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AI hallucination at center of Anthropic copyright lawsuit

Anthropic, the AI company behind the Claude chatbot, has been ordered by a federal judge to respond to allegations that it submitted fabricated material—possibly generated by AI—as part of its defense in an ongoing copyright lawsuit.

The lawsuit, filed in October 2023 by music publishers Universal Music Group, Concord, and ABKCO, accuses Anthropic of unlawfully using lyrics from over 500 songs to train its chatbot. The publishers argue that Claude can produce copyrighted material when prompted, such as lyrics from Don McLean’s American Pie.

During a court hearing on Tuesday in California, the publishers’ attorney claimed that an Anthropic data scientist cited a nonexistent academic article from The American Statistician journal to support the argument that Claude rarely outputs copyrighted lyrics.

One of the article’s alleged authors later confirmed the paper was a ‘complete fabrication.’ The judge is now requiring Anthropic to formally address the incident in court.

The company, founded in 2021, is backed by major investors including Amazon, Google, and Sam Bankman-Fried, the disgraced crypto executive convicted of fraud in 2023.

The case marks a significant test of how AI companies handle copyrighted content, and how courts respond when AI-generated material is used in legal proceedings.

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Seattle startup ElastixAI raises $16 million for AI inference tech

A stealthy new AI startup in Seattle, ElastixAI, has raised $16 million to build technology that aims to reduce the cost and complexity of running large language models.

Rather than focusing on training, the company is developing an AI inference platform to optimise how these models operate, whether on cloud servers or edge devices. The funding round is led by Bellevue-based venture capital firm FUSE, with support from several others.

ElastixAI is led by CEO Mohammad Rastegari, formerly CTO of Xnor, a startup acquired by Apple in 2020. He co-founded the company with Saman Naderiparizi, also ex-Apple and Xnor, and Mahyar Najibi, who worked at both Apple and Waymo.

The team’s background in AI hardware and software gives them a unique edge in addressing challenges at a stage where AI models generate responses from trained data.

Instead of building a one-size-fits-all solution, the startup’s platform is designed for flexibility, allowing customers to fine-tune infrastructure to specific needs. ‘We saw a gap in delivering scalable and low-cost inference,’ said Rastegari.

The company remains in stealth but says its platform could serve both hyperscalers and enterprises looking to integrate AI into everyday operations.

With other players like Nvidia and Fireworks.ai competing in the inference space, ElastixAI may even count some of them as future customers.

Rastegari and Naderiparizi are also affiliate assistant professors at the University of Washington, and their startup reflects Seattle’s growing reputation as a hub for advanced AI development — a trend Apple has helped shape with several acquisitions in the region.

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DeepMind unveils AlphaEvolve for scientific breakthroughs

Google DeepMind has unveiled AlphaEvolve, a new AI system designed to help solve complex scientific and mathematical problems by improving how algorithms are developed.

Rather than acting like a standard chatbot, AlphaEvolve blends large language models from the Gemini family with an evolutionary approach, enabling it to generate, assess, and refine multiple solutions at once.

Instead of relying on a single output, AlphaEvolve allows researchers to submit a problem and potential directions. The system then uses both Gemini Flash and Gemini Pro to create various solutions, which are automatically evaluated.

The best results are selected and enhanced through an iterative process, improving accuracy and reducing hallucinations—a common issue with AI-generated content.

Unlike earlier DeepMind tools such as AlphaFold, which focused on narrow domains, AlphaEvolve is a general-purpose AI for coding and algorithmic tasks.

It has already shown its value by optimising Google’s own Borg data centre management system, delivering a 0.7% efficiency gain—significant given Google’s global scale.

The AI also devised a new method for multiplying complex matrices, outperforming a decades-old technique and even beating DeepMind’s specialised AlphaTensor model.

AlphaEvolve has also contributed to improvements in Google’s hardware design by optimising Verilog code for upcoming Tensor chips.

Though not publicly available yet due to its complexity, AlphaEvolve’s evaluation-based framework could eventually be adapted for smaller AI tools used by researchers elsewhere.

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Amazon launches end-to-end AI audiobook production for publishers

Amazon has announced the expansion of AI-ge n erated audiobook narration through its Audible platform, offering publishers the option to convert books into audio using synthetic voices.

The company’s new tools include more than 100 AI-generated voices across English, Spanish, French, and Italian, with variations in accents and dialects. Publishers will be able to choose between two production workflows: a fully managed Audible-led process or a self-service option using the same underlying technology.

According to Amazon, the initiative aims to scale audiobook production and increase accessibility. Audible CEO Bob Carrigan said the company’s long-term goal is to support ‘every book in every language’ through its end-to-end AI production system.

Later in 2024, Amazon will begin beta testing AI-powered translation services for audiobooks.

The services will include text-to-text translation of manuscripts—with the option of either AI or professional narration—and speech-to-speech translation designed to preserve the original narrator’s voice and tone across languages.

Human linguists will be available to review translations for accuracy and cultural context. Amazon did not indicate whether the new AI tools would replace human narrators but positioned the offering as an additional option for publishers.

The expansion comes as genera t ive AI continues to reshape content production workflows across the publishing and media industries.

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Android adds new scam protection for phone calls

Google is introducing new protections on Android devices to combat phone call scams, particularly those involving screen-sharing and app installations. Users will see warning messages if they attempt to change settings during a call and Android will also block the deactivation of Play Protect features.

The system will now block users from sideloading apps or granting accessibility permissions while on a call with unknown contacts.

The new tools are available on devices running Android 16 and select protections are also rolling out to older versions, starting with Android 11

A separate pilot in the UK will alert users trying to open banking apps during a screen-sharing call, prompting them to end the call or wait before proceeding.

These features expand Android’s broader efforts to prevent fraud, which already include AI-based scam detection for phone calls and messages.

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Lawyers sanctioned after AI-generated cases found false

A federal judge in California has sanctioned two law firms for submitting a legal brief containing fake citations generated by AI tools. Judge Michael Wilner described the AI-generated references as ‘bogus’ and fined the firms $31,000, criticising them for failing to properly check the sources.

The legal document in question was based on an outline created with Google Gemini and AI tools within Westlaw.

However, this draft was handed off to another firm, K&L Gates, which included the fabricated citations without verifying their authenticity.Judge Wilner noted that at least two cases referenced in the filing did not exist at all.

He warned that undisclosed reliance on AI could mislead US courts and compromise legal integrity. This case adds to a growing list of incidents where lawyers misused AI, mistakenly treating chatbots as legitimate research tools.

The judge called the actions professionally reckless and said no competent attorney should outsource research to AI without careful oversight.

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Cheshire’s new AI tool flags stalking before it escalates

Cheshire Police has become the first UK force to use AI in stalking investigations, aiming to identify harmful behaviours earlier. The AI will analyse reports in real time, even as victims speak with call handlers.

The system, trained using data from the force and the Suzy Lamplugh Trust, is designed to detect stalking patterns—even if the term isn’t used directly. Currently, officers in the Harm Reduction Unit manually review 10 cases a day.

Det Ch Insp Danielle Knox said AI will enhance, not replace, police work, and ethical safeguards are in place. Police and Crime Commissioner Dan Price secured £300,000 to fund the initiative, saying it could be ’25 times more effective’ than manual investigation.

Survivor ‘Amy’ said earlier intervention might have prevented her violent assault. Three-quarters of the unit’s cases already lead to charges, but police hope AI will improve that success rate and offer victims faster protection.

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Google tests AI mode on Search page

Google is experimenting with a redesigned version of its iconic Search homepage, swapping the familiar ‘I’m Feeling Lucky’ button for a new option called ‘AI Mode.’

The fresh feature, which began rolling out in limited tests earlier in May, is part of the company’s push to integrate more AI-driven capabilities into everyday search experiences.

According to a Google spokesperson, the change is currently being tested through the company’s experimental Labs platform, though there’s no guarantee it will become a permanent fixture.

The timing is notable, arriving just before Google I/O, the company’s annual developer conference where more AI-focused updates are expected.

Such changes to Google’s main Search page are rare, but the company may feel growing pressure to adapt. Just last week, an Apple executive revealed that Google searches on Safari had declined for the first time, linking the drop to the growing popularity of AI tools like ChatGPT.

By testing ‘AI Mode,’ Google appears to be responding to this shift, exploring ways to stay ahead in an increasingly AI-driven search landscape instead of sticking to its traditional layout.

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Republicans seek to block state AI laws for a decade

Republican lawmakers in the US have introduced a proposal that would block states from regulating artificial intelligence for the next ten years. Critics argue the move is a handout to Big Tech and could stall protections already passed in states like California, Utah, and Colorado.

The measure, embedded in a budget reconciliation bill, would prevent states from enforcing rules on a wide range of automated systems, from AI chatbots to algorithms used in health and justice sectors.

Over 500 AI-related bills have been proposed this year at the state level, and many of them would be nullified if the federal ban succeeds. Supporters of the bill claim AI oversight should happen at the national level to avoid a confusing patchwork of state laws.

Opponents, including US Democrats and tech accountability groups, warn the ban could allow unchecked algorithmic discrimination, weaken privacy, and leave the public vulnerable to AI-driven harms.

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TikTok unveils AI video feature

TikTok has launched ‘AI Alive,’ its first image-to-video feature that allows users to transform static photos into animated short videos within TikTok Stories.

Accessible only through the Story Camera, the tool applies AI-driven movement and effects—like shifting skies, drifting clouds, or expressive animations—to bring photos to life.

Unlike text-to-image tools found on Instagram and Snapchat, TikTok’s latest feature takes visual storytelling further by enabling full video generation from single images. Although Snapchat plans to introduce a similar function, TikTok has moved ahead with this innovation.

All AI Alive videos will carry an AI-generated label and include C2PA metadata to ensure transparency, even when shared beyond the platform.

TikTok emphasises safety, noting that every AI Alive video undergoes several moderation checks before it appears to creators.

Uploaded photos, prompts, and generated videos are reviewed to prevent rule-breaking content. Users can report violations, and final safety reviews are conducted before public sharing.

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