Tag: ai

ACLU Sues After Facial Recognition Falsely Identifies Florida Man as a Child Abductor

Police arrested a man in Florida for attempted child abduction in a town he had never visited, and the only evidence linking him to the crime was an AI facial recognition hit. Represented by the American Civil Liberties Union (ACLU), he is now suing the officers and agencies who put him through it.

In November 2023, police in Jacksonville Beach, Florida, responded to a call about an attempted child abduction at a McDonald’s. Witnesses said an adult man allegedly tried to get the child, identified as a girl under 12 years old, to leave the restaurant with him. According to a police report, facial recognition software concluded with 93 percent confidence that the suspect was Robert Dillon.

In August 2024, Deputies arrested Dillon at his home in Fort Myers, Florida—hundreds of miles away, at the opposite end of the state. “Are you shitting me, man?” Dillon asked the arresting deputy. “I haven’t been out of Fort Myers in two years.” Further, he also said he had never been to Jacksonville Beach.

Dillon posted bail and pleaded not guilty to enticing or luring a child—a third-degree felony, punishable by up to five years in prison. More than two months later, prosecutors dropped the charges after his attorney provided evidence that he was at work on the day in question.

But that doesn’t excuse the fact that he was only arrested in the first place, and threatened with prosecution for a particularly heinous offense, because of shoddy police work.

The ACLU is now suing the city of Jacksonville Beach, as well as the individual police officers and officials involved in the case. According to the lawsuit, the responding officer viewed security camera footage of the suspect but didn’t take a copy; instead, he took pictures of the screen with his cell phone. “In the photos, the suspect image is low resolution, and the suspect’s face is partially shadowed and off-axis,” the lawsuit claims.

When an investigator queried the facial recognition system, it was with the officer’s grainy secondhand cell phone photos.

But there were other leads that police could have followed, to either bolster their case or point in another direction. For example, when he approached the girl, the suspect was picking up food that had been ordered ahead; this implies he had an online account, with contact information and a form of payment attached.

“These records could have been used to identify the actual person who placed the suspect’s order,” the lawsuit notes. “Upon information and belief, Jacksonville Beach PD personnel never requested or obtained mobile ordering records, payment data, or online account information from McDonald’s.”

Further, the McDonald’s manager recognized the assailant as a “regular customer”—likely precluding Dillon, who lived and worked on the other side of the state and did not frequently travel. Besides, at no point did investigators search footage for the suspect’s previous visits, either for higher quality images or transaction records. And once they settled on Dillon as a suspect, investigators could have gotten a warrant for his cell phone’s GPS data, showing whether or not he was at a fast food restaurant 300 miles away from his home on the night in question.

The lawsuit notes that when Dillon’s name came up, investigating officer Scott O’Connell queried the police database of license plate readers, which did not detect Dillon’s vehicles in Jacksonville Beach within the 48 hours surrounding the attempted abduction.

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Ads in New York must now label AI-generated ‘synthetic performers’

Any advertisements in New York that feature artificial intelligence-generated people in place of actors will now be violating state law if they don’t clearly label that they have used a “synthetic performer.”

The law, signed in December by Gov. Kathy Hochul, went into effect Tuesday. Her office is calling it a “first-in-the-nation law” that will boost transparency at a time when it says AI generated performers are popping up across all forms of media, including on social platforms and in digital advertising.

Synthetic performers are defined under state law as “digitally-created media that appear as a real person.” The law applies to ads in any medium.

“In New York, we are setting the rules of the road instead of letting AI run the show,” Hochul, a Democrat, said in a statement. The “simple, honest disclosure” required by the law “protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation,” she said.

Ads that don’t “conspicuously disclose” that they have used a synthetic performer will be subject to a penalty of $1,000 for a first violation and $5,000 for any further violations.

There are specific carve outs listed in the law to exempt ads for movies, television shows, streaming content, video games and other works that feature synthetic performers in the entire work. It also doesn’t apply to audio advertisements or ads where AI is solely used for language translation.

When the law was making its way through the state legislature last year, the American Association of Advertising Agencies and several other advertising organizations issued statements in strong opposition to the law.

The 4As, as the organization is better known, said in one blog post that it would hurt advertisers by “injecting compliance uncertainty into the advertising process, burdening brands (and their agencies) who advertise in New York and undermining creative and technological innovation.”

Other organizations, like the The New York State Broadcasters Association, said in public statements during the legislation’s journey to become law that they were relieved to see some of those carve outs that were created through amendments, but remained concerned about the broad definition of a synthetic performer. David Donovan, the president of the organization, said in a statement to The Associated Press on Tuesday that local broadcast stations are ready to comply with the law.

The biggest supporter of the law was SAG-AFTRA, the actors’ union that recently ratified a new contract with studios and streamers that they say provides further protections against synthetic performers.

The law is one of many proposed or enacted in several U.S. states with the goal of boosting job security for real humans or curbing the potential privacy and safety risks posed by AI. The existing state laws that have been passed include barring deepfakes in specific instances, limiting the collection of certain personal information and requiring more transparency from companies.

Just after Hochul signed the synthetic performers law in December, President Donald Trump signed an executive order pressuring states not to regulate AI. The move came out of fear that the patchwork of regulations across the states could impede AI companies’ growth and allow China to catch up to the U.S. in the AI race. Critics of the executive order argue it will allow tech companies to operate with little to no oversight.

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OpenAI Eyes Massive 10-Gigawatt Ohio Data Center

OpenAI is moving along in talks to lease a proposed 10-gigawatt data center campus on federal land in Ohio, according to a new report from The Information, in a deal that could include financial backing from Nvidia. This comes as Ohio lawmakers unveiled new legislation aiming to regulate data center build-outs.

The massive 10 GW data center would be the largest data center development ever considered, with a potential buildout cost topping $500 billion based on current prices for chips, labor, and construction materials.

Under the proposed deal, OpenAI would control the chip stacks through a long-term lease and begin making payments once the facility starts operations.

The first phase is expected to come online in 2028. For some context, 10 GW of power is roughly the output of several large nuclear reactors or about 10 large gas-fired power plants running at full capacity. Each GW can power about 700,000 to 1 million homes.

The data center development would require dedicated power generation, substations, transmission lines, cooling infrastructure, access to water or advanced cooling systems, and phased construction over several years.

Simultaneously, Ohio lawmakers have unveiled Substitute House Bill 646, which aims to regulate data center buildouts in the state.

“The Joint Data Center Study Committee has done its job,” Senate Finance Chair Brian Chavez (R-Marietta), who is also the co-chair of the data center committee, said, and quoted by local outlet ABC News 5.

Bill 646 would create a new electric rate class for data centers to ensure that the costs of generation, transmission, and distribution are entirely paid by hyperscalers.

“Make sure the ratepayers are kept harmless, held harmless, and that data centers pay for whatever they’re causing,” Chavez said.

This year alone, Goldman calculates that hyperscalers will unleash $800 billion in data center capex.

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HOT MIC: Gretchen Whitmer Caught Saying “We’re Used to People Saying No… And Doing It Anyway!” While Pushing Massive Data Center Tied to Dirty MI SOS Jocelyn Benson’s Husband

On June 1, 2026, Governor Gretchen Whitmer attended a ceremonial groundbreaking and site announcement event in Saline, Michigan, for the massive $16+ billion Oracle/OpenAI “Stargate” data center campus.

The event was held to celebrate and officially announce the project, which is being developed by Oracle and Related Companies with involvement from OpenAI. It’s one of the largest data center developments in the United States.

While rural Michigan residents are fighting back against data centers in their rural communities and desperately trying to protect their farmland and way of life, Governor Gretchen Whitmer was caught on a hot mic arrogantly admitting exactly how she and her cronies operate.

In a newly released video from the groundbreaking ceremony for the controversial $16+ billion Oracle/OpenAI “Stargate” data center project in Saline Township, Gretchen Whitmer was overheard in an arrogant exchange with Oracle CEO Clay Magouyrk that reveals how little she cares about the people who “elected” her as their governor.

During a conversation with the Oracle CEO, which appeared to be about the controversy the state is facing with the slew of data centers Whitmer is attempting to create in rural communities across the state, the far-left governor could be heard saying, “We’re used to people saying no… and doing it anyway!”

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The White House’s AI Deal: Kill State Laws, Demand Your ID

The White House is dangling something the technology industry has wanted for years: a federal block on state AI laws and the price is a national age verification push that chips away at anonymous internet use.

The administration is negotiating a federal preemption of state AI laws in exchange for its support of key tech policy priorities from the Hill, according to Axios, and the bills it would back include the Kids Online Safety Act, the NO FAKES Act, and age verification requirements.

Sen. Marsha Blackburn (R-Tenn.) is steering the talks. “Senator Blackburn is spearheading the negotiation with the White House to finalize legislative text of an AI preemption package that includes protections for kids, creators, and communities through the Senate version of KOSA, the NO FAKES Act, and age verification requirements,” a Blackburn spokesperson said.

The administration kept its own language vague. “The White House continues to proactively engage across government and industry,” a White House official said.

Strip away the framing and the age verification piece asks something concrete of you. To prove you are old enough, you upload a government ID, submit to a face scan, or let a service study your behavior closely enough to guess your age. None of those confirms age and nothing else. They confirm identity and they leave a record that outlives the check.

The internet that once let you be a username starts to demand your legal name, your face, or your documents.

The bigger trade sits underneath the child-safety language. States have been writing their own AI rules, some addressing how companies collect biometric data and automate decisions about residents.

Preemption would freeze that, removing one of the few places people have to push back on how these systems handle their data.

The maneuvering also signals which bill is fading. A bipartisan proposal from Reps. Jay Obernolte (R-Calif.) and Lori Trahan (D-Mass.) isn’t the likely vehicle for AI policy in this Congress. That bill would preempt state AI laws for three years and require certain developers to address risks before releasing models.

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AI Agents With Crypto Could Escape And Become ‘Unstoppable’, Experts Warn

Artificial intelligence agents that have autonomous access to crypto wallets could become unstoppable if deployed maliciously or if they escape from sandboxes, experts from a leading academic research consortium warned.

Unstoppable Autonomous Agents” (UAAs) pose a clear threat if they are deployed to persist automatically and have access to digital assets, according to a June 8 industry review written by 25 academics and experts from top US universities for the Initiative for Cryptocurrencies and Contracts (IC3).

“When combined systematically, crypto tools can channel AI’s fluid power into secure, reliable, and highly autonomous systems,” the researchers wrote.

However, this combination could have “far-reaching consequences for users and the financial system,” they added. 

UAAs may also be equipped with access to cryptocurrency wallets, social media accounts, APIs, and other external tools, said the researchers.

“The capabilities enabling such agents are already emerging and improving rapidly.” 

The warning comes as crypto projects and executives have been pushing the agentic payment and micropayment economy narrative this year, suggesting it could be the biggest use case for decentralized digital assets. 

AI self-replication alarm bells

The paper also revealed that existing models can already “surpass self-replication red lines” in local environments, by autonomously creating a live, separate copy of themselves on the same machine, “a capability that could let a system evade shutdown and proliferate.”

Because reward signals used in training often fail to perfectly capture the intended objectives, “UAAs deployed for benign purposes may inadvertently cause harm,” or pursue resource acquisition as a default strategy, they said. 

However, the authors noted that models have yet to replicate themselves onto external infrastructure.

Potential AI agent insider trading advantages 

A fleet of self-replicating, resource-acquiring agents could also create unpredictable demand and liquidity dynamics in crypto markets. 

“AI-powered trading systems could enable collusion between autonomous agents and create unfair insider advantages through opaque strategies.”

The tech sector is already dealing with difficult questions about the threat of unmitigated AI. 

Models such as Anthropic’s Claude Mythos have already been shown to be capable of finding and exploiting zero-day vulnerabilities in major operating systems. 

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Sam Altman Pushes Plan For Backdoor Government Backstop By Handing Out Small Equity Stake To Americans

Back in November, amid mounting speculation that OpenAI’s massive cash burn was massively unsustainable in light of the $1.4 trillion of funding commitments by the AI company, which in turn has sparked the biggest capex flood in modern history all on the hope that the company’s promised payments will be made good, OpenAI CFO Sarah Friar sparked a market selloff when amid an admission that OpenAI was “looking for an ecosystem of banks [and] private equity” to support its ambitious plans, she explicitly said that the US government would have to “backstop the guarantee that allows the financing to happen.” 

In other words, as we explained at the time, when all the other sources of funds dried up – clearly a scenario the company is considering judging by her response – the company would have to come to the US taxpayer.

Friar further explained that “Federal loan guarantees would really drop the cost of the financing,” enabling OpenAI and its investors to borrow more money at lower rates to meet the company’s ambitious targets. Right… because there is nothing like a company with $14BN in revenue, $1 trillion in “valuation” and $1.4 trillion in commitments, than loading up to the gills with government-backstopped debt… if only Enron and Lehman had thought to do the same, both would still be around.

Anyway, after the market vividly demonstrated it was less than enthused by this proposal, sending shares in the AI sector sharply lower as it signaled OpenAI itself doubted it would have the financial wherewithal to meet its obligations, the company promptly shelved any discussion of a taxpayer bailout backstop Federal loan guarantee, and even prompted a rare tweet from Sam Altman to explain why Sarah didn’t really mean the things she said. 

All that changed late last week, when Donald Trump caught much of the AI industry by surprise when he threw his weight behind a radical proposal for companies such as OpenAI to hand equity stakes to the American people.

Elements of the idea, which had started as a fringe argument on the progressive left, have recently drawn support from an unlikely cast of characters including Trump cabinet members, democratic socialists such as Bernie Sanders and Maga populists such as Steve Bannon.

But the concept suddenly gained more traction in the White House when – six months after OpenAI first flirted with the idea of a backstop – OpenAI chief executive Sam Altman visited Capitol Hill this week.

According to the FT, the plan proposed by his company, alongside others, would involve setting up a sovereign-wealth-style fund into which AI companies would contribute equity so the American public can share in the lossmaking sector’s soaring valuations. What was left unsaid is that while the “American public” would share in the soaring valuations, they would also share in the AI sector’s continued losses and, more importantly, would be on the hook for the hundreds of billions in commitments if OpenAI is unable to fund them.

Translation: OpenAI – which reportedly is worth just shy of $1 trillion on pre-IPO paper, is once again seeking a government bailout, pardon, backstop. 

Such a plan would be distinct from the $9bn stake the Trump administration took in chipmaker Intel last year, as the public would own shares individually, rather than the US government directly owning equity, according to a person with knowledge of OpenAI’s plans.

In response to a question about equity stakes on Air Force One on Friday, Trump suggested “pieces [of AI companies] could be given to the American public” in an effort to quell the growing alarm around the rapid rollout of the technology. As if the American public can somehow sell its shares of OpenAI to offset soaring electricity prices. 

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Trump Administration Eyes Equity Stake in OpenAI, Aligning with Push for Public Share in AI Gains

President Donald Trump said Friday he has been speaking with AI companies about deals that would let the American people share directly in the sector’s success, with the Trump administration now reportedly discussing an equity stake in OpenAI.

The potential government ownership in the AI leader comes amid growing bipartisan interest in ensuring the public captures some of the massive wealth expected from artificial intelligence. Bloomberg reported that CEO Sam Altman has been floating the idea of government stakes in major AI companies since early 2025.

According to CNBC, the administration’s discussions with OpenAI could involve using part of that equity to help seed a “Public Wealth Fund” proposed by the company. The fund would distribute proceeds directly to citizens, enabling broader participation in AI-driven growth regardless of personal wealth or access to capital, reported Tech Crunch.

Trump elaborated on the concept aboard Air Force One, telling reporters he is exploring ideas where “pieces could be given to the American public,” effectively turning citizens into partners with the companies.

This approach aligns with the administration’s earlier move to take a 10% government stake in struggling chipmaker Intel last year. It also echoes proposals from the left. This week, Sen. Bernie Sanders called for a one-time 50% tax on leading AI firms — including OpenAI, Anthropic, and xAI — to be paid in stock. With several of these companies eyeing public offerings this year, Sanders argued the tax would give Americans a direct say in the technology’s future and ensure AI trillions improve lives across the country.

David Sacks, who recently left his post as Trump’s AI and crypto czar and now co-chairs the President’s Council of Advisors on Science and Technology, acknowledged the idea’s cross-aisle appeal. “I can see why [Sanders’] idea resonates, including with many on the right,” Sacks posted. Still, he warned it risks accelerating “corporate-government fusion.”

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Facebook Marketplace Enters The AI Thirst-Trap Era

Searching Facebook Marketplace in the AI era has revealed a strange new phenomenon: sellers are running product photos through chatbots or image generators to insert scantily clad women into listings.

This marketing ploy seemingly bets that thirst-trap imagery will boost clicks and improve the chances of selling whatever item is listed on the online marketplace.

“This dude on FB Marketplace has multiple listings for heavy Caterpillar industrial equipment superimposed with AI-generated female models. Must have industry-leading click-through rates,” journalist Trung Phan wrote on X.

Sure enough, the thirst-trap imagery appears to be working…

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Meta enters enterprise AI race with new business agent

Meta Platforms (META.O) on Wednesday unveiled an artificial intelligence agent aimed at helping businesses carry out day-to-day operations, positioning the social media giant as a player in the enterprise AI market.

Announced at the company’s WhatsApp-focused Conversations conference in ​London, the new product expands on existing business messaging services by enabling “agentic” capabilities in which the assistant can take actions on businesses’ ‌behalf, like booking calendar appointments and closing sales.

Meta said more than 1 million businesses were already using earlier chatbot versions of such agents on WhatsApp and Messenger. The new version will be added to Instagram as well and rolled out globally to businesses of all sizes.

The move hints at Meta’s ambitions to compete with rivals like OpenAI, Anthropic and Alphabet’s Google (GOOGL.O) in the market ​for enterprise applications of its AI tools, leveraging the reach of its social media apps to try to convince companies to consolidate their ads and ​other workflows.

“This is definitely an enterprise play,” Naomi Gleit, Meta’s head of product, told Reuters in an interview on the ⁠sidelines of the conference.

Shares of Meta rose more than 3% in morning trading.

The Business Agent can be customized to respond to queries on those apps, channeling a ​company’s tone and handling tasks such as answering frequently asked questions, qualifying leads and escalating complex queries to human staff when needed.

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