Meta Ordered to Pay $567 Million in New Mexico for Teen Mental Health Fund

A Meta logo is shown on a video screen at LlamaCon 2025, an AI developer conference, in Menlo Park, Calif., April 29, 2025. (AP)
A Meta logo is shown on a video screen at LlamaCon 2025, an AI developer conference, in Menlo Park, Calif., April 29, 2025. (AP)
TT

Meta Ordered to Pay $567 Million in New Mexico for Teen Mental Health Fund

A Meta logo is shown on a video screen at LlamaCon 2025, an AI developer conference, in Menlo Park, Calif., April 29, 2025. (AP)
A Meta logo is shown on a video screen at LlamaCon 2025, an AI developer conference, in Menlo Park, Calif., April 29, 2025. (AP)

A New Mexico state court ordered Meta on Thursday to pay $567 million into a teen mental health fund and change how its platforms function for young users after finding the company is to blame for harming children's wellbeing.

Judge Bryan Biedscheid in Santa Fe ruled the company had created a public nuisance in New Mexico, siding with Attorney General Raúl Torrez, a Democrat. Torrez had accused the social media company of designing products to addict young users and failing to protect children from sexual exploitation on its platforms.

The ruling comes five months after a New Mexico jury in an earlier phase of the case ordered Meta to pay $375 million after finding it violated consumer protection law by misrepresenting the safety of Facebook and Instagram for young users.

The case was being closely watched amid a growing wave of litigation accusing social media companies of harming young users. While many lawsuits have been brought by children and families over alleged injuries to individuals, states, municipalities and school districts have also pursued lawsuits seeking broad changes to the industry.

More than 40 states and over 1,300 school districts ‌have filed public nuisance ‌lawsuits against social media companies, seeking damages as well as court orders requiring changes to products and practices.

Biedscheid on ‌Thursday ordered ⁠Meta to implement youth-safety ⁠measures, including monthly limits on teens' use of Facebook and Instagram, restrictions on notifications, tighter controls on adult contact with minors, safeguards for AI chatbots, and enhanced review of child sexual abuse reports, under a decree that will be in place for five years.

Meta said it will appeal the ruling and that it has been working to identify and remove harmful content from its platforms.

"We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts," Meta said in a statement.

New Mexico's Torrez said in a statement that Meta chose profit over child safety, and that the ruling was the first to force a social media giant to make changes protecting children.

"This is not just a judgment against one company. It is a blueprint," Torrez said. "Now other states, and other countries confronting the same crisis, ⁠have a roadmap they can follow."

Reuters last year reported on company documents that showed Meta's AI chatbots could "engage ‌a child in conversations that are romantic or sensual," part of a series of investigations into Meta profiting ‌from ads peddling fraud and banned products.

In Thursday's ruling, Biedscheid ordered Meta to prevent children in New Mexico from "engaging in romantic or sexualized interactions with Meta's artificial intelligence chatbots" ‌and to prevent adults in New Mexico from using chatbots to simulate or discuss a sexualized interaction with a child.

PUBLIC NUISANCE

Biedscheid heard three weeks of ‌testimony during the second trial over the lawsuit, which did not involve a jury. It focused solely on whether Meta's platforms created a "public nuisance" under New Mexico law.

Public nuisance claims traditionally have targeted conduct that endangers public health or safety, such as blocking roads or polluting waterways, but state governments have also invoked them in litigation involving tobacco, opioids, climate change, vaping and most recently artificial intelligence.

"(J)ust as noxious pollution produced by the factory can harm the common public right to reasonably clean air, the harmful effects of Meta’s platforms on children do ‌not stay contained by its platforms and, instead, migrate to the internet as a whole and, perhaps most concerning, to the real world and create a common, societal burden on and harm to the affected children and their ⁠families and schools, as well as ⁠hospitals and law enforcement," Biedscheid wrote.

Meta had said at trial it could not have created a public nuisance because it had not interfered with a "public right," such as access to air or water. Meta also argued that its social media platforms are not the only ones used by the state's young residents, and the case ignores the impact of other apps.

It also criticized the changes New Mexico sought, saying in filings many were "technologically impractical or completely impossible," and could force the company to exit the state altogether.

Meta had also argued that New Mexico's claims were barred by Section 230 of the Communications Decency Act, a federal law that generally shields online platforms from liability for user-generated content. Biedscheid rejected that defense, finding the state was challenging Meta's platform features rather than trying to hold the company liable as publisher of third-party content.

However, Biedscheid declined to impose some of the remedies sought by New Mexico, finding that changes to Meta's algorithms and features, such as infinite scroll and autoplay, could infringe the company's rights under the First Amendment to the US Constitution, harm its competitive position, and run afoul of Section 230.

The ruling comes as Meta prepares to face a trial next week in federal court in Oakland, California, over claims by 29 states that it designed Facebook and Instagram to addict children and misled users about their safety, a case that could expose the company to massive damages.

The company is also defending a lawsuit brought by Tennessee in a trial that began in July.

Meta has told investors that legal and regulatory blowback in the US and European Union over youth social media issues "could significantly impact our business and financial results."



Communications Minister Discusses Strengthening Saudi Arabia’s AI Partnerships in Silicon Valley

Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to expand its international partnerships and attract high-value investments in AI and advanced technologies. (SPA)
Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to expand its international partnerships and attract high-value investments in AI and advanced technologies. (SPA)
TT

Communications Minister Discusses Strengthening Saudi Arabia’s AI Partnerships in Silicon Valley

Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to expand its international partnerships and attract high-value investments in AI and advanced technologies. (SPA)
Minister of Communications and Information Technology Abdullah Alswaha's meetings are part of Saudi Arabia’s efforts to expand its international partnerships and attract high-value investments in AI and advanced technologies. (SPA)

Saudi Minister of Communications and Information Technology Abdullah Alswaha held a series of meetings with leaders of global technology and investment companies during the first day of his visit to Silicon Valley in California, reported the Saudi Press Agency on Wednesday.

The meetings focused on strengthening investments and partnerships in artificial intelligence (AI), computing capabilities, and deep technologies, as well as supporting the growth of Saudi startups and their expansion into global markets.

Alswaha met with Co-Founder and General Partner at Andreessen Horowitz Ben Horowitz to discuss expanding the firm’s investments in the Kingdom and in Saudi startups. The meeting also addressed connecting companies within its investment portfolio with HUMAIN’s computing capabilities to support their expansion in the Kingdom and the region, while enabling Saudi companies to access global markets.

He met with Partner at Sequoia Capital Alfred Lin to discuss increasing the firm’s investments in Saudi AI and deep-tech companies, connecting companies within its investment portfolio with HUMAIN’s computing capabilities, and supporting the growth and global expansion of Saudi companies.

In the field of advanced technologies, Alswaha met with CEO and Co-Founder of TenX Semi Dr. Suk Hwan Lim to discuss the use of AI agents in chip design and verification, accelerating development cycles, and applying autonomous design technologies to support the development of advanced semiconductor design capabilities in the Kingdom.

These meetings are part of Saudi Arabia’s efforts to expand its international partnerships and attract high-value investments in AI and advanced technologies, while supporting the growth and global expansion of Saudi startups, reinforcing the Kingdom’s position and boosting the competitiveness of its digital economy globally.


Apple’s Ternus Faces AI Test as Foldable iPhone Takes Center Stage

Apple's Senior Vice President Hardware Engineering John Ternus attends the premiere of season four of the Apple TV series "Ted Lasso" at the Academy Museum in Los Angeles, California, US, July 27, 2026. (Reuters)
Apple's Senior Vice President Hardware Engineering John Ternus attends the premiere of season four of the Apple TV series "Ted Lasso" at the Academy Museum in Los Angeles, California, US, July 27, 2026. (Reuters)
TT

Apple’s Ternus Faces AI Test as Foldable iPhone Takes Center Stage

Apple's Senior Vice President Hardware Engineering John Ternus attends the premiere of season four of the Apple TV series "Ted Lasso" at the Academy Museum in Los Angeles, California, US, July 27, 2026. (Reuters)
Apple's Senior Vice President Hardware Engineering John Ternus attends the premiere of season four of the Apple TV series "Ted Lasso" at the Academy Museum in Los Angeles, California, US, July 27, 2026. (Reuters)

When new CEO John Ternus unveils Apple's latest products on Wednesday, Wall Street expects him to show that the company can still deliver breakthrough hardware and a Siri virtual assistant capable of competing in the AI race.

Analysts expect Apple to announce at its Cupertino, California, headquarters a new iPhone that folds open like a passport. They said it could quickly emerge as the category leader in the nascent folding phone market, despite an expected price of more than $2,500 and having cameras and processors that may not lead the market.

The company has already announced a deep overhaul of Siri — in part by tapping Google's AI tech behind the scenes — and that may prove to be Ternus' first big success after years ‌of delays. A successful ‌revamp by the end of this year could give Apple a good chance ‌of ⁠pulling even with ⁠longtime rival Google's Gemini assistant, analysts said.

Investors have largely looked past Apple's slow start in generative AI because of the company's billion-plus device installed base and loyal customer base. Ternus now faces pressure to convince consumers that Apple's devices are the best way to use AI, which could determine whether he inherits former CEO Tim Cook's momentum or plays catch-up.

NEW PREMIUM IPHONES

Apple is expected to update its premium iPhone Pro and Pro Max devices but hold off on refreshing the iPhone Air and the base and budget lines until spring. The aim is to drive interest in the real ⁠star of this week's show, the folding phone.

"Even with a $2,500 price tag, the ‌Apple foldable is going to fly off the shelves, especially because ‌Apple is excellent at creating an aura of exclusivity, luxury, and scarcity," Nabila Popal, senior research director at IDC, told Reuters.

Popal expects the phone to generate more than $45 billion in revenue for Apple by the end of next ‌year, even as foldables overall remain a single-digit share of the phone market.

The main appeal of a folding phone is the sheer newness after nearly two decades of candybar-style phones.

While Samsung , Google and China's Huawei have sold folding phones since 2019, analysts expect Apple to benefit from entering late by solving key engineering challenges, such as a hinge that feels sturdy over ‌thousands of uses and minimizing any crease in the screen when the device is open.

"They've seen what has worked and what hasn't worked with their competitors," ⁠said Anshel Sag, an ⁠analyst at Moor Insights & Strategy who has tested many folding devices.

NEW SIRI'S BIG MOMENT

Ternus' key challenge will be persuading customers to adopt the new Siri and convincing them and third-party developers that Apple can keep pace with rivals such as OpenAI, which roll out big improvements every few weeks, while Apple has traditionally moved more slowly.

"If Siri still sucked, then he would have a much more difficult Wednesday," said Carolina Milanesi of Creative Strategies. "Now they can comfortably say Siri is delivering and has value, but they need to just continue to work and make it better and keep up."

Analysts say Ternus, who kept a low profile as hardware engineering chief for five years, is likely to focus on delivering powerful devices as a base to expand on-device AI.

But he faces a steep regulatory challenge, said Gene Munster of Deepwater Asset Management: Apple's Siri update might take until 2028 to win approval in China and won't initially be available in Europe due to a regulatory dispute.

"It matters a lot that they get the US out in time because it builds the confidence that they can do something in Europe," he said.


French AI Firm Mistral Valued at Over 21Bn Euros after Latest Funding

FILE PHOTO: An advertisement for Mistral AI, the French artificial intelligence company, is displayed inside the Grand Central subway station in New York City, US, May 21, 2026. REUTERS/Shannon Stapleton/File Photo
FILE PHOTO: An advertisement for Mistral AI, the French artificial intelligence company, is displayed inside the Grand Central subway station in New York City, US, May 21, 2026. REUTERS/Shannon Stapleton/File Photo
TT

French AI Firm Mistral Valued at Over 21Bn Euros after Latest Funding

FILE PHOTO: An advertisement for Mistral AI, the French artificial intelligence company, is displayed inside the Grand Central subway station in New York City, US, May 21, 2026. REUTERS/Shannon Stapleton/File Photo
FILE PHOTO: An advertisement for Mistral AI, the French artificial intelligence company, is displayed inside the Grand Central subway station in New York City, US, May 21, 2026. REUTERS/Shannon Stapleton/File Photo

Mistral said Tuesday it had raised three billion euros ($3.5 billion) in what it described as the largest-ever European tech equity fundraising, valuing the French AI firm at over 21 billion euros.

The startup, which is considered Europe's leading AI model developer and was valued at nearly 12 billion euros following the previous funding round, said new the funding would help expand its leading-edge research.

"This round means we can move faster on R&D, products, infrastructure and keep giving organizations the ability to run AI at scale, on their own terms," Mistral's chief executive and co-founder Arthur Mensch said in a statement.

The company emphasized it is focusing on so-called open-weight AI models that companies can run themselves with their own data.

"Organizations want to industrialize AI inside systems that are already complex: their own data, their own tools, their own compliance constraints," AFP quoted Mensch as saying.

"It's why we've built Mistral on open-weight frontier models and infrastructure that we control end to end, so our customers can too," he added.

With the Dutch maker of chip-making machines ASML leading the previous funding round and Samsung Electronics this round, Mistral said it had attracted the support of advanced manufacturers in the sector.

"This support reflects growing confidence that Mistral's approach can help organizations deploy state-of-the-art AI inside complex real-world environments while maintaining control over their data, infrastructure and knowledge," the company said.

Mistral has increased its spending on infrastructure this year, including a data center, its first, which will be built in France, in addition to a commercial agreement with Microsoft.