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Why Mortgage Rates Are Near a One-Year High


While they aren’t at their absolute worst, mortgage rates remain very close to their one-year high.

They’re about .125% below their 52-week highs, which were seen in late July before we got some favorable economic data.

However, they remain stubbornly high with no real relief in sight.

Let’s break down how they got here and why they remain sticky at these levels.

And how they could finally break this unfriendly trend and move lower again.

1. Iran War and Elevated Oil Prices

Without a doubt, the biggest driver has been the Iranian conflict and the higher oil prices that came with it.

Why? Because before that took place at the end of February, mortgage rates were below 6% for the first time since late 2022.

They were enjoying their best levels in three and a half years!

Then seemingly overnight (but in reality over the course of just one month), they increased to about 6.625%.

That’s a nasty move higher and could only be explained by the geopolitics that nobody saw coming at the time.

I think if you remove that conflict from the equation, mortgage rates would likely be in the low 6s today (or even lower).

They probably wouldn’t be markedly lower than those late February/early March levels, but they certainly wouldn’t be at or near one-year highs.

So if you want major relief, you end that war and hope oil prices come back down.

There was some positive movement this week after the U.S. signaled a move away from actual warfare and into economic sanctions instead.

We’ll see how that goes, as everyday it seems the script changes.

2. High Government Debt and Bond Issuance

Another big issue at the moment is the amount of government debt, which just recently officially passed the $40 trillion mark for the first time in history.

That means there’s a lot of bonds out there, and with increased supply comes the need for higher yields to attract investors.

This is one reason why we’ve seen yields on government bonds like the 10-year (which acts as a bellwether for 30-year fixed mortgage) hit 52-week highs recently.

They’ve since eased a bit but aren’t far from the high seen in late 2023 (around 5%) when the 30-year fixed climbed to 8%.

Simply put, we need to get our spending under control, balance the budget, and make our debt attractive again to the rest of the world.

If we don’t, it increases the cost of lending for everyone, including those seeking a student loan or a mortgage.

3. AI Investment Flooding the Bond Market

Along those same lines, we’ve got a massive AI buildout that requires a ton of capital.

Instead of paying cash, these tech companies are issuing bonds so they can raise funds and pay for all their expensive datacenters.

Those bonds compete for the same investors that buy things like Treasuries or mortgage-backed securities (MBS).

Again, to attract investors, they need to offer higher yields (interest rates) to lure in the buyers.

This puts additional upward pressure on mortgage rates as increased supply leads to higher yields on all fixed-income securities.

As we all know from economics, it’s simple supply and demand. You have too much of something, the price goes down.

To offset the drop in price, the yield goes up and it needs to move ever higher to become attractive.

Limit the supply and the price can go up, and the yield can drop too.

4. Sticky Inflation

There’s also the matter of inflation, which has proven to be sticky and above the Fed’s long-term target of 2%.

At last glance, it remains above 3%, whether you rely on CPI or the Fed’s preferred PCE index.

Speaking of PCE, it’s due out Wednesday and the consensus is prices up 3.6% from a year ago (+3.3% for core).

While oil has been the scapegoat of late, we’ve yet to really shake the price increases in other categories whether it’s software, tech components, transport, or even housing services inflation.

We got hot inflation reports for April and May, which also coincided with a hot jobs report, which led to the highest mortgage rates in about a year.

Fortunately we’ve had some cooler reports lately that took some of the pressure off, but we’re not out of the woods yet.

Especially with President Trump announcing fresh tariffs on Canada.

5. Fed Rate Expectations

I’ll keep it short and sweet and end this with Fed rate expectations, which are hikes or cuts (or doing nothing).

They are driven by the aforementioned reports, whether it’s CPI, PCE, or the monthly jobs report.

While the federal funds rate is an overnight rate (very short duration) and the 30-year fixed mortgage is well, a 30-year loan, there is some influence from the Fed.

The Fed doesn’t set consumer mortgage rates but it does have some say.

If investors expect the Fed to hike, bond yields tend to rise and mortgage rates move higher as well.

If they expect a cut, the opposite happens and mortgage rates tend to come down.

However, this happens before the Fed actually announces its policy decision, and is largely baked in by the time of the FOMC announcement.

There was a while where it appeared the Fed would hike thanks to that hot economic data and the Iran war.

But recent, cooler reports might allow the Fed to avoid another hike, especially if new Fed chair Kevin Warsh can convince the others it’s the right move.

That line of thinking has allowed mortgage rates to step back from their one-year highs, but only marginally.

Until we solve Iran and the inflation comes with it, mortgage rates will have a tough time moving much lower.

The good news is they might be near their top and not necessarily at risk of moving much higher either.

Colin Robertson
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Ocular Therapeutix CEO Dugel sells $233,159 in shares




Ocular Therapeutix CEO Dugel sells $233,159 in shares

Prediction: NuScale Hits a New High Before 2027


NuScale Power (SMR -5.50%) is currently the only nuclear energy company in the U.S. approved by regulators to build a small modular reactor, or SMR. To be sure, competition is on the way. Several companies are working through the nuclear regulatory approval process, including Oklo Inc. (OKLO -6.03%), another pure-play SMR developer.

But NuScale is unique in that it is both cleared by regulators to build an SMR system and it already has several major customers lined up, one of which is looking to build the largest SMR system in the world.

Here’s the problem: NuScale investors have been burned before by major customers canceling deals before financial commitments are made. So while NuScale has major customers lined up on paper, there’s no guarantee that this deal pipeline will result in meaningful revenue, or profits for that matter.

Image source: Getty Images.

Given this execution uncertainty, NuScale’s market cap still hovers around $4 billion despite lucrative long-term growth potential. When this uncertainty is lifted, expect the stock price to react strongly. Fortunately for NuScale investors, much of the company’s execution uncertainty could be lifted as soon as this year.

NuScale Power Stock Quote

Today’s Change

(-5.50%) $-0.54

Current Price

$9.27

Time to buy NuScale Power stock?

NuScale’s biggest customer in its pipeline is the Tennessee Valley Authority (TVA), a major electric utility in the eastern U.S. The deal is actually being handled mostly by NuScale’s financing partner, ENTRA1. But NuScale is the project partner providing the actual reactors.

In total, the TVA SMR system could be as large as 6 gigawatts. For comparison, the largest SMR system in existence today produces just 210 megawatts from two 105 MWe (megawatt electrical) reactor modules.

TVA signed a deal for the project last September. Importantly, nothing in the agreement was binding. In other words, TVA can pull out at any time. This makes the next major catalyst the signing of a power purchase agreement (PPA). PPAs are typically binding agreements that commit a utility to purchase power from a generation facility at a fixed price, often for years or decades. Signing a PPA ensures the facility’s builders will be paid for their work, clearing the way for construction to begin.

When might a PPA be signed?

“We’re hopeful that TVA can come across the line at some point later this year,” NuScale’s CFO commented in May, speaking about the potential for a PPA. NuScale expects to move quickly once a deal is finalized. “We’re in a mode right now that as soon as these PPAs are finalized, we’re ready to move. By move, I mean enter into, start to call a position, start the front-end engineering design, and initiate the OEM contracts or negotiations,” NuScale’s CEO added in August.

If a PPA is signed, there should be plenty of upside for NuScale stock relative to today’s prices. I wouldn’t be surprised to see shares surpass their previous 2026 highs of around $20, implying more than 100% in potential upside. That’s how heavily the market seems to be pricing in uncertainty surrounding the deal.

Pricing in that much uncertainty is reasonable given NuScale’s past failures and the relative immaturity of the SMR sector overall. But a PPA would provide critical momentum to NuScale’s struggling stock price, validating its business model and designs in an unprecedented way.

Nvidia Reports After Market Close


NVIDIA (NASDAQ:NVDA) will release its Q2 earnings after the market close today. NVIDIA is not just a leading AI firm and top chip provider; it is a benchmark for the entire AI sector. Largely fueled by hyperscalers and the race not to be left behind as AI takes over, NVIDIA has been looking for ways to diversify revenue while investing in other tangential firms.

Analysts hold a consensus estimate for top-line revenue of around $91.9 to $92.2 billion, representing a year-over-year growth of 97%. Nvidia has guided toward the lower end of that range, but some analysts expect a bigger beat in revenue.

Earnings per Share (EPS) is expected to land around $2.08 a share, almost double from the same quarter last year.

Gross margin is expected to be flat, and the company has guided around 75%.

Full-year revenue has a consensus estimate in the high $380 billion–$390 billion range.

As for analysts, below are some of their pre-earnings expectations:

  • Raymond James – Simon Leopold: Strong Buy$352Raised from $330 (Aug 25)
  • Bank of America – Vivek Arya: Buy$350 Reiterated ahead of earnings
  • Cantor Fitzgerald – C.J. Muse: Overweight$350Reiterated
  • BMO Capital – Harsh Kumar: Buy / Outperform$340Maintained / recent coverage
  • KeyBanc – John Vinh: Overweight: $330 Reiterated
  • Rosenblatt – Kevin Cassidy: Buy$325 Reiterated
  • DA Davidson / Benchmark: Buy$335 Recent targets set
  • Wells Fargo – Aaron Rakers: Overweight $315 Recent reiteration
  • J.P. Morgan – Harlan Sur: Buy / Overweight $280 Reiterated
  • Jefferies- Blayne Curtis: Buy $300 Bullish on larger revenue beat potential

Baird has a $500 price target.

If Nvidia disappoints, tomorrow could be a tough day for markets. If it tops expectations, this will be bullish for the AI sector and help lift markets in general.

The earnings call is scheduled for 5 PM ET.

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RPSC 1st Grade Commerce | Business Management – Planning MCQs | Important Questions & Explanation



RPSC 1st Grade Commerce | Business Management – Planning MCQs | Important Questions & Explanation

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Junk Fees Are Backfiring on Wall Street Landlords—and Creating Opportunities for Smaller Investors


As if the affordability crisis weren’t tough enough for cash-strapped tenants, corporate landlords’ “junk fees,” heaped on top of “base rents,” have sparked the ire of the FTC, which recently issued an Advance Notice of Proposed Rulemaking (ANPRM), according to The Guardian, resulting in possible legal action.

The increased frustration among tenants and lawmakers with corporate landlords can be a win for smaller landlords, who rarely add extra fees on top of the rental amount quoted in a lease.

The Regulatory Crackdown on Corporate Rental Fees

Federal regulators and state attorneys general have initiated a nationwide crackdown on extra, mandatory charges in residential leasing. These include technology add-ons, trash pick-ups, utility processing surcharges, and nonrefundable administrative fees, among others.

The Guardian reported that hundreds of tenants across the U.S. recently submitted public testimony to federal agencies describing how unexpected lease surcharges have inflated rental costs. During public comment proceedings in April, Seattle resident Farah Momin testified:

“The rental housing market is one where consumers have little power. Landlords can impose fees through take-it-or-leave-it lease terms, and the cost/disruption of moving means that tenants may absorb unfair charges rather than leave.”

Multiple States Are Taking Up the Cause

With midterm elections around the corner, the cost of housing is a big issue and has picked up steam in legislative circles, with many U.S. states advancing bills designed to restrict institutional ownership models and cap ancillary fee structures in both multifamily and single-family housing markets, as a tracking map from Newsweek shows.

“Rent is already too high, but corporate landlords are adding hidden junk fees that make housing even less affordable,” New York Attorney General Letitia James said in a letter to the FTC in April. “Renters deserve to know the true cost of housing upfront, not after they have already committed their time and money. We are urging the FTC to take action so families can make informed decisions and avoid deceptive pricing.”

James emphasized “bait-and-switch” pricing tactics, in which advertised rents could be misleading and mandatory fees were disclosed only late in the application process or after a tenant signed a lease.

The Win for Small Landlords

While Wall Street-funded REITs keep the pressure on asset managers to increase revenue, small investors with no such oversight or inclinations have a chance to slip in and appeal to weary renters, tired of being shocked every time they review their rental statement.

“It’s uncommon to see Wall Street buy entire neighborhoods,” Jeff Holzmann, COO of Dallas-based real estate investment firm RREAF Holdings, told Realtor.com. “But the reality is, when your home is owned by a Wall Street company, what happens is it becomes someone else’s product. When there’s a board yelling at a CEO to make more money, the only way to do it is to raise the rent.”

Wall Street’s drive for relentless rent increases was highlighted in a recent TCD/Yahoo! Finance article, which explained that these numbers are often baked into lenders’ loan approvals before the building has even been purchased. The article stated that “buyers who forecast the biggest increases can qualify for the most borrowing.”

As Time explained, “If current tenants’ wages cannot keep pace with that plan, something has to give: Either tenants pay more than they can afford, or they are pushed out so someone who can pay more can take their place.”

The Rebuttal

In an April 15th letter addressed to the FTC, the National Apartment Association said:

”By separating certain services and amenities from base rent, residents can choose the options that best fit their needs and budgets, rather than paying for a one-size-fits-all package. These fees can cover a broad spectrum of amenities, services, and operational activities. While our industry fully supports fee transparency, we caution against policies that would limit or prohibit the recovery of legitimate business expenses. Restrictions on reasonable fees create practical barriers, inflate base housing costs, and reduce access to valued resident services.”

How Smaller Landlords Can Capitalize on Tenant Mistrust of Corporate Owners

All-inclusive pricing

Smaller landlords tend to structure their pricing very differently from large corporations. Keeping an all-inclusive linear structure, without any surprise line items, helps attract and retain quality tenants, reducing tenant turnover and all associated maintenance expenses.

Be responsive and personable

Fast responses and fostering a personable, noncombative relationship with tenants softens the rental experience, whereas a corporate management structure can feel overbearing and impersonal.

List all costs in ad descriptions

Being completely transparent from the start will make potential tenants more inclined to schedule a viewing. Stating that rent includes standard amenities and excludes hidden monthly move-in charges, administrative costs, or software fees sets your rental apart from nearby corporate competitors.

Focus relentlessly on preventative property maintenance and energy efficiency

This is where some financially stretched small landlords suffer. By scheduling ongoing upgrades and maintenance, such as HVAC upgrades/filter changes, low-flow plumbing fixtures, regular roof inspections, gutter cleaning, and landscaping, you maintain the asset’s quality while reassuring tenants that you, the landlord, are on top of things. It also makes them more inclined to agree to a gradual increase in fair market rent upon renewal.

Don’t transfer technology charges to the tenant

AI and cloud-based software have helped make property management more efficient, but there is usually a cost associated with using property management software and storing documents in the cloud. Corporate landlords often transfer these costs to the tenant. 

Differentiate yourself by not doing this. Call it the cost of doing business—and keeping your tenants.

Final Thoughts

While Wall Street funds face financial pressures from investors demanding a high stock price, small landlords face pressure from escalating expenses, specifically taxes, insurance, and maintenance costs, as well as mortgage payments if they have recently bought or refinanced. Tenants also face pressure due to the rapid cost of living increases—so it’s not as if small landlords can ignore the pressure to increase revenue.

However, making smart decisions, particularly by making a large down payment or buying with cash, and then meticulously staying on top of repairs and customer service and fostering a cordial business relationship with your tenants is essential. Stay away from tactics that nickel-and-dime residents for short-term gain at the expense of long-term stability.

Luminate launches AI music identification framework, with ‘AI Generated’ labels reaching CONNECT later this year


Luminate is launching a framework to identify and measure AI-generated music.

The data company, whose numbers power Billboard’s charts, says its CONNECT platform “can now flag AI-generated songs and artists worldwide,” with the labels reaching customers and partners later this year.

Those labels are not visible in CONNECT yet.

“We’ve built the capability in our platform and identified thousands of AI-generated items in our database, but we have not yet made AI classification visible to users,” Luminate said in an FAQ published alongside Tuesday’s (August 25) announcement.

Songs and recordings confirmed as fully AI-created will carry an AI Generated label.

Luminate said flagged content will also come with a dedicated review process for artists and labels to respond to incorrect tags.

“WE’VE BUILT THE CAPABILITY IN OUR PLATFORM AND IDENTIFIED THOUSANDS OF AI-GENERATED ITEMS IN OUR DATABASE, BUT WE HAVE NOT YET MADE AI CLASSIFICATION VISIBLE TO USERS.”

LUMINATE

The FAQ sets out two further tags: AI, for an artist confirmed as fully AI-generated, and Human, for an artist confirmed not to be.

The Human tag will only go to artists individually cleared by Luminate’s screening process, the company said, not by default.

An absent label does not confirm a track is human-made, Luminate said, because it has not run its full database through the process.

Screening prioritizes artists and songs from 2023 or later with high streaming activity.

“By focusing on the top of the market, we’re able to identify the AI content with the greatest impact,” Luminate said.

“GREATER VISIBILITY IS CRITICAL TO UNDERSTANDING BROADER TRENDS, ASSESSING THE RISK OF FRAUD AND MAKING INFORMED DECISIONS.”

ROB JONAS, LUMINATE

Luminate CEO Rob Jonas said: “The rapid growth of AI-generated music has outpaced the industry’s ability to consistently identify it and measure its impact.

“Greater visibility is critical to understanding broader trends, assessing the risk of fraud and making informed decisions.

Luminate has always been the entertainment business’s source of truth, and tracking AI-generated music with the same rigor we apply to every other category is core to our mission.”

Luminate added: “Not all AI music raises concerns, but its rapid growth has made it harder to track and easier to exploit.”


Luminate’s framework has three parts.

The first is Luminate’s own identification technology, which the announcement said continuously analyzes streaming data and metadata alongside audio matching tools.

The FAQ describes that as a two-stage process, beginning with a system built by Luminate Data Science “to analyze artists and songs added to CONNECT and flag items with a high potential to be AI-created.”

“We then use audio signature matching technology to confirm those initial flags and apply AI labels,” Luminate said.

The second is self-labeled streaming data from the DSPs, which Luminate said it will ingest through existing partnerships as platforms roll out their own detection tools.

The third is attribution data taken directly from AI music companies as tracks are generated, before they reach a DSP.

Luminate said the framework will serve as “the global clearing house for AI music.”

The release said Luminate is “collaborating with the major DSPs and AI music companies.”

The FAQ, though, said Luminate does not yet incorporate AI labels from streaming platforms, and the framework puts the company only “in discussion” with AI music companies.

Jonas conceded the point in the release, saying: “This is a starting point.

“No single organization can address this challenge alone; the industry needs a collaborative approach to more accurately understand, track and measure AI-generated music.”

On July 29, a coalition of the three majors and independents including Believe, BMG, Concord, and HYBE Corp. proposed principles to keep AI-made recordings off official charts unless the generative AI service used was authorized and lawful, the track is “substantially human made,” and it raises no stream or chart manipulation concerns.

IFPI began applying those principles across its own charts the following day, and said it was working to extend them to more than 20 further chart programs, including Australia’s ARIA Charts, France’s SNEP Charts, and South Korea’s Circle Chart.

ARIA moved on the same day as Luminate’s announcement.

It updated its Charts Code of Practice on August 25 to bar wholly AI-generated tracks from the ARIA Charts and Awards, applying IFPI’s principles.

It takes effect with the chart dated Monday (August 31), published Friday (August 28), and artists can appeal.

ARIA CEO Annabelle Herd said: “Artists already use AI tools in their work, the Charts can and should evolve to keep room for that, but music generated wholesale by services built on artists’ recordings is a different matter.”

ARIA acted after scrutiny of Queensland DJ and producer Josh Fawaz’s cover of Madonna’s Like a Prayer, which peaked at No. 2 in May on ARIA’s Top 20 Australian Singles chart and has spent 16 weeks on it.

Fawaz later updated the track’s credits to disclose AI-generated vocals and drums.

ARIA has since told CBC News that the track does not meet the new eligibility requirements “based on information provided by the artist.”

Billboard moved on August 25 too, committing to identify which songs on its charts and in its editorial coverage use AI.

Luminate has supplied the data behind those charts for over 30 years, according to the company.

Billboard said it was optimistic about “new and first-to-market tools and initiatives that will tag and identify AI-created songs,” naming “the recent announcement from Luminate regarding its proprietary AI detection program.”

Deezer, though, has been detecting and tagging AI music at the platform level since 2025, and Billboard has used Deezer’s tool to determine which chart songs are AI-generated, as MBW has reported.

In its statement, Billboard Co-Chief Content Officer Jason Lipshutz said: “Although the ways in which AI informs and interacts with modern music are changing on a daily basis, we are committed to working alongside all industry parties allowing us to make clear, well-informed decisions across our platforms, now and moving forward.”

Billboard committed to identification and labeling, not to a chart-eligibility rule of the kind ARIA and IFPI have adopted.

Luminate did not say whether its flags will govern eligibility.

Luminate describes itself in the announcement as “an independently operated company, a subsidiary of PME TopCo., a joint venture between Penske Media Corporation and Eldridge.”

Deezer said in July that it took in close to 90,000 fully AI-generated tracks a day in June – more than half of everything newly delivered to it on peak days.

Apple Music said on August 20 that it will label songs materially generated using AI.

Spotify said on August 11 that it will badge artist profiles built around AI-generated identities as AI Personas from mid-September, and will keep their music out of editorial and algorithmic recommendations by default.Music Business Worldwide

National Bank profit beats estimates in three main businesses




National Bank of Canada reported profit that beat analysts’ estimates in all three of its main business lines.

Cigna’s AI chief is investing in technology to cut costs and address healthcare’s biggest problems


Before we get to this week’s column—Please consider joining us at the inaugural Fortune AIQ Summit at the New York Stock Exchange on Oct. 1: Spend the afternoon with senior executives from companies on the Fortune AIQ 75 list and explore how you can scale your AI experimentation and translate investments into measurable business value. Apply here to attend. 


After Katya Andresen joined Cigna Group as chief data, digital and AI officer in September 2021, she says the emergence of generative artificial intelligence as a disruptive new technology led many to ask themselves: “How do I use AI?” 

Andresen thinks that’s the wrong question. “We’ve been on a mission to change that question to, ‘how do I lead in an age of AI?’” says Andresen. That framing is less focused on the functionality of any given AI tool and chasing countless use cases, and instead homes in on measurement that shows an AI investment can change health outcomes.

Along those lines, Cigna has announced this summer that it projects the AI and predictive analytics tools that the company uses to help patients identify chronic conditions—including cancer, kidney disease, and high-risk pregnancy—can save an estimated $200 million over the next three years by proactively connecting patients with clinicians. Separately this summer, Cigna announced a $100 million investment through 2028 to use AI to reduce the time clinicians need to spend documenting their cases and speed up the prescription process.

And yet another AI use case, which Andresen shared with Fortune, involves using AI to better understand common inbound patient questions that Cigna was receiving about biosimilars, which can treat chronic diseases at a fraction of the cost of biologics. Unlike a generic drug, which has the same active ingredients as branded counterparts, biosimilars aren’t an exact match because they’re made from living organisms like bacteria and plant cells. But both are approved by the Food and Drug Administration.

One biologic, called Humira, can cost a patient $7,000 per month to treat inflammatory and autoimmune conditions. But Cigna looked at thousands of prior customer conversations with its representatives about biologics and biosimilars, and then used those insights to craft stronger digital messaging to encourage a switch to the cheaper alternative. This targeted campaign led more than 80% to opt for the biosimilar, Andresen says.

“That led to a lot more margin,” adds Andresen. “But more importantly, it created a couple hundred million dollars of savings for patients.”

Extracting millions in cost savings from these high-priority use cases is critical for Cigna, which generates $275 billion in annual revenue and ranked 14th on the latest Fortune 500 list, as national healthcare spending exceeds $5 trillion annually due to the rise of chronic conditions, an aging population, and the cost of a hospital stay and average prices for new prescription drugs soaring.

Patients frequently express that they are fed up with navigating the industry’s complex system, and millions report they’ve turned to ChatGPT and other AI chatbots to ask health- or healthcare-related questions. Nearly six-in-ten report using AI to research health information before a doctor visit, and about 14 million adults say they have skipped a visit with a provider after using AI, according to a survey published by Gallup in April.

This movement does raise thorny questions about the guardrails put in place around AI chatbots, even those created by insurance and pharmaceutical companies, because they need to handle sensitive patient information and have the ability to accurately answer complex questions about medical insurance plans and treatments.

“The good news is, because we are highly regulated, we have a massive amount of controls in place to begin with,” says Andresen. “We are not starting from zero.” That layer of compliance and governance has existed for well over a decade for the machine learning models that Cigna has leveraged, she adds, and is also closely controlled for any data that’s access by third-party vendors.

Andresen has had to recently hunt for answers to these common healthcare questions after a close family member was diagnosed with breast cancer. She says this experience has shown that personalization, not just navigation, is the differentiator that AI can provide.

“I think we’re headed to a place where we are going to find that AI in healthcare becomes conversational, ambient, and more proactive,” says Andresen. “We can be more and more precise with treatments, with recommendations, and we can get better and better at understanding what works…and feed that back into our models, so that everything gets better all the time.”

Five years ago, when Andresen joined Cigna, it was her first role leading a healthcare company, after previously serving as a senior vice president of financial services at Capital One, serving in executive leadership roles at mission-focused tech firms Cricket Media and Network for Good, and earlier in her career, working as a foreign correspondent for Reuters News and the Associated Press.

She says that AI technology is evolving so rapidly that a mix of Cigna’s own proprietary data to build competitively specific tools, as well as key partnerships with big AI players, will be the differentiator. Andresen has launched workplace tools like chatbot Microsoft Copilot and AI coding agent Cursor, while also working closely with large hyperscalers like OpenAI and Anthropic to tap their large language models.

There are also times when Cigna will opt to work closely with AI startups that have homed in on a very specific use case, like Sierra, which builds conversational AI agents for customer service. “We’ve worked really closely with them on their product roadmap,” says Andresen.

Other generative AI use cases that Cigna has deployed include using LLMs to summarize millions of phone calls placed to call center agents, and then leveraging those insights to create an AI tool that makes it easier for those employees to search for the answers to questions like, “does my policy cover this treatment for plantar fasciitis?”

An AI virtual assistant was also built inside Cigna’s mobile app, a conversational tool that can similarly address patient questions, while in the clinical setting, AI-enabled summarization has reduced note-taking by up to 90% for health practitioners who work for Cigna’s telehealth service MDLIVE.

“The principles behind all this are hopefully clear, which is, what problem are we trying to solve, and how can AI help?” says Andresen. “That’s always the starting point.”

John Kell

NEWS PACKETS

Data centers are becoming a hot issue for the midterm elections. Amid a Gallup survey earlier this year that showed that 71% of Americans oppose data center construction, the issue is becoming increasingly difficult for the industry to positively pitch as Democrats and Republicans have been airing negative television ads to get aligned with voters. Data centers, Democratic pollster Zac McCrary tells the New York Times, are “one of the few issues today that does not immediately code as red or blue, left or right.” Tech leaders are working to subdue the negative sentiment, with the Wall Street Journal reporting this week on how OpenAI, Meta Platforms, and others are hosting open houses, announcing multimillion-dollar community pledges, and making water conservation-focused commitments to make data centers more appealing to local communities. Another note of caution: a vast majority of data centers that are expected to be online by 2027 haven’t even started construction.

Nvidia places a bet on Poolside. AI chipmaker Nvidia announced a comprehensive agreement with Poolside, including a $1 billion investment and $6 billion that will be paid to license the AI startup’s technology and hire some of its engineers, according to the WSJ. The startup’s leaders, meanwhile, won’t join Nvidia and will instead continue to work on research projects. The transaction represents the latest effort by Nvidia to increasingly support open source models, which can be cheaper and more customizable than closed-source models. With Poolside, Nvidia is aiming to more directly compete with China’s AI giants like DeepSeek, which have drawn more attention from U.S. businesses as AI costs continue to rise.

Leadership departures accelerate at OpenAI. In just the past month, the ChatGPT maker has seen several high-profile executive departures, including news this week from the WSJ that the head of data centers, Chris Malone, has left the company. Malone’s exit was connected to a strategic pivot at OpenAI, in which the company is relying more on deals with cloud providers to support its computing power instead of building its own facilities. Other leadership departures this month have included Chief Revenue Officer Denise Dresser, who left after less than a year at OpenAI, and Chief Operating Officer Brad Lightcap, an OpenAI veteran since 2018.

Demand appears tepid for Anthropic’s Fable 5. Less than three months after Anthropic debuted its most costly large language model, the Claude Fable 5, the Financial Times has reported that demand has been muted as enterprises are realizing that not every AI task requires the most sophisticated and costly models. Citing data from corporate financial technology provider Ramp, the news outlet reports that spending on Fable 5 has only amassed to 11% of the business spending Anthropic notches from its customers, a figure that’s remained unchanged since early July. Meanwhile, data and legal technology company Thomson Reuters and insurance giant Travelers have talked publicly about how they are now relying on open-source and internal models, respectively, to help lower the cost of AI.

Hugging Face is reportedly exploring a multi-billion-dollar sale. AI platform Hugging Face is mulling a sale that would value the company at $13 billion or more, people familiar with the matter told Business Insider. Rumors of a potential deal come mere weeks after a July incident in which the company’s systems were hacked by OpenAI’s AI agents, leading the AI hyperscaler to announce last week that it would pause some aspects of AI training for two weeks as it also unveiled new security protocols. On Monday, Alabama’s attorney general subpoenaed OpenAI for more information related to the Hugging Face hack, saying the probe would address “hard truths about the threats companies and consumers are facing from rogue AI.”

ADOPTION CURVE

AI is boosting demand for more cybersecurity jobs. Amid concerns that AI chatbots can lower the barrier of entry for cybercriminals and warnings from technologists that these threats present an ongoing risk, new research published by a consortium of technology leaders including Cisco, Accenture, Google, and Microsoft found that cybersecurity is one of the fastest-growing areas of the technology workforce. Demand for these roles grew 9.5% across the G7 countries for the six-month period ending in March 2026, according to the latest findings from the AI Workforce Consortium.

And yet, there are still more than 4.8 million open cybersecurity roles and the AI Workforce Consortium reports that the share of G7 cybersecurity postings that required AI skills stood at 28.5% of all listings between October 2025 and March 2026, compared to 14.2% in October 2024.

“We see the shift being really visible right now in cybersecurity, where the frontier models like Anthropic’s Mythos and Mythos Preview and OpenAI’s GPT-5.5-Cyber have changed cybersecurity as we know it,” Marci Paino, chief learning officer at Cisco, tells Fortune. “We see that they’re using AI-powered capabilities to tip the scale in favor of defenders over adversaries, and it’s really critical.”

Paino adds that 36% of cybersecurity leaders plan to invest in AI-powered security capabilities in the next one to two years, but only 25% are prioritizing investments in people. This suggests that while there’s a lot of demand for cybersecurity talent, enterprises are also expecting agentic AI systems to assume some higher volume, repetitive tasks. That will require cyber leaders to continue to rethink human and machine collaboration.

“Increasingly, every worker will need to manage a portfolio of agents to get work done, and not just those who are in technical leadership positions today,” says Paino.

Courtesy of AI Workforce Consortium

JOBS RADAR

Hiring:

W.E. O’Neil Construction is seeking a CIO, based in Irvine, California. Posted salary range: $265K-$300K/year.

C3 AI is seeking a VP, CIO, based in Redwood City, California. Posted salary range: $285K-$325K/year.

M&T Bank is seeking a head of corporate technology, based in Buffalo, New York. Posted salary range: $201.2K-$335.3K/year.

Upstream Bio is seeking a VP of IT, based in Waltham, Massachusetts. Posted salary range: $296.8K-$362.7K/year.

Hired:

LPL Financial named Jonathan Lewis as chief technology and information officer, leading architecture, engineering, and infrastructure for the wealth management firm. Most recently, Lewis served as head of digital and trading technology for wealth management at banking giant Wells Fargo. He also previously served as head of asset management technology at J.P. Morgan.

Patterson Companies named Wasi Ahmed as CIO, where he will report directly to CEO Robert Rajalingam and serve as a member of the dental and animal health products distributor’s leadership team. Previously, Ahmed served as CIO at construction materials distributor Foundation Building Materials and as CIO at manufacturer Yokohama Tire.

Gateway Fiber appointed David Curran as CTO, where he will oversee the development of the fiber-optic internet provider’s network. Most recently, Curran served as VP of network architecture at telecommunications giant Verizon. He also previously served as a director at Frontier Communications.

Rigetti Computing promoted Andrew Bestwick to the role of CTO, as the quantum computer developer consolidates quantum processor architecture, chip development, and hardware engineering under one title. Bestwick joined Rigetti in 2015 as SVP of quantum systems. He previously worked as a semiconductor and financial services consultant at Bain & Company.

ServiceTrade announced the appointment of Brian Schaad as CTO, leading the engineering organization, which includes software development, data science, and information security. Prior to joining the software vendor, Schaad led engineering at another software firm, Consensus.

Spinnaker Support appointed Rex Young as CIO, reporting to CEO Matt Stava and leading the software maintenance vendor’s technology strategy. Young most recently served as CIO and chief information security officer at fleet compliance and driver risk management software company SambaSafety.

PRG announced the appointment of Joe Simon as chief technology and information officer, overseeing the entertainment and event technology provider’s enterprise infrastructure. Previously, Simon served as chief information and technology officer at sports betting and gambling company Entain.

OverDrive named Liz Carrasco as CTO, leading the digital content distributor’s technology strategy and engineering organization. Previously, Carrasco spent more than a decade in senior technology leadership roles at entertainment giants CBS Interactive, ViacomCBS, and Paramount.

Eligible Spectrum Customers Get Amazon Prime for Free


Spectrum Offers Free Amazon Prime to Eligible Internet Customers

Spectrum has partnered with Amazon to offer Amazon Prime at no additional cost to eligible Spectrum Internet customers.

The benefit is available to new and existing customers who qualify for Spectrum Internet Assist, Spectrum’s discounted internet program for eligible low-income households. Spectrum says qualifying customers can be subscribed to any Spectrum Internet tier and still receive the Prime benefit.

Who Qualifies?

To receive the free Prime membership, you must currently qualify for Spectrum Internet Assist.

Spectrum says eligible customers can be:

  • New or existing Spectrum customers
  • On any Spectrum Internet tier
  • New or existing Amazon Prime members

Spectrum Internet Assist itself offers internet speeds of up to 50 Mbps for qualifying households, but customers who qualify for the program do not necessarily need to be subscribed to that specific tier to get the Prime benefit. You can see more details here.

How to Activate Free Amazon Prime

Eligible customers can activate the benefit by:

  1. Going to Spectrum.net/Prime and signing in.
  2. Clicking Get Started.
  3. Signing in to an existing Amazon account or creating a new one.
  4. Completing the activation process through Amazon.

Once activated, members receive the normal Amazon Prime benefits, including fast free shipping, Prime Video, shopping deals and other Prime perks.

Customers who already pay directly for Amazon Prime can transition their membership to the Spectrum-included benefit.

If your Prime membership is currently provided through another third party, Spectrum says you may first need to cancel that membership before activating Prime through Spectrum.

Guru’s Wrap-Up

This is a pretty valuable new Spectrum benefit for anyone who qualifies for Spectrum Internet Assist. And the good thing is that existing Prime members are also elgiible. If you qualify, you can move your current Prime membership over to the Spectrum benefit and stop paying separately.