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.
The White House unveils a National AI Policy Framework aiming to override state AI laws with federal oversight, targeting risks like child safety and AI scams, but critics warn of internal contradictions that could undermine its effectiveness and raise doubts about Washington's ability to build the bipartisan consensus needed for …
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.
EU lawmakers are pushing to ban AI-generated explicit images without consent as part of a landmark AI Act vote set for March 26, while also proposing to delay high-risk AI system rules until December 2026.
Encyclopedia Britannica and Merriam-Webster are suing OpenAI for allegedly scraping nearly 100,000 articles without authorization to train its AI models, while also accusing the company of trademark violations and revenue harm through AI-generated responses that replace their original content.
ByteDance halts the global launch of its AI video tool Seedance 2.0 after Hollywood studios, including Disney, fire off cease-and-desist letters over viral AI-generated clips depicting celebrities like Tom Cruise and Brad Pitt, forcing the TikTok parent company to overhaul its intellectual property safeguards before proceeding.