Tools & Platforms
Delta rejects AI pricing under political heat

Major Carrier Commits to Fair Pricing Amid Growing Congressional Scrutiny
Delta Air Lines has taken a definitive stance against artificial intelligence-powered personalized ticket pricing, responding to mounting pressure from federal lawmakers and widespread consumer anxiety about algorithmic discrimination in air travel costs.
The Atlanta-based carrier’s position emerged following sharp criticism from prominent Democratic senators who questioned whether the airline planned to use AI technology to extract maximum revenue from individual passengers based on their personal financial profiles.
Congressional Pushback Intensifies
Democratic Senators Ruben Gallego of Arizona, Mark Warner of Virginia, and Richard Blumenthal of Connecticut spearheaded the legislative challenge, arguing that AI-driven individualized pricing could exploit travelers by calibrating fares to their perceived ability to pay premium rates.
The senators’ concerns centered on algorithmic pricing systems that could analyze personal data — from browsing history to demographic information — to determine how much each customer might be willing to spend on airfare.
Delta’s response was unequivocal. The airline categorically denied any intention to implement pricing algorithms that target individual consumers with customized rates based on personal information. This commitment represents a significant policy declaration in an industry increasingly embracing artificial intelligence across operations.
Technology Integration Without Personalization
While rejecting personalized AI pricing, Delta plans substantial technological advancement through its partnership with Fetcherr, an AI pricing specialist. The collaboration aims to deploy AI-based revenue management systems across 20 percent of the carrier’s domestic route network by late 2025.
The distinction Delta emphasizes lies in data aggregation versus individual targeting. The airline maintains its pricing algorithms will analyze broad market trends, competitive landscapes, and general demand patterns rather than personal consumer profiles.
This approach reflects traditional airline revenue management practices that have utilized dynamic pricing for three decades, adjusting fares based on factors like seasonal demand, fuel costs, and competitive positioning.
Industry-Wide Ethical Concerns
American Airlines Chief Executive Robert Isom echoed Delta’s position, stating that AI-driven personalized pricing could fundamentally undermine passenger trust in airline fairness. His comments suggest growing industry recognition that aggressive algorithmic pricing could trigger regulatory backlash and consumer boycotts.
The airline industry’s cautious approach contrasts sharply with retail sectors where personalized pricing has become increasingly common, particularly in e-commerce platforms that adjust prices based on user behavior and demographics.
Legislative Response Takes Shape
Representatives Greg Casar of Texas and Rashida Tlaib of Michigan have introduced federal legislation specifically targeting AI pricing discrimination. Their proposed bill would prohibit companies from using artificial intelligence to set individualized prices or wages based on sensitive personal data.
The legislation addresses scenarios where algorithms might exploit vulnerable moments, such as raising travel prices for individuals searching for family funeral information or medical emergency travel.
A Federal Trade Commission report released in January documented widespread retail use of personal information for price customization, highlighting consumer vulnerability to algorithmic manipulation across multiple industries.
Market Dynamics and Consumer Protection
Delta‘s commitment comes as airlines face unprecedented scrutiny over pricing transparency and fairness. The carrier emphasized that its pricing philosophy will continue reflecting market-wide factors rather than individual consumer analysis.
The airline industry’s embrace of artificial intelligence spans multiple operational areas, from route optimization to customer service automation. However, pricing applications have generated the most significant regulatory and public relations challenges.
Senator Gallego acknowledged Delta’s commitment while pressing for greater transparency about data collection practices and pricing methodologies. His comments highlighted ongoing congressional interest in monitoring airline compliance with anti-discrimination principles.
The debate reflects broader societal tensions about artificial intelligence applications in consumer-facing industries, particularly where algorithmic decisions could exacerbate economic inequality or exploit personal circumstances.
Delta’s proactive stance may influence competitor policies and establish industry standards for ethical AI implementation, potentially preventing more restrictive federal regulations while maintaining consumer confidence in airline pricing fairness.
Tools & Platforms
Sam Altman or Elon Musk: AI godfather Geoffrey Hinton’s 6-word reply on who he trusts more

When asked to choose who he trusts more between Tesla CEO Elon Musk and OpenAI chief executive Sam Altman, AI “godfather” Geoffrey Hinton offered a different kind of answer. The choice seemed so difficult that Hinton didn’t use an analogy from science. Instead, he recalled a quote from Republican Senator Lindsey Graham, when asked to pick between two presidential candidates.He remembered a moment from the 2016 presidential race when Graham was asked to choose between Donald Trump or Ted Cruz. Graham’s response, delivered with a wry honesty, was a line Hinton had never forgotten: “It’s like being shot or poisoned.”
Hinton’s warning on potential of AI technology in destruction
Hinton was speaking to The Financial Times during an interview where he sounded the alarm about AI’s potential dangers. Once a key figure in accelerating AI development, Hinton has shifted to expressing deep concerns about its future. He believes that AI poses a grave threat to humanity, arguing that the technology could soon help an average person create bioweapons.“A normal person assisted by AI will soon be able to build bioweapons and that is terrible,” Hinton said, adding, “Imagine if an average person in the street could make a nuclear bomb.”During a two-hour interview, Hinton discussed various topics, including AI’s “nuclear-level” threats, his own use of AI tools, and even how a chatbot contributed to his recent breakup. He also recently warned that AI could soon surpass human abilities, including the power to manipulate emotions by learning from vast datasets to influence feelings and behaviors more effectively than people.Hinton’s concerns stem from his belief that AI is genuinely intelligent. He argues that “by any definition of intelligence, AI is intelligent.” Using several analogies, he explained that an AI’s experience of reality is not so different from a human’s.“It seems very obvious to me. If you talk to these things and ask them questions, it understands,” Hinton stated. He added that there is “very little doubt in the technical community that these things will get smarter.”
Tools & Platforms
Anthropic’s Claude restrictions put overseas AI tools backed by China in limbo

An abrupt decision by American artificial intelligence firm Anthropic to restrict service to Chinese-owned entities anywhere in the world has cast uncertainty over some Claude-dependent overseas tools backed by China’s tech giants.
After Anthropic’s notice on Friday that it would upgrade access restrictions to entities “more than 50 per cent owned … by companies headquartered in unsupported regions” such as China, regardless of where they are, Chinese users have fretted over whether they could still access the San Francisco-based firm’s industry-leading AI models.
While it remains unknown how many entities could be affected and how the restrictions would be implemented, anxiety has started to spread among some users.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Singapore-based Trae, an AI-powered code editor launched by Chinese tech giant ByteDance for overseas users, is a known user of OpenAI’s GPT and Anthropic’s Claude models. A number of users of Trae have raised the issue of refunds to Trae staff on developer platforms over concerns that their access to Claude would no longer be available.
Dario Amodei, CEO and cofounder of Anthropic, speaks at the International Network of AI Safety Institutes in San Francisco, November 20, 2024. Photo: AP alt=Dario Amodei, CEO and cofounder of Anthropic, speaks at the International Network of AI Safety Institutes in San Francisco, November 20, 2024. Photo: AP>
A Trae manager responded by saying that Claude was still available, urging users not to consider refunds “for the time being”. The company had just announced a premium “Max Mode” on September 2, which boasted access to significantly more powerful coding abilities “fully supported” by Anthropic’s Claude models.
Other Chinese tech giants offer Claude on their coding agents marketed to international users, including Alibaba Group Holding’s Qoder and Tencent Holdings’ CodeBuddy, which is still being beta tested. Alibaba owns the South China Morning Post.
ByteDance and Trae did not respond to requests for comment.
Amid the confusion, some Chinese AI companies have taken the opportunity to woo disgruntled users. Start-up Z.ai, formerly known as Zhipu AI, said in a statement on Friday that it was offering special offers to Claude application programming interface users to move over to its models.
Anthropic’s decision to restrict access to China-owned entities is the latest evidence of an increasingly divided AI landscape.
In China, AI applications and tools for the domestic market are almost exclusively based on local models, as the government has not approved any foreign large language model for Chinese users.
Anthropic faced pressure to take action as a number of Chinese companies have established subsidiaries in Singapore to access US technology, according to a report by The Financial Times on Friday.
Anthropic’s flagship Claude AI models are best known for their strong coding capabilities. The company’s CEO Dario Amodei has repeatedly called for stronger controls on exports of advanced US semiconductor technology to China.
Anthropic completed a US$13 billion funding round in the past week that tripled its valuation to US$183 billion. On Wednesday, the company said its software development tool Claude Code, launched in May, was generating more than US$500 million in run-rate revenue, with usage increasing more than tenfold in three months.
The firm’s latest Claude Opus 4.1 coding model achieved an industry-leading score of 74.5 per cent on SWE-bench Verified – a human-validated subset of the large language model benchmark, SWE-bench, that is supposed to more reliably evaluate AI models’ capabilities.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
Tools & Platforms
‘Please join the Tesla silicon team if you want to…’: Elon Musk offers job as he announces ‘epic’ AI chip

Elon Musk has announced a major step forward for Tesla‘s chip development, confirming a ‘great design review’ for the company’s AI5 chip. The CEO made the announcement on X, signaling Tesla’s intensified push into custom semiconductors amid a fierce global competition, and also offered job to engineers at Tesla’s silicon team.According to Musk, the AI5 chip is set to be ‘epic,’ and the upcoming AI6 has a ‘shot at being the best by AI chip by far.’“Just had a great design review today with the Tesla AI5 chip design team! This is going to be an epic chip. And AI6 to follow has a shot at being the best by AI chip by far,” Musk said in a post on X.Musk revealed that Tesla’s silicon strategy has been streamlined. The company is moving from developing two separate chip architectures to focusing all of its talent on just one. “Switching from doing 2 chip architectures to 1 means all our silicon talent is focused on making 1 incredible chip. No-brainer in retrospect,” he wrote.
Job at Tesla chipmaking team
In a call for new talent, Musk invited engineers to join the Tesla silicon team, emphasising the critical nature of their work. He noted that they would be working on chips that “save lives” where “milliseconds matter.”Earlier this year, Tesla signed a major chip supply agreement with Samsung Electronics, reportedly valued at $16.5 billion. The deal is set to run through the end of 2033.Musk confirmed the partnership, stating that Samsung has agreed to allow “full customisation of Tesla-designed chips.” He also revealed that Samsung’s newest fabrication plant in Texas will be dedicated to producing Tesla’s next-generation A16 chipset.This contract is a significant win for Samsung, which has reportedly been facing financial struggles and stiff competition in the chip manufacturing market.
-
Business1 week ago
The Guardian view on Trump and the Fed: independence is no substitute for accountability | Editorial
-
Tools & Platforms4 weeks ago
Building Trust in Military AI Starts with Opening the Black Box – War on the Rocks
-
Ethics & Policy1 month ago
SDAIA Supports Saudi Arabia’s Leadership in Shaping Global AI Ethics, Policy, and Research – وكالة الأنباء السعودية
-
Events & Conferences4 months ago
Journey to 1000 models: Scaling Instagram’s recommendation system
-
Jobs & Careers2 months ago
Mumbai-based Perplexity Alternative Has 60k+ Users Without Funding
-
Education2 months ago
VEX Robotics launches AI-powered classroom robotics system
-
Podcasts & Talks2 months ago
Happy 4th of July! 🎆 Made with Veo 3 in Gemini
-
Education2 months ago
Macron says UK and France have duty to tackle illegal migration ‘with humanity, solidarity and firmness’ – UK politics live | Politics
-
Funding & Business2 months ago
Kayak and Expedia race to build AI travel agents that turn social posts into itineraries
-
Podcasts & Talks2 months ago
OpenAI 🤝 @teamganassi