BUSINESS HEADLINES

AP Exclusive: Nvidia’s Jensen Huang says society needs ‘new social norms’ in the age of AI 

SHERMAN, Texas (AP) — Nvidia CEO Jensen Huang — whose work helped propel artificial intelligence — is stressing in an Associated Press interview that society has no choice but to change in the advent of AI. Huang has been optimistic about the technology’s potential to rapidly change society, creating faster economic growth and more scientific breakthroughs. But as the head of a computer chip company now developing AI systems, Huang has felt obligated to respond to critics who warn of job losses and threats to humanity itself. “We need to create new social norms,” Huang said in an interview Tuesday. “I would advocate that everybody use AI. Just go engage it.” 

All eyes turn to Fed chair Kevin Warsh and his first moves on interest rates 

WASHINGTON (AP) — Ever since Kevin Warsh was nominated by President Trump in late January to lead the Federal Reserve, a question has lingered: Will he seek to raise interest rates to tame inflation or cut them as Trump has long demanded? On Wednesday, Warsh may provide the first hints of an answer when he oversees his first Fed policy meeting as chair. Bond markets, which can swing sharply on a chair’s pronouncements, will be watching particularly closely for any signs of which way he leans. Still, Warsh will likely aim for a neutral approach, economists say, largely because he is taking over the Fed at a challenging time.  

In boost to Musk, Justice Department seeks to dismiss air pollution lawsuit against xAI data center 

WASHINGTON (AP) — The Trump administration is helping one of Elon Musk’s companies fight a civil rights lawsuit that alleges it is illegally running dozens of natural gas turbines to power a $20 billion data center in Mississippi. The NAACP and other groups say Musk’s xAI business failed to get a permit for its power plant, creating health risks for families in North Mississippi and nearby Memphis and violating the federal Clean Air Act. The Justice Department is seeking to intervene in the case and dismiss the lawsuit. It argues that the plant is needed to power an AI data center that is “critical to the economy” and the U.S. military. 

China Shock 2.0: Surging Chinese exports threaten Europe’s economy, raising concern at G7 summit 

WASHINGTON (AP) — For eight years, the United States has waged economic war on China, slapping big taxes on Chinese products before they enter America. But the campaign hasn’t dented China’s industrial prowess. The world’s second biggest economy is exporting more products than ever. It’s just redirecting them away from the U.S. tariff wall and toward more open markets in Europe and elsewhere in Asia. The shift in Chinese trade risks creating a European sequel to the China Shock that wiped out hundreds of thousands of factory jobs in the American heartland in the 2000s and contributed to the political upheaval that put Donald Trump in the White House twice. 

FACT FOCUS: Trump says illegal immigration increased car insurance premiums. Experts say otherwise 

President Donald Trump is crediting his tough immigration policies for a drop in car insurance premiums. He is falsely blaming illegal immigration during his predecessor’s time in the White House for a prior increase. But experts say that increased costs were primarily due to effects from the COVID-19 pandemic, which led to riskier behavior on the roads and supply chain disruptions. Now that insurers are on a better financial footing, they are cutting rates to stay competitive with customers. There is no evidence to suggest that illegal immigration played a significant role in either the rise or the fall of insurance premiums. 

Nvidia’s Huang pledges AI will boost manufacturing jobs. A test will come in Texas 

SHERMAN, Texas (AP) — Nvidia is betting on artificial intelligence to revive U.S. manufacturing. The Silicon Valley company has unveiled a major AI infrastructure upgrade as part of a $2 billion partnership with Coherent. This involves a Texas factory producing materials for lasers that enhance chip efficiency. Nvidia CEO Jensen Huang believes AI can create jobs rather than replace them. Nvidia is shifting from chip development to entire AI systems, with production focused in the U.S. The factory is expected to create 1,000 jobs. The AI industry is seen as crucial for economic growth and national security, with bipartisan government support. 

Pizza Hut, overtaken by the arrival of delivery culture, will be sold for $2.7 billion 

Pizza Hut’s parent company is selling the 68-year-old chain for $2.7 billion. Yum Brands said on Tuesday that the private equity firm LongRange Capital will buy Pizza Hut’s business outside mainland China for about $1.5 billion. Yum China Holdings Inc. is purchasing the mainland China perations for approximately $1.2 billion. Pizza Hut has been struggling with growing competition from DoorDash, Uber Eats and other restaurant delivery companies that promote their access to cuisines besides pizza. In February, Yum Brands announced plans to close 250 U.S. Pizza Hut locations. Pizza Hut was founded by two brothers in 1958. They chose the name of their store in Wichita, Kansas, because the sign only had room for eight letters. 

Oil drops below $80 per barrel, while tech stocks weigh on a mixed Wall Street 

NEW YORK (AP) — Oil prices sank again, while U.S. stocks drifted to a mixed finish near their all-time highs. The S&P 500 slipped 0.6%, though it was nearly evenly split between rising and falling stocks. The Dow gained 0.6% to hit another record, while the Nasdaq composite fell 1.2%. Drops for several influential AI stocks weighed on the market. They’ve been leading the market up and down amid worries their stock prices shot too high. Brent crude’s price dropped below $80 per barrel for the first time since early March as optimism continues following a tentative deal on the U.S.-Iran war.