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🌤️ Today's weather: Mostly sunny, high near 81.

🎧 Sounds like: "The Git Up," by Blanco Brown.

🎂 Happy early birthday to our members Samuel Donaldson, Steven Morgan and Dennis Rhodes!

🍽️ You're invited: Pittsburgh is full of interesting people you haven't met yet. Meet five of them over dinner at Axios Social Club on Oct. 6. Save your seat today.

Today's newsletter is 993 words, a 3.5-minute read.

Locals often say Pittsburgh shouldn't be like Boston or San Francisco, and the region's tech industry leaders are starting to agree.

Why it matters: Pittsburgh's tech sector has been trying to grow beyond being a secondary player to places like Silicon Valley, but some local companies believe avoiding emulating those markets will pay off down the road.

Driving the news: It's StartUP PGH Week, and Carnegie Mellon University is hosting events bringing together CEOs, leaders and scholars in tech fields.

What they're saying: CMU computer science professor Howie Choset said Tuesday that Pittsburgh's size fosters an ideal exchange between founders, investors and public officials that encourages innovation.

• "If the Pittsburgh entrepreneurial ecosystem would double in size, it would lose its edge," he said.

Yes, but: CMU vice president for research Theresa Mayer says the number of deep-tech startups is increasing and the growth is coming regardless.

• "This is Pittsburgh's moment to attract investment, scale companies and lead the next era of technology-driven growth."

Zoom in: Robotics Institute professor Deva Ramanan said Pittsburgh is setting itself as a hub for new companies looking to build tech in the physical space, like robotics, rather than competing with software hubs like Silicon Valley.

• Agility Robotics co-founder Damion Shelton agrees.
• "Pittsburgh's long-recognized leadership in robotics, AI, and health care make it well positioned to attract world-class companies and founders," Shelton tells Axios.

Case in point: Ramanan is also part of Octant Systems, a startup using AI to run world-building simulators for companies, and that company has a presence in Pittsburgh and New York City.

• CEO Francis Williams tells Axios that model is beneficial for raising funds and working more closely with companies like Gecko Robotics, one of Pittsburgh's unicorns.

Zoom out: The region now has 11 unicorns — startups valued at more than $1 billion — up from seven last summer, according to Innovate PGH.

By the numbers: There are over 700 startups in the region, according to Allegheny County's Department of Economic Development.

• Over 500 are venture-backed.

What we're watching: Zach Malone of Magarac Venture Partners, a Bakery Square-based venture capital firm, said Pittsburgh's tech scene is changing rapidly and he expects it to reach its full potential in three years.

Go deeper

"I want to be clear: I am not a doomer. I don't think it is inevitable that AI is going to take over the world or that someone will misuse it to kill us or to do harm. But I do have real concerns, as do many Pennsylvanians and many Americans."

Why it matters: Shapiro has gone from promoting AI to enacting state regulations against it, as public opinion has turned against data centers and some AI companies are sounding the alarm on their own tech.

Zoom in: Shapiro said Congress should require AI companies to have independent third-party oversight, increase their transparency and prioritize safety.

• He criticized House Speaker Mike Johnson for failing to address the AI issue and adjourning the House early.
• He said blaming China for souring American AI sentiment, as Republicans including Sen. Dave McCormick have done, is reductive.

Keep reading

🍼 The Allegheny County Board of Health introduced a scaled-back paid parental leave proposal Wednesday night after months of public debate. The revised plan would require businesses with 15 or more employees to provide 12 weeks of paid leave, down from 18.

• Workers would need six months on the job to qualify. Part-time employees would need to log 625 hours.
• Employers would have the option to self-insure or buy private coverage to provide the benefit and would have six months to comply after it becomes law.
• The Allegheny Conference, a business group, still opposes the proposal, saying the county should use a state-level, insurance-based funding model instead of a business mandate. (BOH / TribLive)

🔌 Duquesne Light hosted U.S. Department of Energy leaders on Wednesday to showcase grid resilience projects funded by a $20 million federal grant matched by the utility in 2023.

• Upgrades include real-time sensors to better track transmission line condition and thousands of smart meters starting in October to detect grid issues faster. (Press release)

Pennsylvanians are still tapping the tip button, even as "tip fatigue" has many Americans debating gratuity culture.

The big picture: Delaware, West Virginia and New Hampshire are still home to America's top tippers, with diners leaving around 21% on average, per new Toast data shared first with Axios.

Zoom in: Pennsylvania diners leave nearly 20% on average, above the national rate.

Between the lines: Average tips haven't changed much over the past two years.

• Some U.S. restaurants are now ditching gratuities altogether in favor of higher menu prices and wages.

By the numbers: Nationwide, diners tipped roughly 19% on average across all restaurant types in Q2 2026 — essentially the same as in Q1, per Toast's latest tipping trends report.

• Tips at full-service restaurants also held steady around 19%, while fast food tips remained near 16%.
• Takeout tips hovered around 14%.

🗣️Do you have any hard and fast rules for tipping? Reply to this email to give us the scoop!

The bottom line

🥭 Chrissy had the most refreshing mango marg of her life at Top Pot on the South Side. She always tips 20% when dining in.

💵 Ryan tips a dollar per beer at the bar.

Thanks to Chloe Gonzales for editing this newsletter.