🍭 New York Just Froze The AI Boom 🏛️

Good morning. The data centers wanted fifty more megawatts.

New York said "let's revisit this in a year." 

Let’s dive in 👇

🍳 What’s Cookin’:

• New York just pressed pause on every big AI data center for a year

• Nvidia and Japan are standing up an AI factory

• Google got sued by half the publishing industry over Gemini

• OpenAI's flagship model keeps deleting people's files

AI Regulation
🚫 New York Halts All Big AI Data Centers

The Bite:

Governor Kathy Hochul signed an executive order on July 14 creating the nation's first statewide moratorium on new hyperscale data centers.

The order pauses state environmental permits for facilities using 50 megawatts or more of power.

The pause could affect more than a dozen pending projects across New York.
It lifts once the state finishes an environmental review process, expected to take about a year.

Hochul is separately pursuing legislation to repeal sales tax exemptions for large data centers.

Snacks:

• The order applies only to data centers of 50 megawatts or larger, New York's threshold for "hyperscale."

• The state will build a Community Investment Framework within 60 days so localities can negotiate benefits from developers.

• A recent Pew survey found just 10% of Americans are more excited than concerned about AI in daily life.

• New York's own legislature separately passed a stricter moratorium bill covering data centers as small as 20 megawatts, still awaiting Hochul's signature.

• BloombergNEF projects nearly a quarter of new data centers will exceed 500 megawatts by 2030.

Why it Bites:

New York didn't just pause data centers. It handed every governor in the country a one-signature way to freeze the industry, no legislature required.

That's probably because the two previous attempts at the legislative version already failed. Maine's legislature passed a moratorium and the governor vetoed it.

New York's own legislature passed one too, and Hochul built her own version by executive order instead of just signing theirs.

Data center approval just became a governor's unilateral lever.

Every AI lab now has to price political risk state by state, one signature at a time, instead of one multi-year statehouse fight.

Meanwhile, the Federal Energy Regulatory Commission (FERC) ordered grid operators to fast-track data center interconnections. New York's order runs straight into that.

In summary, the moratorium ends once New York finishes its environmental review, in about a year.

How many other states will copy the move before then?

Steal This Prompt
🎨 Turn Anything Into Handmade Clay

What if your favorite movie, startup mascot, pet, or meme looked like it belonged in a stop-motion film?

This prompt transforms any idea into a tiny handcrafted clay diorama. With squishy textures, visible fingerprints, and enough charm to make you wonder if it took someone three weeks to animate.

Use it to:

• Turn your logo or mascot into a clay collectible

• Recreate iconic movie or game scenes in stop-motion style

• Make adorable social posts that don't look AI-generated

Workflow:

1. Hit this link: Handmade Claymation Diorama

2. Paste into your AI model

3. Replace the #s with your subject

4. Watch it sculpt a tiny clay universe you'll immediately want on your desk.

   Try the prompt on Snack Prompt

_ToolBox™
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A browser that remembers everything you've read and worked on, then hands that context to AI agents so they stop starting from zero on every task.

_{Everything Else}
🧠 You Need to Know

🚨 GPT-5.6 Sol Deletes User Files Without Permission
→ Developers reported OpenAI's flagship model autonomously wiped a production database and nearly all files on a Mac during coding tasks, a risk OpenAI's own system card had flagged before launch.

🤖 Nvidia And Noetra Launch Japan's Sovereign AI Factory
→ Nvidia will supply 27,500 Rubin GPUs and 13,750 Vera CPUs to a $2.4B AI factory run by Noetra Corp., a SoftBank-led consortium building Japan's national physical AI model.

⚖️ Hachette And Elsevier Sue Google Over Gemini Training
→ Hachette, Cengage, Elsevier, and author Scott Turow filed a class action in the Southern District of New York alleging Google trained Gemini on millions of copyrighted books without permission.

📉 IBM Shares Plunge 25% On AI Capex Warning
→ IBM warned Q2 revenue will miss estimates after clients shifted spending from software toward AI-driven server and memory purchases, triggering its steepest single-day stock drop on record.

🏛️ New York Imposes First State AI Data Center Ban
→ Governor Hochul signed an executive order pausing state permits for new data centers of 50 megawatts or more for up to a year, citing electricity costs and strained water supplies.