--:-- At Constellation, we bring the energy, powering America's growing economy every minute, every day. As the nation's largest producer of clean and reliable American-made energy, Constellation is wherever you are. Republican lawmakers take aim at safety requirements that they say will make cars too expensive. Plus, many tech stocks are down this month, but Alphabet's just keeps rising. They're really the only company that has what you might call a vertically integrated model here. Having their own AI, their own cloud network, and even their own silicon kind of makes them a very unique business model in AI right now. And why a maker of popular chatbots is cutting teens off. It's Tuesday, November 25th. I'm Alex Osula for The Wall Street Journal. This is the PM edition of What's News, the top headlines and business stories that move the world today. We're exclusively reporting that Senate Republicans plan to challenge safety requirements for cars at a hearing next month. People familiar with the situation say Republicans are aiming at automatic emergency braking and alarms that remind drivers that a child is in the back seat because they think they're not effective and make cars more expensive. But vehicle safety advocates say such mandates save lives and don't go far enough. CEOs of the three Detroit automakers and a Tesla executive were asked to testify at a January hearing on why cars have gotten so expensive. General Motors and Ford spokespeople say the car companies are weighing whether to send their CEOs to the hearing. Jeep maker Stellantis declined to comment. It's been a brutal month for tech stocks, especially those associated with the artificial intelligence boom. Since the Nasdaq peaked on October 29th, the stock price of Microsoft, Oracle, NVIDIA, and Meta platforms have seen double-digit declines. But Google parent Alphabet is soaring, up nearly 18% in the same period, even though the company isn't exactly sitting on the sidelines of the AI race. For more on why Google's stock is defying fears of an AI bubble, I'm joined now by WSJ Heard-on-the-Street columnist Dan Gallagher. Dan, you write that one reason Alphabet is pushing higher is that Google's core business outside of AI, that is search, is going strong. But that's also true of Microsoft's core business, right? But its shares have dropped. So what makes Google special here? Google just has a lot of things going in its favor right now. It got its own internal AI that doing well that Microsoft doesn have because Microsoft still depends a lot on open AI for that element Google has actually been designing its own silicon its own chips a little bit like NVIDIA which gives a competitive element there All these worries about the sustainability of AI and AI spending don't seem as serious for them. So if a company like OpenAI struggles, that has major implications for Microsoft and NVIDIA and these other companies. But OpenAI struggling is actually good for Google. They're really the only company that has what you might call a vertically integrated model here. Having their own AI, their own cloud network, and even their own silicon kind of makes them a very unique business model in AI right now. So one place where we've seen that play out is with Google's recent launch of Gemini 3, which it trained on its own networks using its own chips. How is this vertical integration, as you say, helping Google compete with ChatGPT, which of course is from OpenAI? Gemini 3 is getting a lot of rave reviews and it did well in these benchmark tests where people are talking about it seems to be actually better than what ChatGPT offers right now. But Google also, because they have search, they can get their AI in front of so many people. Almost any time you do a Google search, you're probably going to get some AI results fed to you through Gemini. There's lots of ways Google can kind of push its AI in front of people, which gives it a strong advantage, even over ChatGPT, which kind of has this first mover advantage. going on. That was WSJ Heard on the Street columnist Dan Gallagher. Thanks so much, Dan. Thanks for having me. And Alphabet's stock rose one and a half percent, pushing it closer to a $4 trillion valuation. It closed just under that at $3.9 trillion. Major U.S. indexes also closed higher. The Dow added 1.4 percent, the S&P 500 was up 0.9 percent, and the Nasdaq gained 0.7 percent. U.S. officials say Ukraine told the Trump administration it would sign a peace deal ending the war with Russia that was put together by the U.S. But diplomatic hurdles remain. Ukraine's National Security Advisor says Ukrainian President Volodymyr Zelensky hopes to meet with President Trump to negotiate final points in the coming days. Officials say crucial issues such as Ukraine giving up territory and whether it can join NATO are left for the two presidents to hash out. U.S. officials say they expect a positive response from the Russian government. But more meetings between Washington and Moscow may be required. Coming up, why mental health concerns have led an AI company to put an age limit on users of its chatbots. That's after the break. Energy infrastructure and technology will require up to trillion to modernize and meet demand. Long-term growth demands long-duration capital. That's where Apollo leads, partnering with companies today to power what's next. Learn more at Apollo.com slash Renaissance. Character AI is one of the top makers of chatbots that act as companions, with 20 million monthly users. But the company this week cut users under 18 off from its chatbots because of mental health concerns. For more on why the company made this decision and how teens are responding, I'm joined now by WSJ tech reporter Georgia Wells. Georgia, how did the company come to this decision? How did it get here? It's been a long process for the company. About a year ago, they were doing some thinking and decided to create an entirely separate experience for under 18 users. So this was like a different AI model. But in the months after that, executives observed that their chatbots in long conversations are less likely to adhere to safety guidelines. And even when the safety guidelines functioned perfectly, they realized that teens sometimes use them in problematic ways. And so teens would maybe like try to chat about violence or other topics that were restricted. And so by mid-September, company leaders just came to the decision that they were going to cut off teenagers. And were there any sort of impetuses for this decision? Did something happen to make it happen now? Character AI is facing questions from parents, regulators, and mental health professionals about what should be the role of this technology in young people's lives. But additionally, they're also facing lawsuits from the parents of teens who have killed themselves after using the chatbots. And how have teen users responded to this policy change from character AI? Teens are sad. They're really sad. So I spoke with a lot of teenagers this week, and a lot of them view this as almost a breakup. Many of them have become so invested with these characters that the idea of losing them is just, it's really, really upsetting for a lot of the teens I've spoken to. What do mental health experts think about that kind of reaction from teens? So mental health experts see this reaction as evidence of the risks of the technology. That that teen struggles so much to put the tech aside is one of the big questions they have about ways this technology could be problematic in the lives of some of these teens. So Character AI made this decision. What does this mean for its business prospects I don think we know what going to happen Long term though character AI is quite optimistic that their future lies more in kind of video and audio type AI That isn't the extensive back and forth that they think down the road they could welcome teens back to. Their view is that the back and forth is when teens are really getting sucked in in a way that could be really dangerous for some. How are other chatbot makers dealing with issues like mental health for their users? Character.ai is really one of the early companies right now to be kind of tackling this head-on with a user ban. These questions are not going away. I fully expect other companies to be having to ponder certain decisions, even if they don't make the same decision. But Character.ai, this is a rare move to see in the tech industry for a company to just cut off a vein of engagement. That was WSJ reporter Georgia Wells. Thank you, Georgia. Thank you. being the only thief to remain at large after stealing the nation's crown jewels. Investigators now believe they've tracked down the entire crew of thieves, but have given no sign they are any closer to finding the jewels. Before we go, heads up that we made a correction to yesterday's show. A new report said the share of movies that included tobacco products last year was 10 percentage points higher than in 2023. Yesterday's podcast incorrectly said it was 10 percent higher. And that's what's news for this Tuesday afternoon. Today's show is produced by Pierre Bien-Aimé with supervising producer Tali Arbel. I'm Alex Oseleff for The Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening. Time is your most important asset, and AI is transforming the speed of business. 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