Mark Cuban said the Trump administration needs to crack down on ads in AI models
Cuban said in an X post addressed to David Sacks, the White House's AI and crypto czar, that the administration should "examine referral fees as well."
"The last thing we need is to have algorithms designed to maximize revenue driving LLM output and interactions," Cuban wrote.
"They are already recommending brands and we don't know if they are getting paid for it. We need to have learned our lessons from algos in social media," he added.
Cuban said in a subsequent post on Saturday that he would be willing to accept advertising on AI models if they are "identified as an ad" and kept "completely independent from the user generated chats."
Cuban's proposal comes just days after the Trump administration unveiled its 28-page " AI Action Plan" on Wednesday. Back in January, President Donald Trump had signed an executive order calling for "existing AI policies and directives that act as barriers to American AI innovation" to be revoked.
Trump has adopted a relatively light-touch approach toward AI regulation compared to his predecessor, President Joe Biden. In October 2023, Biden signed an executive order demanding greater transparency from companies developing AI tools.
Trump's new "AI Action Plan" proposed withholding federal funding from states that want to impose "burdensome" AI regulations.
Cuban and the White House did not respond to requests for comment from Business Insider.
Social-media déjà vu
Cuban's worries may not be unfounded. Major AI players such as have been deepening their leadership bench with former executives from social media platforms like Facebook and Instagram.
In May, OpenAI chief Sam Altman said he had hired Fidji Simo, the CEO and chair of Instacart, to serve as OpenAI's new CEO of applications. Before she joined Instacart, Simo worked at Meta, where she oversaw Facebook's app and advertising products.
Last year, OpenAI hired Kevin Weil as its chief product officer. Weil was previously vice president of product at Instagram and senior vice president of product at Twitter.
OpenAI's rival, Anthropic, made a similar move in May 2024 when it hired Mike Krieger, cofounder and former CTO of Instagram, as its chief product officer.
Cuban has long warned about the risks and dangers that could come with AI tools like chatbots. He told comedian Jon Stewart in a podcast interview that aired in 2023 that online misinformation "is only going to get worse" with the proliferation of AI tools.
"Once these things start taking on a life of their own, it will be difficult for us to define why and how the machine makes the decisions it makes, and who controls the machine," Cuban said.
Last week, Cuban wrote in an X post that he expects AI companies to hoard talent and intellectual property to stay ahead of their competitors.
"If you create valuable IP, encrypt and silo it. Let companies bid on it. Or just use it for your own behind a paywall model. IP is KING in an AI world," Cuban wrote on July 20.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
US stock futures higher after Trump strikes trade deal with EU
U.S. stock futures are higher after President Donald Trump struck a trade deal with the European Union ahead of an Aug 1 deadline. The deal includes a 15% tariff on most European goods entering the U.S., similar to agreements struck recently between Trump and other major trading partners, including Japan. The levy is higher than the 10% rate sought by Europeans but less than the 30% Trump threatened earlier in July. Pharmaceuticals, steel and aluminum aren't included in the tariff deal. Additionally, the EU will invest $600 billion in the U.S. and buy $750 billion worth of U.S. energy, Trump said. "More adverse scenarios seem to have been avoided, for now, and this is excellent news but whether everything will now be 'big and huge' still remains to be seen," said Carsten Brzeski, global head of macro for Dutch bank ING. At 6 a.m. ET, futures tied to the blue-chip Dow rose 0.17%, while broad S&P 500 futures added 0.26% and Nasdaq futures rose 0.45%. Separately, the U.S. and China are expected to extend their tariff truce by another three months, the South China Morning Post reported. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng plan to have talks in Stockholm. Busy week ahead With a trade deal with the U.S.' largest trading partner easing tariff fears, investors will turn to earnings and the Federal Reserve's policy meeting for more direction. More so-called Magnificient Seven influential megacap technolgy companies are due to report quarterly results. They include Facebook parent Meta, Microsoft. Amazon and Apple. With about 30% of S&P 500 companies having reported results, overall quarterly earnings are on track for a 7.7% increase from a year ago, according to LSEG IBES. That's higher than the July 1 forecast for a 5.8% increase. Meanwhile, virtually no one expects the Fed to lower rates this week but investors will look for clues on when it might. The Fed has said with the economy showing resiliency, it would wait to see how Trump's tariffs play out before moving rates. At the end of the week, after the Fed's meeting, investors will see more inflation data and the key monthly jobs report to see if the labor market continues to hold up despite the Trump's back-and-forth tariff barbs over the past few months. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures higher after Trump EU trade deal Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
22 minutes ago
- Yahoo
Europe reacts with mix of relief and concern to US trade deal
By Philip Blenkinsop and Sudip Kar-Gupta BRUSSELS (Reuters) -European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. MORE CLARITY, BUT 'NOT THE END OF THE STORY' French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis shares were up 3.5% and car parts maker Valeo jumped 4.7% while German pharma group Merck KGaA rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank. Sign in to access your portfolio
Yahoo
22 minutes ago
- Yahoo
OpenAI Just Made a Major Announcement That Could Cause This Undervalued Artificial Intelligence (AI) Stock to Soar
Key Points OpenAI running some of its workloads on Google Cloud is a big deal for Alphabet. Alphabet's stock remains undervalued despite a one-day surge following Q2 earnings. 10 stocks we like better than Alphabet › OpenAI is well recognized as one of the leaders in the generative AI world, as it was the first to reach mainstream usability with its ChatGPT product. OpenAI has maintained its position and is a clear example of the first-mover advantage. OpenAI's partnership with Microsoft (NASDAQ: MSFT) is well known, as are the struggles between the two. That's what makes this announcement such a big deal. In addition to Microsoft, OpenAI will also use Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Cloud servers to run ChatGPT prompts on. That's a significant development for Alphabet, and it could cause shares of its undervalued stock to surge as the market digests this news. Google Cloud is growing at a quick pace Alphabet is a multifaceted business. While its legacy Google Search business dominates its financials, the company also operates other platforms, including Google Cloud, Waymo, and the Android operating system. Google Cloud is Alphabet's cloud computing wing and provides clients with computing power that would be very expensive to build themselves. By building out massive data centers and renting out capacity to clients, Alphabet can make a solid profit, as it has proven quarter after quarter. In Q2, Google Cloud's revenue increased 32% year over year, yielding a 21% operating margin. While these are strong numbers, Google Cloud's margins can drastically improve from these levels. In Q2 of 2024, its operating margin was 11%, so its Q2 2025 numbers represent a significant improvement over the year-ago period. However, industry leader Amazon Web Services (AWS) delivered a 39% operating margin during Q1. Google Cloud still has a way to go before catching up to AWS, but that's also good news for investors, as it shows there is still plenty of growth in store. But that doesn't explain why Alphabet trades at such a discount to the market. The market is still concerned about the Google Search engine's future The S&P 500 index (SNPINDEX: ^GSPC) trades for 23.8 times forward earnings. However, Alphabet's stock trades at a discount to that figure, 20 times forward earnings. However, this discount doesn't make sense because Alphabet is performing well financially. In Q1, its revenue rose 14% year over year with diluted earnings per share (EPS) rising 22%. Most companies with those growth rates would have a forward price-to-earnings (P/E) valuation in the high 20s to low 30s, but not Alphabet. The market is worried about Google Search losing market share to various generative AI services -- the very technology that OpenAI just moved onto Alphabet's servers. However, this isn't showing up in Alphabet's results. In Q2, Google Search's revenue increased 12% year over year. Compared to the 10% growth experienced in Q1, this marks an acceleration of growth, clearly indicating that Google Search isn't going anywhere. Additionally, the strong double-digit growth Alphabet reported is more than enough to outperform the market, which is why shares surged the day following the earnings release. Still, that's not nearly enough of a gain to value Alphabet among its big tech peers. The combined catalyst of ChatGPT running some of its workloads on Google Cloud's servers and the realization that Google Search isn't fading away anytime soon should be enough to convince the market that Alphabet's stock is worth far more than it's valued at today. As a result, I believe Alphabet is one of the top stocks to buy now, as it offers value in a market that has become increasingly expensive. Do the experts think Alphabet is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Alphabet make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,041% vs. just 183% for the S&P — that is beating the market by 858.71%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Keithen Drury has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. OpenAI Just Made a Major Announcement That Could Cause This Undervalued Artificial Intelligence (AI) Stock to Soar was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
