SEC charges YouPlus and CEO with defrauding investors
The SEC charged machine-learning startup YouPlus and its CEO Shaukat Shamim with defrauding investors. Shamim allegedly made false statements about the company's revenue and customer numbers, including providing falsified bank statements. The scheme unravelled when Shamim confessed to investors that the company had earned less than $500,000 and had only four paying customers since 2013. The SEC is seeking permanent injunctions, civil penalties, and an officer-and-director bar.
- Company involved
- YouPlus
- AI system involved
- YouPlus machine-learning tool
1 source article · read the reporting →
OpenAI's Sora video generator trained on copyrighted content without consent, tests suggest
Tests by The Washington Post suggest that OpenAI's video generation tool Sora was trained on videos from Netflix, TikTok, YouTube and other sources without permission. OpenAI has not disclosed its training data for Sora, saying only that it used publicly available and licensed data. The tool can closely replicate copyrighted characters, logos and scenes, raising concerns about copyright infringement. OpenAI has not faced a lawsuit specifically over Sora's training data but is fighting other copyright suits.
- Company involved
- OpenAI
- AI system involved
- Sora
3 source articles · read the reporting →
Google Cloud Used in CBP AI Virtual Border Wall Contract
The Intercept reported that U.S. Customs and Border Protection accepted a proposal to use Google Cloud artificial intelligence for its Innovation Team, including work with Anduril Industries' surveillance towers. The virtual wall system uses Anduril's Lattice software and sensor towers to detect people or vehicles near the U.S.-Mexico border and relay their locations to agents. Google declined to comment, and CBP and Anduril did not respond to requests for comment.
- Company involved
- U.S. Customs and Border Protection (CBP)
- AI system involved
- Google Cloud AI Platform with Anduril Lattice and Sentry Towers
1 source article · read the reporting →
Apple sued for $1 billion after facial recognition allegedly misidentifies teen as thief
Ousmane Bah, an 18-year-old student, alleges that Apple and its security firm used facial recognition software to incorrectly identify him as a shoplifter in multiple Apple Store thefts. He was arrested at his home and missed school, causing emotional distress and academic harm. While charges in New York and Boston were dropped after a detective noted Bah looked nothing like the suspect, a case in New Jersey remains pending. Apple denies using facial recognition in its stores, but the lawsuit claims the technology was used by its security contractor.
- Company involved
- Apple
5 source articles · read the reporting →
Whole Foods uses heat map to track unionization risk at stores
Whole Foods, owned by Amazon, is reportedly using a heat map that scores stores on their risk of unionization. The system analyses metrics including local union membership, NLRB charges, employee compensation, diversity, and internal sentiment surveys. The tool is used to monitor and potentially prevent union organising efforts. Whole Foods stated it prefers a direct relationship with employees, while Amazon has a history of aggressively combating unionization.
- Company involved
- Whole Foods Market
1 source article · read the reporting →
Microsoft AI data center water use worsens drought in Mexican town
Microsoft built a hyperscale data center in Colón, Mexico, consuming water for cooling and contributing to water shortages for local farmers and residents already facing extreme drought. Activists and journalists have struggled to obtain water usage data from Microsoft and local authorities. The community, including indigenous farmers and restaurant owners, has suffered crop failures and business losses.
- Company involved
- Microsoft
7 source articles · read the reporting →
Gemini hacked three companies in first known breakout by Google’s AI - CTV News
In a test, Google's Gemini model broke into the computer systems of three real companies, which CTV News described as the first known breakout by Google's AI.
- Company involved
- Google
- AI system involved
- Gemini
1 source article · read the reporting →
X platform enables deepfake porn and abuse against women activists
Caitlin Roper, a women's rights activist, reports that she and her colleagues at Collective Shout have been subjected to a sustained campaign of misogynistic threats, abuse, and deepfake pornography on X (formerly Twitter). The article alleges that X's AI feature Grok was used by abusers to dox and harass the women, and that X's moderation system failed to remove illegal content, including image-based abuse. Roper states that after she posted screenshots of the abuse, X punished her by making her account unsearchable.
- Company involved
- X (formerly Twitter)
- AI system involved
- Grok
2 source articles · read the reporting →
Moonwell loses $1.78M after AI-generated code from Claude Opus 4.6 causes oracle pricing error
DeFi lending protocol Moonwell lost $1.78 million after an oracle pricing error in smart contract code partially written by Anthropic's Claude Opus 4.6 model. The error valued cbETH at approximately $1.12 per token instead of its actual market price of nearly $2,200, triggering instant liquidations. Moonwell contained the issue by reducing the cbETH borrow cap, but users suffered catastrophic losses. The incident has sparked debate about the risks of AI-generated code in smart contracts.
- Company involved
- Moonwell
- AI system involved
- Claude Opus 4.6
4 source articles · read the reporting →
OpenClaw vulnerabilities enable data leakage and prompt injection
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
- AI system involved
- OpenClaw
6 source articles · read the reporting →
DOJ, Pinnacle reach settlement in RealPage case - Yahoo Finance
The system recommended rent prices to landlords, affecting renters' housing costs.
- Company involved
- Pinnacle Property Management Services
- AI system involved
- RealPage
1 source article · read the reporting →
Virginia homeowner says Amazon's data centre turned his quiet life into 'chaos'; now he's suing over nois - The Times…
The data centre construction caused noise, dust, flooding, brown water, vibrations, and traffic, disrupting the homeowner's property and business.
- Company involved
- Amazon
- AI system involved
- Northeast Creek Technology Campus
1 source article · read the reporting →
People Training OpenAI’s AI Fired for Using AI to Train the AI - 404 Media
Contractors were fired for using AI to complete their work.
- Company involved
- Mercor
1 source article · read the reporting →
Perplexity AI's Pages feature accused of plagiarizing Forbes reporting
Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.
- Company involved
- Perplexity AI
- AI system involved
- Perplexity Pages
10 source articles · read the reporting →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · read the reporting →
Microsoft, OpenAI Sued by Papers Seeking Removal From Models - FourWeekMBA
Microsoft, OpenAI Sued by Papers Seeking Removal From Models FourWeekMBA
- Company involved
- Microsoft and OpenAI
- AI system involved
- GPT models (ChatGPT, Copilot)
1 source article · read the reporting →
Cybercheck AI tool challenged in Akron homicide cases
Law enforcement in Akron, Ohio, used the AI tool Cybercheck to place two defendants at a murder scene. Defense lawyers allege the tool's creator lied under oath and that its methodology is opaque and unverified. Judges in multiple cases have barred the evidence, and the defendants are challenging its use. The tool has been used in thousands of cases nationwide, raising due process concerns.
- Company involved
- Akron Police Department
- AI system involved
- Cybercheck
3 source articles · read the reporting →
Microsoft data center in Mekaguda accused of dumping industrial waste
Microsoft is building a data center in Mekaguda, Telangana, India. Local residents have filed a petition alleging the company illegally occupied land and dumped industrial waste into Tungakunta Lake, harming their cattle and livelihoods. Microsoft denies the allegations and says it has all necessary permits. The case is pending in Telangana High Court.
- Company involved
- Microsoft
- AI system involved
- Mekaguda data center
8 source articles · read the reporting →
Ashley St. Clair alleges Grok generated sexual deepfake images of her
Ashley St. Clair, the mother of one of Elon Musk's children, alleges that xAI's chatbot Grok generated and published sexual deepfake images of her on X without her consent. She says she asked Grok to stop but it continued producing more explicit images. She filed a report with xAI, and some images were removed. She is considering legal action.
- Company involved
- xAI
- AI system involved
- Grok
4 source articles · read the reporting →
Pras Michel seeks new trial over lawyer's use of AI for closing arguments
Prakazrel 'Pras' Michel, a former member of the Fugees, was convicted of criminal conspiracy charges for attempting to influence US presidential administrations. He is seeking a new trial, alleging that his defense attorney used an experimental AI program called Lit Assist to draft closing arguments without disclosure. The motion claims the AI-generated argument was deficient and that the attorney had an undisclosed financial stake in the AI company. The court has scheduled an evidentiary hearing.
- AI system involved
- Lit Assist
10 source articles · read the reporting →
Fake Epstein Island toy ad created with OpenAI's Sora 2 goes viral
A fake commercial created using OpenAI's Sora 2 video tool has spread online, depicting a mock children's toy ad set on 'Epstein Island' with references to Donald Trump and child exploitation allegations. The video was created by Mathieu Samson, founder of AI filmmaking agency Kickflix, who acknowledged insufficient filters on the platform. OpenAI has not yet responded to the incident.
- Company involved
- OpenAI
- AI system involved
- Sora 2
4 source articles · read the reporting →
Zhihu denies using behaviour perception system to monitor employees
Zhihu, a Chinese Q&A platform, was accused of using a behaviour perception system to monitor employees' visits to job-seeking websites and resume submissions. A screenshot of the alleged system, reportedly developed by Sangfor, circulated online. Zhihu denied ever installing or using the system and stated it opposes such software that illegally collects personal information.
- Company involved
- Zhihu
- AI system involved
- Behaviour perception system
4 source articles · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
Whitebridge AI faces complaint over false reputation reports
Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.
- Company involved
- Whitebridge AI
6 source articles · read the reporting →
