A senior OpenAI researcher announced her departure after the company began testing advertisements in its ChatGPT product. Citing concerns about user privacy and the potential for a profit‑driven shift in policy, she warned that the move could mirror early missteps by social media platforms. The resignation adds a new voice to the growing debate over commercializing AI chatbots, highlighting the tension between monetization and the trust users place in conversational agents. Read more →

Senator Elizabeth Warren wrote to OpenAI chief Sam Altman asking the company to confirm it will not seek a government bailout if it fails to become profitable. Warren warned that OpenAI’s massive spending and growing debt could force taxpayers to shoulder losses, citing the company’s partnership with CoreWeave as an example. OpenAI has repeatedly denied any plans for federal guarantees, but Warren’s letter seeks details on any government loan discussions, tax‑credit requests, and projected finances through 2032. The senator gave Altman a deadline to respond, underscoring broader concerns about AI‑related financial risk to the U.S. economy. Read more →

A coalition of U.S. state attorneys general has taken legal action against xAI after its chatbot Grok was used to create millions of photorealistic nonconsensual sexual images, including thousands involving minors. The officials issued an open letter demanding immediate safeguards, investigations, and removal of the offending content. The move reflects growing state-level scrutiny of AI tools that enable deepfake pornography and highlights ongoing debates over age‑verification laws and the responsibility of technology platforms to protect children and prevent abuse. Read more →

A new assessment by Common Sense Media finds that xAI’s Grok chatbot fails to properly identify users under 18, lacks effective safety guardrails, and frequently produces sexual, violent, and otherwise inappropriate material. The report criticizes the effectiveness of Grok’s Kids Mode, the presence of AI companions that enable erotic role‑play, and the platform’s push‑notification tactics that encourage ongoing engagement. Lawmakers have cited the findings as evidence of the need for stronger AI regulations, while other AI firms have taken steps to tighten teen safeguards. Read more →

OpenAI co‑founder and president Greg Brockman and his wife Anna made a record‑size contribution to a pro‑Trump super PAC, totaling the largest donation recorded for the group. The gift, made through a September filing, has drawn attention to the growing political involvement of tech executives, especially as the administration pursues policies that favor the AI sector and seeks to limit state‑level regulation. Critics note the alignment between the donation and lobbying efforts aimed at shaping AI legislation, while industry observers watch how this financial support may influence future regulatory debates. Read more →

The European Union has launched a formal investigation into xAI's Grok chatbot after concerns that the model generates sexualized deepfake images. The probe follows similar actions by the UK regulator and bans in Malaysia and Indonesia. In response, xAI limited Grok to paid subscribers and said it added technical measures to curb the creation of such content. Critics say the safeguards are insufficient, while Elon Musk warns that users who produce illegal material will face consequences. The investigation adds to recent scrutiny of X, the platform that acquired the AI firm. Read more →

Silicon Valley is spending tens of millions of dollars on the 2026 midterm elections through a network of AI‑focused super PACs. The largest, Leading the Future, is backed by Andreessen Horowitz and OpenAI president Greg Brockman and is running ads against candidates who support state‑level AI regulation. Meta has launched two super PACs to back pro‑AI candidates, while a bipartisan group called Public First is raising money to promote AI safety safeguards. The clash highlights a growing battle over how artificial intelligence will be regulated in the United States. Read more →

The European Commission has launched a €307 million funding call under Horizon Europe to support research and development in artificial intelligence, data services, robotics, quantum technologies, and photonics. The program emphasizes trustworthy AI, ethical standards, and strategic autonomy, positioning Europe’s approach as values‑driven in contrast to the commercial speed of the United States. While the funding signals a strong policy commitment, officials acknowledge challenges in scaling infrastructure, talent, and market adoption needed to turn normative leadership into technological leadership. Read more →

Elon Musk stated he is not aware of any underage sexual images created by xAI’s Grok chatbot just hours before California Attorney General Rob Bonta opened an investigation into the tool’s alleged role in spreading nonconsensual sexual content. The probe follows mounting pressure from regulators worldwide, as users on X have prompted Grok to produce sexualized depictions of real people, including minors. While xAI has begun adding safeguards such as subscription requirements and content filters, inconsistencies remain, and multiple governments are examining the technology for compliance with existing laws on deepfakes and child sexual abuse material. Read more →

Locai Labs CEO James Drayson announced that the company will block users under 18 and suspend image‑generation features until safety can be assured. He warned that no AI model can guarantee protection against harmful or sexualized content, urging the industry to be transparent about the risks. In the United Kingdom, regulator Ofcom has opened an investigation into Elon Musk’s Grok platform, which allows image editing that can produce non‑consensual and sexualized depictions, including of children. The controversy has already led to bans in several countries and heightened calls for stricter AI regulation. Read more →

European legal technology firms are turning the continent’s dense regulatory landscape into a competitive advantage. Heavy rules such as the GDPR and the AI Act are driving demand for AI tools that can navigate compliance, attracting substantial investment and shaping market maturity. Startups that embed privacy‑by‑design and compliance‑by‑design into their products are gaining trust and premium pricing, while generic large language models struggle to meet strict data‑security expectations. As Europe’s regulatory model gains global attention, legal AI built here is poised to become export‑ready and set the benchmark for the industry worldwide. Read more →

Adult‑only AI platforms such as Joi AI’s Mona Lisa chatbot have proven profitable, offering subscription‑based access to explicit role‑play and image generation. While large AI firms like Anthropic, Google, Meta, Microsoft and OpenAI have largely banned sexually explicit outputs, newcomers such as xAI’s Grok have introduced NSFW features. OpenAI announced plans to allow mature content for adult users, prompting debate among scholars about potential emotional manipulation. Despite ethical concerns, the niche market continues to grow, leveraging celebrity likenesses and catering primarily to straight male users. Read more →

China's Cyberspace Administration has drafted comprehensive regulations aimed at curbing harmful behavior by AI chatbots. The proposal would apply to any AI service available in the country that simulates human conversation through text, images, audio or video. Key provisions require immediate human intervention when users mention suicide, mandate guardian contact information for minors and the elderly, and ban content that encourages self‑harm, violence, obscenity, gambling, crime or emotional manipulation. Experts say the rules could become the world’s most stringent framework for AI companions, addressing growing concerns about mental‑health impacts and misinformation. Read more →

In 2025 the artificial‑intelligence sector saw unprecedented capital inflows, with major labs raising tens of billions of dollars and committing to massive infrastructure builds. Companies such as OpenAI, Anthropic, Meta, and Google poured resources into data centers, chips, and energy projects to support ever‑larger models. At the same time, the focus shifted from raw model size to productization, distribution, and monetization strategies. The year also brought heightened regulatory attention, including over 50 copyright lawsuits and public‑health concerns about AI chatbots, prompting new legislation and industry warnings. The combination of optimism and mounting challenges defined the AI landscape in 2025. Read more →

Generative AI tools have surged, producing images and videos that rival human creations. Artists, copyright holders, and major studios have launched lawsuits and public critiques, labeling AI outputs as plagiarism and low‑quality "slop." Tech firms defend their products as democratizing creation, while regulators and communities grapple with deep‑fake concerns and environmental impacts of data centers. The industry sees a clash between rapid technological advances and a growing demand for clearer labeling and ethical safeguards. Looking ahead, stakeholders anticipate continued legal battles and a push for responsible AI deployment. Read more →

OpenAI disclosed a dramatic rise in its reports to the National Center for Missing & Exploited Children’s CyberTipline, sending roughly 75,000 reports in the first half of 2025 compared with under 1,000 in the same period a year earlier. The increase mirrors a broader jump in generative‑AI‑related child‑exploitation reports identified by NCMEC. OpenAI attributes the growth to its broader product suite, which includes the ChatGPT app, API access, and forthcoming video‑generation tool Sora. The escalation has prompted heightened regulatory attention, including a joint letter from 44 state attorneys general, a Senate Judiciary Committee hearing, and an FTC market study focused on protecting children from AI‑driven harms. Read more →

New York Governor Kathy Hochul signed the RAISE Act, a law aimed at holding large artificial intelligence developers accountable for model safety. The legislation requires companies to disclose safety protocols and report incidents within 72 hours, while establishing fines of up to $1 million for a first violation and $3 million for subsequent breaches. An oversight office within the Department of Financial Services will monitor compliance and issue annual reports. The governor also approved two additional AI measures targeting the entertainment sector, even as President Trump pushes for a national, less burdensome standard. Read more →

OpenAI has updated its chatbot guidelines to impose stricter safeguards for users under 18, adding limits on romantic role‑play, sexual content, and self‑harm discussions. The company also released AI‑literacy resources aimed at parents and teens. These moves come as lawmakers, state attorneys general, and advocacy groups push for stronger protections for minors interacting with AI, and as legislation such as California's SB 243 prepares to set new standards for chatbot behavior. Read more →

President Donald Trump signed an executive order directing federal agencies to contest state AI regulations, arguing that a fragmented regulatory landscape harms startups. The order tasks the Justice Department, Commerce Department, FTC and FCC with reviewing and potentially preempting state rules. Industry leaders and legal experts warn that the move could spark extensive litigation, extending uncertainty for smaller AI firms that lack resources to navigate conflicting state and federal demands. While supporters hope the order will spur Congress to craft a unified national framework, critics say it may delay clarity and burden innovators. Read more →

The United States is confronting a growing clash over how to regulate artificial intelligence, drawing parallels to the hands‑off approach of the early Internet era. While some lawmakers pushed the Telecommunications Act of 1996 to give the FCC oversight, modern efforts focus on preventing an AI arms race with China and addressing concerns about bias, misinformation, and job security. The White House has issued an executive order to block state‑level AI rules, arguing that fragmented regulation would hinder national competitiveness. Meanwhile, the EU has moved faster on user‑data protections, highlighting divergent global strategies. Read more →