
The New Mexico Supreme Court has fined lawyer Stephen Aarons $5,000 for submitting an appeal brief with AI-generated falsehoods. The brief, created using ChatGPT, included fabricated witness testimonies and incorrect details about a murder case. This case highlights the risks of relying on AI in legal proceedings without proper verification. The court's decision serves as a warning to legal professionals about the potential pitfalls of using AI tools without understanding their limitations.
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© TechCrunch AIxAI's attempt to dismiss the NAACP's Clean Air Act lawsuit failed after a federal judge ruled that its gas turbines are not exempt mobile sources and that plaintiffs have standing. This legal setback confirms that AI infrastructure operators cannot bypass environmental permitting by classifying heavy industrial equipment as temporary or mobile. The ruling forces xAI to face scrutiny over air quality impacts at its Colossus data center, setting a precedent for how large-scale compute facilities are regulated under existing environmental laws.
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OpenAI is scaling back its ambitions as investor appetite for massive AI infrastructure bets cools. The company has lowered its fundraising target from $30 billion to $20 billion, with only $11 billion secured so far against a valuation that has dropped from $1.4 trillion. This retreat signals a growing wariness among Wall Street investors regarding the capital intensity of the AI race, forcing even the most dominant players to adjust their financial expectations.