
Meta is being sued by parents in Illinois and California for allegedly using their Facebook and Instagram photos to develop a face-recognition system and train AI models. The lawsuit claims Meta violated privacy laws by extracting biometric data without consent. This legal action adds to Meta's history of controversies over biometric data use. Meta denies the allegations, stating that the lawsuit misrepresents their work and that no final decision has been made regarding the NameTag system.
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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.