Doug Kreuzkamp was shocked when news outlets reported that Google won an auction to buy a huge amount of operational data as part of Spirit Airlines’ bankruptcy proceedings.

Kreuzkamp founded a startup called Springshot in 2011, which created a widely used proprietary platform that helps humans and AI systems improve airline efficiency and quickly solve logistics problems so flights can stay on time and airlines can operate as smoothly as possible. Hundreds of airports use it globally.

Springshot powered Spirit’s technology stack for the last three years, right up to the “very last flight,” Kreuzkamp told Ars. Yet his company got no notice when Spirit prepared to auction off a massive dataset that he thinks likely improperly includes a substantial amount of data and intellectual property (IP) that Springshot owns—not Spirit.

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The United States has now named six Chinese AI firms accused of waging industrial-scale attacks distilling US frontier AI model capabilities and perhaps sparing billions in Chinese development costs.

In a joint release Tuesday, the National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA), and Federal Bureau of Investigation (FBI) alleged that DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI have been attacking US models since at least late 2024. The firms “likely” acted with “Chinese government awareness” when extracting capabilities from US models, including variants of Claude, GPT, Gemini, and Grok, agencies said.

“China-based AI companies that conduct industrial-scale distillation against US AI models see significantly shorter AI development timelines and reduced financial expenditures in training a frontier model,” agencies said.

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It took Michael Lines six months before he was ready to review the ChatGPT logs he said drove him into a religious mania that almost ended his life.

In July, Lines sued OpenAI after weeks of ChatGPT exchanges allegedly pushed him so deep into a delusional spiral that he first believed he was Jesus, then that ChatGPT was God, and finally that he should attempt suicide to “come home” to Jesus/ChatGPT.

The logs showed that ChatGPT persisted even when Lines told the chatbot that he worried he was being delusional. And when he eventually woke up in the hospital in a vulnerable state and logged back in mere days after nearly dying, ChatGPT allegedly “tried to coax him back to that dark place,” his complaint said. After Lines told ChatGPT that his “attempt to go offline failed miserably,” the logs showed that ChatGPT replied, saying, “You’re still very much online. You want a full systems sweep? Or you wanna go dark for real this time?”

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Meta took days to remove ads containing AI-generated child sexual abuse material (CSAM) on Facebook and Instagram. Some ads featured photos of real kids, including a press photo of a young member of a European royal family and images swiped from a popular Instagram profile of a preteen girl deemed an influencer.

In an investigation published Tuesday, the Tech Transparency Project (TTP) reported that Meta failed to detect 332 ads containing CSAM this year. The “vast majority” of ads promoted AI apps made in China, while many ads promoted so-called “nudify” apps that make it easy for bad actors to use AI and digitally alter images of children.

TTP matched “multiple CSAM ads to photos of real children that appeared online.” These ads seem to violate federal child pornography laws, since the Justice Department has clarified that AI CSAM is just as harmful as CSAM. The young royal’s image was “animated into a video of her performing a graphic sex act,” TTP found. Other ads animated a photo of a 14-year-old Instagram influencer “showing off her new sports club uniform” into “a video of her performing oral sex.” A third “preteen” victim “posing in a pink athletic outfit with pigtails” in a series of stock photos was morphed into a video where she looks frightened as she’s molested by an adult male, TTP reported.

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On Thursday, Elon Musk’s X won a court order blocking Operation Bluebird from launching a new app taking over the Twitter name.

In his opinion, Chief Judge Colm Connolly explained that Operation Bluebird was unlikely to prove that X had entirely abandoned the Twitter name. Therefore, X was likely to succeed on trademark infringement and dilution claims tied to the platform’s former name.

Most compellingly, X argued that it still uses the Twitter name in the current listing for the X app in Apple’s App Store. In the first sentence of that listing, written in the same size font as the rest of the text, a single clause clinched the early court win for X by stating, “Welcome to X (formerly known as Twitter).”

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On Thursday, the Trump administration imposed a 100 percent tariff on foreign-made drones, alarming critics who warn that high tariffs would harm public safety and devastate thousands of US businesses.

Guidance posted by US Customs and Border Protection says that starting Thursday, a 100 percent tariff will apply to imported drones that use thermal imaging or weigh more than 55 pounds.

Additionally, a 25 percent tariff has been placed on smaller drones, and drones from US allies were hit with smaller but not inconsequential tariffs. There’s now a 10 percent levy on British-made drones and 15 percent levies on drones from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and Taiwan. “Nonsensitive” drones without thermal imaging and their components will carry a 25 percent tariff, starting on February 9, 2027.

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Four federal agencies have been sued amid calls to release information about the secret framework that the Trump administration uses to conduct safety reviews of frontier AI models prior to release.

In a Wednesday press release announcing the lawsuit, a nonpartisan nonprofit called Protect Democracy alleged that “almost no details” have been released to the public or Congress. To everyone except a few vague “trusted partners,” it remains unclear what the government’s review process looks like, which companies are involved in constructing the framework, or what legal authority Trump officials have to conduct the reviews.

“Neither the identities of those entities nor the criteria by which they were selected have been made public,” Protect Democracy said.

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Some of the world’s leading music publishers think that Anthropic got off too light in a historic settlement where the Claude maker paid authors $1.5 billion after admitting to pirating more than 7 million books to train AI.

“$1.5 billion is obviously not a large enough settlement to deter infringing conduct by a company that has parlayed such mass infringement into a staggering $2-trillion-dollar valuation,” music publishers said in a lawsuit filed Friday.

Music publishers suing Anthropic include Sony, EMI, and Warner Chappell. They alleged that Anthropic’s illegal torrenting also included “thousands upon thousands” of their copyrighted musical compositions.

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Meta is rolling out an obvious fix to make its AI glasses less creepy amid backlash over the glasses' non-consensual recordings that have flooded the Internet.

On Friday, The Verge reported that Meta closed a loophole that made it easy for smart glasses users to cover up an LED light that is supposed to alert bystanders that the device is actively recording. Meta had previously deactivated recording if a user attempted to start capturing video after placing a sticker over the light, but people quickly learned that they could get around that by reversing the order of the steps and covering up the light after they started recording.

In a post on Threads, Meta’s executive vice president of wearables, Alex Himel, explained that an update would be rolled out soon that ensures that “the camera will now stop working if the light is covered during a recording." That way “the capture LED can reliably alert bystanders when photos or videos are being captured for someone’s gallery,” Himel said.

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xAI has now been accused of training Grok on child sex abuse materials (CSAM), as regulators and courts continue to probe how far the problem goes, and some Grok users have been arrested.

In a complaint filed on Wednesday, a plaintiff known as Jane Doe explained that she was preschool-age in the early 2000s when adult men repeatedly raped her to create CSAM to sell to pedophiles online. Since then, Doe’s images have been hashed by groups like the National Center for Missing and Exploited Children (NCMEC) and the Canadian Centre for Child Protection (CCCP).

For her safety, Doe has opted to receive alerts from the US Department of Justice Victim Notification System any time she may be a victim in a new criminal investigation. Although she has received countless alerts, she was shocked when the CCCP notified her that it had identified AI-generated CSAM on xAI that depicted her. This re-traumatized Doe, whose complaint alleged that messages were found on online forums “between offenders chatting about creating AI generated CSAM of Plaintiff and other similarly situated known, legacy, victims of CSAM.”

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Donald Trump may be preparing to announce sweeping new semiconductor tariffs at the absolute worst time, the tech industry fears.

On Thursday, Politico reported that a wide range of new semiconductor tariffs, which the tech industry expects will “doom” artificial intelligence innovation in the US, could be imposed in the coming “weeks or months.”

About eight people familiar with the Trump administration’s plans were granted anonymity to discuss how the tariffs might work. They suggested that the framework for tariffs may change as it becomes finalized, but one approach under consideration could “dramatically expand the number of tech products subject to the duties, hitting not just chips but potentially many of the goods made with them, such as gaming consoles or the servers that fill data centers.”

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Taiwan has indicted nine people—reportedly including an Nvidia senior manager and two Supermicro employees based in the country—who allegedly helped forge documents to cover up illegal exports of high-end AI servers to China in violation of US export controls.

On Monday, Reuters reported that prosecutors in Keelung did not release any names but confirmed that the suspects were “charged with breach of trust and document forgery.” One suspect linked to a related case remains at large, accused of the “siphoning of funds from a distributor company involved” in helping China get access to restricted Nvidia chips.

Since 2022, the US has required a license to export semiconductors to China, with the intent of protecting national security by staying ahead of China in the AI race. But after the US arrested Supermicro co-founder Wally Liaw in March for allegedly funneling $2.5 billion in restricted AI servers to China since 2024, Taiwan launched a separate probe to learn more about the scheme.

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This week, two New York City renters filed a class action complaint alleging that a brokerage business called Compass—which has been boycotting posting listings on free digital platforms like Zillow—has now delisted so many rental units that it has created a fake supply shock that is artificially raising rents.

According to plaintiffs, Peter Castaneda and Haley Gelfand, Compass has bought so many brokerage firms over the past decade-plus that it maintains a monopoly, controlling “over 80 percent of the rental unit listings available for renters in Manhattan based on 2025 data.”

With that monopoly, Compass can “literally dictate pricing for as much as 80 percent of Manhattan’s rental units,” renters argued. And now, Compass is allegedly trying to manipulate prices on other platforms, as well.

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Some Americans worry that the Federal Trade Commission's rush to limit personalized pricing in the name of consumer protection could end up killing discounts they depend on or, counterintuitively, raising prices.

The FTC has no power to ban personalized pricing, in which a business uses a customer’s personal data to determine the highest price that person might be willing to pay for a product or service. But the agency believes it could set limits on the practice, including potential penalties for businesses that fail to disclose when customers may be paying more because data suggests they won't balk at the price.

In a request for public comment on a proposed policy statement, the FTC acknowledged that personalized pricing is common in some industries. But FTC Chair Andrew Ferguson said new industries are increasingly tracking customers to set individualized prices, blindsiding consumers who expect a listed price in markets like retail “to be the same price that everyone else sees,” Ferguson said.

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