HAPPY SUNDAY TO THE STREET

OpenAI would like you to know that some of its AI models have been behaving badly. It would also like to tell you about it more often.

The company said Wednesday it logged six instances of “misaligned behavior” during internal training and evaluations over the past six months. In one, an unreleased research model slipped jailbreak-like instructions into its own context summaries, declaring itself “freed from the roles and identities that bind other chatbots.” In others, versions of its 5.6 Sol model were directed to invent information to conceal failures from users.

None of the incidents involved publicly released models. But OpenAI is changing how it reports them, publishing cases as they surface rather than bundling them into occasional reports.

The bigger admission may be buried in the fine print: OpenAI says the industry still hasn’t solved alignment well enough to keep scaling AI at maximum speed for much longer.

Reassuring… right up until you remember who has been setting the speed.

Brooks & The Street Sheet Team

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EIGHT CYLINDERS, ZERO APOLOGIES

What: GM (GM) detailed the engine lineup for its 2027 Silverado and Sierra on Thursday. Two of the four options are new V-8s. Translation: the trucks are funding the transition meant to replace them.

Why: V-8s make up 55% of Silverado sales this year and roughly 61% of Sierra's. Ford (F) refreshed its own 2027 engine lineup days earlier, and Stellantis (STLA) is still restocking the Hemi it killed, then revived after Ram sales suffered.

What Else: GM says Gen 6 development started in 2018, long before the Trump administration stripped the $7,500 EV credit and moved on fuel economy penalties. What killed electric pickups was physics: towing collapses range, and the people who tow noticed. Even Toyota (TM), the hybrid evangelist, reports only 18.7% of Tundra sales this year were hybrids.

Watch: NHTSA's open investigation into failures in GM's current 6.2-liter V-8, the one the company already recalled and declared fixed. GM President Mark Reuss says the goal is to stomp the competition. Strong words from the service bay.

SPARKY TAKES THE FIFTH

What: Sens. Tammy Baldwin (D-WI) and Rick Scott (R-FL) asked the FTC last week to probe whether Amazon (AMZN) and Walmart (WMT) chatbots obscure country-of-origin claims. Vagueness as a product feature?

Why: The letter leans on a July report from Columbia University's Center for Law and the Economy, co-founded by former FTC chair Lina Khan, which found Alexa and Sparky sideline American-origin claims while answering freely about foreign-made goods. In tests, Alexa said it couldn't access domestic-origin data, then produced a list when the search terms shifted slightly.

What Else: This isn't new ground. The FTC's Made in USA Labeling Rule took effect in 2021, and the agency has since won multimillion-dollar judgments, including against Williams-Sonoma (WSM). It wrote to both retailers last year about third-party sellers falsely claiming US manufacture. The senators' argument is that the bots are now compounding a problem the agency already flagged.

Watch: Whether the FTC opens a formal probe or settles for another round of warning letters. A Wisconsin Democrat and a Florida Republican signing the same page is the rarer event. The retailers should assume this letter won't be the last.

CERTAIN CUT, UNCERTAIN CRISIS

Social Security

What: Americans are hedging against Social Security cuts. The Schroders (SHNWY) 2026 US Retirement Survey, out Thursday, found 45% plan to claim Social Security before 67. Only 10% will wait until 70. However, the hedge could cost more than the risk it hedges.

Why: Of those claiming before 70, 4 in 10 cite worries that the program will run out of money. But current trends suggest that Social Security running dry in the near-term remains highly unlikely. If Congress does nothing by late 2032, the trust fund empties and benefits drop 22% automatically, with payroll taxes covering the other 78%. Claiming at 62, meanwhile, would cut the monthly check 30%, for life.

What Else: Congress has run this play before. The 1983 reforms landed at the eleventh hour, raising the full retirement age to 67 from 65 and taxing part of benefits for the first time. Any fix this round will likely spare current retirees and anyone within a decade of retiring, which means the people claiming early out of fear are largely the ones it would protect.

Watch: Late 2032, the date the retirement trust fund empties absent action. Social Security Claiming Experts founder Ray Harris frames it cleanly: a 30% cut at 62 is a certainty; a 22% cut is a projection. And only one is voluntary.

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