Read full article about: Major insurers seek to exclude AI-related risks from corporate policies
Several large insurers, including AIG, Great American, and WR Berkley, have filed requests with U.S. regulators to exclude AI-related risks from their corporate insurance policies, according to the Financial Times. The companies warn that generative AI systems like chatbots and AI agents could expose them to billions of dollars in liability claims.
WR Berkley reportedly proposed an exclusion that would apply to any claim resulting from the use of AI in any form. AIG told Illinois insurance regulators that generative AI represents a broad and far-reaching technology and that related claims are likely to increase in the future.
Insurers point to recent lawsuits as evidence of the problem. Wolf River Electric sued Google for at least $110 million, alleging that the company’s AI-generated overview spread false statements. In another case, a court ordered Air Canada to honor a discount price its customer service chatbot had invented.
Kevin Kalinich, a managing director at Aon, said the insurance industry could handle a single $400 million loss but not 1,000 or 10,000 correlated claims caused by an error from one AI provider.
Read full article about: The White House has paused a federal order that would have overridden state-level AI regulations
The White House has reportedly put a hold on a draft executive order that would have let federal law override state-level AI regulations. According to Reuters, the draft called for the Department of Justice, led by Pam Bondi, to form a task force that could challenge states with stricter AI rules. The plan would have shifted full authority for AI legislation to the federal government. Critics warned that this approach threatened consumer protections and states' rights.
The move comes as Donald Trump continues pushing broad deregulation in the AI sector following his return to office in early 2025. The debate has intensified since early October, when California passed SB 53, the country's first comprehensive safety and transparency law for major AI companies. Google, OpenAI, and other tech firms have backed nationwide rules, arguing that a patchwork of state laws would slow innovation.
Read full article about: Adobe, Qualcomm, and Humain partner to develop AI tools for Arabic content and the Middle East
Adobe, Qualcomm, and Humain have announced a partnership to build AI tools focused on Arabic content and the broader Middle East market. The collaboration was unveiled at a US-Saudi investment forum held during Saudi Crown Prince Mohammed bin Salman’s visit to Washington.
Adobe plans to integrate the Arabic-language model Allam into its software for marketing, film, and television. In return, Humain will use Adobe’s Firefly Foundry to develop its own AI models tailored for Arabic-language applications.
Humain’s AI systems will run in its data centers on Qualcomm hardware. Qualcomm’s new AI200 and AI250 chips are designed to handle the models’ video generation tasks. The company also plans to open a joint research center with Humain in Riyadh next month.
According to the partners, the first large-scale rollout is expected in 2026, with Qualcomm chips delivering up to 200 megawatts of performance. Humain is backed by the Saudi Public Investment Fund, which has been expanding its investments in AI and semiconductor technology.
Read full article about: Elon Musk's xAI in talks to raise $15 billion at $230 billion valuation
Elon Musk's AI company xAI is reportedly in advanced talks to secure $15 billion in new funding, according to the Wall Street Journal. The deal would value the company at $230 billion, a sharp increase from the $113 billion valuation it reported in March following its merger with X. Musk's financial adviser Jared Birchall shared the terms with investors on Tuesday evening. It's still unclear whether the new valuation applies before or after the additional investment.
Like other AI firms, xAI is burning through cash as it builds out its infrastructure. In June, the company raised $5 billion in equity and $5 billion in debt to construct a massive data center in Memphis. Musk's space company SpaceX contributed $2 billion to that round.
Read full article about: Larry Summers resigns from OpenAI's board after release of emails with Jeffrey Epstein
Former U.S. Treasury Secretary and Harvard professor Larry Summers has stepped down from OpenAI's board following the publication of his email exchanges with Jeffrey Epstein. Summers had already announced on Monday that he would withdraw from all public roles, though it was initially unclear whether that included his position at OpenAI.
Summers said he was grateful for his time on the board and planned to continue following the company's work. OpenAI told CNBC that it respected his decision and valued his contributions. As a board member, Summers was among the few people directly involved in key decisions related to artificial general intelligence (AGI) at the company.
His resignation comes after the U.S. Congress released more than 20,000 documents revealing his communications and contacts with Epstein.