some gaps. Part of a workers’ camp was swept away and an early-warning system failed, prompting officials to fix it. That proved effective the following year, helping personnel evacuate when water from a glacial lake thundered down. After that, further work was initiated to assess flooding risks, a World Bank spokesman said.

On Aug. 26, the alert mechanism failed again and the dam was dashed to pieces. Since the project was under construction, at least 1,400 people were on site across various fronts, more than 500 of whom are now missing.

Hydropower planners in Nepal need to rethink their approach and project design, otherwise investing in that sector in the Himalayan region will be a “huge risk,” said Giri Raj Adhikari, the project’s technical director, who is unrelated to Santosh Adhikari. Upper Trishuli 1 was constructed for water flows, not a massive debris-laden surge like in the August disaster, with boulders as big as 25 feet across, he said.

The World Bank spokesman said the project design reflected findings from independent assessments that looked at the risks of flooding and landslides, using studies of the glaciers and glacial lakes and historical evidence available at the time. As more information about the Aug. 26 flood emerges, the bank will consider any implications for risk assessment, monitoring, early warning and emergency response in hydropower projects, the spokesman said.

The surge
The Rasuwagadhi power plant was situated at a spot that made it even more vulnerable. Amid an energy gold rush, as Nepal emerged from a Maoist revolution that ended in 2006, investors began snapping up licenses for hydropower projects.

When the state-controlled Rasuwagadhi Hydropower Company was looking for a project site around the Trishuli, it found many river locations already taken. It ended up in a narrow gorge south of the confluence of two rivers. Commercial operations began in Dec. 2024.

Around that time, unknown to anyone, a cluster of small lakes atop the Purepu Glacier, nearly 17,000 feet above sea level, had begun growing. Over the next few months, they rapidly merged into a single supraglacial lake. In early July 2025, it gave way.

Sometime after 3 a.m. that July 8, the roar of the incoming surge jolted Santosh Adhikari awake. Within minutes, he and his crew were scrambling up the mountainside in darkness. There were no visible signs of bad weather that day, no flood had been forecast, and no safety measures were in place, Adhikari later wrote on his Facebook page.

As they watched from the slope above, the waters submerged their living quarters and swept away pickup trucks. Gantry cranes were washed away, silt and boulders jammed the headworks, and floodwaters entered the power house, knocking the plant offline. Ten hours later, a military helicopter airlifted the stranded team to safety.

He discussed the risks of his job with his older brother. Adhikari had two boys, one just a month old. But Adhikari didn’t want to abandon his post, said his brother, Tuka Nath Adhikari, a high-school science teacher.

He had quickly risen through the ranks to become the plant’s manager and felt hydropower was his calling. He frequently wrote Facebook posts about Rasuwagadhi’s trials and triumphs, and wanted to revive it. Besides, the brothers planned to build a house in Kathmandu, the country’s capital, and Adhikari’s job paid well.

The flood seemed like such a freak event that at the time, it was difficult for anyone at the company to imagine that a worse one could come—let alone the following year, said its former CEO Satya Ram Jyakhwa. “We are thinking that was the most dangerous flood” that could come, he said.

Amatya, the company’s acting chief executive, said the project was designed to survive intense, low-probability floods, but not glacial lake outbursts and catastrophic debris flows. After last year’s surge, executives urged local government officials to liaise with their Chinese counterparts across the border to help install early-warning instruments upstream that could save lives, but achieved no breakthrough, he said.

By December, part of the Rasuwagadhi facility was back online, recovering fully in June this year. Then, on the morning of Aug. 26, the immigration and customs office just north of it was engulfed in a massive wave that had traveled at a speed of more than 160 feet per second, according to Chinese state media. Adhikari had no warning.


At the Upper Trishuli 1 project lower down, Rabindra Hamal got a call from a colleague: Run. Outside, the sky was clear and the river appeared calm. Hamal piled into a pickup truck with co-workers and sped downriver. Glancing back half a mile later, he saw a towering wall of brown water churning through the gorge.

Abandoning the vehicle, the group clambered up the rocky mountainside, grabbing onto boulders and grass to haul themselves up. Though the main river channel lay some distance away, the surge had overflowed its banks, extending to the slope where Hamal was crouched behind a large rock.

The waters slammed into the rock, leaving Hamal covered in mud and water, but still breathing. Two others from his group didn’t make it. Moments later, the flood broke through the gates of the next hydropower facility with a bang, like a bomb blast, Hamal said. “Nobody expected this kind of flood, not a single person,” he said.

Gunnam Jaykrishna, a mechanical engineer from India, was deep in the main access tunnel. He knew nothing about the flood until he emerged.

He tried again and again to call his wife and 18-month-old daughter in Salletar, a settlement where many workers at Upper Trishuli 1 live. He couldn’t get through. If workers there had been warned when the first project was hit, so many lives could have been saved, he said.

He fears returning to hydropower work. “This is not just about one river,” he said.

Two days after the surge, there was still no word about Adhikari. His brother, Tuka Nath, embarked on a desperate search. The helicopter he was on, hired by Rasuwagadhi, was unable to land at the location of the project, which was a muddy wasteland. It dropped him off at a nearby town.

He and three others trudged through the jungle for hours but couldn’t find their way and spent the night in a goatherd’s shed. They set out again the next day, battling leeches and surviving on instant noodles, hiking through the mountains without any luck. On the third day, they climbed to a high point from which they could see the flattened area where his brother’s two-story residence building once stood.

“My mind stopped working,” said Tuka Nath. “I felt it was too late.”

The path down was rocky and difficult to cross. He returned, heartbroken.

FT : DeepSeek fundraising frenzy spawns shadow market New investment round trigg

DeepSeek fundraising frenzy spawns shadow market
New investment round triggers rush of vehicles with escalating fees and five-year lock-ups

Investors clamouring to participate in DeepSeek’s latest fundraising are paying unusually high fees to access investment vehicles created by groups allocated stakes in the Chinese AI group.

The Hangzhou-based AI lab, which shot to global prominence last year with the release of its R1 reasoning model, is being valued at about $71bn before the new investment, according to three people with knowledge of the matter.

The ongoing fundraising comes just a month after DeepSeek raised $7bn to value the company at $52bn in its initial financing round.

Demand has been intense despite unusually restrictive terms, including a five-year lock-up and no voting rights, as DeepSeek seeks to retain control over its development with minimal shareholder pressure, the people said.

The rush for exposure has spawned a secondary market in special-purpose vehicles, with some investors being offered access through multiple layers of funds charging sharply escalating fees, the people added.

One family office investor in Hong Kong said he recently received information through eight different vehicles created for DeepSeek’s ongoing round.

Pre-investment fees ranged from 6 per cent for the first layer, and 8 per cent for the second, with a Rmb10mn ($1.5mn) minimum investment. Typical charges for a vehicle set up for similar purposes are a 2 per cent pre-investment fee and 20 per cent carry, referring to the management’s share of investment profits.

These vehicles have been created by investors who obtained allocations of DeepSeek shares but want to distribute risk by bringing in external money.

Three other investors said they were offered shares in even lower-tier vehicles with pre-investment fees exceeding 15 per cent and carry as high as 40 per cent.

One of the investors who decided not to participate said: “In past weeks I received almost daily WeChat messages and emails offering different DeepSeek [special-purpose vehicle] opportunities — and all are charging insane amounts of fees. The whole process is chaotic to say the least.”

DeepSeek is not involved in such arrangements and may only recently have become aware of them, according to one of the people close to the team.

Founder Liang Wenfeng is now involved in reviewing investor line-ups, including verifying the limited partners behind contributing funds, to prevent shares from ending up with unknown entities, according to the person.

Some are expected to be ejected as a convoluted shareholder structure leads to corporate governance risks that would complicate its planned IPO on one of China’s main stock markets.

“A lot of it may be happening because DeepSeek is not experienced in fundraising,” said the person. “They still don’t have a CFO and proper management of investor relations. At the same time, so many people want to get in this round.”

When DeepSeek opened its first funding round earlier this year, it initially gave just one email address to interested funds to submit the amount they were willing to commit, said two investors. Potential investors then met with a representative from its finance team, who gave out a standardised information package with little additional explanation.

DeepSeek has not held a roadshow or the management meetings with investors that are common during fundraisings.

Liang held an online conference call with a group of potential investors in the first round. A transcript was then leaked despite a confidentiality agreement, upsetting the founder, according to the person close to the team.

Of the $7bn raised in the first round, Liang himself put in about $3bn as the largest investor, the FT previously reported.

Other investors included battery maker CATL and tech groups Tencent, JD.com and NetEase. China’s state-backed national AI fund also became a minority shareholder.

While the line-up for the new fundraising is yet to be finalised, many of the first-round investors are expected to participate again, according to people close to the situation. Several local government-backed funds are also expected to invest.

DeepSeek’s annual recurring revenue reached about $500mn last month, according to people briefed on its finances. They said spending on AI infrastructure this year has already reached $1.6bn — almost 10 times the figure for all of 2025.

“Everyone is banking on a blockbuster IPO soon,” said one investor who has committed to this round.

DeepSeek did not respond to a request for comment.