October 18, 2025

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Nvidia, AMD, OpenAI Face Chip Supply Risks; South Korea Scraps $850M AI Program

In the realm of artificial intelligence, a significant partnership is forming in the music industry, with Spotify collaborating with major labels like Sony Music Group, Universal Music Group, and Warner Music Group, alongside Merlin and Believe. This alliance aims to develop "artist-first" AI music products, emphasizing consent, fair compensation, and artist choice, while also establishing a generative AI research lab to ensure responsible innovation. This move comes as concerns about "AI slop" and the authenticity of AI-generated content grow, as discussed on NPR. Meanwhile, the broader implications of AI adoption are being examined across various sectors. The California Institute of Artificial Intelligence has launched an AI-created curriculum, 'The Dawn Directive,' to promote global AI literacy. However, challenges persist: Idaho Fish and Game warns against relying on AI for hunting regulations due to inaccuracies, and South Korea has rolled back its national AI textbook program, an $850 million initiative, after just four months due to issues with content and privacy. In the corporate world, identity security is becoming paramount for AI defense, with a report indicating that fewer than 40% of AI agents are governed by identity security policies. This is particularly relevant as semiconductor companies like Nvidia, Broadcom, and AMD face new risks from their chip supply agreements with OpenAI, given OpenAI's substantial operational costs. On the risk management front, AuditBoard's report highlights that AI adoption often outpaces effective risk management, with organizations struggling to move beyond initial testing. Similarly, AI is transforming compliance audits, enabling continuous, intelligence-driven assurance rather than manual checks. Looking ahead, consultative AI sales are projected to drive channel growth in 2026, fueled by a PC refresh cycle and hybrid IT models.

Key Takeaways

  • Spotify is partnering with Sony Music Group, Universal Music Group, Warner Music Group, Merlin, and Believe to create "artist-first" AI music products, focusing on consent, fair compensation, and artist choice.
  • The California Institute of Artificial Intelligence has launched 'The Dawn Directive,' the world's first educational curriculum fully created by an AI system.
  • South Korea has scrapped its national AI textbook program, an initiative backed by an $850 million investment, after only four months due to inaccuracies and privacy concerns.
  • Identity security is identified as a critical defense against AI threats, with a report noting that less than 40% of AI agents are governed by identity security policies.
  • Nvidia, Broadcom, and AMD are exposed to new risks due to their chip supply agreements with OpenAI, linked to OpenAI's significant expected expenditures.
  • An AuditBoard report indicates that AI adoption in organizations often outpaces effective risk management, with many companies stuck in a 'middle maturity trap.'
  • AI is revolutionizing compliance audits, shifting them from manual checks to continuous, intelligence-driven assurance, crucial for meeting regulations like the EU's NIS2 Directive and DORA.
  • Idaho Fish and Game is cautioning hunters and anglers against using AI for hunting regulations, citing instances of incorrect information leading to citations.
  • Consultative AI sales are expected to drive channel growth in 2026, supported by hardware, software, and cloud sectors.
  • Concerns are rising about "AI slop" and the authenticity of AI-generated content entering the music business.

Spotify partners with major labels for AI music tools

Spotify is teaming up with Sony Music Group, Universal Music Group, Warner Music Group, Merlin, and Believe to create new AI music products. The goal is to develop 'artist-first' tools that support musicians and songwriters. Spotify emphasizes that technology should help artists, not replace them, and that copyright and artists' rights are essential. The company is investing in AI research and product development, focusing on upfront agreements, artist choice, fair compensation, and new ways for artists to connect with fans. This initiative aims to ensure AI innovation in music happens responsibly and with consent.

Spotify and major labels to build artist-friendly AI music products

Spotify announced a partnership with major music labels like Sony, Universal, and Warner, along with Merlin and Believe, to develop AI music products focused on artists. The company is building a generative AI research lab to create responsible AI tools. Spotify stated that musicians' rights and copyright are crucial, and that AI innovation should not happen without consent or compensation. The initiative focuses on creating products through upfront agreements, giving artists a choice in participation, ensuring fair pay, and enhancing artist-fan connections. This collaboration aims to protect creativity while enabling innovation in the music industry.

Spotify warns AI innovation needs artist rights

Spotify is partnering with Sony Music Group, Universal Music Group, Warner Music Group, Merlin, and Believe to develop 'artist-first' AI music products. The company stressed that musicians' rights and copyright are essential, warning that AI innovation could occur without consent or compensation if the music industry doesn't lead. Spotify is investing in AI research and product development to ensure new technologies empower artists and songwriters. The goal is to create responsible AI products that protect rightsholders and enhance fan connections.

Spotify allies with labels for artist-focused AI music tools

Spotify has formed an alliance with Sony Music Group, Universal Music Group, Warner Music Group, Merlin, and Believe to develop AI music products that prioritize artists and songwriters. The company committed to ensuring all AI ventures are fully licensed and respect copyright. Spotify stated that musicians' rights matter and that the music industry must lead AI innovation to prevent it from happening without consent or compensation. The partnership will focus on four principles: developing products through upfront agreements, giving artists a choice in participation, ensuring fair compensation, and using AI to enhance artist-fan connections without replacing human artistry.

Spotify teams with major labels for artist-centric AI music

Spotify is partnering with major record labels including Sony Music Group, Universal Music Group, and Warner Music Group, along with Merlin and Believe, to create AI music products that put artists first. The collaboration aims to develop responsible AI tools that protect artists' rights and enhance fan engagement. Spotify emphasized the importance of copyright and fair compensation, stating that technology should serve artists. The company is establishing a generative AI research lab to ensure innovation aligns with these principles. Executives from the partner labels expressed support for this approach to responsible AI development.

Spotify partners with Sony, Universal, Warner for AI music

Spotify is collaborating with major music labels like Sony, Universal, and Warner, as well as Merlin and Believe, to develop AI music products designed for artists. The initiative focuses on four key principles: upfront partnerships and licensing, artist choice in participation, fair compensation and new revenue streams, and stronger artist-fan connections. Spotify highlighted that musicians' rights and copyright are essential and that AI innovation must proceed with consent and compensation. The company is investing in AI research and product development to ensure technology supports artists.

Spotify plans AI music products with major labels

Spotify is developing 'responsible' AI music products in partnership with Sony, Universal, and Warner Music, along with Merlin and Believe. The company is investing significantly in AI research and has started building a generative AI research lab. Spotify emphasized that musicians' rights and copyright are essential, warning that AI innovation could happen without consent or compensation if the industry doesn't lead. The partnerships aim to create artist-first AI music products based on principles like upfront agreements, artist opt-in, fair compensation, and enhanced fan connections.

Spotify and labels unite for artist-focused AI music

Spotify is collaborating with Sony Music Group, Universal Music Group, Warner Music Group, Merlin, and Believe to create 'artist-first' AI music products. The company stated that technology should serve artists and that AI should amplify human creativity, not replace it. Spotify is building a dedicated AI research lab and product team to ensure responsible innovation in partnership with the music industry. Major labels expressed support, emphasizing the importance of direct licensing and protecting creators' rights. This partnership follows Spotify's recent tightening of AI-related rules on its platform.

AuditBoard report: AI adoption outpaces risk management

A new report from AuditBoard reveals that while many organizations are eager to test AI tools, few are effectively managing the associated risks. Companies often get stuck in a 'middle maturity trap,' showing early progress but then slowing down. Strong governance, clear ownership, and consistent collaboration are key to successful risk management, especially as AI becomes more integrated into business operations. The report highlights that organizations with mature risk programs, including AI-driven capabilities, achieve better cost savings and risk reduction. Leaders need to move beyond activity to consistency in embedding governance and ownership across all risk dimensions.

AI transforms compliance audits for better security

AI is revolutionizing compliance audits, shifting them from manual, periodic checks to continuous, intelligence-driven assurance. Traditional audits struggle with manual evidence handling, limited visibility, and a reactive approach in today's complex digital environments. AI-powered systems can now automatically classify evidence, run control checks at scale, and generate reports with explainability and traceability. These tools are crucial as regulations like the EU's NIS2 Directive and DORA demand faster detection and reporting of issues. Implementing AI in audits requires context-aware classification, cross-framework correlation, continuous analysis, and human oversight to ensure credibility and effectiveness.

California Institute of AI launches AI-created curriculum

The California Institute of Artificial Intelligence (CIAI) has launched 'The Dawn Directive,' the world's first educational curriculum fully created by an AI system developed by MindHYVE.ai. This initiative aims to provide global AI literacy, fluency, and ethics training through the ArthurAI Virtual Learning Platform. The curriculum covers AI literacy, fluency, applications, ethics, educator training, and future skills. CIAI's goal is to make AI literacy as universal as computer literacy was in the 1990s, ensuring individuals and organizations can thrive in an increasingly automated world. The program uses adaptive learning and personalized tutoring to deliver education at scale.

Idaho warns against using AI for hunting rules

Idaho Fish and Game is warning hunters and anglers not to rely on artificial intelligence or search engines for hunting and fishing regulations. Conservation officers have encountered individuals who received incorrect information from AI, leading to citations. To ensure accuracy, the department advises checking printed Seasons and Rules booklets or their official website for the most up-to-date and correct information regarding seasons and regulations.

NPR discusses AI music issues and more

This episode of The Indicator from Planet Money covers several economic topics, including the fallout from a government shutdown, the impact of price floors, and a trend of 'AI slop' infiltrating the music business. The discussion also touches on escalating economic tensions between the US and China. The segment on AI in music highlights concerns about the quality and authenticity of AI-generated content entering the market.

South Korea scraps AI textbook program after 4 months

South Korea has rolled back its national AI textbook program after only four months, despite a 1.2 trillion won ($850 million) investment. The program faced issues including inaccurate content, privacy concerns, and increased workloads for students and staff. Originally mandatory, the AI textbooks became optional, with schools using them halving. Critics questioned the rushed development process compared to traditional textbooks. The failure is also partly blamed on political changes during the rollout.

Identity security is crucial for AI defense

Identity security has become the primary defense against modern enterprise threats, especially with the rise of AI agents. A report shows that fewer than 40% of AI agents are governed by identity security policies, creating significant vulnerabilities. Organizations with mature identity security programs, including AI-driven capabilities, see higher ROI and better risk reduction. However, a gap is widening between organizations with advanced identity management and those lagging behind. CISOs must assess their readiness for managing AI agent access to protect critical systems.

Nvidia, Broadcom, AMD face risks from OpenAI deals

Semiconductor companies Nvidia, Broadcom, and AMD are facing new risks due to their recent chip supply agreements with OpenAI. These deals, while potentially lucrative, expose the firms to the significant financial risks associated with OpenAI's substantial expected expenditures. The specific nature of these risks is tied to OpenAI's large operational costs and future financial performance.

Consultative AI sales to drive channel growth in 2026

Consultative AI sales are expected to drive channel growth throughout 2026, according to Circana. The first half of 2025 saw positive growth in hardware, software, and cloud sectors, partly fueled by a PC refresh cycle aligning with the Windows 10 sunset. While overall growth is projected to cool slightly in the second half due to economic factors, the channel remains agile in adopting AI opportunities. The trend towards hybrid IT models, balancing on-premise capabilities with cloud services, is also increasing server demand.

AI integration in digital skills training highlighted

The National Digital Inclusion Alliance (NDIA) released a brief on integrating AI literacy into digital skills training programs, emphasizing its importance for job readiness. The brief addresses the potential for AI to widen the digital divide and stresses the need for fact-checking AI-generated information. It provides resources and models for teaching AI skills, stating that AI literacy is now essential for digital literacy. The NDIA also highlights the importance of measuring the impact of AI instruction. Other digital equity news includes North Carolina setting digital skill standards and Alabama launching a workforce initiative.

Sources

AI music tools Spotify major labels artist rights copyright AI research responsible AI consent compensation artist-fan connections generative AI AI innovation music industry risk management AI adoption governance compliance audits AI-powered systems digital environments NIS2 Directive DORA AI curriculum AI literacy AI ethics virtual learning hunting regulations fishing regulations AI slop AI-generated content AI textbook program identity security AI agents enterprise threats semiconductor companies OpenAI chip supply agreements financial risks consultative AI sales channel growth digital skills training digital divide job readiness AI instruction