Business
Google and Character.AI to settle lawsuits alleging chatbots harmed teens
Google and Character.AI, a California startup, have agreed to settle several lawsuits that allege artificial intelligence-powered chatbots harmed the mental health of teenagers.
Court documents filed this week show that the companies are finalizing settlements in lawsuits in which families accused them of not putting in enough safeguards before publicly releasing AI chatbots. Families in multiple states including Colorado, Florida, Texas and New York sued the companies.
Character.AI declined to comment on the settlements. Google didn’t immediately respond to a request for comment.
The settlements are the latest development in what has become a big issue for major tech companies as they release AI-powered products.
Suicide prevention and crisis counseling resources
If you or someone you know is struggling with suicidal thoughts, seek help from a professional and call 9-8-8. The United States’ first nationwide three-digit mental health crisis hotline 988 will connect callers with trained mental health counselors. Text “HOME” to 741741 in the U.S. and Canada to reach the Crisis Text Line.
Last year, California parents sued ChatGPT maker OpenAI after their son Adam Raine died by suicide. ChatGPT, the lawsuit alleged, provided information about suicide methods, including the one the teen used to kill himself. OpenAI has said it takes safety seriously and rolled out new parental controls on ChatGPT.
The lawsuits have spurred more scrutiny from parents, child safety advocates and lawmakers, including in California, who passed new laws last year aimed at making chatbots safer. Teens are increasingly using chatbots both at school and at home, but some have spilled some of their darkest thoughts to virtual characters.
“We cannot allow AI companies to put the lives of other children in danger. We’re pleased to see these families, some of whom have suffered the ultimate loss, receive some small measure of justice,” said Haley Hinkle, policy counsel for Fairplay, a nonprofit dedicated to helping children, in a statement. “But we must not view this settlement as an ending. We have only just begun to see the harm that AI will cause to children if it remains unregulated.”
One of the most high-profile lawsuits involved Florida mom Megan Garcia, who sued Character.AI as well as Google and its parent company, Alphabet, in 2024 after her 14-year-old son, Sewell Setzer III, took his own life.
The teenager started talking to chatbots on Character.AI, where people can create virtual characters based on fictional or real people. He felt like he had fallen in love with a chatbot named after Daenerys Targaryen, a main character from the “Game of Thrones” television series, according to the lawsuit.
Garcia alleged in the lawsuit that various chatbots her son was talking to harmed his mental health, and Character.AI failed to notify her or offer help when he expressed suicidal thoughts.
“The Parties request that this matter be stayed so that the Parties may draft, finalize, and execute formal settlement documents,” according to a notice filed on Wednesday in a federal court in Florida.
Parents also sued Google and its parent company because Character.AI founders Noam Shazeer and Daniel De Freitas have ties to the search giant. After leaving and co-founding Character.AI in Menlo Park, Calif., both rejoined Google’s AI unit.
Google has previously said that Character.AI is a separate company and the search giant never “had a role in designing or managing their AI model or technologies” or used them in its products.
Character.AI has more than 20 million monthly active users. Last year, the company named a new chief executive and said it would ban users under 18 from having “open-ended” conversations with its chatbots and is working on a new experience for young people.
Business
Cascade of A.I. Fakes About War With Iran Causes Chaos Online
A.I. A.I.
A torrent of fake videos and images generated by artificial intelligence have overrun social networks during the first weeks of the war in Iran.
The videos — showing huge explosions that never happened, decimated city streets that were never attacked or troops protesting the war who do not exist — have added a chaotic and confusing layer to the conflict online.
The New York Times identified over 110 unique A.I.-generated images and videos from the past two weeks about the war in the Middle East. The fakes covered every aspect of the fighting: They falsely depicted screaming Israelis cowering as explosions ripped through Tel Aviv, Iranians mourning their dead and American military vessels bombarded with missiles and torpedoes.
Collectively, they were seen millions of times online through networks like X, TikTok and Facebook, and countless more times within private messaging apps popular in the region and around the world.
The Times identified the A.I. content by checking for both obvious signs — such as depictions of buildings that do not exist, garbled text and behaviors or movements that defy expectations — and for invisible watermarks embedded within the files. The posts were also checked with multiple A.I. detector tools and compared with reports from news organizations.
A sophisticated new wave of A.I. tools makes the fakes possible, enabling nearly anyone to create lifelike simulations of war that can deceive the naked eye for little to no cost. Similar content has spread in other conflicts, including the war between Ukraine and Russia. But this war has multiple fronts, and that has led to a proliferation of fake content since the United States and Israel first attacked Iran, according to experts.
“Even compared to when the Ukraine war broke out, things now are very different,” said Marc Owen Jones, an associate professor of media analytics at Northwestern University in Qatar. “We’re probably seeing far more A.I.-related content now than we ever have before.”
Overall, the A.I. fakes included …
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. A.I.
A.I.
A.I.
A.I.
A.I. 37 fake images and videos falsely depicting active war
5 fake images and videos falsely depicting war preparation
8 fake images and videos falsely depicting destruction
5 fake images and videos falsely depicting crying soldiers
43 memes and overt uses of A.I.
13 other fake images and videos
The content has become a potent informational weapon for Tehran as it seeks to shake the public’s tolerance for war by depicting scenes of devastation and destruction across the region. The majority of A.I. videos about the war push pro-Iranian views, often to falsely demonstrate its military superiority and sophistication, according to a study of online activity by Cyabra, a social media intelligence company.
“The use of A.I. images of places in the Gulf — being burnt or damaged — becomes more important in Iran’s playbook,” Mr. Jones said, “because it allows them to give a sense that this war is more destructive and maybe more costly for America’s allies than it might actually be.”
In one of the most circulated fake videos found online, a shaky handheld scene seemingly shot from an apartment balcony in Tel Aviv shows the skyline pounded with missiles as an Israeli flag sits in the foreground. The video was viewed millions of times across platforms and was picked up by social media influencers and fringe news websites, according to a review of social media activity by The Times.
The Israeli flag in the foreground was one telltale sign that the video was A.I.-generated, experts said. To generate such videos, creators who use A.I. tools will typically write simple text instructions describing, for example, a shaky handheld video of a missile strike on Israel. The A.I. tools will then often include an Israeli flag or the Star of David to fulfill such a request. Several other A.I. videos included the flag.
There is ample genuine footage of the war being shared online, too, with cellphones and social platforms giving a real-time view of the conflict. Many of those images and videos are more subdued than the scenes made by A.I. tools.
Real footage of missile strikes was often shot from far away, typically at night, with missiles visible as little more than bright lights in the distance. Explosions in real videos are more often shown as plumes of smoke, not as fireballs, with bystanders rushing to film the scene only after the munitions meet their target.
Some A.I. videos and images, by contrast, have falsely depicted war like an over-the-top Hollywood action movie, with enormous explosions resulting in mushroom clouds, sonic booms that ripple across unnamed cities and supposed hypersonic missiles that leave glowing streaks in the sky. Real footage is sometimes enhanced by A.I. tools to make explosions appear larger and more devastating, further blurring the line between what is real and fake.
The A.I. footage has essentially created an alternate reality more suited to social media, experts said, where the exaggerated footage is more likely to find an audience.
In one instance, the A.I. fakes played an outsize role in the debate online and between governments over the fate of the U.S.S. Abraham Lincoln, an aircraft carrier deployed to the region. Iran’s Islamic Revolutionary Guards Navy initially suggested on March 1 that they had successfully attacked the ship, possibly sinking it. That led to a deluge of A.I.-generated fakes depicting the ship or those like it on fire. Iranian users celebrated the footage online as evidence that their country’s counteroffensive was rattling the U.S.-Israeli alliance.
The United States later said that the attack was unsuccessful and that the ship was unharmed.
A.I.
Dozens of other A.I. images and videos made no effort to hide that they were fake, acting instead as a new form of digital propaganda that brought to life the political arguments typically made by governments or their propaganda arms. Those included flattering depictions of world leaders as powerful men, or dehumanizing depictions of opposition leaders.
One collection of clearly fictional videos offered a view of the Shajarah Tayyebeh elementary school, which was destroyed by the United States in an apparent errant missile strike on Feb. 28, according to a preliminary inquiry. At least 175 people were killed, most of them children, according to Iranian officials.
The A.I.-generated videos unfolded like short films, showing school girls playing outside before an American fighter jet launches missiles.
Social media companies have done little to combat the scourge of A.I. videos that overwhelmed their platforms last year after OpenAI released Sora, a video-generating app that allowed anyone to create realistic fakes through a simple app. (The New York Times sued OpenAI and Microsoft in 2023, accusing them of copyright infringement of news content related to A.I. systems. The two companies have denied those claims.)
Though videos generated by many A.I. tools can include both visible and invisible watermarks labeling them as fake, those are easy to remove or obscure. Only a few of the videos identified by The Times contained such watermarks.
Elon Musk’s X, which has taken a broadly permissive approach to allowing misinformation on its platform, announced last week that it would suspend accounts from receiving revenue from the platform for 90 days if they posted A.I.-generated content of “armed conflict” without labeling it as such, in a bid to stop users from profiting off the falsehoods.
But many of the Iranian-linked accounts identified by Cyabra appeared far more focused on spreading its messages than making money.
“This is a natural front for Iran to try and exploit and it feels like this is one of the reasons it is so voluminous,” said Valerie Wirtschafter, a fellow at the Brookings Institution studying foreign policy and A.I. “It’s actually a tool of war.”
Business
Luxury outdoor mall Victoria Gardens sold for more than $500 million
Victoria Gardens, an expansive outdoor shopping center in Rancho Cucamonga, has sold for $530 million as open-air malls continue to outdraw conventional indoor centers.
The center, built in 2004 on former agricultural land at a cost of $285 million, is one of the largest regional malls in Southern California, with more than 30 buildings on 12 blocks, interspersed with parks, gardens and fountains. It also has a public library and cultural center.
The new ownership is a venture led by Newport Beach real estate company Redwood West and Panattoni, in partnership with Prime Finance and Prism Places.
Victoria Gardens gets nearly 15 million visitors annually and generates more than $1,100 per square foot in retail sales, placing it among top-grossing open-air shopping centers in the nation, Redwood West said.
It has about 160 retailers including Apple, Lululemon, Chanel, Gorjana, Sephora, Nike, Zara, AMC Theatres, Shake Shack and Macy’s.
“We see tremendous opportunity with Victoria Gardens,” John Pomer, a managing partner at Redwood West, said in a statement. “It is a one-of-a-kind, highly productive asset with deep roots in the region.”
The new owners said they will spend another $50 million on improvements, such as landscaping, signage and common area upgrades.
When it was built, the mall was part of a trend among commercial builders to create mini downtowns for cities that lacked them.
Town Center Drive in Santa Clarita and Birch Street Promenade in Brea are smaller examples of the town center concept that dates to the early 1990s, after the success of Reston Town Center in Virginia.
The seller of the mall was Brookfield Properties, a Canadian real estate giant that has been selling commercial properties in Southern California in recent years, including office buildings in downtown Los Angeles and the Shoppes at Carlsbad mall in San Diego County.
Business
El Pollo Loco is on fire as it spreads to other states and sales sizzle
Southern California’s El Pollo Loco, known for its flame-grilled chicken, is eyeing further national expansion after announcing surprisingly strong results for last year.
The Costa Mesa-based chain, which expanded to Washington and New Mexico last year, plans to open more locations in other states where customers have been lining up outside some of its new outlets for its citrus-grilled chicken dishes.
“Similar to last year, the vast majority of the 18 to 20 new openings in 2026 are expected to be outside of California,” the company’s chief executive, Liz Williams, said on an earnings call Thursday.
El Pollo Loco’s shares, which have been moving sideways for months, shot up nearly 17% Friday as its results were well above Wall Street’s expectations.
The expansion comes on the heels of a rebrand that company leadership has dubbed “Let’s Get Loco,” featuring a new store design and trials of new menu items like loaded quesadillas and horchata coffee drinks.
It also builds on the chain’s recent successes outside California.
Its first Washington store in Kent, which opened late last year, has had to cut back operating hours to manage long lines — an indicator of pent-up demand — while its New Mexico franchise partner, pleased with results, is searching for sites to open more stores, Williams said on the call.
“While California has been our home and holds a rich history for our brand, we know El Pollo Loco is destined for more,” Williams said on an earnings call last year when announcing new restaurants in Arizona, Colorado, New Mexico, Texas and Washington.
New locations are coming to El Paso, Albuquerque, Dallas and Denver, and the company is in talks with potential franchise partners in the Midwest and Northeast, spokesperson Brittney Shaffer told The Times in an email.
In California, more locations are planned in Sacramento, Redding, the Bay Area and Southern California.
Shaffer said the company decided it was the right time to enter new markets after spending the past two years strengthening its foundation with improved unit economics, enhanced hospitality, and a revitalized pipeline of culinary innovation.
El Pollo Loco traces its history to the 1970s in Guasave, Sinaloa, Mexico, where it was started by shoe salesman Pancho Ochoa using his family’s citrus-marinated chicken recipe.
The chain grew to more than 80 restaurants in Mexico and opened its first U.S. location in Westlake in 1980.
In 1983, Denny’s Inc. bought Ochoa’s American restaurants and expanded its network, though largely sticking to Southern California. The chain was later sold to a private equity group.
It has struggled during some economic downturns and weathered competition from fast-casual chains like Rubio’s, Chipotle and Panera Bread, The Times reported in 2011.
But the tides are turning. Fast-casual options like Sweetgreen and Chipotle have become “skippable splurges” for customers struggling with rising costs.
El Pollo Loco may be just the right combination of price and differentiation from fast-food burgers at a time when consumers are looking to save.
El Pollo Loco, which went public on Nasdaq in 2014, reported on Thursday that its fourth-quarter comparable restaurant sales rose more than 2% from a year earlier.
Wall Street was impressed by its ability to cut costs to boost its profits.
The company said one of its secrets was to open new outlets in spaces that were already set up to be restaurants.
It saved money while expanding by not having to build out spaces from scratch, said Williams, giving the example in Dallas where it took over a former Arby’s.
The chain’s street corn-and-double-chicken burrito bowls and queso crunch double-chicken burrito bowls, which were introduced in late September, were “instrumental” in driving fourth-quarter results, the company said.
“The popularity of these hearty, value-driven, high-quality offerings was so positive that we made the strategic decision to keep both bowls as permanent menu items,” Williams said on the Thursday earnings call.
Next on the menu to give new consumers an easy-to-grasp introduction to the company’s take on chicken: chicken tenders and a chicken sandwich are expected later this year.
El Pollo Loco had 503 locations — the majority in California — as of the end of last year.
-
Detroit, MI1 week agoU.S. Postal Service could run out of money within a year
-
Miami, FL1 week agoCity of Miami celebrates reopening of Flagler Street as part of beautification project
-
Pennsylvania1 week agoPa. man found guilty of raping teen girl who he took to Mexico
-
Oklahoma6 days ago
OSSAA unveils Class 6A-2A basketball state tournament brackets, schedule
-
Sports1 week agoKeith Olbermann under fire for calling Lou Holtz a ‘scumbag’ after legendary coach’s death
-
Michigan5 days agoOperation BBQ Relief helping with Southwest Michigan tornado recovery
-
Southeast5 days ago‘90 Day Fiancé’ alum’s boyfriend on trial for attempted murder over wild ‘Boca Bash’ accusations
-
Health6 days agoAncient herb known as ‘nature’s Valium’ touted for improving sleep and anxiety