Sir Demis suggests that the new agency should focus on the labs making the most capable AI models (which includes his own). Earlier proposals from America and the European Union looked to the amount of computing power used to train a model as a rough guide for when oversight was required. Sir Demis instead suggests designating AI models as “frontier” if they meet certain thresholds across a selected set of benchmarks. The creators of those models would then be designated as “frontier labs”, placing extra responsibilities on them. Sir Demis is proud of the “elegant” way that approach sidesteps the question of whether academic or open-source models should be included or not. What matters is their capabilities. Selecting the right benchmarks would be an important function of the new agency. Existing tests of AI models focus largely on commercial capabilities, including software coding and general knowledge. Some organisations have gone further: Britain’s AI Security Institute, for example, has developed a well-regarded test for hacking capabilities which simulates breaking into a power station. But other characteristics, such as how willing a model is to ignore a user’s instructions or pretend to be less capable than it is, are rarely examined in a systematic way that could be used to set a safety threshold. Securing support from within the increasingly fractious AI community will not be easy, though the areas in common with Mr Altman’s proposal suggest it is not impossible. The American government also appears to have been listening, and is said to be close to unveiling its preferred approach. Then will come the hard part. “No proposal would be immune to being executed poorly,” Sir Demis admits. “There are obviously versions of this that could be not very useful.” Yet the Nobel laureate argues that urgent action is required. “Time is short, the hour is late,” he says. “We’ve seen the cyber threat; there’s much more serious threats coming down the line. Something has to be done: this is the time.” ■ To track the trends shaping commerce, industry and technology, sign up to “The Bottom Line”, our weekly subscriber-only newsletter on global business.
This article was downloaded by zlibrary from https://www.economist.com//business/2026/07/14/demis-hassabis-has-a-plan-to- harness-ai-safely
How high can Red Bull fly? The world’s most formidable marketing machine faces growing threats July 16th 2026 CAn Red Bull give die Mannschaft wiiings? After Germany was bundled out of the World Cup on June 29th the national football federation turned to Jürgen Klopp to take charge of the team. The celebrated coach—who has agreed in principle to take the job—is currently the Austrian company’s “global head of soccer”, overseeing eight clubs around the world. Over the decades the world’s leading maker of energy drinks has come to play an outsize role in all manner of sports, from football to Formula One. It is a marketing strategy that Dietrich Mateschitz, Red Bull’s founder, pursued with gusto. Mateschitz adapted his drink in the 1980s from Krating Daeng, a Thai energy tonic. (The Yoovidhya family, its creator’s heirs, own 51% of Red Bull.) The Austrian proved to have a rare talent for marketing. “Red
Bull verleiht Flüüügel” (”Red Bull gives you wiiings”) was his idea. So was sponsoring Felix Baumgartner, an Austrian skydiver who in 2012 jumped to Earth from a helium balloon in the stratosphere. When Mateschitz died in 2022, some thought Red Bull would fall as quickly as it had risen. He had no clear successor: a three-man board, all of whom keep a low profile, took over management. (Mateschitz’s son Mark inherited his 49% stake, but has no operative role.) Yet Red Bull has continued to fly. Last year it sold 14bn cans, up by 10% from 2024. It has 28% of the global market, well ahead of Monster, its main rival, with 17%. It has stayed aloft mainly by sticking to Mateschitz’s strategy. Even so, threats from regulators and new competitors loom. The triumvirate that now runs Red Bull has kept to the pricier end of the market. A standard 250ml can costs around $2.40 at Walmart, America’s biggest supermarket. The company still outsources manufacturing to long- term business partners: Rauch Fruchtsäfte, another Austrian firm, mixes and cans the drinks; America’s Ball Corporation supplies the aluminium cans. This has helped Red Bull stay debt-free. Red Bull continues to spend around 30% of sales on marketing—more than €3bn ($3.4bn) last year. Coca-Cola, the world leader in soft drinks, spends around 10% and Monster 7.5%. It eschews conventional advertising, instead making its own content through Red Bull Media House, Austria’s biggest media company after ORF, the state broadcaster. It encompasses a TV network, film and TV studios, a record label and several magazines. Not everybody is a fan. Some criticise its sponsorship of extreme sports. Almost two dozen athletes have died while performing its stunts. Last year the European Commission began investigating whether Red Bull had broken EU competition rules by using its dominant position to press retailers to stop selling rivals’ wares or to place them unfavourably. Another line of criticism concerns the side-effects of its signature product, which contains caffeine, taurine and sugar. The company says that “health authorities around the world have concluded that Red Bull is safe to consume,” and points out that a 250ml can contains the same amount of
caffeine as a cup of home-brewed coffee. But studies show that, even in moderate amounts, it is harmful for children, as it increases heart rate and blood pressure. The American Academy of Paediatrics and the Food and Drug Administration recommend that children should avoid energy drinks. Latvia, Lithuania and Poland are among the countries that ban their sale to under-18s. Britain is mulling doing so for under-16s. For its part, Red Bull notes that energy drinks “are not recommended for children”, and that it does not market its products to them. New competitors are eager to position themselves as a healthier alternative. Celsius, an American brand, contains no added sugar and far fewer calories than Red Bull (but more than twice the caffeine). Known to some as “Red Bull for women”, it has become the number three energy drink in America, after Red Bull and Monster. For now, Red Bull remains on top. When Mateschitz originally adapted Krating Daeng to European palates, experts told him that no one would want it. He ignored them, charged a premium price for the concoction and built a market for it based largely on its adventurous image. You might call it gravity-defying. ■ To track the trends shaping commerce, industry and technology, sign up to “The Bottom Line”, our weekly subscriber-only newsletter on global business. This article was downloaded by zlibrary from https://www.economist.com//business/2026/07/13/how-high-can-red-bull-fly
How to sell a kettle Brand positioning reaches boiling point July 16th 2026 You asked me to develop ideas for a new brand strategy. As a reminder, this is the messaging that we use at the moment: “If you want to boil water, you need a kettle. If you need a kettle, you want the Brewmaster. The fast, reliable and affordable way to make the perfect drink.” The positioning is practical, price-conscious and successful. But it is also unexciting. If we want to grow, we need to take a higher share of mind with a different sort of consumer. I have put some sample copy for each positioning strategy below, and taken the liberty of adapting the product name and stressing planned new features where that feels appropriate. I look forward to hearing your comments when we meet in a couple of weeks.
Luxury. Water is the wellspring of life, the faint promise of evolution, the pulsing aquifer of quintessence. Water is the bringer of dreams, fragile and precious. Water is the mark of organisms taking shape, of mighty civilisations marching through the centuries, of the search for habitable planets in distant galaxies. And here on Earth, water is the source of profound moments of human connection. The Eau Chaud is an idea more than it is an object. You never own a kettle. You merely look after it until the next conversation. Premium, design-led. You would know it by its silhouette alone. The unmistakable spout-and-handle shape of the Kettöl adds lustre to every kitchen. Its muted tones ensure that it blends with every aesthetic choice. The mid-century-inspired design features a classic plug and cable, which connects to a perfectly rounded base station. Brushed steel surrounds a transparent water indicator with stylised pictures of cups, so you always know how full the Kettöl is. A warm blue light tells you that the kettle is on, as does the gently immersive sound of boiling. Once the kettle has boiled, it can be lifted from the base station by using a laminated blond-wood handle and taken directly to your waiting cups. And so on. For early adopters. The KetGPT takes the kettle into the agentic era. At the front door and fancy a cup of tea? Just woken up and desperate for your first coffee? Get out your phone, fire up the KetGPT app, enter your login details and tell your kettle to start boiling. That’s not all. You can ask your kettle how the boiling process is going in text or voice mode, and it will reply. It will even send a notification to your phone when the boiling process is complete. You set the task. The KetGPT will take it from there, entirely autonomously. (Token costs not included.) Environmental. Introducing the Keco—for people who care. Our latest kettle is designed to retain heat, meaning that water is still tepid four hours after it has boiled. It runs on electricity. It can be recycled. A kettle should warm water, not the planet. (No children are involved in manufacturing of the Keco.) Gen Z. Enjoy some coastal grandma and eclectic grandpa core with the new Vintage kettle. For content creators who crave cosy-cottage vibes. [If we go