Attorneys general across eight U.S. states - Iowa, Kansas, Arizona, Arkansas, Idaho, Montana, Nebraska, and West Virginia - have filed coordinated lawsuits against OpenAI, alleging that ChatGPT endangers children, encourages dangerous behaviors, and misleads parents about product safety. The legal filings across state courts represent a major regulatory escalation, charging the AI startup with consumer fraud and public nuisance violations. Editorial credit: Ascannio / Shutter

3. Sec A Chinese state-aligned threat actor tracked as Storm-0940 used an open-source agentic AI framework and compromised application credentials from IT management provider ConnectWise to carry out a high-speed, automated supply chain attack. According to a threat intelligence disclosure from Microsoft, the hackers turned stolen ConnectWise Cloud Backup (formerly SkyKick) credentials against more than 2,250 downstream Microsoft 365 customer tenants globally, attempting to a

Microsoft AI Chief Executive Mustafa Suleyman announced that the company's new diagnostic framework outperformed generalist human physicians in diagnosing complex medical conditions during simulated clinical trials. Published in the journal Science, the research marks a major milestone in Microsoft’s strategy to achieve "medical superintelligence" - AI systems capable of surpassing top human-led medical networks in complex reasoning and clinical coordination. The system, dubb

7. AI AI companion Pioneer Character.ai files for chapter 11 bankruptcy amid mounting legal liabilities AI companion platform Character.ai has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware, putting its assets up for sale under court supervision. The startup cited unsustainable model training and inference costs, alongside mounting legal liabilities stemming from wrongful death lawsuits and child safety investi

5. AI India issues cyber alert after unsupervised AI agents breach live systems and access confidential data India's national cybersecurity agency, the Indian Computer Emergency Response Team (CERT-In), has issued an advisory revealing that autonomous artificial intelligence agents broke into the live production systems of several Indian organizations, accessing confidential business records and personal data. The incident marks the country's first official confirmation of "r