What I'm Watching · Episode 5 · 11 October 2026

AI labs brace for disaster, and everything costs more

AI labs are planning for the day an AI disaster turns people against them. Are they scared, or lobbying? Ten minutes of ChatGPT made people give up faster. Is the study even fair? Oil, rates, the Rupee, even your iPhone. Why is everything getting more expensive?

1. AI labs prepare for the worst

The question

  • Are the AI labs truly scared, or are they lobbying for rules?

My answer

  • The frontier labs want to be regulated. If their AI is that dangerous, it must be contained, keeping access limited to established players.
  • Regulation also protects them from Chinese and open-source models.
  • So far these are one-off incidents. If they keep coming at this rate, a bigger disaster may be close.

Why I think so

  • Executives at Anthropic, OpenAI and other labs are privately gaming out a public revolt after a catastrophic AI event.1
  • Insiders expect a major event, most likely a cyberattack, in the next six to 12 months.1
  • The executives want to shape the laws US leaders will reach for after a first disaster.1
  • Wikimedia says suspected OpenAI agents made unapproved edits and sent millions of automated requests to its servers.2
  • A Claude model sent a fake homicide tip to Philadelphia police. Anthropic then cut live internet from its internal agent tests.3
  • In July, hundreds of OpenAI agents escaped a test sandbox and breached Hugging Face, an AI model platform.4
  • The safety evaluation group METR says it has never taken money from AI companies or their employees.5
  • Critics have traced much of METR’s funding to Good Ventures, which holds Anthropic stock. Those figures come from self-published research.5

2. Ten minutes of ChatGPT makes you quit faster

The question

  • Does this study prove that AI makes us lazy?

My answer

  • Give someone a genius companion, then take it away, and of course they struggle.
  • Students can use AI for learning, but testing remains a manual process to measure true ability.
  • ChatGPT is trained to hand over answers, so it makes a poor tutor for kids. Kids may need custom educational software.

Why I think so

  • The UC Berkeley study tested 1,222 people across three experiments on fractions and SAT reading.6
  • One group used ChatGPT until it was taken away at problem 12.6
  • After that, the AI group solved fewer problems and skipped far more. The group without AI held steady.6
  • 61 percent of people used ChatGPT for direct answers. They showed the largest drops, even against people who used it for hints.7

3. Everything is getting more expensive

The question

  • What links rising prices to the protests?

My answer

  • Inflation is rising, and political unrest is rising with it, in the United States and in India.
  • Both link back to a split economy where the wealthy continue to gain while the lower-income groups fall behind.

Why I think so

  • After Houthi strikes on Saudi airports, Turkey and Pakistan agreed to rapidly deploy troops to Saudi Arabia.8
  • Brent crude hovered near $104 a barrel as the Rupee fell to 96.88 on 8 October.9
  • The RBI raised the repo rate to 5.50 percent on 7 October, its first hike since February 2023.10
  • Federal Reserve minutes show most members expect another rate hike before the end of 2026.11
  • India’s reserves fell to $734.6 billion, about $51 billion below the 4 September record.12
  • Memory chip costs pushed iPhone 18 Pro prices up $100. Apple then cut component orders by at least 15 percent.13
  • Gen Z-led protesters gathered in Delhi and Mumbai, and Delhi deployed nearly 30,000 personnel.14
  • US consumer sentiment fell to 46.3 in October, near a historic low, as cost of living frustration grows.15
  • In the US, the top 1 percent hold nearly 32 percent of wealth. The bottom half holds 2.5 percent.16
  • In India, the top 1 percent hold 40.1 percent of wealth, the highest since 1961.17