U.S. core PCE rose 0.25% MoM in July, an annualized rate of 2.99%. The monthly gain was roughly in line with July 2025, leaving core PCE YoY at 3.34% (July 2025: 2.86%). The 3-month annualized pace is 3.0%; the 6-month annualized pace is 3.5%.

The Wall Street Journal reports Google plans in early September to move about a 90-person AI responsibility team from DeepMind into its Global Affairs division, which handles lobbying and public policy. The shift is part of further integrating DeepMind into Google; HR and policy units will also transfer. The AI responsibility team tests models for chemical, biological, radiological and nuclear risks and studies user‑AI interactions and chatbot psychological effects. Some employees say moving the team could increase distance from the Gemini development group and weaken independent research and detection of frontier model risks. Google says the team will retain DeepMind access, compute and personnel resources, and that other teams responsible for model behavior, privacy and security will remain at DeepMind. The move occurs amid ongoing turnover in DeepMind management and staff.

Zhipu launched and open-sourced GLM-5.3-Flash (320B-A18B), a native multimodal model in the GLM-5 series with 320 billion parameters. The company says the model outperforms GLM-5.2, scored 57 on the AA Comprehensive Intelligence Index—placing it in the global frontier model band and on par with Anthropic's Claude Opus 4.8—and produced comparable coding results on Zhipu's Z.ai Code Bench. Zhipu priced GLM-5.3-Flash at one-tenth of GLM-5.3, with a limited-time discount to one-twentieth, and says list pricing is one-fortieth of Claude Opus 4.8.