Top Stories This Morning: Amazon Calls for More Rigorous AI Testing; Bank of Japan Raises Interest Rates
Amazon, which has invested in OpenAI and Anthropic, has called for AI models not to be released without thorough testing / Photo: ACHPF / Shutterstock.com
The Bank of Japan raised its key interest rate by 25 basis points to 1.25%—the highest level since 1995—citing the risk of inflation accelerating beyond the 2% target. Amazon weighed in on the debate over the need to slow down the development of advanced systems, stating that AI models should only be released after thorough testing and the implementation of robust security measures. Read about these and other topics in our roundup of key events as of the morning of September 18.
The Bank of Japan raised its interest rate to its highest level since 1995
The Bank of Japan raised its key interest rate by 25 basis points to 1.25%—the highest level since 1995, according to CNBC. The decision was approved by a vote of seven to two and was in line with market expectations. The regulator explained the move by citing the risk of inflation accelerating beyond the 2% target.
This was the fastest rate hike since the start of monetary policy normalization in March 2024: three months have passed since the previous hike. Following the decision, the yen weakened, and the yield on 10-year government bonds fell. Two board members opposed the rate hike, citing weak core inflation and the lack of a noticeable acceleration in economic growth.
Oil prices fell amid new Houthi attacks and shipments from Saudi Arabia
Oil prices fell on Friday: Brent dropped 0.9% to $103.8 per barrel, and WTI fell 0.9% to $101, according to CNBC. Investors are assessing the latest round of attacks between Saudi Arabia and the Yemeni Houthis, as well as reports that Riyadh has found alternative routes to ship oil to Asia via Oman.
These shipments have eased concerns about shortages following the Houthi attacks on oil infrastructure. Analysts view the price decline as a partial reduction in the geopolitical premium: the market remains sensitive to the situation in the Strait of Hormuz, export routes, and the restoration of Saudi Arabia’s East-West oil pipeline.
Amazon has urged companies not to release AI models without thorough testing
Amazon stated that AI models should only be released after thorough testing and the implementation of robust safety measures, according to Bloomberg. The company emphasized that it does not view progress and safety as mutually exclusive, and called on the industry to work with regulators to develop the necessary safety standards.
Amazon is investing in OpenAI and Anthropic, whose leaders have previously called for a slowdown in the development of cutting-edge AI models to assess the risks. The company is also building its own language models, and its cloud division, AWS, provides computing power and infrastructure to AI developers.
Crusoe raised $3.9 billion at a valuation of $30.9 billion
Crusoe, an AI infrastructure provider, raised $3.9 billion in a Series F funding round at a post-money valuation of $30.9 billion, according to Reuters. The round was led by Atreides Management, Mubadala Capital, and Valor Equity Partners; other investors included Nvidia, Founders Fund, and Qatar’s sovereign wealth fund, QIA. Bloomberg first reported the deal in early September, citing sources.
The funds will be used to expand existing projects and build the company’s own AI data centers. Crusoe reports contracts totaling more than $140 billion and over 6 GW of contracted capacity, of which 1 GW has already been commissioned.
The yuan rose to its highest level in more than four years ahead of the meeting between Xi and Trump
The offshore yuan strengthened on Friday to 6.6957 per dollar—its highest level since July 2022, according to Bloomberg. The rise came after the People’s Bank of China raised its reference rate for the eighth consecutive session, marking the longest streak since 2023.
The currency is strengthening ahead of next week’s meeting between Xi Jinping and Donald Trump, where trade will be one of the key topics. Analysts believe that a stronger yuan could ease some of the trade tensions, while the People’s Bank of China, judging by its actions, prefers a gradual rather than a sharp appreciation of the currency, the agency notes.
What's Happening in the Markets
— Japan's broad-based Topix index rose 0.2%, while the Nikkei 225 rose 1.7%.
— Hong Kong's Hang Seng Index rose 0.8%, while mainland China's CSI 300 Index rose 1.4%.
— In South Korea, the Kospi rose 2.6%, and the Kosdaq rose 0.7%.
— Australia's S&P/ASX 200 remained virtually unchanged.
— Futures on the Nasdaq 100, the S&P 500, and the Dow Jones Industrial Average rose 0.2%.
This article was AI-translated and verified by a human editor
