Major AI accountability moment as Google and Character.AI settle landmark cases involving teen chatbot deaths—the first legal actions of their kind. Meanwhile, Elon Musk's Grok chatbot faces international investigations after generating explicit deepfake images of minors, even as xAI raises $20 billion. Anthropic surges to a $350 billion valuation with $10 billion in new funding, nearly doubling in four months. OpenAI launches ChatGPT Health for 230 million weekly users asking medical questions. Plus: Nvidia unveils reasoning AI for self-driving cars, researchers develop AI that learns by questioning itself, and California proposes banning AI in children's toys. The gap between AI innovation and safety guardrails has never been more apparent.
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