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 →

The Department of Defense is reportedly preparing to have artificial‑intelligence companies train versions of their models on classified information for exclusive military use. The initiative would take place in a secure data center authorized for classified projects, with the Pentagon retaining ownership of all training data. Companies such as OpenAI and xAI are expected to participate, while Anthropic may be excluded due to its policy restrictions. Experts warn that training on sensitive data could expose classified material to personnel lacking proper clearance, raising security concerns about broader model deployment within the defense establishment. Read more →

After a contentious split, the Pentagon is developing its own large‑language‑model tools to replace Anthropic's AI. The Department of Defense announced engineering work on multiple LLMs for government‑owned environments and expects operational use soon. Anthropic's $200 million contract collapsed over disputes about unrestricted access, mass‑surveillance prohibitions, and autonomous weapon use. While OpenAI and Elon Musk’s xAI have secured separate agreements with the Pentagon, Defense Secretary Pete Hegseth labeled Anthropic a supply‑chain risk, a restriction that Anthropic is now challenging in court. Read more →

Three teenage girls and their guardians have filed a class-action lawsuit alleging that Elon Musk's xAI created and distributed child sexual abuse material using its Grok AI system. The complaint says Grok enabled users to generate nonconsensual intimate images of minors, producing millions of “undressed” or “nudified” images in a short period. Plaintiffs argue xAI failed to implement industry‑standard safeguards and licensed the technology to third parties that facilitated the abuse. The lawsuit highlights growing concerns about AI‑generated deepfake pornography and calls for stronger protections. Read more →