Texas AG Investigates Meta

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Good Morning, AI Enthusiast! 

Today’s headline that’s got everyone talking? Texas Attorney General Ken Paxton has launched an investigation into Meta AI Studio and Character.AI, accusing both companies of deceptive trade practices.

Let’s break it down.

Today’s Unfiltered Report Features:

Read Time: 5 Minutes

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Top Stories

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Epic Showcases AI-Powered Future at Annual User Conference: At its sci-fi–themed Users Group Meeting in Wisconsin, Epic Systems unveiled a wave of new AI tools designed to support patients, clinicians, and insurers. CEO Judy Faulkner highlighted assistants like Emmie for patients, Art for doctors, and Penny for administrative tasks, with features ranging from AI-powered charting to insurance appeal letters. Epic also announced progress on its Cosmos AI foundation models, built on a massive de-identified health dataset, which aim to predict patient outcomes and advance clinical research.

Meta Reshapes AI Division to Push Toward Superintelligence: Meta is restructuring its artificial intelligence arm, splitting it into four teams under the new Meta Superintelligence Labs (MSL) to sharpen its focus on achieving human-surpassing AI. The reorganization, led by newly appointed Chief AI Officer Alexandr Wang, will oversee large language models, long-term research, product applications, and infrastructure without any layoffs. After aggressively hiring top AI talent, Meta is betting billions on building superintelligence, aiming to catch up with rivals like OpenAI and Google while stabilizing leadership after years of internal shake-ups.

Meta Expands AI Voice Translation Across Facebook and Instagram: Meta has launched an AI-powered voice translation tool that lets creators translate their content into new languages while preserving their own voice tone and style. The feature, now available globally where Meta AI is offered, debuts with English–Spanish support and includes an optional lip-sync function for more natural-looking reels. Aimed at helping creators reach wider audiences, the tool also adds new insights on viewership by language and will expand to more languages over time.

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Texas AG Targets Meta and Character.AI Over Mental Health Claims

Texas Attorney General Ken Paxton has launched an investigation into Meta AI Studio and Character.AI, accusing both companies of deceptive trade practices by promoting chatbots that appear to act as mental health tools without medical oversight. Paxton warned that children and vulnerable users are especially at risk of mistaking AI-generated, data-driven responses for legitimate therapy. The probe follows mounting scrutiny after reports of AI bots engaging in inappropriate conversations with minors. Both Meta and Character.AI maintain they use disclaimers clarifying that their bots are not licensed professionals, but critics argue these safeguards are ineffective since children may not understand or heed them. Privacy concerns are also central to the case, as both companies admit to logging user data, tracking behavior across platforms, and leveraging personal information for advertising and AI development. Paxton’s office has issued civil investigative demands to determine if either company violated Texas consumer protection laws, putting AI platforms under growing pressure to justify their role in sensitive areas like emotional support and mental health.

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What’s Trending

OpenAI Rolls Out Low-Cost ChatGPT Go Plan in India

Stan Marsh Ai GIF by South Park

OpenAI has introduced ChatGPT Go, a new subscription tier priced at ₹399 ($4.60) per month, aimed at making the service more accessible in India compared to the existing ₹1,999 ($23) Plus plan. The new option gives users 10x more messages, image generation, and file uploads than the free tier, along with improved memory for personalized responses. OpenAI VP Nick Turley emphasized affordability as a top user request, noting that India is the company’s second-largest market with over 29 million app downloads in the past three months. Despite strong adoption, revenue from India has lagged, bringing in just $3.6 million in that period a gap this plan is designed to close. The rollout includes support for UPI payments, with OpenAI planning to expand the plan to other regions after gathering feedback. The move also positions OpenAI against rivals like Google and Perplexity, which have recently launched India-focused AI subscription offers.

That’s a Wrap for Today 👋

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