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House Democrats seek review of FAA’s AI airspace tool
House Democrats are asking the Government Accountability Office to investigate the FAA’s limited rollout of its SMART aviation data tool and urging officials to pause its use until safety testing, oversight and accountability questions are answered.fedscoop.comIndustry
Freshfields weighs a possible spinoff for its AI legal technology unit
Freshfields partners are discussing whether to separate Freshfields Lab, an internal unit that develops AI tools for lawyers and clients, the Financial Times reported. The discussions are at an early stage and may not lead to any change.pymnts.comEnterprise
Denver council rejects contract extension for AI chatbot Sunny
Denver City Council rejected a five-year, $3.9 million contract extension for Sunny, putting the city’s AI chatbot at risk of shutting down after October.govtech.comIndustry
OpenAI alleges ex-employee took unreleased device plans to Apple
The Guardian reports that OpenAI accused a former employee of transferring more than 100 files about an unreleased product to a personal account and presenting the material to Apple executives.theguardian.comSecurity
DHS plans no-bid AI surveillance platform for ICE data
Project Salt Box reports that DHS plans to award Pen-Link a possible five-year contract for an AI-assisted platform combining wiretap, phone, location, financial, email and social-media records for Homeland Security Investigations.projectsaltbox.comIndustry
CoreWeave bonds enter distressed territory as AI infrastructure risks rise
Business Insider reports that CoreWeave’s 2032 bond yield approached 15% as investors reassessed the heavily indebted AI infrastructure provider’s exposure to a possible compute glut.businessinsider.comPolicy
New York-led coalition seeks safeguards in Character.AI bankruptcy sale
The River Reporter reports that New York Attorney General Letitia James and 39 other attorneys general urged bankruptcy-court protections for Character.AI users, especially children, before the chatbot company’s data and platform can be sold.riverreporter.comProduct
YouTube Music begins labeling tracks made primarily with generative AI
YouTube Music is rolling out labels for songs created primarily with generative AI, with the labels also expanding to the main YouTube app.blog.youtubeInnovation
Rice launches university-wide AI initiative with plans to hire 75 faculty
InnovationMap reports that Rice University has hired 35 AI-focused faculty, plans to recruit 40 more and will develop an 80,000-square-foot AI and computing hub within its planned Arc facility.houston.innovationmap.com
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