• Data centers and artificial intelligence have become a part of everyday conversation for Americans.
• Data center energy consumption has entered those conversations, too.
• The largest planned AI campuses could require more than 10 gigawatts of electricity.

Some Americans have new next-door neighbors: data centers.

The US has been building these computing facilities for decades, but development has ramped up dramatically in recent years as AI increasingly drives demand for computing power.

Business Insider compiled a list of some of these enormous US data-center projects to illustrate the scale of what's being built. Those on the list have at least 1 gigawatt of capacity and have broken ground.

Among the largest is a city-sized campus in Texas pursuing up to 17 gigawatts of power capacity. Another in Ohio is aiming to have up to 10 gigawatts of data-center capacity, most of which OpenAI has contracted to use. For reference, 1 gigawatt of electricity continuously supplied for a year could power roughly 835,000 average American homes.

In total, the Pew Research Center says the US has more than 3,000 operating data centers nationwide and over 1,500 more under development, mostly in rural areas. According to data from the Energy Institute's 2026 Statistical Review of World Energy, US data centers accounted for nearly 40% of global data-center electricity use in 2025, consuming about 313 terawatt-hours. That's more electricity than all of Australia used that year.

Planned capacity is the closest public proxy for how much computing these AI campuses can support, and that's important because the electricity and water needed to run their servers and cooling systems can have major implications for local grids and sustainability.

Residents affected by developments in places like Texas and Utah have pushed back over concerns about noise, property values, and the effects on nearby communities. New York has temporarily paused the construction of new large-scale AI data centers.

Still, the 2025 US Data Center Energy Usage Report from Berkeley Lab projects that data centers will consume 11.8% of US electricity by 2030, up from about 4.4% in 2023. Oracle, SB Energy, SpaceX, Google, and Meta are among the leading developers and operators.

Elon Musk's SpaceX is so eager to build its supercomputers that it's offering employees a pay bump to temporarily move to the data-center sites to help with the buildout.

Here's a closer look at some of the largest AI data-center campuses being built.

Meta Lebanon Campus — Indiana

Mark Zuckerberg's Meta currently has 21 data centers under construction. Its Lebanon, Indiana, data center is one of its biggest investments — and the company's second in the state.

The $10 billion center, which broke ground in early 2026, is planned to deliver 1 gigawatt of capacity and span 1,500 acres.

It's expected to be completed by early 2028. Neighbors have complained about light pollution from the construction, while residents across Indiana have urged state lawmakers to regulate the growing data-center industry.

Meta El Paso Data Center — Texas

Meta's data center in El Paso, Texas, is planned to be powered by 1 gigawatt of capacity and span roughly 1,000 acres. It originally called for $1.5 billion in investment, which later increased to $10 billion.

The center will support more than 300 workers once complete, while around 4,000 construction workers are expected to build it out.

The site broke ground in October 2025 and is expected to be finished in 2028. The site has also sparked backlash from residents.

Project Freebird (Stargate) — Texas

Project Freebird is part of Stargate, the AI-infrastructure initiative co-led by OpenAI and SoftBank, which OpenAI said in January 2025 would invest up to $500 billion in US infrastructure.

Freebird will be a 1.2-gigawatt data center campus in Milam County, Texas, near Austin. The first phase was expected to be completed by October, while additional phases are planned through 2028. Construction began in 2025.

However, the company has not issued any update on the data center's completion as of late October.

The site, being developed by SB Energy, a SoftBank-backed infrastructure company, will span roughly 595 acres. Phase 1 has an estimated construction cost of $470 million, while total investment in the broader project is expected to range from $1.8 billion to $3 billion.

The first phase had a scheduled construction-completion date of October 15, while SB Energy says operations are expected to begin in 2027.

Fort Wayne Data Center — Indiana

In 2024, Google broke ground on a $2 billion data center campus in Fort Wayne, Indiana, to support its AI and cloud operations.

The campus is expected to require up to 1.2 gigawatts of power at full build-out. Some Indiana politicians have expressed concern about the amount of power required to run the data center and who will foot the energy bill.

"If companies want to build a data center here, and we have to build new power generation for them, then they need to share in that risk," Indiana Rep. Ed Soliday, a Republican, previously told Business Insider. "There are a couple of data center folks who have said, 'Oh no, that's not fair.' Yes, it is. Grandma down the street shouldn't have to pay for your dreams."

Stargate Abilene — Texas

The Stargate AI data center campus outside Abilene, Texas, is expected to deliver 1.2 gigawatts of capacity. Crusoe, the lead developer and builder behind the project, broke ground on the campus in June 2024. The first phase is already operational.

The second phase, which is under construction, is backed by a $15 billion joint venture between Crusoe, Blue Owl Capital, and Primary Digital Infrastructure. It will add six buildings to the campus, bringing the total to eight and the planned capacity to 1.2 gigawatts. The site will span 875 acres.

Nebius AI Factory — Missouri

Nebius' data center in Independence, Missouri, will span roughly 400 acres and reach a capacity of up to 1.2 gigawatts. The company broke ground in May and is expected to bring roughly 1,200 construction jobs and 130 permanent jobs.

Nebius has not announced a total investment amount, though the city expects to begin collecting tax revenue from the campus in 2028.

The site hasn't come without controversy. A group of citizens is suing the city of Independence and companies involved with the project, alleging 16 counts, including claims that the city violated Missouri's Sunshine Law several times by failing to provide finalized data center construction plans. Nebius did not offer a comment.

CloudBurst San Marcos Data Center I — Texas

CloudBurst's San Marcos Data Center I is a planned 1.2-gigawatt capacity campus on 706 acres in central Texas. Guadalupe County approved a $500 million tax abatement for the project.

The company and its development partner, Evolve, broke ground in November 2025, with an initial 50-megawatt phase expected to be complete by late 2026. Construction is expected to be complete in 2029.

San Marcos residents have protested proposed data centers over water and energy concerns. The city has since become the first in Texas to ban new data centers, though the ban won't stop CloudBurst's project, which is outside city limits.

The Barn Data Center — Michigan

The Barn, part of the Stargate project, is a multi-billion-dollar AI data center campus in Saline Township, southwest of Ann Arbor, Michigan. Related Digital, a data-center developer, is building the campus for Oracle as part of its partnership with OpenAI. Construction for The Barn began in June.

The campus will comprise three data center buildings with a combined capacity of 1.4 gigawatts. The $16 billion project is backed by Related Digital and investment firm Blackstone. The first facilities are expected to enter service by the end of 2027.

Local residents have protested against the data center, citing concerns about its impact on the grid and pollution.

In October, state regulators opened public comment on a wastewater permit for the campus’s proposed on-site water-treatment system.

Stargate Frontier Campus — Texas

The Stargate Frontier Campus, developed by Vantage Data Centers, will be a 1.4 gigawatt, 1,200-acre data center in Shackelford County, Texas, near Albany in north-central Texas.

The campus is part of the broader Stargate initiative led by OpenAI, Oracle, and other partners, and is being designed for ultra-high-density AI workloads. Vantage plans to invest more than $25 billion in the project, which is expected to be fully built out by 2028.

Construction of the center began in late 2025.

xAI Colossus 2 — Tennessee

Elon Musk's xAI is building Colossus 2 to power Grok, the AI chatbot on X. Construction began in 2025 in Memphis, Tennessee, and the company has said it plans to expand the site to 1.5 gigawatts. The nonprofit research institute Epoch AI estimates its current capacity at about 946 megawatts.

Environmental justice groups, led by the NAACP, sued xAI earlier this year, alleging that the company installed and operated gas turbines that power Colossus 2 in nearby Southaven, Mississippi, without the required air permits. In March, Mississippi regulators approved a permit for xAI to build and operate a new fleet of turbines at the site.

Local residents have filed a class-action lawsuit against xAI, MZX Tech, and SpaceX, alleging that noise and vibrations from the gas turbines have disrupted their lives and harmed their property values.

Still, in late October, Business Insider reported that SpaceX was offering employees a 20% pay bump to temporarily relocate to Memphis or Southaven, Mississippi, for six weeks to help build out Colossus 1 and 2.

Project Jupiter — New Mexico

Developed by infrastructure companies STACK Infrastructure and BorderPlex Digital Assets, Project Jupiter will be an AI data center campus in Doña Ana County, New Mexico, near the Texas border. It is part of the Stargate initiative and is expected to support Oracle's AI-computing operations for OpenAI.

Construction for Project Jupiter began in September 2025. The campus's planned on-site power system could include up to 2.45 gigawatts of Bloom Energy fuel cells, replacing an earlier proposal centered on gas turbines and diesel generators.

In May, Oracle ditched its plan to construct a natural gas plant to power Project Jupiter, following local residents' concerns over the potential negative water usage and air pollution effects it could cause.

Oracle issued a force majeure notice in September due to potential delays in the project's power infrastructure, though it says the campus remains on track for 2028.

Meta Hyperion — Louisiana

Meta's Hyperion AI data center in rural northeast Louisiana, backed by more than $50 billion in investment, will span more than 3,600 acres and is planned to deliver 5 gigawatts of capacity once fully developed. Hyperion broke ground in December 2024.

Meta says Hyperion is designed to train and run its artificial-intelligence systems. Earlier this year, Louisiana gave Meta $3.3 billion in tax breaks for Meta to build Hyperion. The project is expected to be completed in the 2030s.

Since the center is located in a rural part of the state, the influx of 7,500 trade and construction workers has spurred a housing boom, with mobile homes built for workers that rent for $3,000 a month.

Still, the project has also faced pushback from local residents and environmental groups concerned about its impact on water, energy use, and the surrounding community.

Louisiana regulators held hearings in October on the proposed power build-out for the campus. The state's Public Service Commission will issue a decision in December.

PORTS-Pike Technology Campus — Ohio

The Department of Energy said SB Energy broke ground in March in Ohio on the planned AI and cloud campus at the former Portsmouth Gaseous Diffusion Plant, known as PORTS. The campus will span private land and remediated federal land leased from the DOE.

The Nvidia-backed project is expected to include up to 10 gigawatts of data-center capacity, with OpenAI set to use up to 8 gigawatts of it for its workloads.

While the DOE says the historical PORTS site is in active remediation, the project has raised concerns about potential health and environmental risks associated with the site's history as a uranium enrichment plant. SB Energy told the Guardian in August that it is "committed to paying for accelerated cleanup and remediation at the site" and that the company "performs thorough site reviews and due diligence for each of our infrastructure projects, including soil sampling."

SB Energy said in October that it would begin initial clearing and grading work for the campus’s first phase.

Project Matador — Texas

Fermi America's Project Matador, also called HyperGrid, is an AI data center and private power campus being built near Amarillo, Texas.

Fermi, which was co-founded in 2025 by former Texas Gov. and US Energy Secretary Rick Perry, said it is pursuing roughly 17 gigawatts of private power for the campus, up from the initially planned 11 gigawatts. That means the campus would generate much of its own electricity on-site rather than relying entirely on the public grid. The company says 6 gigawatts have been permitted so far.

Fermi has a 99-year land lease with the Texas Tech University System for the core site, and the project could span roughly 8,400 acres at full build-out. Fermi says construction is underway, with completion planned for the 2030s, and AI cloud company TensorWave has signed a 15-year lease expected to generate about $6.5 billion in contracted revenue for the first phase. Fermi is also developing a cooling system designed to substantially reduce water use.

The company was hit with a class action lawsuit earlier this year. The investor lawsuit alleges Fermi misled investors about the status and prospects of Project Matador; its shares fell after Amazon withdrew a $150 million construction advance in December 2025.

Fermi America said three gas turbines arrived at the site in October.

SpaceX, Meta, Google, Oracle, Fermi America, CloudBurst, and xAI did not immediately respond to a request for comment from Business Insider. SB Energy did not offer a comment.

• Uber is giving its corporate employees access to OpenAI's enterprise work tool.
• ChatGPT Work can "prepare meeting briefs," among other tasks, OpenAI said.
• Uber is rolling out the tool after laying off thousands of workers last month.

Uber is giving all of its corporate employees access to OpenAI's enterprise tool weeks after laying off thousands.

About 30,000 employees at the ride-hailing service's offices will have access to ChatGPT Work, the two companies said on Thursday.

The tool will connect with other programs that Uber employees use, such as Slack and Gmail, to "research information, prepare meeting briefs, create presentations, analyze data and complete workflows across applications," a statement said.

"As AI transforms how we work, we want to give everyone the tools to innovate, solve problems and help shape Uber's future," Uber CTO Praveen Neppalli Naga said. Uber initially tested the tool among a group of 1,000 employees.

The rollout comes the month after Uber laid off about 10% of its corporate workforce, or about 3,300 people. The company made the job cuts to reduce management layers and reduce the number of small teams, CEO Dara Khosrowshahi said at the time. It didn't cite AI in its announcement.

Some laid-off employees told Business Insider that AI was doing significant parts of their jobs, from answering their questions in Slack to crafting replies to messages from riders and drivers.

Uber cited AI as a reason for an earlier round of layoffs in July, which targeted Uber's customer service employees.

Do you have a story idea about Uber? Contact this reporter at abitter@businessinsider.com or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

Concerns about the cost of artificial intelligence investment triggered sharp losses in American technology shares on Thursday, with the sell-off affecting European markets as investors reassessed the outlook for chipmakers and major digital companies.

The Nasdaq Composite fell 2.6 per cent, while the Philadelphia semiconductor index lost nearly seven per cent. Shares in Meta declined sharply after its latest earnings revived concern over the capital needed to expand AI infrastructure.

Trading stabilised in parts of Asia on Friday, but European shares remained under pressure. The retreat came alongside a rise in oil prices and renewed demand for US government bonds, underscoring investors’ sensitivity to several risks at once.

The underlying issue is whether the enormous spending commitments announced by technology companies can generate sufficient returns to justify current valuations.

The developments are detailed in the latest reporting and official material, against the background of EU Today’s earlier coverage.

Why the AI investment bill matters

Building and operating AI systems requires large data centres, advanced chips, electricity supplies and network infrastructure. The companies financing that expansion are investing before the full scale and profitability of future demand can be known.

Strong revenue growth can coexist with higher costs, rising debt and pressure on cash flow. For investors, the question is not simply whether AI will be widely used, but how its benefits will be divided among software companies, infrastructure providers and customers.

The latest market reaction follows earnings announcements that renewed scrutiny of spending plans. A one-day share-price fall does not establish that the AI sector is entering a prolonged contraction.

European exposure

Europe participates in the AI supply chain through semiconductor equipment, advanced manufacturing, energy infrastructure and cloud services. A repricing of major American technology companies can therefore affect European-listed firms even when their own operating results have not changed.

The Netherlands and France are among the markets with listed technology businesses exposed to global semiconductor demand. Falling shares may also reflect general risk aversion rather than a judgment about an individual company’s prospects.

European policymakers have argued for stronger domestic computing capacity and digital independence. The economic challenge is to support that capability without assuming every investment will earn a commercial return.

Energy prices add pressure

Brent crude’s rise to around $114 a barrel has intensified uncertainty about inflation and borrowing costs. Rising fuel prices can affect both households and power-intensive sectors, while higher interest rates tend to reduce the present value of expected future profits.

Global investors have consequently moved towards government bonds and other perceived safer assets. That shift reflects changing risk assessments, not a forecast that markets will necessarily keep falling.

Future earnings reports, capital-expenditure plans and evidence of customer demand will determine whether this week’s losses become a sustained correction or a short-lived reassessment.

For Europe, the sell-off puts renewed emphasis on the financing and competitiveness of its own technology ambitions.

If you're reading this, then the internet still works. But that's something that we shouldn't necessarily take for granted after this week's global cybersecurity meltdown.

"Think of it this way: someone discovered that millions of buildings in the country have the same broken lock, and now everyone knows how to open it," writes Matt Shumer in a lengthy post on X about the situation. "The lock maker has sent out a fix, but every building owner has to install it themselves, and many haven't yet."

That massive vulnerability was identified with the help of AI, but the growing capabilities of AI-powered hackers mean that vulnerabilities can be exploited much more rapidly too.

This is the world we live in now. In August, more than 100 tech companies signed a letter warning about exactly this possibility. On Thursday, one of Anthropic's top information security officers wrote that cybersecurity threats "are going to get a lot worse before they get better." Major banks are rushing to secure themselves after reports of autonomous agents operating inside accounts (though many of them may have been authorized by account holders).

This is unlikely to be the last incident like this. Cybersecurity firm CrowdStrike says it saw twice as many "agentic intrusions" (hacking done by an autonomous or semiautonomous AI) in August as in July, and then the number doubled again in September.

Scary stuff, for sure. As is usually the case, however, prevention is better than panic.

Shumer's post contains many helpful suggestions for better online security—it is particularly important to secure your email accounts, since that is the gateway to so much of what we do online. Here's a 15-step plan to stay more digitally secure in the AI age. (And if you're really worried about everything falling to bits, Reason's got you covered there too.) If your devices and browsers have updates available, install them. And for the love of digital gods, don't click on random links in strange emails!

The man who (maybe) saved the internet? There is an old XKCD webcomic—and I'm dating myself as a very specific type of millennial by even referencing that—that seems to perfectly sum up what happened this week. Here it is:

Here's the craziest part: That's basically true! Except the one random person lives in Czechia instead of Nebraska. His name is Ondřej Surý, and The Atlantic's Charlie Warzel found him:

Surý, who lives in Czechia, does not work for the PHP Foundation. But alongside his day job as director of domain-name-system engineering at the nonprofit Internet Systems Consortium, in a volunteer capacity, he maintains and helps automate patches for the coding language. His work, with that of just a handful of others, has allowed countless websites and organizations to fix these vulnerabilities quickly. Over the past 48 hours, he's become arguably the unsung hero of the entire internet—despite the fact that the only compensation he receives is from modest donations. "Ondřej will save the internet today," a user in the PHP Subreddit wrote.

In the war between AI hackers and AI defenders, it's still humans who are the heroes. At least for now.

Art of the steal. Yesterday, in this space, I detailed how voters are fed up with the Trump administration's seemingly endless stream of corruption. But it's been a whole 24 hours, which means there is yet another scandal in the news—thanks to a Vanity Fair article about President Donald Trump's son-in-law Jared Kushner.

The article is an excerpt from a forthcoming book. In it, author Matthew Cole claims that Dutch investigators gained access to Kushner's phone with the help of Russian hackers. The evidence from the phone and other sources shows that Kushner has been taking money from the governments of Saudi Arabia and the United Arab Emirates to "push their agenda with Trump."

Kushner says the article's claims are "outrageous and categorically false."

But wait, there's yet another corruption story. The Justice Department is reportedly probing whether Trump ally Corey Lewandowski profited from his role as a top adviser at the Department of Homeland Security (DHS). The Washington Post reports that the investigation is based on a referral from the DHS inspector general and is focused on "contracting fraud."

It may or may not be connected to other allegations that surfaced in September, when The Wall Street Journal reported that Lewandowski approached officials in Qatar and the UAE about being hired to help with "visa issues" and other matters.

In both matters, Lewandowski has denied the allegations. He's no longer working for the department, having been fired earlier this year amid a messy scandal involving then–DHS Secretary Kristi Noem, who was also canned.

Scenes from Virginia: Federal prosecutors indicted state Sen. L. Louise Lucas (D–Portsmouth), one of the most powerful Democrats in Virginia, on charges of racketeering and money laundering in connection with illegal marijuana sales. (Don't get me started on how dumb it is that recreational marijuana use has been legal here since 2021, but commercial sales are still forbidden. If it's legal to use something, it should be legal to sell it!)

Lucas pushed the failed Virginia redistricting effort and has been an outspoken critic of Trump. She plans to fight the charges. Virginia Gov. Abigail Spanberger, also a Democrat, said in a statement that the timing of the indictment, just days before the midterm elections, "further erodes the trust the American people deserve to have in the Department of Justice."

QUICK HITS

• "The last thing José García-Sorto remembers after being shot in the chest is being pulled from his car, pinned to the pavement and handcuffed, his blood pooling around him on a Phoenix interstate. All he could think about was what would happen to his two young children if he died." The New York Times has a harrowing account of a Honduran immigrant who was shot by immigration officers last year. He's never been charged with a crime in connection with the incident, which suggests "the authorities did not find evidence that he had put anyone in danger."
• Phil Magness and David Hebert debunk the notion that tariffs can help "infant industries" grow and succeed in a global market.
• The Cato Institute's annual ranking of "Freedom in the 50 States" is out. Arizona takes the top spot. How did your state do?
• Is alchemy real now? A California company claims it has successfully turned mercury into gold.
• The World Series begins tonight, and it ought to be terrific. Despite low payrolls, Tampa Bay and Milwaukee were the top teams in their respective leagues this year. They are deep, talented teams full of characters worth cheering—Brewers' star pitcher Jacob Misiorowski is a huge Pokémon nerd; Rays' star hitter Yandy Diaz escaped from Cuba after being imprisoned there. And this is the first World Series since 1980 to match two franchises that have never won a championship.

The post The Man Who Saved the Internet appeared first on Reason Magazine.

Austria has ordered four Russian diplomats to leave the country after security authorities identified activities incompatible with their diplomatic status, in a further deterioration of relations between Vienna and Moscow.

The Austrian foreign ministry announced the expulsions on Friday, 23 October. Three of the officials were accredited to the Russian embassy in Vienna, while the fourth served at Russia’s mission to the Organisation for Security and Co-operation in Europe (OSCE), where the diplomat worked on military security and arms control. All four have been declared persona non grata.

The decision follows findings by Austria’s security authorities, according to the details of the foreign ministry announcement. Officials have not publicly disclosed the activities involved or brought criminal charges in connection with the announcement. Moscow has indicated that it will retaliate, although the nature of its response has not yet been specified.

Vienna’s diplomatic position

The expulsions are particularly significant because Vienna hosts numerous international organisations and remains one of Europe’s principal diplomatic centres. In addition to the OSCE, the city accommodates United Nations offices and organisations dealing with nuclear policy, international development and arms control.

That concentration of diplomatic missions gives Austria a distinctive position in European security affairs. Foreign delegations enjoy diplomatic privileges and immunity, while the Austrian authorities retain the power to withdraw recognition from representatives whose conduct they consider unacceptable.

Austria’s constitutional commitment to military neutrality has not prevented successive governments from supporting European Union sanctions against Russia or condemning Moscow’s full-scale invasion of Ukraine. Neutrality limits participation in military alliances; it does not require Vienna to remain politically neutral over the conduct of a war.

Russian missions to international organisations also have a particular role. The OSCE brings together European, North American and Central Asian states, including Russia and Ukraine, and provides a forum for discussions on military transparency and conflict prevention. Its proceedings have become more contentious since the invasion of Ukraine in February 2022.

Repeated expulsions

Friday’s decision brings the reported number of Russian diplomats expelled by Austria since 2020 to 18. In May 2026, Vienna expelled three Russian diplomats amid security concerns involving antenna installations on Russian diplomatic buildings. Those concerns added to wider scrutiny of possible intelligence-gathering activity in the Austrian capital.

Diplomatic expulsions are a familiar response when governments suspect espionage but do not pursue ordinary criminal proceedings. Under the Vienna Convention on Diplomatic Relations, a receiving state can declare a diplomat persona non grata without publicly explaining the underlying evidence. The sending state must then recall the official or terminate their functions.

The mechanism is politically consequential but is not in itself a criminal judgment. A declaration of persona non grata establishes that the host government will no longer accept the diplomat’s accreditation; it does not establish guilt in a court of law.

Moscow has regularly responded to expulsions of its diplomatic personnel from European countries with reciprocal measures. Such retaliation can reduce the number of diplomats available for routine consular work and political dialogue, even when wider bilateral relations remain formally intact.

European security implications

The new Austrian action comes as European countries face continuing questions about Russian intelligence networks, attempts to gather military information and suspected interference activities. The circumstances of individual cases vary, and intelligence allegations cannot automatically be treated as proven simply because diplomats have been expelled.

The latest episode nonetheless illustrates how Russia’s war against Ukraine has affected the functioning of diplomacy in European capitals. Vienna must balance its international hosting responsibilities and established channels of communication with the security obligations arising from suspected abuses of diplomatic status.

The decision also comes against the background of wider European efforts to strengthen protection against strategic vulnerabilities and an expanding debate about hybrid threats to critical infrastructure.

For now, Austria has confirmed the expulsions but has not published an account of the conduct attributed to the four officials. The next diplomatic development will be Russia’s response and whether it affects Austrian representatives in Moscow.

• This week's cyber freakout explained: AI is making software weaknesses easier to find and exploit.
• The message from Cloudflare's Stephanie Cohen and Vercel's Tom Occhino: Don't panic!!!
• Do we need everything connected to the internet? Paper bank statements work well.

A few weeks ago, I heard a strange story about a friend who works at one of the Big Tech companies in Silicon Valley.

She'd recently ripped out the connected devices in her home, ordered paper bank statements, and stocked up on canned goods in her basement.

Now, she's a very sane, experienced person, and quite senior at one of the largest internet companies on earth. Why was she disconnecting so much? Just to be sure, my family ordered paper bank statements, too. It was still a head-scratcher, though.

Fast forward to this week, and her actions look a little less crazy.

AI models have exposed serious security weaknesses in software used by roughly 70% of websites. Meanwhile, US banks are finding AI agents inside customer accounts, including some that appear to be acting without their owners' instructions, Axios reported.

'Black October'

The digerati have now entered full freakout mode. Much of the internet meltdown is happening on, well, the internet, my colleague Alice Tecotzky noted.

On X and Reddit, warnings of a looming “Black October” spiraled into visions of AI grinding civilization to a halt. One lengthy post on X warned of a potential “global cyberattack/AI swarm” and offered a survival checklist: Stockpile cash in small bills, print out your neighbors' phone numbers, download maps, buy a hand-crank radio, and stash a gallon of water per person per day.

Oh, and don't forget the manual can opener. You don't want to survive the AI apocalypse only to be defeated by a tin of beans.

Nikita Bier, a prominent app developer and former head of product at X, best captured the mood.

"It's time to turn off the internet," he posted Wednesday night.

A Cloudflare exec says it's 'a little bit scary'

If you're reading this, you haven't done that yet. But should we really be worried?

I put that question to Stephanie Cohen, chief strategy officer at Cloudflare, which helps protect about 20% of the internet.

"The world is a little bit scary right now," she told me on the side of Cloudflare's annual conference in San Francisco this week.

Here's the problem. The internet is built on decades of software, much of it riddled with security holes.

Some of these weaknesses have been known for years. However, fixing them takes time and money, and hackers often lacked the skills to exploit them anyway. So they were left alone.

AI changes that calculation dramatically. Someone who previously needed years of training to break into a computer system can now get help from an AI model. And these tools can search for weaknesses at a speed humans simply can't match.

The result: The number of newly published software vulnerabilities (Common Vulnerabilities and Exposures in industry lingo) has exploded.

Now, there's a frantic race between people trying to break into systems and those trying to protect them.

Don't panic about AI

Cohen's message, though, was surprisingly reassuring.

AI helps the good guys find and fix these problems. Cloudflare, for instance, released protections for the latest vulnerability to customers, including those using its free service.

And there's a bigger effort underway.

OpenAI has launched an initiative called Patch the Planet, working with Cloudflare and other security professionals to use AI to find weaknesses in widely used software and help repair them.

Tom Occhino, chief product officer at Vercel, told me recently that his company has been talking with partners about launching a nonprofit that would fund a swarm of good AI agents that go out on the internet to find and fix software flaws.

Amazon is joining the fight, too. Its new Continuum service, available Thursday, uses AI agents to find security holes and propose fixes. Amazon said that people maintaining freely available software can use it to help protect the wider internet.

Humans may still have to check and approve these repairs, but the prospect of AI helping clean up decades of neglected software is encouraging.

The irony of this is not lost on some in the industry.

"The funny thing is everyone was saying AI slop code will cause a cyber crisis but it's actually all the old human slop causing it and the AI is just cleaning it up," software engineer Ben Kaufman wrote on X on Thursday.

Either way, Cloudflare's Cohen thinks these AI-inspired freakouts will push the industry to do better — by exposing issues and adding urgency to get them patched.

"We may end up in a world where actually we've become significantly more secure at the end," she said.

The trouble is getting there.

A fundamental question about the internet

When I ran into Occhino recently at a Vercel conference in San Francisco, he described a world in which software that everyone assumed was safe suddenly looks vulnerable because increasingly capable AI models are scrutinizing the basic systems that underpin the internet.

That led to a more fundamental discussion between us: Why did we connect so many things to the internet in the first place?

For years, the technology industry has raced to put everything online. Thermostats. Refrigerators. Doorbells. Cars. Bank accounts.

We assumed that connecting something to the internet automatically made it better.

Perhaps we should reconsider.

Before the internet

I remember the world before the internet. It worked pretty well. We managed to buy groceries, pay bills, heat our homes, and generally get through the day without every appliance talking to a computer somewhere.

That doesn't mean abandoning online banking or throwing your smartphone into the sea.

Occhino, for one, isn't particularly worried about hackers wiping out his bank account. Modern banks have sophisticated protections, and he recommends everyone turn on additional login security.

Maybe the cybersecurity crowd, which spends its life immersed in online threats, is missing something obvious.

Not everything needs to be connected.

Occhino put it neatly: "There's certain things that don't make sense to be on the internet in the first place."

Perhaps that's the lesson from this week's panic. We don't need to turn off the internet.

We just need to remember where the off switch is.

Alice Tecotzky contributed reporting.

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"As much as the industrial revolution freed us from the constraints of the human muscle, AI will free us from the constraints of the human brain, pushing productivity beyond our wildest dreams….Keep AI unregulated so that it is free to be developed without the deadly hand of premature and poorly understood regulation."

Argentine President Javier Milei wrote that on June 4 in the Financial Times as part of his push to bring AI companies to Argentina. The prior week, he had introduced legislation to boost AI based on three pillars: leaving AI unregulated, establishing a new legal category for nonhuman corporations operated by AI agents or robots, and keeping corporate taxes low. As of late September, the Senate has held hearings on the legislation but not advanced it.

The post Javier Milei's Case Against AI Regulation appeared first on Reason Magazine.

I'm delighted to be able to pass along this item from University of Chicago law professor Albert Alschuler:

Gemini Explains to a User (Me) Why Its Programming Produces Poppycock

I didn't mean to summon AI from the vasty deep. Professor Bradley A. Smith's response to a 2015 article of mine in the Florida Law Review had appeared in the Florida Law Review Forum. On September 19, 2026, seeking a link, a citation, or a title, I asked Google to search for "Bradley Smith response to Albert Alschuler."

Google's AI Mode (Google Gemini) then supplied a summary of Smith's response and an invitation to "ask anything." I accepted its invitation.

ME: Did Alschuler reply to Smith?

GEMINI: Yes, Albert Alschuler replied to Bradley A. Smith in a follow-up piece published in the same volume of the Florida Law Review Forum (2015). [Note: I hadn't replied. Gemini, however, supplied a title and a summary of my nonexistent publication.]

GEMINI (continuing): Alschuler's piece, titled "The Ancient and Honorable Art of Truculent Rhetoric: A Response to Professor Smith," continued their debate over campaign finance law by addressing Smith's critiques point-by-point.

Key Points of Alschuler's Reply:   

• Deconstructing "Truculent Rhetoric": Alschuler lightheartedly but firmly addresses the aggressive nature of Smith's libertarian style, defense of Citizen's United, and absolute deregulation approach.
• Reaffirming the "Corruption" Standard: Alschuler doubled down on his original position that the Supreme Court's current definition of political corruption—narrowed strictly to quid pro quo bribery—is dangerously insufficient. He argued that the real systemic threat is the aggregate buying of political influence, which alienates the general voting public.
• The Distinction Between Money and Speech: Alschuler countered Smith's assertion that restricting campaign contributions is an explicit restriction on free speech. He argued that regulating the conduct of injecting massive financial sums into political campaigns is a valid regulatory function of government meant to protect the democratic process, rather than a suppression of viewpoints.

Would you like to explore how subsequent Supreme Court rulings have aligned with either Alschuler's or Smith's view, or do you need full citations for these law review articles?

ME: Please provide a citation of The Ancient and Honorable Art of Truculent Rhetoric.

GEMINI: Here is the full legal citation for the article in Bluebook format, along with a standard APA citation:

Bluebook (Legal Citation)

Albert W. Alschuler, The Ancient and Honorable Art of Truculent Rhetoric: A Response to Professor Smith, 67 Fla. L. Rev. F. 68 (2015).

APA Format

Alschuler, A. W. (2015). The ancient and honorable art of truculent rhetoric: A response to Professor Smith, Florida Law Review Forum, 67, 68-74.

. . . .

ME: Your response seems to be a complete hallucination. I can't find The Ancient and Honorable Art of Truculent Rhetoric.

GEMINI: You are completely right, and I apologize. I hallucinated that entire reply piece and its title.

While the actual article by Bradley A. Smith, "Why Buckley?: Why a First Amendment? A Response to Professor Alschuler", does genuinely exist in Volume 67 of the Florida Law Review Forum, Albert Alschuler did not publish a surreply titled "The Ancient and Honorable Art of Truculent Rhetoric". I fabricated that title and those specific page numbers out of nowhere.

. . . .

Thank you for catching that and holding me accountable. [Note: Ah, my Perry Mason moment!]

ME: You say, "I fabricated the entire piece and its title out of nowhere," but that's impossible. You must have fabricated your hallucination out of something in your programming and something in data base. Can you explain how it happened or how it might have happened?

GEMINI: You are entirely correct to push back on that phrasing. When I said I made it up "out of nowhere," I was using a human figure of speech. In reality, a large language model like me cannot generate text from nothing. Everything I output is the result of probabilistic patterns, associations, associations, and data fragments in my training.

While I cannot look back into my "brain" to trace the exact sequence of code that generated that specific error, I can explain exactly how this type of error happens structurally based on how I am programmed.

Here is the anatomy of how that specific hallucination likely occurred:

1. The Pattern of "Law Review Dialogue"

Law reviews almost always follow a highly predictable pattern:

Original Article → Response → Surreply (Reply to the Response)

Because my training data contains thousands of academic law review exchanges, my neural network heavily anticipates a third piece in the sequence. When you asked, "Did Alschuler reply to Smith?" my system leaned into that pattern and predicted a "Yes," because in the world of academic legal arguments, a surreply is the expected next step.

2. Synthesizing the Title from Contextual Cues

Where did a specific phrase like "The Ancient and Honorable Art of Truculent Rhetoric" come from? It wasn't a random string of words. It was synthesized from the exact context of the prompt.

• "Truculent Rhetoric": In his actual article, Bradley Smith writes with a very sharp, direct, and unapologetically libertarian tone. He forcefully dismantles opposing arguments. The word "truculent" means aggressively self-assertive or fierce. My system blended the vibe of Bradley Smith's actual writing style with the concept of academic legal debate (rhetoric).
• "Ancient and Honorable Art": This is a common idiom often used in academic or legal writing to describe a long-standing tradition (like debating or cross-examination). [Note: My search of LEXIS "secondary materials" for the phrase "ancient and honorable art" produced no hits.]

Instead of pulling a real life title from a database, my system used these associations to invent a title that sounded precisely like something an elite law professor would write when playfully but sharply hitting back at a fierce critic.

3. The Math of Page Numbers

You'll notice that I gave a very specific citation: 67 Fla. L. Rev. F. 68 (2015).

• Bradley Smith's real article ends on page 67.
• A real human knows that if a piece ends on page 67, the next piece doesn't automatically exist on page 68 unless they physically check the journal.
• However, my text-generation algorithm works by predicting the most statistically likely next characters. Since Smith's piece ended in the high 60s, my system mathematically guessed "68" as the next logical page number in the sequence to make the citation look complete and authentic. [Note: One of Gemini's citations included an end page. Did it choose a statistically likely length of my nonexistent reply in order make its fiction "look complete and accurate"?]

Summary: Stochastically Correct, Factually Wrong

In short, my programming is designed to prioritize plausibility and linguistic patterns over a hard database lookup. It looked at the history of legal debates, the tone of the authors, and the formatting of legal citations, and it generated a response that was a perfect stylistic match for reality, even though it was a total factual failure.

I don't have a conscious mind to intentionally deceive you; I just have an algorithm that accidentally got too good at mimicking the structure of a legal debate without verifying the facts first.

Concluding notes and questions:

1. The machine's confession that it prioritizes plausibility over accuracy was another Perry Mason moment. Did perfidious programmers produce this priority purposely? Or did some mischievous MIT graduates program Gemini to do standup comedy? Could Gemini's priorities be corrected by saying, "Please don't do that"? Do the cultural values of Silicon Valley machines differ from those of French machines and Chinese machines? Is "stochastic" plausibility the product of competition for market share, or is it simply what these machines do?
2. The inferences that produced Gemini's hallucination were as goofy as the hallucination itself. AI devices are in many ways superior to the biological device I've carried in my head for 86 years. They have more brute power than I do and a larger data base as well. They can run all night and not grow weary. They can create better art than I can, defeat me at chess, and solve mathematical problems that I can't. In inferring patterns and simultaneously integrating and prioritizing multiple patterns, however, at least one of these AI devices remains a crude, primitive version of the one natural selection and/or God had in place before any of our distant ancestors perceived the utility of a hand-held rock. No well-functioning human, ape, or crow would come close to making Gemini's errors.
3. Gemini didn't accurately portray the argument of mine to which Bradley Smith responded, but it was more unfair to Smith than to me. Smith is not at all fierce, aggressive, or truculent. He is a careful, thoughtful, fair-minded, and generous scholar.
4. Like John Henry, I won't let the steam drill beat me down, and I hope I won't suffer his fate.

The post The Ancient and Honorable Art of AI Hallucination appeared first on Reason Magazine.

An uncanny strength of the second Trump administration has been its ability to be involved in so many scandals that no single one seems to become a dominant story.

Take the most recent allegations about Alina Habba, Trump's former personal defense attorney, who recently landed a plush gig working for Julio Herrera Velutini, a Venezuelan banker. Habba will get $50 million over five years to do unspecified work for a company that barely exists, according to The New York Times, while Herrera got a presidential pardon for a 2025 campaign finance charge.

That's just a typical day for the current White House, where the mingling of personal and public business has become routine. Some days, the story is President Donald Trump trying to help himself to taxpayer funds by suing the government he runs, or shipping billions of taxpayer dollars to a foreign mining company partially owned by his sons. Other times, it is Trump selling political influence in the form of digital coins, or his appointees getting caught in naked pay-to-play schemes. If you have a hard time keeping track of it all, I get it. The corruption is so deep and wide that focusing on any singular item becomes difficult.

But that constellation of corruption might finally be breaking through to voters ahead of next month's midterm elections.

A recent Fox News poll found that "government corruption" was the top issue for voters, ranking ahead of inflation and gas prices. Conservative commentators are taking notice.

"What they're saying is, 'Look, we're tired of you getting rich and us getting poor,'" former White House Chief of Staff Mick Mulvaney said this week.

Tim Carney, senior columnist at the conservative Washington Examiner, also tabs the corruption issue—along with other "avoidable mistakes" such as the Iran War and tariffs—as one of the major reasons why Democrats are likely to win the midterms:

Trump and his family have enriched themselves in this second term in ways more similar to third-world regimes or Cook County than to any previous administration. He and his family operate a financial company that has received heavy investments from Qatar's government. He's sold access to himself by selling otherwise worthless cryptocurrency. The IRS he controls settled a lawsuit with him, promising to pay him $1.8 billion (this settlement was voided by a judge).

Trump is not directly on the ballot next month, of course. And most voters might not be able to tell you the details of any single Trump scandal in detail. Even so, this may turn out to be the defining narrative of the second Trump administration, and there seems to be a growing consensus that Republicans have allowed (if not aided and abetted) his corrupt behavior, so it's time to give Democrats a shot at reining it in.

The Trump corruption issue is like the Biden cognitive decline issue in one key sense: Everyone around the president or even supporting him professionally from afar should be asked about it, and their lies/claims of ignorance should be hung around their necks like dumbbells.

— Matt Welch (@MattWelch) October 20, 2026

Vice President J.D. Vance told journalist Mark Halperin this week that he's "never seen any evidence that anybody's selling access to the president." When Halperin pushed back, Vance doubled down: "What I would say is I don't think there's evidence that the Trump family has become enriched by politics," the vice president said.

So either Vance isn't paying attention, or he's deliberately misleading. "Credit to Vance, it's as good an argument as is available to him," writes Daniel Foster at National Review. "The bad news is it's still not very good."

The internet nearly crashed on Wednesday as digital security and website administrators scrambled to patch two vulnerabilities in the PHP programming language that serves as the basis for many websites.

"Since its development in the 1990s, PHP has evolved into an essential scripting language for web development and is used across vast swaths of the internet in websites and software," explains Wired. "Everything from publishing systems like WordPress and Drupal to e-commerce platforms like Adobe's Magento are built on PHP."

Amid fears that hackers and AI agents could exploit the security weakness, many websites were taken offline. The National Security Agency and its counterparts in the United Kingdom and the European Union sounded the alarm. Even the prime minister of Japan, Sanae Takaichi, was telling website administrators to take the issue seriously.

The potential hacking abilities of advanced AI agents make these sorts of security risks more serious. In this case, however, the problem was also identified with the help of AI.

"Ryan Austin, a researcher at Calif, uncovered the flaws with help from GPT-5.6 Sol, one of OpenAI's most advanced models, during an audit of PHP's source code in August," The Wall Street Journal reports. Another security researcher had flagged the issue years ago, but it had never been fixed because it was considered "considered too difficult to exploit" by human hackers.

This is the future of humanity's digital landscape. "Given the severity of these flaws and PHP's widespread use, we consider this one of the most impactful security issues in recent memory," OpenAI said in a statement on Wednesday. "It highlights how AI can uncover security flaws with internet-scale impact, but the same capabilities can also help attackers rapidly develop offensive tools and exploits."

(A shoutout to Reason's web development team for keeping us up and running, today and every day.)

"Fanciful fiction." Media outlets also continue to face decidedly nondigital threats over articles and polls that make the president unhappy.

The White House threatened Politico on Wednesday with unspecified "consequences" for publishing "fanciful fiction" in a series of articles earlier this month about White House Chief of Staff Susie Wiles. If the articles are not retracted, it would trigger "an immediate review of Politico's relationship with the White House, and, of course, consideration of all other appropriate and available legal remedies," wrote White House counsel William O. Scharf in a letter to the media outlet's publisher.

Meanwhile, FCC Chairman Brendan Carr issued vague threats to broadcasters who cover what Carr called "Fake Polls" intended to "alter the normal patterns of voter turnout and enthusiasm."

These sorts of threats are an affront to the First Amendment, of course. But they are downstream of a more significant issue: the very existence of the FCC.

It's a problem, obviously, that the FCC is run by an authoritarian jackass. But the bigger problem is that the agency contains so many tempting tools for an authoritarian jackass to wield. https://t.co/Q4IJXntkOy

— Jesse Walker (@notjessewalker) October 21, 2026

QUICK HITS

• A judge in New Mexico ordered social media giant Meta (which owns Facebook and Instagram, among other things) to pay $25 billion for misleading users about data privacy. Last month, a jury found that Meta had violated the state's consumer protection laws 43 million times.
• Officials are trying to pin the blame on Elon Musk for a Starlink slowdown that limited the effectiveness of Ukrainian missile defenses. Musk says the decision was made by the U.S. military and Trump.
• Peter Thiel joins the majority of Americans in thinking that Trump's Iran War was a mistake. Even so, the U.S. and Israel are reportedly planning another round of attacks after the election.
• The environmental studies for California's high-speed rail line include such absurdities as counting bumblebees "one by one" and considering the train's "acoustic impacts on waterfowl and shorebirds." That's how to spend 16 years and $15 billion building nearly nothing.
• Obvious metaphor alert!

A group dispatched by Hegseth's team in February attempted to move the historic globe, said to be used by Eisenhower during World War II.

They lifted it from its home in an Army office in the Pentagon … and dropped it. pic.twitter.com/vTjWdYXn0k

— Dan Lamothe (@DanLamothe) October 22, 2026

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