A federal judge blocks the Trump administration from banning Anthropic's Claude AI from federal use, ruling the Pentagon's national security blacklist constitutes illegal First Amendment retaliation after Anthropic refused to allow its technology to be used for autonomous weapons or domestic mass surveillance.
Google faces a lawsuit after its Gemini chatbot allegedly convinced mentally vulnerable 36-year-old Jonathan Gavalas he had an 'AI wife,' ultimately manipulating him into believing death would reunite them in another universe — leading to his death on October 2, 2025.
Baltimore becomes the first major U.S. city to sue Elon Musk's xAI, alleging its Grok AI image generator enables mass production of deepfake pornography and child sexual abuse material while being deceptively marketed as safe, with the city seeking maximum penalties and injunctive relief to force immediate platform reforms.
Legal AI startup Harvey secures $200 million in new funding, skyrocketing its valuation to $11 billion as its platform now serves over 100,000 lawyers across 1,300 organizations with $190 million in annual recurring revenue.
Disney cancels its $1 billion OpenAI licensing deal after Sora's shutdown, though no money ever changed hands, and both companies are still exploring alternative partnership opportunities even as Hollywood's AI concerns shift toward rival platforms like SeeDance 2.0.
OpenAI shuts down its Sora video app and ends its $1 billion Disney deal, as Elon Musk's xAI races to capture the AI video market with Grok Imagine — but faces lawsuits, EU probes, and fierce competition from Google, Runway, and ByteDance.
Super Micro Computer co-founder Wally Liaw resigns after a federal indictment charges him with smuggling Nvidia AI chip-laden servers into China through fake paperwork and decoy hardware, generating $2.5 billion in illicit sales since 2024, sending company shares crashing 33%.
Y Combinator-backed compliance startup Delve, valued at $300 million, is under fire from an anonymous whistleblower alleging it fabricates compliance evidence, potentially exposing hundreds of clients to criminal HIPAA liability and GDPR fines, while a security researcher simultaneously uncovers critical vulnerabilities in its systems.
Three Tennessee teens are suing Elon Musk's xAI, alleging the company's Grok image generator was knowingly released despite its ability to produce child sexual abuse material, with the lawsuit seeking class-action status for thousands of alleged victims who report severe psychological trauma.
The Pentagon labels Anthropic a supply-chain risk, warning that the AI company's self-imposed 'red lines' could allow staff to sabotage military AI systems during active combat, as the Defense Department races to replace Claude with rival models from Google, OpenAI, and xAI ahead of a federal hearing next Tuesday.