Axios AM

September 02, 2025
🎒 Hello, Tuesday! Welcome back to school ... and reality.
- Smart Brevity™ count: 1,683 words ... 6½ mins. Thanks to Noah Bressner for orchestrating. Copy edited by Bryan McBournie.
👀 Driving the day: The White House is teasing a 2 p.m. ET Oval Office announcement by President Trump.
1 big thing: Why you should be AI-obsessed
Several readers have asked why we're so AI-obsessed in our columns and business planning, Jim VandeHei and Mike Allen write in a "Behind the Curtain" column.
- Our response: Imagine knowing electricity or the internet were coming ... before both fully and wholly upended business, culture and life. That's the AI moment we see unfolding today.
Why it matters: We want to pull back the curtain on what we're seeing and thinking, to encourage you to be equally curious and obsessed.
We're clear-eyed: Every AI company and investor has massive incentive to hype the most glorious AI case. So the technology might never live up to its promise.
- But this would require every CEO of America's seven biggest companies to be collectively delusional about where they're spending trillions in combined capital.
🥊 Reality check: There's an emerging conventional wisdom that we're heading into a trough or slowing growth in the AI lifecycle, not superintelligence (yet).
Yes, but: Even if the AI hype cycle turns out to have been just that, we're still betting that massive changes are coming — and way ahead of the preparations by government and many companies.
- So you should get ahead of the transformational times to come. Worst case, you're exponentially better versed in the most interesting technology advance in decades.
🧠 Here's our thinking:
1. Follow the money. The biggest companies are pouring unfathomable capital investment, time and talent into muscling super-human AI into existence. Meta, Alphabet, Nvidia, Microsoft, Amazon and Tesla are beyond all-in on AI. At the same time, the biggest private equity and venture capital firms are betting vast chunks of their wealth on AI.
2. Government assistance at scale. These technology firms are fusing with the government, creating a co-dependent relationship growing tighter and bigger by the day. President Trump, in coordination with AI companies and investors, is helping incentivize and ease investment into chips, data and energy, the key AI ingredients. Palantir, an AI company with close ties to Trump, just inked a $10 billion contract with the U.S. Army. This is the new norm.
3. Hits everything, everywhere. Most new technologies unfold slowly and narrowly. AI is advancing rapidly every few months and hits everything, everywhere. Not only is every product and service vulnerable to AI, so is every step and part of producing and providing it.
4. Threatens job apocalypse. When the internet was rising, its builders didn't predict wiping out half of entry-level white-collar jobs. Dario Amodei, CEO of Anthropic, one of the hottest AI companies, told us that's a distinct possibility. Others disagree. But a very public debate about massive job losses warrants the obsession of policymakers, the media ... and you.
5. The secret business conversations. We're unique in that we write a column and run a business, and talk to CEOs constantly. We can tell you that many companies' internal budget conversations are heavy on jobs that won't exist in 18 months. Yes, we believe new ones (that we can't even imagine today) will emerge. But right now, it's about savings and automation. At Axios, we're demanding all workers get AI-savvy immediately so they can survive the change — then thrive. But many employers remain silent about what's coming.
6. You speak AI. This is the first technology where complex research, deep coding, or multidimensional thinking aren't the purview of the select few. Anyone can use it. And use it with simple conversational commands in your native language. You think the internet was useful and addictive? Just wait until your device knows you, your history, your patterns, your mind, your business, your health, your desires better than you. That alone warrants your obsession.
- Right now, the No. 1 use case for LLMs is personal therapy and companionship — a trend that exploded over the past year, according to a recent study by Harvard Business Review. And a generation of AI-native students is about to hit the job market. As The Atlantic put it in August, "College Students Have Already Changed Forever."
The bottom line: We talk to White House officials, CEOs and AI experts constantly. Those with the most insight, power and money share the AI obsession. The topic is daunting, sprawling, occasionally scary and often eye-popping. It's worthy of your time to start obsessing.
2. 🔮 Axios AI summit expands

Axios Live will drive the AI agenda in Washington by expanding our AI+ DC Summit (coming Sept. 17) into a three-day takeover in '26: AI+ Gov, AI+ Energy and AI+ Defense events will culminate in the centerpiece AI+ DC Summit.
- Why it matters: Our journalists and top-shelf guests bring you essential insight and connectivity at the nexus of policy, industry and national security — where decisions about AI's future are being made.
Also watch for AI+ SF in December, and AI+ NY next year during Tech Week.
💡 Register here for Axios+ DC on Wed., Sept. 17 ... Registration soon: AI+ SF on Thur., Dec. 4.
- Sign up here for our daily Axios AI+ newsletter to keep tabs.
⚡ Launching Sept 12! Axios AI+Government: a special Friday edition of our AI+ newsletter, taking you inside ways governments nationwide are regulating, fostering & buying/deploying AI. Sign up here.
- And coming soon: AI+Energy, a weekly newsletter edition featuring our expanding energy team. Sign up here.
3. 💰 GOP midterm fear: rising prices
Republican operatives and lawmakers are increasingly anxious about how inflation could affect the GOP in the 2026 midterms — and want President Trump to take more aggressive steps to address rising prices, Axios' Alex Isenstadt writes.
- Why it matters: GOP insiders and lawmakers believe the cost of drugs and consumer items — and how the White House deals with tariffs that potentially turbocharge prices and even create shortages — will be key to whether the GOP keeps control of Congress next year.
🔎 Zoom in: Republicans on Capitol Hill and beyond praise Trump's recent focus on crime. But many are alarmed by internal polls and focus groups showing persistent — and increasing — concerns about prices.
- A conservative group aligned with congressional GOP leadership has been distributing polling data to Hill Republicans that shows 25% of voters view inflation as the most important issue facing the country.
- That's more than double the percentage of the second-ranked concern — government corruption — according to the polling by the GOP firm GrayHouse.
🗳️ Behind the scenes: GOP strategists are aggressively pushing the party's 2026 candidates to talk about inflation, which they worry hasn't been part of many candidates' messaging.
- They want candidates to describe the steps the party has taken to curb inflation — particularly Trump's "big, beautiful bill," which Republicans argue will ultimately lower consumer costs

🔮 What's next: Treasury Secretary Scott Bessent, promoting "no tax on tips" during a Labor Day swing of three D.C.-area diners, says he's preparing options for President Trump on improving housing affordability.
4. 🌡️ Mapped: Where fall is warming most

Average fall temperatures are rising almost universally nationwide, Axios' Alex Fitzpatrick writes.
- Between 1970 and 2024, average fall temperatures rose in 98% of the 243 cities analyzed in a new report from Climate Central, a climate research group.
🔬 Zoom in: Reno, Nev (+7.7°F); El Paso, Texas (+6.5°F) and Las Vegas (+6.2°F) saw the biggest increases over the covered period.
5. 🏛️ Nadler to end 34-year run

Rep. Jerry Nadler (D-N.Y.), one of the longest-serving Democrats in the House, said he plans to retire rather than seek reelection in 2026, Axios' Andrew Solender writes.
- Why it matters: It's a major announcement at a time when the Democratic base is growing restless about ousting lawmakers in their 70s and 80s.
Nadler, 78, has been a top target for those trying to take down older incumbents. He was pushed out as House Judiciary Committee ranking member last year, and faced a primary challenge from 26-year-old Liam Elkind.
- Nadler's announcement is sure to lead to a crowded field of Democrats seeking to replace him in his solidly Democratic, Manhattan-based seat.
In an interview with The New York Times, published last night, Nadler said the furor leading up to former President Biden's withdrawal from the 2024 election "really said something about the necessity for generational change in the party."
- Share this story ... Get Axios Hill Leaders, our nightly newsletter from the Capitol.
6. 🧬 RFK Jr.'s month of tests
After roiling the leadership of the CDC, Health Secretary Robert F. Kennedy Jr. is poised to make more moves this month that will test how much free rein he has within the administration, Axios Vitals author Maya Goldman writes.
- Why it matters: Republicans are counting on Kennedy and his MAHA base to deliver in the midterm elections. But his tactics and bulldozing of evidence-based public health policy could fray his support within the White House and Congress.
Kennedy said last week that he expects to deliver a report on the environmental causes of autism this month.
- His handpicked vaccine advisory committee is set to meet on the availability of COVID boosters on Sept. 18.
- Also expected: simplified dietary guidelines and a presidentially commissioned report on ways to reduce chronic disease in children.
💥 Reality check: Kennedy's CDC purge is prompting medical associations to ramp up more organized opposition.
- Some blue states are reportedly considering issuing different public health guidance from the Trump administration's, in a sign they're increasingly comfortable picking a high-profile fight with Kennedy.
On the Hill, Senate Health Committee Chair Bill Cassidy (R-La.) said last week that the leadership upheaval at CDC warrants more congressional oversight.
7. 🐂 Bull call: +50% by '27!


Bank of America says this bull market could rally another 52.5% by September 2027, Axios Markets author Madison Mills writes.
- Why it matters: It's an extremely bullish call after the market has already had 20 record highs this year.
8. 🎃 1 for the road: Starbucks record

Starbucks said yesterday it had its "best-ever sales week" across U.S. company-operated stores after launching its fall menu last week, Axios' Kelly Tyko writes.
- Why it matters: The record-setting week comes after six straight quarters of same-store sales declines, underscoring the stakes for CEO Brian Niccol's turnaround plan.
Niccol sent employees a Labor Day message thanking them for the record results.
- Tuesday, the day of the menu's launch, was the "strongest Tuesday sales day ever," Niccol said.
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