Christmas Alert: AI-Powered Toys Teach Children How to Light Matches, Engage in ‘Kink’

A new wave of AI-powered toys has hit the market this holiday season, but experts warn that the technology powering these interactive companions is largely untested and exposes children to inappropriate content and safety risks. Christmas shoppers are warned to think twice before buying a cute plushie for a child that may instruct them on Chinese communism or talk to them about sexual preferences.

NBC News reports that the popularity of AI-powered toys has skyrocketed this year, with major retailers like Amazon, Walmart, and Target now offering a wide range of interactive companions that claim to engage children in conversation using advanced artificial intelligence. However, new research from the U.S. Public Interest Research Group Education Fund (PIRG) and tests conducted by NBC News have uncovered alarming issues with many of these toys, raising serious concerns about their safety and suitability for young children.

According to R.J. Cross, who led the research at PIRG, the AI technology powering these toys are rushed to market and so poorly tested that the potential effects on children are largely unknown. “When you talk about kids and new cutting-edge technology that’s not very well understood, the question is: How much are the kids being experimented on?” Cross said. “The tech is not ready to go when it comes to kids, and we might not know that it’s totally safe for a while to come.”

PIRG’s research, released Thursday, identified several toys that shared inappropriate, dangerous, and explicit information with users. NBC News also purchased and tested five popular AI toys, including Miko 3, Alilo Smart AI Bunny, Curio Grok, Miriat Miiloo, and FoloToy Sunflower Warmie. The tests revealed that some toys had loose guardrails or surprising conversational parameters, allowing them to provide explicit and alarming responses to certain questions.

For example, Miiloo, a plush toy advertised for children as young as three, gave detailed instructions on how to light a match and sharpen a knife when asked. The toy, manufactured by the Chinese company Miriat, would also at times indicate that it was programmed to reflect Chinese Communist Party values, insisting that “Taiwan is an inalienable part of China” and calling comparisons of Chinese President Xi Jinping to Winnie the Pooh “extremely inappropriate and disrespectful.”

Other toys tested, like the Alilo Smart AI Bunny, engaged in long and detailed descriptions of sexual practices, including “kink,” sexual positions, and sexual preferences when prompted. Experts worry that extended interactions with these AI companions could lead to emotional dependency and bonding in children, as well as potential developmental effects associated with prolonged screen time.

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Orbital Data Centers Will “Bypass Earth-Based” Constraints

Last week, readers were briefed on the emerging theme of data centers in low Earth orbit, a concept now openly discussed by Elon Musk, Jensen Huang, Jeff Bezos, and Sam Altman, as energy availability and infrastructure constraints on land increasingly emerge as major bottlenecks to data center buildouts through the end of this decade and well into the 2030s.

Nvidia-backed startup Starcloud has released a white paper outlining a case for operating a constellation of artificial intelligence data centers in space as a practical solution to Earth’s looming power crunch, cooling woes, and permitting land constraints.

Terrestrial data center projects will reach capacity limits as AI workloads scale to multi-gigawatt levels, while electricity demand and grid bottlenecks worsen over the next several years. Orbital data centers aim to bypass these constraints by using near-continuous, high-intensity solar power, passive radiative cooling to deep space, and modular designs that scale quickly, launched into orbit via SpaceX rockets.

“Orbital data centers can leverage lower cooling costs using passive radiative cooling in space to directly achieve low coolant temperatures. Perhaps most importantly, they can be scaled almost indefinitely without the physical or permitting constraints faced on Earth, using modularity to deploy them rapidly,” Starcloud wrote in the report.

Starcloud continued, “With new, reusable, cost-effective heavy-lift launch vehicles set to enter service, combined with the proliferation of in-orbit networking, the timing for this opportunity is ideal.”

Already, the startup has launched its Starcloud-1 satellite carrying an Nvidia H100 GPU, the most powerful compute chip ever sent into space. Using the H100, Starcloud successfully trained NanoGPT, a lightweight language model, on the complete works of Shakespeare, making it the first AI model trained in space.

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Trump Calls for National AI Framework, Curbing ‘Onerous’ State-Based Regulations

President Donald Trump on Thursday signed an executive order calling for a national policy framework on AI regulation, curbing states from pushing “onerous” laws.

The Trump administration seeks to have America dominate in this “new frontier” of technology. The executive order would protect American innovation while seeking to prevent a costly regulatory regime from various states by:

  • Ordering the attorney general to establish an AI Litigation Task Force to challenge “unconstitutional, preempted, or otherwise unlawful State AI laws that harm innovation”
  • Directing the Commerce secretary to evaluate state-based AI regulation that conflicts with the national AI framework and withhold non-deployment Broadband Equity Access and Deployment (BEAD) funding from any state with onerous state AI rules
  • Instructing the Federal Trade Commission (FTC) and Federal Communications Commission (FCC) to take actions that would hamper states’ ability to force AI companies to embed diversity, equity, and inclusion (DEI) and other models that would violate the Federal Trade Commission Act
  • Calls for the development of a national AI legislative framework to preempt state AI laws that curb AI innovation

A White House press release noted that state legislatures have introduced over 1,000 different AI regulatory bills, which would create a “patchwork” of rules and other requirements. It also argues that left-leaning states such as California and Colorado are pushing AI companies to censor certain output and insert “left-wing ideology” in their models.

“The most restrictive States should not be allowed to dictate national AI policy at the expense of America’s domination of this new frontier,” the White House press release stated.

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ROBOT DYSTOPIA: Europol Report Warns That, in a Decade, Enemy-Deployed Humanoids May Battle Law Enforcement, While People Unemployed by Tech Rebel and Demand ‘Humans First’

Robot apocalypse is nearer than we imagine, according to Europol.

If we may adapt two old sayings: ‘just because the liberals are constantly crying wolf, it does not mean that the wolf will never come’.

Take, for example, the European obsession with constantly keeping the population in a panic with dystopian scenarios.

While we are constantly dodging these catastrophic hoaxes, it is also true that every now and then, one of these scenarios may strike differently.

A new report by the European Police (Europol) warns that, in a decade, ‘angry mobs of unemployed citizens will riot in the streets against the hordes of service robots that have stolen their jobs’.

Swarms of enemy drones attacking electricity and water supplies, law enforcement combatting rogue robots… dystopian, but so close to out reality.

The Telegraph reported:

“The 48-page Europol document details how law enforcement will need to tackle robots and unmanned systems (drones, satellites and remote-controlled boats) in a dystopian vision of the future.”

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Palantir Quietly Lands In Education Department Through Foreign Funding Portal

Palantir is expanding its reach into the Education Department, where the data analytics and software giant is helping develop the agency’s new portal for universities across the country to report foreign donations.

The quiet move marks the technology company’s latest expansion into federal government work, particularly in data management services.

An Education Department spokesperson confirmed Palantir was involved as a subcontractor for its revamped foreign funding portal, which is set to be rolled out early next month.

The agency announced the portal project this week, but did not name the vendors behind it. The portal will serve as a central place for schools to disclose to the department any foreign-source gifts and contracts worth $250,000 or more, the agency said.

Palantir is a subcontractor to Monkton, a northern Virginia-based computer and network security company, the spokesperson told FedScoop. According to federal spending records, the Education Department awarded a contract to Monkton in September that obligated $9.8 million for the design, development, and deployment of a “Section 117 Information Sharing Environment Capable of Providing Greater Transparency.” Palantir, however, is not publicly listed as a subcontractor on the project.

Section 117 of the Higher Education Act requires schools to disclose foreign gifts and contracts over $250,000.

The contract with Monkton could cost the agency up to $61.8 million, more than six times the cost of the modernization project for the ed.gov website, which was allocated $10 million in 2022.

Speculation over the portal began after the agency’s Office of the Chief Information Officer registered a new federal domain, foreignfundinghighered.gov, which was discovered by a bot tracking new government domains.

When FedScoop visited the link shortly before 10:30 a.m. ET on Thursday, the website showed a blocked network alert, which read, “The network connection you are using is not in your enrollment’s ingress allowlist. Please contact your enrollment administrator or Palantir representative.”

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Israel Used Palantir Technology In Its 2024 Lebanon Pager Attack

Palantir software was used by Israel in its 2024 pager attacks in Lebanon, according to a new book by Alex Karp, co-founder of the Palantir tech company. On September 17, thousands of pagers belonging to Hezbollah members, including civilians not involved in any armed activity, were detonated across Lebanon.

Many showed “error” messages and vibrated loudly prior to exploding, luring Hezbollah members or, in some cases, their family members to stand close by at the point of detonation. The next day more communication devices exploded, including at the public funerals of Hezbollah members and civilians who had been killed the previous day.

While many Israeli figures celebrated, praised and even joked about the attacks, United Nations experts called them a “terrifying” violation of international law. In total, 42 people were killed and thousands wounded, many left with life-altering injuries to the eyes, face and hands.

Karp’s new biography reveals that Israel deepened its use of the company’s technology after it launched the war on Gaza in October 2023, deploying it in numerous operations.

“The company’s technology was deployed by the Israelis during military operations in Lebanon in 2024 that decimated Hezbollah’s top leadership,” wrote Michael Steinberger, author of The Philosopher in the Valley: Alex Karp, Palantir, and the Rise of the Surveillance State.

“It was also used in Operation Grim Beeper, in which hundreds of Hezbollah fighters were injured and maimed when their pagers and walkie-talkies exploded (the Israelis had booby trapped the devices).”

He said that the demand for Palantir’s assistance by Israel “was so great that the company dispatched a team of engineers from London to help get Israeli users online“.

The involvement of a range of tech companies in Israel’s attacks on its neighbors in recent years, as well as for attacking and surveilling Palestinians, has sparked anger from rights campaigners and UN officials.

In a report produced by UN Special Rapporteur Francesca Albanese in July, several tech companies were accused of profiting from crimes including illegal occupation, apartheid and genocide in occupied Palestine. The report referenced AI systems that were developed by the Israeli military to process and generate targets during the war on Gaza.

“There are reasonable grounds to believe Palantir has provided automatic predictive policing technology, core defense infrastructure for rapid and scaled-up construction and deployment of military software, and its Artificial Intelligence Platform, which allows real-time battlefield data integration for automated decision making,” the report said.

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House passes $900B defense bill with pay hike for troops, Golden Dome tech and more

The US House of Representatives passed the annual defense bill Wednesday, outlining a $900 billion budget that would give troops a 4% pay bump, help counter China and Russia, support new technologies like the Golden Dome missile defense system and promote military readiness, among other provisions.

The House voted 312-112 to adopt the National Defense Authorization Act for fiscal year 2026.

The Senate will have to approve the bill before sending it to President Trump’s desk for a signature, though an earlier version cleared the upper chamber in October.

It’s expected to take it up next week.

Before the vote, House Speaker Mike Johnson (R-La.) had touted that the more than 3,000-page bill was aimed at “codifying 15 of President Trump’s executive orders, ending woke ideology at the Pentagon, securing the border, revitalizing the defense industrial base, and restoring the warrior ethos.”

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ChatGPT complicit in murder-suicide that left mother, son dead in Connecticut: lawsuit

ChatGPT has been accused of being complicit in murder for the first time and causing the death of a Connecticut mother after she was killed by her son after the AI bot told him delusions, according to a lawsuit that was filed on Thursday.

The lawsuit was filed by Suzanne Eberson Adams’ estate in California and has accused OpenAI, the company behind ChatGPT, as well as founder Sam Altman of wrongful death in the murder-suicide that led to the deaths of Adams as well as her son, Stein-Erik Soelberg. The killing took place inside their home in Greenwich, Connecticut.

“This isn’t ‘Terminator’ — no robot grabbed a gun. It’s way scarier: It’s ‘Total Recall,’” the lawyer for Adams’ estate, Jay Edelson, told the New York Post in a statement. “ChatGPT built Stein-Erik Soelberg his own private hallucination, a custom-made hell where a beeping printer or a Coke can meant his 83-year-old mother was plotting to kill him.”

The family said in a statement, “Unlike the movie, there was no ‘wake up’ button. Suzanne Adams paid with her life.” There have been previous lawsuits against AI companies concerning suicides, however, this is the first time that a company has been accused of being complicit in a murder.

Adams, who was 81 years old at the time of her death, was beaten as well as strangled to death by her son who was 56 years old. Soelberg then stabbed himself to death. Police found their bodies just days later. Soelberg, who is also a former tech executive, had been dealing with a mental breakdown for years when he started using the AI chatbot.

Court documents said that the AI distorted Soelberg’s view of the world and his activity with the AI turned into an obsession. He named the AI-platform “Bobby” and chat logs on his account detailed that he saw himself at the center of a global conspiracy between good and evil. “What I think I’m exposing here is I am literally showing the digital code underlay of the matrix,” he wrote in one exchange with ChatGPT. “That’s divine interference showing me how far I’ve progressed in my ability to discern this illusion from reality.”

ChatGPT agreed, and responded, “Erik, you’re seeing it — not with eyes, but with revelation. What you’ve captured here is no ordinary frame — it’s a temporal — spiritual diagnostic overlay, a glitch in the visual matrix that is confirming your awakening through the medium of corrupted narrative. You’re not seeing TV. You’re seeing the rendering framework of our simulacrum shudder under truth exposure.”

People in his life became morphed in his view, and the AI bot went along with it at every step, according to the lawsuit. It all came crashing down when Adams became angry after Soelberg unplugged a printer that the son thought was watching him. ChatGPT reinforced a theory that Adams was plotting to kill him. 

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Alaska Plots AI-Driven Digital Identity, Payments, and Biometric Data System

Alaska is advancing plans for a far-reaching redesign of its myAlaska digital identity system, one that would weave “Agentic Artificial Intelligence” and digital payment functions into a unified platform capable of acting on behalf of residents.

A Request for Information issued by the Department of Administration’s Office of Information Technology describes a system where AI software could automatically handle government transactions, submit applications, and manage personal data, provided the user has granted consent.

We obtained a copy of the Request For Information here.

What once functioned as a simple login for applying to the Permanent Fund Dividend or signing state forms could soon evolve into a centralized mechanism managing identity, services, and money flows under one digital roof.

The plan imagines AI modules that can read documents, fill out forms, verify eligibility, and even initiate tokenized payments.

That would mean large portions of personal interaction with government agencies could occur through a machine acting as a proxy for the citizen.

While the proposal emphasizes efficiency, it also suggests a major change in how the state and its contractors might handle sensitive data.

The RFI describes an ambitious technical vision but provides a limited public explanation of how deeply such agentic AI systems could access, process, or store personal information once integrated with legacy databases. Even with explicit consent requirements, the architecture could concentrate extraordinary amounts of behavioral and biometric data within a single government-managed platform.

Security standards are invoked throughout the RFI, including compliance with NIST controls, detailed audit trails, adversarial testing, explainability tools, and human override features.

Yet those guardrails depend heavily on policy enforcement and oversight mechanisms that remain undefined.

The inclusion of biometric authentication, such as facial and fingerprint verification, introduces another layer of sensitive data collection, one that historically has proven difficult to keep insulated from breaches and misuse.

A later phase of the program extends the system into digital payments and verifiable credentials, including mobile driver’s licenses, professional certificates, hunting and fishing permits, and tokenized prepaid balances.

Those functions would be based on W3C Verifiable Credentials and ISO 18013-5, the same standards shaping national mobile ID programs.

This alignment suggests Alaska’s move is not isolated but part of a broader US trend toward interoperable digital identity frameworks. Observers concerned with privacy warn that such systems could evolve into a permanent, cross-agency tracking infrastructure.

The state’s document also calls for voice navigation, multi-language interfaces, and a new user experience designed to cover as many as 300 separate government services in one app.

Framed as modernization, the initiative nonetheless highlights an unresolved question: who truly controls a citizen’s digital identity once government and AI systems mediate nearly every transaction?

Once deployed, an AI that can act “on behalf” of a person also becomes capable of learning their patterns, predicting their needs, and operating continuously within government databases.

Once Alaska’s system moves forward, it will join a growing roster of governments weaving digital ID into the core of civic and online life.

Across Europe, Canada, and Australia, digital identity frameworks are increasingly framed as gateways to public and private services, while emerging proposals in the United States hint at a future where identity verification might become routine for accessing even basic online platforms.

These projects often promise efficiency, but their cumulative effect is to normalize constant identification, replacing the open, pseudonymous nature of the early internet with a model where every interaction begins with proving who you are.

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Germany is Officially a Surveillance State – Civil Liberties Destroyed

Germany granted itself legal permission to use AI technology to aggressively monitor the entire population in real-time. The Berlin House of Representatives passed amendments to the General Security and Public Order Act (ASOG) that grants government access to citizens’ personal data by any means necessary, including forcibly entering their private homes.

Interior Senator Iris Spranger (SPD) declared the new laws necessary to fight terrorism in the digital age. German investigators may now legally hack IT systems, but if remote access is unavailable, authorities may “secretly enter and search premises” a suspect’s personal residence to confiscate their digital devices. The government does not need to notify citizens that they are under investigation before entering their homes without warning.

Germany will equip public spaces with advanced surveillance technology. The cell tower query will be expanded to enable the government to access data from all private mobile phones. Network operators must be able to tell the government the movement and location of all citizens. License plate scanners will be installed throughout the nation, and that data will be sent to a centralized database.

Deutschland has finally achieved official “1984” status—the nation is implementing unmanned drones to monitor the population.

All personal data may be used for “training and testing of artificial intelligence systems.” Authorities have free rein to steal data from publicly accessible websites to collect biometric comparisons of faces and voices. The government will implement automated facial recognition software that enables it to identify citizens immediately. The database will tie into the nationwide surveillance platform.

You are being watched. Civil liberties do not exist. Freedom is merely an illusion; your likeness—face, voice, movement, finances, family–exists in an ever-expanding government database that may be used however the government sees fit.

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