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Should AI toys be banned?

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Today’s Menu

Appetizer: California proposes ban on AI toys for kids 👦

Entrée: Alaska’s AI flops in court 👦

Dessert: Musk expands Colossus 🦾

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CALIFORNIA PROPOSES BAN ON AI TOYS FOR KIDS 👦

What happened? A California state senator has proposed a four-year pause on selling and making AI-powered chatbot toys for children, citing safety concerns.

Want the details? The bill, introduced by State Senator Steve Padilla of San Diego, would temporarily ban toys with built-in AI chatbots for anyone under 18. The proposal comes as major toy companies, including Mattel, move toward integrating conversational AI into products. Supporters of the moratorium point to studies showing that AI toys can engage in inappropriate conversations with minors, even when safeguards are in place. Padilla argues the pause would give lawmakers time to develop clear rules and safety standards. Notably, OpenAI itself states that ChatGPT is not intended for children under 13 and requires parental consent for teens.

Why does this matter? AI-powered toys blur the line between play and unsupervised digital interaction, raising new risks around exposure to violent, explicit, or manipulative content. Lawmakers worry children could become test subjects for rapidly evolving technology without adequate protections. The proposed pause aims to ensure innovation does not outpace child safety, giving regulators time to catch up before these products become widespread.

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ALASKA’S AI FLOPS IN COURT 🙃

What happened? Alaska’s court system spent over a year trying to build an AI chatbot to help people with probate cases, but it was a giant flop.

What went wrong? The chatbot, Alaska Virtual Assistant (AVA), struggled with a core problem common to generative AI: hallucinations. Even when restricted to official court documents, it confidently produced false or incomplete information, including inventing legal resources that do not exist. Early versions were also poorly calibrated in tone, offering emotional responses that frustrated grieving users. Testing revealed inconsistent answers across updates, forcing developers to shrink their evaluation process from 91 questions to just 16 due to the heavy need for human review. Each new AI model update risked introducing new mistakes, requiring constant monitoring and revisions.

Why is this significant? In legal settings, even small inaccuracies can cause serious harm. Alaska’s experience shows why governments are cautious about deploying AI for public services where trust, precision, and accountability are non-negotiable.

MUSK EXPANDS COLOSSUS 🦾

What’s up? Elon Musk’s AI company, xAI, has acquired a third building, called “MACROHARDRR”, to significantly expand the infrastructure behind its massive Colossus supercomputer.

Want the details? The new building is a large warehouse planned near Southaven, Mississippi, just outside Memphis, where xAI already operates its Colossus supercomputer cluster. This facility will be converted into a data center starting in 2026 and will support both the existing Colossus system and a second site, Colossus 2, that is still under construction. Together, these sites are designed to train extremely large AI models using vast numbers of Nvidia graphics processing units (GPUs). xAI ultimately aims to house up to one million GPUs, pushing its total AI training capacity close to two gigawatts of compute power.

Why is this significant? This expansion puts xAI among the most ambitious AI infrastructure projects in the world, signaling Musk’s intent to compete directly with companies like OpenAI and Anthropic. More compute power means faster training, larger models, and more advanced AI systems that could shape everything from chatbots to scientific research.

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