Business Briefs - Sept. 22, 2026

States settle lawsuit over Paramount-Warner merger, clearing key hurdle for $81 billion deal

CHICAGO (AP) — California Attorney General Rob Bonta has announced a settlement with Paramount in a lawsuit his state led challenging the company's acquisition of Warner Bros. Discovery. Monday's announcement effectively paves the way for the mega merger to move forward, with some new commitments. The $81 billion blockbuster deal will bring together two of Hollywood's oldest studios, key TV networks like CBS and CNN and streaming platforms HBO Max and Paramount+, as well as decades of libraries with titles ranging from "Harry Potter" to "Top Gun."

China and the US are competing for AI dominance but have shared concerns over safety

HONG KONG (AP) — U.S. President Donald Trump and Chinese leader Xi Jinping are expected to meet this week to discuss artificial intelligence. The meeting comes amid rising concerns about AI's potential threats and the competitive tension between the two countries. On Sunday, U.S. Treasury Secretary Scott Bessent said the U.S. and China discussed setting up a mechanism for AI dialogue and a notification system for AI incidents impacting national security. Both nations are worried about AI's potential to attack critical infrastructure. Despite U.S. export controls, Chinese AI models are increasingly competitive. Accusations of technology theft remain a sore point in their relationship.

Federal Reserve official says fighting inflation likely to be 'painful'

WASHINGTON (AP) — A top Federal Reserve official said Monday that the central bank may have to cause economic pain in the form of higher unemployment to combat stubbornly high inflation. Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said in a speech in London that the Fed is facing a series of persistent supply shocks, including the Iran war and tariffs, that have driven up inflation. Goolsbee's comments contradict Fed Chairman Kevin Warsh's comments last Wednesday after the Fed lifted its key interest rate for the first time in three years to about 3.9%.

Gates Foundation launches coalition to build more representative language data sets for AI

NEW YORK (AP) — The Gates Foundation is convening Anthropic, Google, OpenAI Foundation and dozens of other organizations to help make artificial intelligence more accessible in underrepresented languages. There are more than 60 partners in total, ranging from AI labs and corporations to philanthropies and governments. The coalition aims to reach more than 3 billion people over five years by better coordinating existing efforts. Gates Foundation CEO Mark Suzman says the work must continue 'full speed ahead' even as some large AI companies urge a slowdown on some advanced models' development. The collaboration follows last week's announcement that the Gates Foundation is committing $1 billion to expand access to AI.

Bessent: US proposes AI incident alert system in talks with China

NEW YORK (AP) — The U.S. is proposing a new notification system with China for artificial intelligence incidents that could threaten national security. Treasury Secretary Scott Bessent announced the plan on Sunday after talks with Chinese Vice Premier He Lifeng in New York. Bessent says greater transparency is critical between the world's two leading AI powers. Bessent and U.S. Trade Representative Jamieson Greer said weekend meetings with their Chinese counterparts laid the groundwork for talks Thursday at the White House between President Donald Trump and Chinese President Xi Jinping.

Federal Reserve rate hike reflects new world of sticky inflation and faster growth

WASHINGTON (AP) — President Donald Trump has renewed his attacks on the Federal Reserve after it hiked its benchmark interest rate Wednesday, but the Fed matters less than broader economic trends when it comes to longer-term borrowing costs, economists say. The economy is growing steadily despite being hit with repeated shocks — and may even be accelerating — while inflation remains stubbornly high. And big tech firms are borrowing huge amounts of cash to plow into data center construction while the federal government is still running large yearly budget deficits. All these trends point to higher interest rates regardless of what the Fed does, analysts say.