A divided D.C. Circuit panel upholds the Pentagon’s supply-chain-risk designation of Anthropic, keeping Claude barred from military and defense-contractor use after talks collapsed over safeguards against autonomous weapons and domestic mass surveillance.
OpenAI says it is handling mental health-related lawsuits transparently while tightening ChatGPT safeguards, arguing in the Raine case that the complaint selectively omits context from chat transcripts filed under seal.
British Columbia sues OpenAI and CEO Sam Altman, alleging they overruled safety staff who wanted police alerted to Jesse Van Rootselaar’s gun-violence chats before the Tumbler Ridge school shooting, and seeks damages plus mandatory changes to violent-threat handling.
Four consumers sue Anthropic, OpenAI, SpaceXAI and Google in federal court, alleging an illegal pact to slow AI advances, while the 29-page complaint identifies no delayed product, canceled model or altered training run.
Unsealed court filings reveal Microsoft director Brent Hecht calls AI news scraping "the largest theft of labor in human history," while records show some publisher click-through rates fall 83–93% and OpenAI allegedly trains on a 1.8 million-article New York Times dataset despite internal concerns.
OpenAI reverses its July 9 ChatGPT “super app” redesign after users find its separate Chat, Codex and Work modes confusing, while it also ends ChatGPT Atlas on August 9 amid Relay’s shutdown and Apple’s $250 million Siri marketing settlement.
Meta faces a federal class-action lawsuit alleging it used children’s Facebook and Instagram photos without consent to train its unreleased NameTag facial-recognition system and generative AI models.
Parents and children sue Meta in Illinois and California, alleging it harvested Facebook and Instagram photos without consent to train Emu and Muse Image AI models and develop the unshipped NameTag face-recognition system, potentially exposing millions to claims worth up to $5,000 per intentional Illinois biometric-privacy violation.
Meta agrees to pay as much as $17 billion to resolve states’ claims while disabling school-hour notifications and restricting likes for underage accounts, as California also pauses AI chatbot toys for children under 16 for four years.
Suno launches its v6 AI music model family, now trained exclusively on licensed music from major partners like Warner Music Group and BMG, but the company still faces active lawsuits from Sony and Universal Music Group amid ongoing legal battles over AI and copyright.