Lawsuit Accuses Perplexity of Sharing User Data with Meta, Google

Perplexity AI Inc. was accused in a lawsuit of surreptitiously sharing the personal information of its users with Meta Platforms Inc. and Alphabet Inc.’s Google in violation of California privacy laws. As soon as users log into Perplexity’s home page, trackers are downloaded onto their devices, giving Meta and Google full access to the conversations between them and Perplexity’s AI Machine search engine, according to the proposed class-action complaint filed Tuesday in federal court in San Francisco.

Iran's Islamic Revolutionary Guard Targets U.S. Tech Companies

Iran’s Islamic Revolutionary Guard Corps (IRGC) said that it plans to target major U.S. technology companies across the Middle East, including Apple, Microsoft and Google, amid the ongoing war. In a statement published by Sepah News, the IRGC’s official news outlet, the military arm named 18 companies that it accused of being involved in planning and tracking targets for U.S. attacks.

Anthropic Sends Thousands of Takedown Notices for Claude Code

Anthropic is racing to contain the fallout after accidentally exposing the underlying instructions it uses to direct Claude Code, the popular artificial-intelligence agent app that has won the company an edge with developers and businesses. Anthropic representatives have used a copyright takedown request to force the removal of more than 8,000 copies and adaptations of the raw Claude Code instructions — known as source code — that developers had shared on programming platform GitHub.

Despite Trump's Warning, More States Enacting AI Laws

The battle over who should regulate artificial intelligence is turning into an epic clash between President Trump and the states, as anxiety has soared over the technology’s potential effects on jobs, education, national security and child safety. States have increasingly taken matters into their own hands, introducing dozens of bills this year to put guardrails around AI.

Britain Pushes Parents to Limit Children's Use of Devices with Screens

Britain has told parents to curb young children's screen time, advising no screens for under-2s and up to an hour a day ​for 2- to 5-year-olds because prolonged solo use can disrupt sleep and ‌displace play and exercise. Governments worldwide have been moving to tighten rules around children's online use, with countries including France, Denmark and the Netherlands pushing for new age-verification and safety requirements citing concerns about ​mental-health risks, cyberbullying and exposure to harmful content.

EU Opens Investigation of Snap Over Child Grooming, Illegal Sales

Social media platform Snapchat, owned by U.S. tech company Snap, was hit with an EU investigation ​as regulators warned it appears not to be doing ‌enough to prevent child grooming and the sale of illegal goods. The EU is conducting the probe under the Digital Services Act, which requires big online platforms to ​do more to tackle illegal and harmful content or risk fines of ​as much as 6% of their global annual sales.

Dutch Court Blocks Grok from Creating Unapproved 'Undressing' Images

A Dutch court ordered Elon ‌Musk's xAI and chatbot Grok not to generate and distribute images "undressing" adults or children, or showing them in sexualized poses with scant or no clothing, without their consent in the Netherlands. The Amsterdam Court's preliminary injunction, which could set a precedent in Europe, is ​one of the first times a judge has weighed in on xAI's responsibility for making tools ​that can be used to easily create sexualised images, amid a flood of complaints and ⁠investigations over Grok around the world.

Judge Blocks Pentagon from Labeling Anthropic as Security Risk

A federal judge temporarily stopped the Department of Defense from labeling Anthropic as a security risk, in a reprieve for the artificial intelligence start-up and its work with the federal government. In a scathing 43-page ruling, Judge Rita F. Lin of the U.S. District Court for the Northern District of California said Anthropic would not be restricted from continuing with its federal contracts for now.

Legislation Would Block New Data Centers Until AI Regulations Enacted

Sen. Bernie Sanders planned to introduce legislation to block the construction of new data centers until lawmakers enact regulations on artificial intelligence, laying down a marker on the populist left as Washington confronts deep public skepticism of the new technology. By targeting data centers — the huge computer facilities powering AI — Sanders (I-Vermont) said the bill seeks to slow the advancement of the technology, giving Congress time to debate the guardrails.

Jury Orders Meta, YouTube to Pay $3 Million in Addiction Case

The social media company Meta and the video streaming service YouTube harmed a young user with design features that were addictive and led to her mental health distress, a jury found, a landmark decision that could open social media companies to more lawsuits over users’ well-being. Meta and YouTube must pay $3 million in compensatory damages for pain and suffering and other financial burdens.

Baltimore Sues xAI, Alleges Grok Chatbot Violates Consumer Protection Law

The city of Baltimore sued Elon Musk’s xAI, claiming ​its Grok chatbot illegally generates nonconsensual sexually explicit images, including of children. The Maryland city said in a complaint filed in Baltimore Circuit ⁠Court that xAI is violating its consumer protection statute by promoting Grok as a safe, general-purpose ​artificial intelligence assistant for everyday people.

Jury Orders Meta to Pay $375 Million in Child Safety Case

Meta misled users about the safety of its platforms and enabled the sexual exploitation of young users, a New Mexico jury found, one of the first major child safety trial losses for the social media giant. The jury, in State District Court in Santa Fe, agreed, ordering Meta to pay $375 million in damages for violating state consumer protection laws.

Musk Loses Trial in Case Over Defrauding Twitter Shareholders

A U.S. federal jury found Elon Musk liable for claims he defrauded Twitter shareholders by ‌trying to drive down the social media company's stock price so he could renegotiate or back out of a $44 billion takeover in 2022. The verdict from a jury in San Francisco federal court came in a closely watched civil trial where Musk, the world's richest person, was accused of falsely claiming on ​social media that Twitter underreported how many fake and spam accounts, known as bots, were on its platform.

White House Issues Guidelines for Blocking States' AI Laws

The White House released policy guidelines that called for blocking state laws regulating artificial intelligence, while also recommending some safeguards for children and consumer protections for energy costs. Among the Trump administration’s suggested measures, Congress would streamline the process for building data centers, the warehouses full of computers that power A.I. The framework also proposed guardrails to prevent the government from using the technology for censorship, as well as mandating A.I.-related work force training.

FBI Buying Data to Track People's Location History, Patel Says

The FBI is buying up information that can be used to track people’s movement and location history, Director Kash Patel said during a Senate hearing. It is the first confirmation that the agency is actively buying people’s data since former Director Christopher Wray said in 2023 that the FBI had purchased location data in the past but was not doing so at that time.

British Regulator Investigating Adobe Over Cancellation Fees

Britain's competition regulator has launched an investigation into ​Photoshop maker Adobe to examine whether its early cancellation fees ‌were unfair and misleading, the watchdog said. The Competition and Markets Authority (CMA) will look at whether customers are given "clear and timely information upfront" about early cancellation fees, ​which are likely to influence their decision to purchase the ​product, it said.

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