Technology

Are Character AI’s chatbots protected speech? One court isn’t sure

Published

9 months ago

May 21, 2025

Are Character AI’s chatbots protected speech? One court isn’t sure

A lawsuit against Google and companion chatbot service Character AI — which is accused of contributing to the death of a teenager — can move forward, ruled a Florida judge. In a decision filed today, Judge Anne Conway said that an attempted First Amendment defense wasn’t enough to get the lawsuit thrown out. Conway determined that, despite some similarities to videogames and other expressive mediums, she is “not prepared to hold that Character AI’s output is speech.”

The ruling is a relatively early indicator of the kinds of treatment that AI language models could receive in court. It stems from a suit filed by the family of Sewell Setzer III, a 14-year-old who died by suicide after allegedly becoming obsessed with a chatbot that encouraged his suicidal ideation. Character AI and Google (which is closely tied to the chatbot company) argued that the service is akin to talking with a video game non-player character or joining a social network, something that would grant it the expansive legal protections that the First Amendment offers and likely dramatically lower a liability lawsuit’s chances of success. Conway, however, was skeptical.

While the companies “rest their conclusion primarily on analogy” with those examples, they “do not meaningfully advance their analogies,” the judge said. The court’s decision “does not turn on whether Character AI is similar to other mediums that have received First Amendment protections; rather, the decision turns on how Character AI is similar to the other mediums” — in other words whether Character AI is similar to things like video games because it, too, communicates ideas that would count as speech. Those similarities will be debated as the case proceeds.

While Google doesn’t own Character AI, it will remain a defendant in the suit thanks to its links with the company and product; the company’s founders Noam Shazeer and Daniel De Freitas, who are separately included in the suit, worked on the platform as Google employees before leaving to launch it and were later rehired there. Character AI is also facing a separate lawsuit alleging it harmed another young user’s mental health, and a handful of state lawmakers have pushed regulation for “companion chatbots” that simulate relationships with users — including one bill, the LEAD Act, that would prohibit them for children’s use in California. If passed, the rules are likely to be fought in court at least partially based on companion chatbots’ First Amendment status.

This case’s outcome will depend largely on whether Character AI is legally a “product” that is harmfully defective. The ruling notes that “courts generally do not categorize ideas, images, information, words, expressions, or concepts as products,” including many conventional video games — it cites, for instance, a ruling that found Mortal Kombat’s producers couldn’t be held liable for “addicting” players and inspiring them to kill. (The Character AI suit also accuses the platform of addictive design.) Systems like Character AI, however, aren’t authored as directly as most videogame character dialogue; instead, they produce automated text that’s determined heavily by reacting to and mirroring user inputs.

“These are genuinely tough issues and new ones that courts are going to have to deal with.”

Conway also noted that the plaintiffs took Character AI to task for failing to confirm users’ ages and not letting users meaningfully “exclude indecent content,” among other allegedly defective features that go beyond direct interactions with the chatbots themselves.

Beyond discussing the platform’s First Amendment protections, the judge allowed Setzer’s family to proceed with claims of deceptive trade practices, including that the company “misled users to believe Character AI Characters were real persons, some of which were licensed mental health professionals” and that Setzer was “aggrieved by [Character AI’s] anthropomorphic design decisions.” (Character AI bots will often describe themselves as real people in text, despite a warning to the contrary in its interface, and therapy bots are common on the platform.)

She also allowed a claim that Character AI negligently violated a rule meant to prevent adults from communicating sexually with minors online, saying the complaint “highlights several interactions of a sexual nature between Sewell and Character AI Characters.” Character AI has said it’s implemented additional safeguards since Setzer’s death, including a more heavily guardrailed model for teens.

Becca Branum, deputy director of the Center for Democracy and Technology’s Free Expression Project, called the judge’s First Amendment analysis “pretty thin” — though, since it’s a very preliminary decision, there’s lots of room for future debate. “If we’re thinking about the whole realm of things that could be output by AI, those types of chatbot outputs are themselves quite expressive, [and] also reflect the editorial discretion and protected expression of the model designer,” Branum told The Verge. But “in everyone’s defense, this stuff is really novel,” she added. “These are genuinely tough issues and new ones that courts are going to have to deal with.”

Technology

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

Published

11 hours ago

February 27, 2026

Press Room

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.

Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic.

Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission – a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.

The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield.

Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable.

As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives.

Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.

In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.

America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.

Technology

What Trump’s ‘ratepayer protection pledge’ means for you

Published

11 hours ago

February 27, 2026

Press Room

What Trump’s ‘ratepayer protection pledge’ means for you

NEWYou can now listen to Fox News articles!

When you open a chatbot, stream a show or back up photos to the cloud, you are tapping into a vast network of data centers. These facilities power artificial intelligence, search engines and online services we use every day. Now there is a growing debate over who should pay for the electricity those data centers consume.

During President Trump’s State of the Union address this week, he introduced a new initiative called the “ratepayer protection pledge” to shift AI-driven electricity costs away from consumers. The core idea is simple.

Tech companies that run energy-intensive AI data centers should cover the cost of the extra electricity they require rather than passing those costs on to everyday customers through higher utility rates.

It sounds simple. The hard part is what happens next.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide — free when you join my CYBERGUY.COM newsletter.

At the State of the Union address Feb. 24, 2026, President Trump unveiled the “ratepayer protection pledge” aimed at shielding consumers from rising electricity costs tied to AI data centers. (Nathan Posner/Anadolu via Getty Images)

Why AI is driving a surge in electricity demand

AI systems require enormous computing power. That computing power requires enormous electricity. Today’s data centers can consume as much power as a small city. As AI tools expand across business, healthcare, finance and consumer apps, energy demand has risen sharply in certain regions.

Utilities have warned that the current grid in many parts of the country was not built for this level of concentrated demand. Upgrading substations, transmission lines and generation capacity costs money. Traditionally, those costs can influence rates paid by homes and small businesses. That is where the pledge comes in.

What the ratepayer protection pledge is designed to do

Under the ratepayer protection pledge, large technology companies would:

Cover the full cost of additional electricity tied to their data centers
Build their own on-site power generation to reduce strain on the public grid

Supporters say this approach separates residential energy costs from large-scale AI expansion. In other words, your household bill should not rise simply because a new AI data center opens nearby. So far, Anthropic is the clearest public backer. CyberGuy reached out to Anthropic for a comment on its role in the pledge. A company spokesperson referred us to a tweet from Anthropic Head of External Affairs Sarah Heck.

“American families shouldn’t pick up the tab for AI,” Heck wrote in a post on X. “In support of the White House ratepayer protection pledge, Anthropic has committed to covering 100% of electricity price increases that consumers face from our data centers.”

That makes Anthropic one of the first major AI companies to publicly state it will absorb consumer electricity price increases tied to its data center operations. Other major firms may be close behind. The White House reportedly plans to host Microsoft, Meta and Anthropic in early March to discuss formalizing a broader deal, though attendance and final terms have not been confirmed publicly.

Microsoft also expressed support for the initiative.

“The ratepayer protection pledge is an important step,” Brad Smith, Microsoft vice chair and president, said in a statement to CyberGuy. “We appreciate the administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers.”

Industry groups also point to companies such as Google and utilities including Duke Energy and Georgia Power as making consumer-focused commitments tied to data center growth. However, enforcement mechanisms and long-term regulatory details remain unclear.

CHINA VS SPACEX IN RACE FOR SPACE AI DATA CENTERS

The White House plans talks with Microsoft, Meta and Anthropic about shifting AI energy costs away from consumers. (Eli Hiller/For The Washington Post via Getty Images)

How this could change the economics of AI

AI infrastructure is already one of the most expensive technology buildouts in history. Companies are investing billions in chips, servers and real estate. If firms must also finance dedicated power plants or pay premium rates for grid upgrades, the cost of running AI systems increases further. That could lead to:

Slower expansion in some markets
Greater investment in renewable energy and storage
More partnerships between tech firms and utilities

Energy strategy may become just as important as computing strategy. For consumers, this shift signals that electricity is now a central part of the AI conversation. AI is no longer only about software. It is also about infrastructure.

The bigger consumer tech picture

AI is becoming embedded in smartphones, search engines, office software and home devices. As adoption grows, so does the hidden infrastructure supporting it. Energy is now part of the conversation around everyday technology. Every AI-generated image, voice command or cloud backup depends on a power-hungry network of servers.

By asking companies to account more directly for their electricity use, policymakers are acknowledging a new reality. The digital world runs on very physical resources. For you, that shift could mean more transparency. It also raises new questions about sustainability, local impact and long-term costs.

ARTIFICIAL INTELLIGENCE HELPS FUEL NEW ENERGY SOURCES

As AI expansion strains the grid, a new proposal would require tech firms to fund their own power needs. (Sameer Al-Doumy/AFP via Getty Images)

What this means for you

If you are a homeowner or renter, the practical question is simple. Will this protect my electric bill? In theory, separating data center energy costs from residential rates could reduce the risk of price spikes tied to AI growth. If companies fund their own generation or grid upgrades, utilities may have less reason to spread those costs among all customers.

That said, utility pricing is complex. It depends on state regulators, long-term planning and local energy markets.

Here is what you can watch for in your area:

New data center construction announcements
Utility filings that mention large commercial load growth
Public service commission decisions on rate adjustments

Even if you rarely use AI tools, your community could feel the effects of a nearby data center. The pledge is intended to keep those large-scale power demands from showing up in your monthly bill.

Take my quiz: How safe is your online security?

Think your devices and data are truly protected? Take this quick quiz to see where your digital habits stand. From passwords to Wi-Fi settings, you’ll get a personalized breakdown of what you’re doing right and what needs improvement. Take my Quiz here: Cyberguy.com.

Kurt’s key takeaways

The ratepayer protection pledge highlights an important turning point. AI is no longer only about innovation and speed. It is also about energy and accountability. If tech companies truly absorb the cost of their expanding power needs, households may avoid some of the financial strain tied to rapid AI growth. If not, utility bills could become an unexpected front line in the AI era.

As AI tools become part of daily life, how much extra power are you willing to support to keep them running? Let us know by writing to us at Cyberguy.com.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of technology, gear and gadgets that make life better with his contributions for Fox News & FOX Business beginning mornings on “FOX & Friends.” Got a tech question? Get Kurt’s free CyberGuy Newsletter, share your voice, a story idea or comment at CyberGuy.com.

Technology

Here’s your first look at Kratos in Amazon’s God of War show

Published

23 hours ago

February 27, 2026

Press Room

Here’s your first look at Kratos in Amazon’s God of War show

Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.

There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:

The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.

That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).

While production is underway on the God of War series, there’s no word on when it might start streaming.