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.
The European Parliament votes to delay key EU AI Act deadlines by years while simultaneously pushing to ban nudify apps, as outrage over Grok-generated sexualized deepfakes on X forces lawmakers to act on AI-generated abuse.
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.
OpenAI shuts down its AI video tool Sora as Disney pulls a planned $1 billion investment and ends its licensing partnership, a major blow amid escalating Hollywood copyright battles targeting AI video platforms including Midjourney, Minimax, and ByteDance's Seedance 2.0.
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.
OpenAI is warning prospective IPO investors of major risks, including heavy Microsoft dependency, $665 billion in compute costs through 2030, and mounting legal battles — even as the company boasts a $730 billion valuation and $13.1 billion in 2025 revenue.
The White House releases a national AI framework seeking to block state-level regulations and limit federal oversight, outlining six congressional objectives including streamlined data center permits and IP protections, as critics warn the plan leaves citizens vulnerable to AI harms while supporters praise it as a pro-innovation breakthrough.