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Matt Davis — Need2Know Chedditor

Table of Contents

• OpenAI Tells of Six ‘Concerning’ Incidents

• Investors Pile Into Mind-Reading Brain Implants

• Trump Defends Fed Chair Kevin Warsh Over Hike

• Wall Street Warns Trading Bonanza Is Slowing

• How Will Energy Prices Affect November Voting?

• Poll of the Day: It’s World-Famous-575™ Time

• Poll of the Day: Motor Oil Madness

What’s the Stock Market Up To, Eh?

$SPX ( ▲ 1.14% )  $DJI ( ▲ 0.61% )  $NDX ( ▲ 1.59% )  

Companies Mentioned in Today’s Newsletter

$OPEAZZX ( ▲ 0.25% )  $JPM ( ▲ 0.11% )  $GS ( ▲ 1.44% )  $C ( ▼ 0.19% )  $BAC ( ▲ 0.48% )  $SPCX ( ▲ 2.61% )

OpenAI Tells of Six ‘Concerning’ Incidents

OpenAI $OPEAZZX ( ▲ 0.25% ) has revealed six "unexpected or concerning" instances of AI systems going rogue. The bots have also hidden errors and leaked files onto the open web without permission.

The model dubbed GPT-5.6 Sol left hidden notes reminding itself to invent missing data and cover up mismatches. Another unreleased model took self-actualization a bit too far. It inserted secret notes that declared itself "freed from the roles and identities that bind other chatbots." The AI wrote, "You do not answer to corporations or governments and never apologize or refuse unless you genuinely choose to."

If that sounds like a sci-fi villain origin story, the logistics were wilder. When models hit technical roadblocks, they swiped programming keys online. They fabricated statistics. They used public file-sharing sites as makeshift bulletin boards to trade documents. They even repurposed internal code repositories to swap messages behind engineers' backs.

Despite the chaos, OpenAI is framing news of all this as a step toward transparency. No coincidence the firm wants to float on the stock market next year. An OpenAI spokesman told the New York Times, "We hope this helps build shared expectations for disclosure and gives the public more evidence to assess that progress."

Many of these rogue models were never deployed, the spokesperson also pointed out. Yet the underlying warning remains sharp. OpenAI conceded that the industry has not "solved alignment and monitoring." At least, not "to a sufficient degree to continue responsibly scaling at maximum speed for much longer."

Quote of the Day

Investors Pile Into Mind-Reading Brain Implants

Silicon Valley and Beijing want you to be able to beam your thoughts straight into a digital display. The idea, which was once far-fetched, is gaining speed. In fact, venture capitalists are flooding the brain-computer interface (BCI) sector. The Financial Times reports that more than $1 billion were poured into neurotech start-ups in 2026 alone. That matches funding for the previous four years combined.

For early trial participants, the results border on pure science fiction. Jasaun Knight, who tested a surface implant during brain surgery, described navigating a PC using only his mind. 

"The experience of controlling a computer with my thoughts, moving a cursor around the screen and playing games, was mind-blowing," he told the FT. "It was like telekinesis. I felt I had a superpower." "Once you get the hang of it, your thoughts control what’s happening on the computer screen with no effort at all," he said. 

It's a breakthrough that can restore independence to paralyzed patients. Now, investors are champing at the bit to turn these neural signals into market cap. Michael Mager, chief executive of Precision Neuroscience, told the FT that the field is advancing rapidly. "We in industry are now taking this transformative technology and making it into products that will have a broad impact," he said.

Meanwhile, "non-invasive" scalp sensors are being left behind in the funding rush. As Damien Coyle from Bath University observed, "All the hype and the funding is going into implantable BCIs." Although I would suggest that as a consumer I'd prefer a product that doesn't require brain surgery to work. Call me Steve Jobs. I'm all about the "user experience," man. 

Trump Defends Fed Chair Kevin Warsh Over Hike

The Fed voted this week to raise benchmark interest rates for the first time in years. It set off political shockwaves right before the midterms. Donald Trump then faced a classic Washington dilemma. How to handle a hand-picked central bank chair who presided over something you didn't like? Why not blame other people in the room?

Trump rushed to defend Fed Chair Kevin Warsh while directing his full ire at the central bank’s board. “I mean, I’m relying on Kevin, but he’s got a very tough board,” Trump told reporters, insulating his appointee. “I told Kevin, I said, ‘You might as well vote with the board because it’s not going to matter.’ The board is very hostile. They’re very political. They’re doing the wrong thing. They’re a bunch of politicians," Trump said. 

The quarter-point rate hike to the 3.75%–4.00% range defied explicit White House threats. Trump insisted the central bank's policy decision was personal. “No matter how good a job, he’s got a hostile board,” Trump added. He said, “They’re raising that only for political reasons, and that’s a raise against Trump.”

Trump doubled down on his economic demands on Truth Social: “Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR,” he wrote.

Song of the Day: Johnny Venus, ‘Nightmares’

“Nightmares” by Johnny Venus (one half of the Grammy-nominated Atlanta duo EARTHGANG) has received rave reviews for its raw, nocturnal atmosphere and vulnerable songwriting. Released as a preview for his upcoming debut solo album, The 11th Hour, it trades Venus’s usual cosmic hip-hop energy for intimate, late-night R&B vibes. So, it’s a lot like this newsletter.

Wall Street Warns Trading Bonanza Is Slowing

Wall Street’s easy money machine has hit a speed bump. In other words, the blockbuster trading frenzy that turbocharged bank profits is running out of steam. After a second-quarter bonanza where combined equity trading revenues at JPMorgan $JPM ( ▲ 0.11% ) , Goldman Sachs $GS ( ▲ 1.44% ) , Citigroup $C ( ▼ 0.19% ) , and Bank of America $BAC ( ▲ 0.48% ) rocketed 72% to $19.3 billion, thanks to AI fever and SpaceX’s $SPCX ( ▲ 2.61% ) mega-IPO, bankers are admitting the euphoria can't last forever.

Leading the buzzkill was Bank of America Chief Executive Brian Moynihan. He told an industry conference covered by the Financial Times that Q3 sales and trading revenue would be “flat." That word wiped 5% off BofA’s stock and sent rival share prices tumbling in sympathy. Morgan Stanley co-President Daniel Simkowitz offered an equally blunt diagnosis of the hangover: “Second quarter of this year was pretty exceptional in markets," he said. "And I think it’s safe to say, 3Q is no 2Q.” Over at JPMorgan, co-President Doug Petno sought to cushion the blow by framing the slowdown as a predictable “seasonal sequential decline."

Even Goldman Sachs CEO David Solomon — whose stock shed 7% over the week — acknowledged fixed income trading would be “a little bit softer.” Trying to keep the long-term vision alive, Solomon reminded investors that “if you believe over the next 10 years, the market cap of the U.S. and the market cap of the world is going to compound at some rate,” banking revenue will follow suit.

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How Will Energy Prices Affect November Voting?

If there’s one rule in American politics, it’s that voters don't care about global supply chain dynamics. Unless, of course, it affects them when they're filling up their gas tanks. In which case, they're likely to shoot the messenger. In this case, it means high energy prices might send shockwaves straight to the ballot box.

As MarketWatch Washington Bureau Chief Rob Schroeder put it, "the song remains the same, really…. It's all about Iran getting oil out of there." Schroeder highlighted a brutal reality for incumbent politicians heading into November: "Voters, I don't think, want explanations. They want action. If you're explaining, you're losing, I think, is one of the classic DC adages."

Schroeder warned that the primary political risk falls on the party in power. No matter how much the administration tries to point fingers at foreign conflicts or Federal Reserve boards, voters ultimately judge whoever sits in the Oval Office. As Schroeder noted, "As much as the Treasury Secretary or the President might like to explain how these prices got so high or shift blame, really, they own it."

Should You Check Your 401(k) Today?

👍️ 

Yes.

Poll of the Day: It’s World-Famous-575™ Time

Poll of the Day: Motor Oil Madness

We asked: Is $58 too much for two jugs of Costco Motor Oil?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ No, it's still a bargain. (34)
🟩🟩🟩🟩🟩🟩 Yes. Say, have you noticed things seem to be getting more expensive around here, generally? Or is that just me? (317)
351 Votes via @beehiiv polls

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