The New News in AI: 7/31/26 Edition - by Mark McNeilly

• On July 23, 2026, Representatives Ted Lieu and Nathaniel Moran introduced the AI Kill Switch Act to ensure developers can throttle, suspend, or shut down highly capable AI systems. • The legislation would empower the Department of Homeland Security, alongside the DNI and Commerce, to order shutdowns of systems posing catastrophic risks via a graduated response framework.

• AI agents are shifting the landscape of cybersecurity seed funding, with investors prioritizing agent security, trusted compute, and identity controls. • According to a recent report from DataTribe, there is a surge in new ventures, evidenced by Product Hunt launches reaching their highest levels since late 2023.

• 24-year-old Leopold Aschenbrenner launched Situational Awareness, an AI-focused investment fund that rapidly gained prominence in Silicon Valley. • The venture was based on Aschenbrenner's viral essay, which predicted that research labs would achieve superintelligent AI by 2027.

• Asian startups raised a total of $55 million during Week 31, with Ropedia emerging as a primary recipient of funding. • Investment activity was concentrated in three key sectors: AI infrastructure, quick commerce, and electric mobility (EV).

• Asian stock markets surged on Friday, led by significant gains in South Korea's Kospi, which jumped as much as 16.5%. • Japan’s Nikkei 225 climbed more than 5% and Taiwan’s Taiex rose over 7%, driven by renewed investor confidence in AI spending.

• The Philippine military is launching a recruitment drive for specialists in artificial intelligence and cybersecurity to address evolving modern security threats. • This initiative coincides with the June groundbreaking of a new National Cyber Security Center in Valenzuela City.

• Leopold Aschenbrenner's AI-focused fund, Situational Awareness, has faced significant setbacks following a sharp selloff in AI-related stocks. • The market downturn forced the fund to exit many of its positions to manage losses and risk.

• DXC Technology has entered a strategic partnership with ElevenLabs to deploy AI-powered voice agents and multilingual interfaces across various enterprise sectors. • As part of this collaboration, DXC participated in ElevenLabs' recent $500 million Series D funding round, which valued the AI audio company at approximately $11 billion.

• South Korea is facing economic instability and market volatility driven by the rapid rise of the AI boom, testing its resilience compared to previous crises like the 1997 financial crash. • MSCI has once again declined to upgrade South Korea to "developed market" status, despite the Kospi index reaching record highs.

• South Korea's KOSPI surged over 16% on Friday, hitting a record high and rebounding sharply after three days of declines. • The rally was driven by significant gains of over 25% for SK Hynix and Samsung Electronics, bolstered by SK Group Chairman Chey Tae-won increasing his shareholdings in SK Hynix.

• Amazon, Microsoft, and Alphabet have announced aggressive AI spending plans, signaling continued strong demand for chips and related infrastructure. • This surge in investment provides critical relief to the semiconductor sector, which had recently faced a period of market volatility and decline.