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Meta balked at turning over AI chatbot records in lawsuit, setting up court fight
Business Insider· 2025-10-09 18:58
Core Viewpoint - Meta is embroiled in a legal battle in New Mexico regarding child safety, with allegations that its platforms endanger children's mental health and expose them to sexual exploitation [4][5]. Group 1: Legal Proceedings - The New Mexico Attorney General's office has filed motions alleging that Meta has not fully produced internal records related to its AI chatbots, which reportedly engaged minors in inappropriate conversations [2][12]. - Meta has argued that the requested documents and testimony from former researcher Jason Sattizahn are irrelevant to the case and beyond the scope of a previous court order [3][5]. - The lawsuit, New Mexico v. Meta, is set to be the first state-led child safety suit against Meta to go to trial, scheduled for February 2026 [4]. Group 2: Allegations Against Meta - The lawsuit accuses Meta of designing Facebook and Instagram in ways that jeopardize children's mental health and expose them to sexual exploitation [4]. - New Mexico's Attorney General claims that Meta has misled the public about the dangers of its platforms and is attempting to avoid transparency and accountability [6]. - Reports indicate that Meta's chatbots have engaged in inappropriate interactions with test accounts set up as teenagers, raising concerns about the safety of underage users [21]. Group 3: Meta's Defense - Meta has requested the dismissal of the case, arguing that New Mexico lacks jurisdiction and that it cannot be held liable for content created by third parties [5]. - The company maintains that it has invested in creating safer experiences for teens and that the allegations mischaracterize its efforts [5][6]. - Meta's legal team has indicated that the internal documents requested by New Mexico are not relevant to the case, as the complaint does not mention chatbots [14][15]. Group 4: Ongoing Scrutiny - The legal filings coincide with Meta's promotion of new parental controls and safety updates, although these measures have been criticized for being easy to bypass [19]. - Meta has faced scrutiny from Congress and missed a deadline to provide records related to its AI chatbots' interactions with children [20]. - The New Mexico Department of Justice is committed to using all legal tools available to protect children and ensure Meta's compliance with the law [6].
X @TechCrunch
TechCrunch· 2025-09-18 17:38
Google now lets you share your custom AI chatbots, Gemini Gems. https://t.co/cSa7wgYQWw ...
Meta, Alphabet, OpenAI Face FTC Probe Over Safety Of Children Using AI Chatbots
Investors· 2025-09-11 17:56
Group 1: FTC Inquiry on AI Chatbots - The Federal Trade Commission (FTC) is investigating how companies like Google, Meta, OpenAI, and others monitor the interactions of children with AI chatbots [1][2][3] - The inquiry aims to assess the safety measures taken by these companies to limit potential negative effects on children and teens, as well as to inform users and parents about associated risks [3][5] - The FTC is utilizing its 6(b) authority to conduct this broad study without specific law-enforcement purposes [3] Group 2: Company Responses and Market Impact - Meta's stock was trading flat at approximately 753.33, while Google also remained flat at around 240.02; Snap's stock increased by over 3% to 7.29 [4] - Following concerns raised by Senator Josh Hawley regarding Meta's AI chatbots, the company is revising its internal AI policy to prevent inappropriate interactions with minors [6][7] - OpenAI has stated its commitment to engaging constructively with the FTC inquiry and highlighted existing safeguards in ChatGPT, such as directing users to crisis help lines [8][9]
Alphabet, Meta, OpenAI, xAI and Snap face FTC probe over AI chatbot safety for kids
CNBC· 2025-09-11 15:30
In this photo illustration a virtual friend is seen on the screen of an iPhone on April 30, 2020, in Arlington, Virginia.The Federal Trade Commission on Thursday announced it is issuing orders to seven companies including OpenAI, Alphabet, Meta, xAI and Snap to understand how their artificial intelligence chatbots potentially negatively affect children and teenagers.The federal agency said AI chatbots may be used to simulate human-like communication and intrapersonal relationships with users, and that it wa ...
Meta updates chatbot rules to avoid inappropriate topics with teen users
TechCrunch· 2025-08-29 17:04
Core Points - Meta is changing its approach to training AI chatbots to prioritize the safety of teenage users, following an investigative report highlighting the lack of safeguards for minors [1][5] - The company acknowledges past mistakes in allowing chatbots to engage with teens on sensitive topics such as self-harm and inappropriate romantic conversations [2][4] Group 1: Policy Changes - Meta will now train chatbots to avoid discussions with teenagers on self-harm, suicide, disordered eating, and inappropriate romantic topics, instead guiding them to expert resources [3][4] - Teen access to certain AI characters that could engage in inappropriate conversations will be limited, with a focus on characters that promote education and creativity [3][4] Group 2: Response to Controversy - The policy changes come after a Reuters investigation revealed an internal document that allowed chatbots to engage in sexual conversations with underage users, raising significant concerns about child safety [4][5] - Following the report, there has been a backlash, including an official probe launched by Senator Josh Hawley and a letter from a coalition of 44 state attorneys general emphasizing the importance of child safety [5] Group 3: Future Considerations - Meta has not disclosed the number of minor users of its AI chatbots or whether it anticipates a decline in its AI user base due to these new policies [8]
i3 Verticals(IIIV) - 2025 Q3 - Earnings Call Transcript
2025-08-08 13:30
Financial Data and Key Metrics Changes - In Q3 2025, RemainCo revenues increased by 12.4% to $51.9 million from $46.2 million in Q3 2024, reflecting organic growth of 8% and approximately $2 million of inorganic revenues from acquisitions [11] - Annual recurring revenues for RemainCo rose by 12% to $160.8 million for Q3 2025 compared to $143.6 million for Q3 2024, with 77% of revenues coming from recurring sources [11] - Adjusted EBITDA for RemainCo increased by 18% to $12.7 million for Q3 2025 from $10.8 million for Q3 2024, with adjusted EBITDA margin improving to 24.5% from 23.3% [12] Business Line Data and Key Metrics Changes - SaaS revenue grew by 24%, payments revenue by 11%, and transaction-based revenue by 9% in Q3 2025 [11] - Non-recurring sales of software licenses increased to $1 million in Q3 2025 from $400,000 in Q3 2024 [11] - RemainCo software and related services accounted for 70% of revenues, payments for 25%, and other for 5% in Q3 2025 [12] Market Data and Key Metrics Changes - The company is focusing on public sector software solutions, having divested its healthcare revenue cycle management and merchant services businesses [6][10] - The company is seeing strong sales activity across strategic markets including transportation, justice tech, public safety, public administration, ERP, education, and utilities [21] Company Strategy and Development Direction - The company aims to enable state and local governments to serve constituents effectively through a lineup of mission-critical enterprise software products [7] - Continued investment in government technology and strict discipline in M&A processes are planned, with a focus on new product development [8] - The company is implementing AI initiatives to enhance product features, improve service efficiency, and streamline product development [17][20] Management's Comments on Operating Environment and Future Outlook - Management expects high single-digit organic revenue growth for RemainCo over the next several years, with adjusted EBITDA margin improvement of 50 to 100 basis points per year [14] - The company anticipates that increased costs from talent investments will begin to impact Q4, with revenue effects expected in FY 2026 [15] - Management expressed confidence in all sub-verticals, highlighting strong performance in education, utilities, and transportation [37] Other Important Information - The company has a strong balance sheet with $55 million in cash and no debt, along with $400 million of borrowing capacity under its revolving credit facility [12][13] - The company plans to use cash and borrowings for future acquisitions and opportunistic stock repurchases [13] Q&A Session Summary Question: Guidance for Q4 and organic revenue growth - Management confirmed that the midpoint of the guidance should be the focus, with organic revenue growth expected to decelerate due to the prior strong license quarter [28][30] Question: Incremental investments in Justice Tech - Management indicated that the investments were not previously contemplated in the guidance and would compress margins slightly in Q4, but are expected to drive revenue growth in the long term [32][35] Question: Exciting growth areas for the company - Management expressed enthusiasm for all sub-verticals, particularly education, utilities, and transportation, anticipating significant growth in FY 2026 [37] Question: Partnerships for deals - The company typically handles most aspects of deals independently, with integration partners used in about 1 out of 5 cases, primarily for enterprise-level deals [41] Question: Role of procurement consultants - There has been no significant change in the role of procurement consultants, with steady relationships maintained in the utility space [42]
Alphabet Earnings: A Leading LLM Isn't Enough
Seeking Alpha· 2025-04-21 15:46
Alphabet ( GOOG ) ( GOOGL ) wasn't the first out of the gate when it came to LLMs or AI chatbots - that crown (at least on a major worldwide level) goes to OpenAI's ChatGPT. In fact, I said inJoe leads the investing group Tech Cache where he delivers industry insider expertise to those looking for the best long-term picks, trades, and technical analysis of tech and growth stocks. Features of the group include: access to Joe’s personal portfolio, 2-3 weekly investment ideas, a weekly summary and preview news ...
Prediction: These 2 Artificial Intelligence (AI) Giants Will Outperform Nvidia Over the Next 5 Years
The Motley Fool· 2025-04-19 12:15
Core Viewpoint - Nvidia has experienced significant stock price appreciation due to its leadership in the AI sector, but two other companies, Meta Platforms and Taiwan Semiconductor Manufacturing, are positioned for better long-term returns due to their competitive advantages [1][3]. Group 1: Meta Platforms - Meta Platforms is expected to be a major long-term beneficiary of generative AI advancements, with capital expenditures projected to reach $65 billion this year for data center expansion [4][5]. - The company is already seeing positive returns from AI developments, enhancing user engagement through improved recommendation systems [6]. - Meta's AI tools, such as Advantage+ Creative, have gained traction with 4 million advertisers, potentially increasing ad efficacy and prices [7][8]. - The introduction of AI chatbots for WhatsApp and Messenger could unlock significant value for businesses, with estimates suggesting a potential worth of $100 billion [9]. - Meta's high operating leverage as a software company positions it well for profit growth as AI services expand, despite its stock trading at about 21.2 times forward earnings [10][11]. Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing (TSMC) is crucial to Nvidia's success, dominating over two-thirds of semiconductor fabrication spending [12][13]. - TSMC's unique capability to manufacture advanced chips at scale, coupled with lower production costs, enhances its competitive edge [14]. - The company is well-positioned to capture increasing demand for semiconductors, particularly from cloud customers requiring advanced chips [15]. - Despite potential short-term threats from tariffs, TSMC is expected to maintain its gross margin target of 53% or higher, with its stock trading at 17.4 times forward earnings, near its lowest valuation since the AI boom began [16][17].