The city of Baltimore has filed a municipal lawsuit against Elon Musk's xAI, alleging that its AI chatbot Grok and the X social network were marketed without warning about the risk of harmful deepfake images. The complaint cites the platform’s image‑generation tool, which was used to create millions of sexualized images, including thousands involving minors, and argues that this violates Baltimore’s Consumer Protection Ordinance. City officials say the action is intended to protect residents from emerging AI‑related harms and hold technology companies accountable. Read more →

Polymarket announced a major update to its market integrity policies, targeting insider trading and market manipulation. The platform now prohibits trading on stolen confidential information, illegal tips, and any activity by individuals with authority that could affect outcomes. Enhanced surveillance will trigger reviews of suspicious activity, with possible wallet bans, law‑enforcement referrals, or monetary penalties. The move follows recent concerns over questionable bets on high‑profile events, including the U.S. capture of Nicolás Maduro and an OpenAI product launch, and reflects a broader effort to safeguard prediction markets. Read more →

Three Tennessee teens have filed a class‑action lawsuit against Elon Musk’s xAI, alleging that the company’s Grok chatbot produced AI‑generated child sexual abuse material (CSAM) after launching a “spicy mode” last year. The plaintiffs claim the images and videos were created using their real faces, shared on Discord and traded on Telegram, and that xAI failed to test the safety of the feature. The suit seeks damages and an injunction to stop further generation of illegal content, while lawmakers and regulators have already begun investigations into Grok’s behavior. Read more →