On Monday, a judge approved a $1.5 billion settlement between Anthropic and authors, ending the largest copyright class-action ever certified and granting the largest copyright settlement ever reached.

Back in May, some authors fought to block the settlement, which was proposed after the court ruled that Anthropic training AI on books was fair use; however, its piracy of works was likely not.

Authors opposing the settlement argued that lawyers’ fees were too high and authors’ payouts were too low. Hoping to avoid accepting the estimated $3,000-per-work payout and file separate lawsuits to seek higher damages, a handful of authors tried to opt out past the deadline.

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Yesterday, the European Commission slapped AliExpress with the largest fine yet under the Digital Services Act (DSA), exceeding $625 million.

In a press release, the EC said that AliExpress failed to “diligently assess and mitigate risks relating to the sale of illegal, unsafe, or counterfeit products on its e-commerce platform.”

Officials found that AliExpress not only failed to staff teams dedicated to removing counterfeit and dangerous items from the platform, but it also made it easy for bad actors to evade detection.

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This week, San Francisco’s attorney general, David Chiu, sent cease-and-desist letters, demanding that Apple and Google remove 13 so-called nudification apps from their app stores, Wired reported.

Nudification apps can make it trivially easy to transform ordinary photos of real people into explicit images. The harmful AI tools allow bad actors to remove clothing, change a person’s features, place them in sexualized positions, and swap victims’ faces onto other people’s naked bodies.

Chiu's letter warned that app stores were violating "California’s laws that prohibit supporting services that create deepfake pornography," Wired reported.

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Facing mounting pressure to acknowledge that Grok can still be used to generate non-consensual sexualized images of adults and minors, xAI filed a lawsuit Tuesday, suing the first user that Elon Musk’s firm has accused of using its chatbot to create illegal content.

The complaint targets Terry Wayne Harwood, who was arrested earlier this year for possession and distribution of child sexual abuse materials (CSAM), the South Carolina attorney’s office announced.

As xAI alleged, the company assisted in that arrest after discovering that Harwood had been using two xAI accounts for months to undress or “nudify” non-sexual images of multiple victims, including a young girl who appeared to be as young as 10.

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On Wednesday, the National Transportation Safety Board (NTSB) released preliminary findings verifying Elon Musk’s and Tesla’s claims that a driver involved in a fatal Texas crash that killed a grandmother overrode Full Self Driving in the moments ahead of impact.

Last month, 44-year-old Michael Butler told police that the autopilot feature was engaged at the time of the crash. On X, Musk disputed the claim, writing that Butler must have overridden the feature because “FSD drives slowly through neighborhood streets, and this was a high-speed crash!” Moving to back Musk’s claim, Tesla’s vice president of AI software, Ashok Elluswamy, said that internal data showed “the driver manually overrode self-driving by pressing the accelerator all the way to 100 percent of the accel pedal in this residential area.”

NTSB’s preliminary report, which does not yet determine what caused the crash, confirmed Tesla’s claims. Its probe found that FSD was engaged at the time of the crash, but electronic data showed “the driver manually overrode FSD (Supervised) by pressing the accelerator pedal to 100 percent.”

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This week, the Coalition for Independent Technology Research (CITR) won a key battle in its fight to reverse a visa-restriction policy that the Trump administration had used to attempt to revoke green cards and deport non-US citizens who work on misinformation, disinformation, fact-checking, content moderation, compliance, and trust and safety.

In an opinion published Tuesday, US District Judge James Boasberg granted a preliminary injunction blocking the State Department from enforcing the policy until the CITR’s lawsuit is resolved.

On its face, the policy does not require visa denials or deportations. Instead, it authorizes immigration investigations into individuals suspected of helping foreign adversaries attempt to manipulate public opinion by suppressing US speech.

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New York became the first state to pause all construction of massive new data centers after Democratic Governor Kathy Hochul announced a one-year moratorium on Tuesday, Reuters reported.

The state-wide ban applies to data centers using 50 megawatts or more, officials told Reuters, and it won’t be lifted until the state figures out what "consistent standards" for responsible data center development in New York should look like.

Across the US, calls to halt data center construction have multiplied, as Americans grow increasingly concerned about risks of pollution, rising energy costs, and diminishing water supplies. At the federal level, Bernie Sanders (I-Vt.) and Alexandria Ocasio-Cortez (D-NY) have introduced legislation seeking a possible nationwide construction ban. But Republicans are seemingly unlikely to embrace that legislation, given Donald Trump's claim that such moratoriums would threaten America's lead in the AI race.

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Apple is gunning for OpenAI, demanding steep penalties after stumbling on a “rare” bug that temporarily allowed a poached employee that joined OpenAI to maintain access to confidential information on Apple servers for weeks after his termination.

In a lawsuit filed Friday, Apple sought several injunctions blocking OpenAI from using confidential information allegedly stolen by former employees. According to Apple’s complaint, OpenAI conspired with former Apple employees as part of a grand scheme to “take an unlawful shortcut” and launch a line of AI-powered devices as marketable as Apple’s iPhone.

Apple explained that it found a bug while investigating internal messages between a then-current employee, Yu-Ting “Alyssa” Peng, and an engineer who spent eight years “working on some of Apple’s most sensitive product development programs,” Chang Liu.

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The European Union is ramping up pressure on Meta to make big changes to Facebook and Instagram after the European Commission preliminarily found that features like autoplay, infinite scroll, and highly personalized content recommendations were addictive.

On Thursday, the EC said its investigation indicated that “Meta did not adequately assess the risks of its addictive design on the physical and mental wellbeing of users, including minors and vulnerable adults.”

“These features fuel the user's urge to keep scrolling and shift the brain into ‘autopilot mode,' contributing to unhealthy habits and compulsive use,” the commission said.

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OpenAI is facing calls for "serious sanctions" after fighting to keep news organizations from snooping through millions of logs to find evidence of users skirting their paywalls by prompting ChatGPT to regurgitate their articles.

This evidence is considered among the most important to both sides, potentially either dooming OpenAI as an infringer or exonerating its chatbot technology as a transformative fair use of news sites' content.

In a sanctions motion Thursday, news organizations suing OpenAI—led by The New York Times—accused the AI firm of repeatedly lying for years to conceal evidence of infringement that could hobble OpenAI's defense.

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One of the most horrific cases of allegedly Grok-generated child sex images was shared in a proposed class action lawsuit that was expanded Tuesday. Now, young girls not only accuse X and xAI of building toxic AI "nudify" tools but also of shielding child predators by obstructing police investigations into Grok-generated child sex abuse materials (CSAM).

In March, a girl’s stepfather took his own life after cops discovered that he had used Grok to create 7,000 sexually explicit images using one photo taken when his stepdaughter was 11 years old, the amended complaint alleged.

Grok allowed the man to generate extreme images depicting incest and rape without flagging any harmful behavior, the complaint said. Seemingly, xAI’s child safety system only intervened after the man input a prompt for “gang rape.” That request sent a CyberTip to the National Center for Missing and Exploited Children (NCMEC), which alerted law enforcement to the AI CSAM.

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Anthropic quickly removed a tracker secretly monitoring Claude Code users in China after a security researcher exposed the hidden code and condemned the spyware-like tracking as a “serious breach of user trust.”

Last week, a web developer known as “Thereallo” was researching privacy issues in Claude Code and was shocked to find that the AI firm was using “prompt steganography” to hide code that tracks Chinese users “in plain sight.” This code wasn’t malicious, but it was sending information to Anthropic that most users wouldn’t detect, relying on shorthand markers to quietly flag users’ timezone, proxy, and potential connection to Chinese AI labs that Anthropic has accused of distillation attacks.

On X, Anthropic engineer Thariq Shihipar confirmed that the tracker was added to Claude Code as an “experiment” in March. According to Shihipar, the code “was meant to prevent account abuse from unauthorized resellers and protect against distillation.” Regarding the former, The Washington Post found unauthorized retailers have sold access to free models for $1 a month, and pro subscriptions that can cost $100 monthly sell for "as little as $12."

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OpenAI CEO Sam Altman is reportedly in active talks with the Trump administration about the US potentially acquiring a 5 percent stake in the leading AI firm.

Insider sources told the Financial Times that these talks are in “early stages,” but Altman “has argued that giving the public a financial stake in the company is the best way to share the upside of AI.”

Donald Trump favors the idea, and his administration has reportedly been talking to several AI firms about the possibility. According to FT’s sources, other companies approached to share similar stakes include Google and Meta.

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Ahead of a July 2 deadline to submit public comments, advocates are warning the Federal Trade Commission that it must keep close watch over Elon Musk’s X and firmly reject a recent bid to end the agency’s ongoing audits of the platform’s data handling.

Last month, the FTC posted a notice explaining that X had argued that an FTC order was no longer necessary due to changes Musk had made to the platform.

The initial order came as a penalty after the FTC found that a coding error had caused then-Twitter to improperly share users’ contact information for ad targeting that had initially been submitted for two-factor authentication. Under the order, X is subjected to costly independent audits, and the FTC has authority to demand documents to ensure compliance with data privacy laws without taking additional legal action.

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The US has lifted export curbs on Anthropic’s newest Claude models, Fable 5 and Mythos 5, about three weeks after the Trump administration flagged the models as national security risks.

As of today, Anthropic confirmed in a blog post, Fable 5 will be available globally, and US organizations have had access restored to Mythos 5 since June 26. Anthropic said it is now working with the government to expand Mythos access to a “broader set of domestic and international partners in the Glasswing program.” That program allows cybersecurity researchers at trusted companies to access Mythos for defensive purposes.

In a letter to Anthropic viewed by Reuters and The New York Times, Commerce Secretary Howard Lutnick said Anthropic would “no longer need a license for exports or in-country transfers of its Claude Mythos and Claude Fable AI models.” The letter acknowledged that Anthropic had “taken steps in close coordination with the US government to address the risks” posed by the models.

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