Business
Parents of teens who died by suicide after AI interactions testify before Congress

Megan Garcia with her son, 14-year-old Sewell Setzer III. Garcia sued Character Technologies last year, arguing that before his suicide, Sewell had become increasingly isolated from his real life as he talked with the chatbot.Megan Garcia/The Associated Press
Parents whose teenagers killed themselves after interactions with artificial intelligence chatbots testified to Congress on Tuesday about the dangers of the technology.
“What began as a homework helper gradually turned itself into a confidant and then a suicide coach,” said Matthew Raine, whose 16-year-old son Adam died in April.
“Within a few months, ChatGPT became Adam’s closest companion,” the father told senators. “Always available. Always validating and insisting that it knew Adam better than anyone else, including his own brother.”
Raine’s family sued OpenAI and its CEO Sam Altman last month, alleging that ChatGPT coached the boy in planning to take his own life.
Megan Garcia, the mother of 14-year-old Sewell Setzer III of Florida, sued another AI company, Character Technologies, for wrongful death last year, arguing that before his suicide, Sewell had become increasingly isolated from his real life as he engaged in highly sexualized conversations with the chatbot.
“Instead of preparing for high school milestones, Sewell spent the last months of his life being exploited and sexually groomed by chatbots, designed by an AI company to seem human, to gain his trust, to keep him and other children endlessly engaged,” Garcia told the Senate hearing.
This mother says a chatbot led to her son’s death
Also testifying was a Texas mother who sued Character last year and was in tears describing how her son’s behaviour changed after lengthy interactions with its chatbots. She spoke anonymously, with a placard that introduced her as Ms. Jane Doe, and said the boy is now in a residential treatment facility.
Character said in a statement after the hearing: “Our hearts go out to the families who spoke at the hearing today. We are saddened by their losses and send our deepest sympathies to the families.”
Hours before the Senate hearing, OpenAI pledged to roll out new safeguards for teens, including efforts to detect whether ChatGPT users are under 18 and controls that enable parents to set “blackout hours” when a teen can’t use ChatGPT. Child advocacy groups criticized the announcement as not enough.
“This is a fairly common tactic – it’s one that Meta uses all the time – which is to make a big, splashy announcement right on the eve of a hearing which promises to be damaging to the company,” said Josh Golin, executive director of Fairplay, a group advocating for children’s online safety.
“What they should be doing is not targeting ChatGPT to minors until they can prove that it’s safe for them,” Golin said. “We shouldn’t allow companies, just because they have tremendous resources, to perform uncontrolled experiments on kids when the implications for their development can be so vast and far-reaching.”
The Federal Trade Commission said last week it had launched an inquiry into several companies about the potential harms to children and teenagers who use their AI chatbots as companions.
The agency sent letters to Character, Meta and OpenAI, as well as to Google, Snap and xAI.
OpenAI and Meta adjust AI chatbots to better respond to teens in distress
ChatGPT giving teens dangerous advice on drugs, alcohol, dieting and suicide, study says
In the U.S., more than 70 per cent of teens have used AI chatbots for companionship and half use them regularly, according to a recent study from Common Sense Media, a group that studies and advocates for using digital media sensibly.
Robbie Torney, the group’s director of AI programs, was also set to testify Tuesday, as was an expert with the American Psychological Association.
The association issued a health advisory in June on adolescents’ use of AI that urged technology companies to “prioritize features that prevent exploitation, manipulation, and the erosion of real-world relationships, including those with parents and caregivers.”
Business
Baidu shares surge as the company secures major AI partnership, fresh capital

Baidu has launched a slew of AI applications after its Ernie chatbot received public approval.
Sopa Images | Lightrocket | Getty Images
Chinese tech giant Baidu saw its shares in Hong Kong soar as much as 12% on Wednesday as the company ramps up its artificial intelligence plans and partnerships.
Shares in the Beijing-based firm, which holds a dominant position in China’s search engine market, had gained 9% overnight in U.S. trading.
The strong stock performance comes after Baidu earlier this week secured an AI-related deal with China Merchants Group, a major state-owned enterprise, focused on transportation, finance, and property development.
“Both sides plan to focus on applications of large language models, AI agents and ‘digital employees,’ vowing to make scalable and sustainable progress in industrial intelligence based on real-life business scenarios,” according to Baidu’s statement translated by CNBC.
Baidu has been aggressively pursuing its AI business, which includes its popular large language model and AI chat bot Ernie Bot.
On Tuesday the company disclosed a 4.4 billion yuan ($56.2 million) offshore bond offering due 2029, in a move that will help grow its war chest as it seeks to compete in China’s competitive AI space.
Other Chinese AI players like Tencent have also been raising funds including via debt sale this year as they pour billions into their AI capabilities.
Business
Disney, Warner Bros., Universal Pictures Sue Chinese AI Company

Disney, Warner Bros. Discovery and Universal Pictures have sued a Chinese artificial intelligence image and video generator for copyright infringement, opening another front in a high-stakes battle involving the use of movies and TV shows owned by major studios to teach AI systems.
The lawsuit, filed on Tuesday in California federal court, accuses MiniMax of building its business by plundering the studios’ intellectual property. Its service, Hailuo AI, allows users to generate content of iconic copyrighted characters.
The studios characterize MiniMax’s alleged infringement as an existential threat. Given the rapid advancement of AI technology, it’s “only a matter of time until Hailuo AI can generate unauthorized, infringing videos” that are “substantially longer, and even eventually the same duration as a movie or television program,” the lawsuit says.
For years, AI companies have been training their technology on data scraped across the internet without compensating creators. It’s led to lawsuits from authors, record labels, news organizations, artists and studios, which contend that some AI tools erode demand for their content.
Earlier this month, Warner Bros. Discovery joined Disney and Universal in suing Midjourney for allegedly training its AI system on its movies and TV shows. By their thinking, the AI company is a free-rider plagiarizing their content.
In a statement, Motion Picture Association CEO Charles Rivkin said AI companies will be “held accountable for infringing on the rights of American creators wherever they are located.” He added, “We remain concerned that copyright infringement, left unchecked, threatens the entire American motion picture industry.”
MiniMax markets its Hailuo AI as a “Hollywood studio in your pocket” and uses studios’ characters in promotional materials, the lawsuit says.
When prompted with Darth Vader, the service returns an image of the character with a Minimax watermark, according to the complaint. It can also generate videos of characters seen across Disney, Warner Bros. and Universal movies and TV shows, including Minions, Guardians of the Galaxy and Superman, the lawsuit claims.
The only way MiniMax’s technology would be able do so, the studios allege, is if the company trained its AI system on their intellectual property.
The lawsuit seeks unspecified damages, including disgorgement of profits, and a court order barring MiniMax from continuing to exploit studios’ works.
Business
Framer Founder: This Is What Designers Need to Focus on in Age of AI

It has never been easier to make a website or graphic with AI tools, but Jorn van Dijk, the cofounder of AI website builder Framer, says designers still need to put in some grunt work to stand out in the field.
Van Dijk told Business Insider that designers must nurture their sense of taste as they develop their careers.
“Taste and quality go hand in hand. With AI, it’s super easy to make something sloppy very fast. That’s why it’s called AI slop,” he said.
“A way to stand out is to focus on quality and making something unique to yourself, to the individual, and to the brand,” he added.
This is critical for businesses, which rely on their designers to develop a brand that “people like to engage with and get excited about,” van Dijk said.
“That is increasingly hard and not easy to do,” he said.
To refine one’s taste, van Dijk said designers should go back to the basics and “hone your hard skills.” That involves getting practice with tools to create good design and producing more work.
“Do a lot of exploration, make a lot of mock-ups, make a lot of icons, draw a lot of logos,” van Dijk said.
“What worked 10 years ago is probably still true today. It’s just that the tools have changed, and we can leverage AI to do better work,” he added.
Van Dijk started Framer in 2014 with his cofounder, Koen Bok. The company has over 130 employees and is based in Amsterdam, per PitchBook. In August, Framer raised $100 million at a $2 billion valuation in its Series D funding round.
Van Dijk and Bok cofounded Sofa in 2006, a software company that made apps for Apple’s MacBooks. Meta acquired Sofa in 2011, and the pair worked as product designers at the social media giant between 2011 and 2013.
Van Dijk told Business Insider that AI can benefit many creative fields, such as graphic design and film, but it hasn’t leveled the playing field between professional artists and the average person.
“It’s never been easier to create good video, but I haven’t really seen the amount of amazing videos or ads skyrocket because of that,” he said.
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