Breaking AI & Tech News Analyzed

New York City's public hospital system has announced that it will not be renewing its contract with Palantir, a data analytics and AI firm, amid growing controversy over its government contracts in the UK. The decision comes as health officials in the UK express concerns over data privacy issues related to Palantir's £330m agreement with the National Health Service (NHS).The contract between NYC Health + Hospitals and Palantir, which focused on recovering money for insurance claims, was set to expire in October. According to documents shared with the Guardian, Palantir has paid nearly $4m to the hospital system since November 2023. The contract allowed Palantir to review patient health notes and help the hospital claim more money in public benefits through programs like Medicaid.Despite assurances from NYC Health + Hospitals that there was an 'absolute firewall' preventing Palantir from sharing information with US Immigration and Customs Enforcement (ICE), activists and data privacy experts have raised concerns over the potential risks of Palantir accessing de-identified patient data for purposes other than research.As New York City prepares to part ways with Palantir, the company is expanding its influence in the UK, despite backlash from activists and lawmakers. Palantir has contracts with the British government's Ministry of Defence and is seeking access to sensitive national financial regulation data through a contract with the Financial Conduct Authority.Medact, a health justice charity, has raised concerns that Palantir's software could enable 'data-driven state abuses of power', including US-style ICE raids. In response, Palantir has denied that its data could be used in this way, citing that it would be illegal and a breach of contract.The decision by NYC Health + Hospitals to drop Palantir has been hailed as a victory by activists, who are now calling on the NHS to follow suit and terminate its £330m contract with the company. The 'Purge Palantir' campaign, which involves nurses, pro-Palestinian activists, and social and climate justice groups, aims to stop Palantir from contracting with government agencies, universities, and corporations.

Progressive lawmakers Bernie Sanders and Alexandria Ocasio-Cortez have unveiled a bill to place a moratorium on the construction of AI datacenters in the US. The proposed pause aims to ensure the AI boom benefits workers, protects the environment, and does not harm communities.The bill's introduction comes amid growing concerns about the rapid buildout of AI infrastructure and its impact on energy consumption, electricity bills, and the climate crisis. Sanders and Ocasio-Cortez argue that a temporary ban would give the US government time to create strong federal safeguards for AI.“AI and robotics are creating the most sweeping technological revolution in the history of humanity,” Sanders said. “The scale, scope, and speed of that change is unprecedented. Congress is way behind where it should be in understanding the nature of this revolution and its impacts.”The proposal has gained traction, with at least 11 states considering similar policies. Advocacy groups, including Food and Water Watch, have also called for a federal datacenter moratorium, citing concerns about the sector's impacts on electricity bills and the climate crisis.The bill's supporters argue that datacenters' massive energy consumption and water usage have sparked controversy, especially in drought-ridden areas. If current trends continue, datacenters may account for nearly half of all US emissions from the power sector.“We cannot sit back and allow a handful of billionaire Big Tech oligarchs to make decisions that will reshape our economy, our democracy and the future of humanity,” Sanders said. “We need serious public debate and democratic oversight over this enormously consequential issue. The time for action is now.”

US lawmakers, including Senator Chris Murphy and Representative Greg Casar, are taking steps to regulate prediction markets by introducing the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act. This legislation seeks to prohibit wagers on sensitive events such as government actions, terrorism, war, assassination, and events where an individual knows or controls the outcome. The proposed bill comes in response to concerns that betting platforms like Kalshi and Polymarket have allowed users to profit from geopolitical conflicts, including the US and Israel's joint strikes against Iran and the abduction of Venezuelan President Nicolas Maduro. Critics argue that these platforms enable individuals with insider knowledge to influence government decisions and profit from them. Murphy emphasized that the legislation aims to prevent the monetization of sensitive events, stating, "What happens to us spiritually when every moral question in this country becomes a market?" He added that certain matters should not be influenced by the potential for profit. The lawmakers cited examples of significant profits made by users on Polymarket, including a $500,000 profit from a bet on Iran's supreme leader being out of power hours before a strike. They suggested that such trades may have been made by individuals with insider knowledge from within the White House or close to the administration. The BETS OFF Act is part of a broader effort to regulate the prediction market industry. Other proposed legislation includes measures to establish federal consumer protections, ban elected officials from profiting from prediction markets, and impose age verification for users.