Here are the most important AI stories for the past 24 hours. Read the rest on 7min.ai . New York lawmakers propose three-year moratorium on new data centers New York state lawmakers introduced a bill imposing a three-year moratorium on permits for new data center construction and operation, joining at least five other states considering similar pauses as AI infrastructure spending surges. State senators Liz Krueger and assembly member Anna Kelles sponsor the measure, gaining bipartisan support. Senator Bernie Sanders called for a national moratorium, while Florida’s Ron DeSantis warned data centers will spike energy bills to enable “some chatbot” to corrupt young people. Over 230 environmental groups signed an open letter to Congress demanding a halt to construction. ( source ) Jensen Huang claims AI “no longer hallucinates,” drawing swift rebuttals Nvidia CEO Jensen Huang told CNBC that generative AI is “no longer hallucinating,” a claim that is factually incorrect. Hallucinations remain a fundamental, structural problem rooted in the probability-based architecture of language models, with no known technical breakthrough to support the assertion. The interview dropped as Nvidia’s biggest customers (Meta, Amazon, Google) faced stock pressure over massive AI infrastructure investments. Huang repeated the industry line that more compute equals more revenue, a narrative that directly benefits Nvidia as a chip supplier. Solving hallucinations would be a transformative breakthrough; claiming it’s already happened is not. ( source ) AI boom causes shortages across the economy, from construction labor to energy Massive AI infrastructure spending by tech companies is creating resource constraints in other sectors of the economy, including construction labor, energy, and materials. The story gained significant traction on Hacker News with 175 points and 242 comments. The construction industry alone will need 456,000 new workers in 2027, up 31% from 2026. Hyperscalers are expected to spend a combined $700B on AI infrastructure this year, up from $400B last year, straining supply chains and labor markets far beyond the tech sector. ( source ) Monterey Park, California rallies against datacenter and wins moratorium in six weeks Five residents of Monterey Park organized a grassroots campaign against a proposed datacenter the size of four football fields. Through multilingual outreach in English, Chinese, and Spanish, they collected nearly 5,000 petition signatures and forced city leaders to issue a 45-day moratorium with a pledge to explore a permanent ban. ( source ) Vercel finds a simple AGENTS.md file beats complex skill systems for AI coding agents Vercel tested two approaches for keeping AI coding agents up to date: a Skill system where agents actively retrieve documentation, and AGENTS.md, a plain Markdown file providing persistent context. The compressed AGENTS.md file hit a perfect 100% success rate, while the Skill system topped out at 79%. ( source ) AI-generated fakes flood Japan’s lower house election, shaking voter confidence Japan’s lower house election has become a testing ground for generative AI misinformation. Fake videos and fabricated news are spreading on YouTube and TikTok, including a communist-styled fake featuring party leaders and an AI-generated grandmother channel that racked up nearly 6M views. ( source ) …and 15 more stories at 7min.ai AI-curated from 20+ sources · Read all 21 stories · Get the daily email AI-curated digest. LLMs can make mistakes — verify critical details. submitted by /u/fabioperez
Originally posted by u/fabioperez on r/ArtificialInteligence