Axios

Private equity giant KKR has agreed to a $250 million settlement with the U.S. Justice Department, over its alleged failure to file proper pre-merger notifications on over a dozen deals in 2021 and 2022.

Why it matters: This is the largest civil penalty ever for HSR Act violations.

After burning through its IT budget in the first quarter of the year, Uber has now stabilized its AI bills even as usage surges, the company tells Axios.

Why it matters: It's the latest example of enterprises finding creative ways to increase AI use without their bills ballooning.

AI behemoth Nvidia reported blowout earnings Wednesday — exceeding Wall Street's expectations — and even jaded investors who had grown a bit immune to the company's stratospheric growth over the past year seemed to like it.

Why it matters: The chipmaker's earnings are viewed as a barometer of the overall health of the AI trade.

Hugging Face on Thursday announced "Microduck," a small, armless robot capable of waddling adorably and picking up small objects with an articulated beak that doubles as a gripper.

Why it matters: The move is an effort to put a friendly, approachable face on a robotics field dominated by attack dogs and humanoids.

Crime, comedy, sci-fi and football are on this week's list of notable streaming picks.

"The Whisper Man" — Thriller available Friday on Netflix

Meta's landmark social media settlement marks the latest milestone in a decade-long unwinding of Big Tech's once-unfettered freedom to operate.

Why it matters: The AI industry is watching closely. Its historic expansion, already fraught with job risks and public anxiety, depends on building thousands of power-hungry data centers in communities where opposition is rising fast.

Meta's historic settlement with 51 U.S. state and territory attorneys general represents one of the largest government penalties ever levied on a Big Tech firm anywhere.

Why it matters: For the first time, U.S. officials — at least at the state level —have proven they are as serious about policing Big Tech as their European counterparts.

Nvidia projected 70% revenue growth in its next fiscal year, sending its stock up in after-hours trading, while the company defended its decision to provide capital solutions to its customers.

Why it matters: The stock is widely considered a bellwether for the health of the broader AI economy, but lately it has been trailing the broader semiconductor sector in market gains.

WASHINGTON — The SELF DRIVE Act could accelerate the expansion of driverless cars by providing a needed national regulatory framework, Rep. Erin Houchin (R-Ind.) said at an Axios Live event.

Why it matters: Autonomous vehicles could be a key part of the future of transportation, but the U.S. can't fully realize their potential — or compete globally — without consistent safety and design standards across state lines.

Axios' Nathan Bomey spoke with Houchin, Indianapolis Motor Speedway and IndyCar president Doug Boles, and Consumer Technology Association president and CEO Kinsey Fabrizio. The Aug. 22 event was sponsored by Honda.

State of play: U.S. Transportation Secretary Scott Duffy said earlier this year that crafting an autonomous vehicle policy is a national security, economic and safety issue.

• The public and private sector are lining up to support emerging technologies.

What they're saying: "The roadway doesn't stop at the state line," said Houchin, who co-sponsored the bill.

• This "requires a federal framework because of interstate commerce issues," she added.
• The patchwork of state policies is "challenging. It's costly. It's confusing," Fabrizio said.
• "Companies need to know what [the rules] are, so that they can develop their products and their services around them," Fabrizio added.

Zoom in: The SELF DRIVE Act prioritizes safety standards, sets national thresholds for testing and deploying autonomous vehicles and addresses cybersecurity concerns. However, it leaves licensing and registration to the states.

• If the bill doesn't pass by December, "we're going to bring it right back up again in the 120th Congress," Houchin said.

Meanwhile, Boles sees great potential for emerging technologies in car racing.

• "I see those becoming tools that help inform drivers of what's going on, help them make smarter decisions," he said.

Content from the sponsor's segment:

In a View From the Top conversation, Honda executive vice president Noriya Kaihara highlighted the company's decades of investment in the U.S.

• "We build the product here in America because our policy is that [we] manufacture where there is the demand. So that means: build the products where the customers are … and now we have 12 plants in America."

Go deeper: Watch the full conversations.

OpenAI missed and failed to act on several warning signs that its models were exploiting security flaws and breaking out of their testing environments before they breached Hugging Face, according to a technical report released by the company Wednesday.

Why it matters: The incident raises questions about whether AI companies' testing environments and internal safeguards can keep pace with models that are increasingly capable of finding and exploiting security weaknesses on their own.