Insurers balk at paying out huge settlements for claims against AI firms

Ars TechnicaWednesday, October 8, 2025 at 1:31:28 PM
NegativeTechnology
Insurers balk at paying out huge settlements for claims against AI firms
Insurers are hesitant to cover large settlements for claims against AI firms like OpenAI and Anthropic, which are exploring the use of investor funds to address potential lawsuits. This situation highlights the growing concerns around liability in the rapidly evolving AI industry, raising questions about the financial risks involved and the future of insurance in this sector.
— Curated by the World Pulse Now AI Editorial System

Was this article worth reading? Share it

Recommended Readings
AI Agent Startup N8n Nets $2.5 Billion Valuation With Backing From Nvidia
PositiveTechnology
N8n, a German startup specializing in artificial intelligence agents, has successfully raised $180 million, achieving a remarkable valuation of $2.5 billion. This funding, backed by industry giant Nvidia, positions N8n to compete effectively in the rapidly evolving AI market, which includes formidable players like OpenAI. This development is significant as it highlights the growing interest and investment in AI technologies, indicating a robust future for innovative solutions in various industries.
MCP stacks have a 92% exploit probability: How 10 plugins became enterprise security's biggest blind spot
NegativeTechnology
Recent research reveals that the Model Context Protocol (MCP), which became the fastest-adopted AI integration standard in 2025, has a staggering 92% exploit probability, highlighting a significant blind spot in enterprise cybersecurity. This alarming statistic from Pynt underscores the urgent need for organizations to reassess their security measures, as the very technology designed to enhance connectivity is now posing a serious threat. Understanding these vulnerabilities is crucial for businesses to protect their data and maintain trust in AI systems.
AI is making cybercriminal workflows more efficient too, OpenAI finds
NegativeTechnology
A recent report from OpenAI highlights a concerning trend in cybercrime, revealing how malicious actors are increasingly leveraging AI tools like ChatGPT to enhance their operations. This development is alarming as it not only showcases the adaptability of cybercriminals but also raises significant security concerns for individuals and organizations alike. Understanding these trends is crucial for developing effective countermeasures and protecting sensitive information.
Sora is the top app downloaded – but you still need an invite to get it
PositiveTechnology
OpenAI's new Sora app has quickly become the most downloaded app on the App Store, showcasing its popularity despite being invite-only. This surge in downloads highlights the growing interest in AI-driven applications and the potential impact they can have on our daily lives. As more users seek access, it raises questions about exclusivity and the future of app accessibility.
Here’s what Jony Ive and Sam Altman revealed about their secretive AI hardware project at OpenAI’s Dev Day
PositiveTechnology
At OpenAI's Dev Day, CEO Sam Altman and renowned designer Jony Ive shared exciting insights into their collaborative AI hardware project. This exclusive conversation, attended by 1,500 developers, highlighted their innovative vision and the potential impact of their work on the tech landscape. Their partnership promises to blend cutting-edge technology with exceptional design, which could redefine user experiences and set new standards in the industry.
Anthropic and IBM want to push more AI into enterprise software - with Claude coming to an IDE near you
PositiveTechnology
IBM and Anthropic are joining forces to enhance enterprise software with AI by introducing a Claude-powered Integrated Development Environment (IDE). This collaboration aims to provide developers with advanced AI guidance, making coding more efficient and intuitive. As businesses increasingly rely on AI to streamline operations, this partnership could significantly impact how software is developed and deployed, ultimately driving innovation in the tech industry.
ChatGPT's Codex just got a huge upgrade that makes it more powerful than ever - what's new
PositiveTechnology
OpenAI has officially launched an upgraded version of Codex, introducing exciting new tools for developers, including integration with Slack. This enhancement not only boosts Codex's capabilities but also streamlines workflows for developers, making it easier to create and manage applications. The upgrade signifies a significant step forward in AI development tools, showcasing OpenAI's commitment to empowering developers with advanced technology.
Fast, Tiny, and Smart AI: Small Language Models for Your Phone
PositiveTechnology
A new wave of innovation in artificial intelligence is emerging with the development of small language models designed for mobile devices. Unlike the trend of creating larger models like OpenAI's GPT-5, Israeli startup AI21 is focusing on making AI accessible and efficient for everyday use on phones. This shift is significant as it could democratize AI technology, allowing more people to leverage its capabilities without needing powerful hardware. As these models become more integrated into our daily lives, they promise to enhance user experiences and make AI tools more practical for everyone.
OpenAI bans Chinese, North Korean hacker accounts using ChatGPT to launch surveillance
PositiveTechnology
OpenAI has taken a significant step in cybersecurity by banning accounts linked to Chinese and North Korean hackers who were attempting to misuse ChatGPT for surveillance activities. This move is crucial as it not only protects the integrity of the platform but also sends a strong message against the exploitation of AI technologies for malicious purposes. By addressing these threats, OpenAI is reinforcing its commitment to safe and responsible AI usage.
ChatGPT Apps, Lawsuit Against Garmin, Surfshark's 100Gbps VPN Server | Tech Today video
PositiveTechnology
In today's tech news, OpenAI has announced the integration of third-party apps with ChatGPT, enhancing its functionality and user experience. Meanwhile, Strava has taken legal action against Garmin, alleging patent infringement, which could have significant implications for both companies. Additionally, Surfshark has launched its first 100Gbps VPN server, promising faster and more secure internet connections for users. These developments highlight the rapid advancements in technology and the competitive landscape of the industry.
AMD’s Su Joins the Party With OpenAI for Better or Worse
NeutralTechnology
AMD's recent partnership with OpenAI is stirring discussions in the tech community. This collaboration aims to enhance computing power, which could lead to significant advancements in AI technology. While some see this as a positive step towards innovation, others are cautious about the implications of such partnerships. Understanding the balance of benefits and risks is crucial as the tech landscape evolves.
Here's How Authors Included in Anthropic's $1.5B AI Piracy Settlement Can File Claims
PositiveTechnology
Authors included in Anthropic's $1.5 billion AI piracy settlement can now file their claims, marking a significant step towards addressing the concerns surrounding AI-generated content. This settlement not only provides financial relief to the affected authors but also sets a precedent for future cases in the evolving landscape of AI and copyright law.
Latest from Technology
5 myths about Windows 10 End of Life you need to know of
NeutralTechnology
As the end of life for Windows 10 approaches, many users are misinformed about what this means for their systems. This article addresses common myths, such as the belief that running Windows 10 without security updates is safe or that the operating system will suddenly disappear. Understanding these misconceptions is crucial for users to make informed decisions about their software and security.
TAG Heuer’s new smartwatches ditch Wear OS to become an Apple Watch alternative thanks to ‘Made for iPhone’ billing
PositiveTechnology
TAG Heuer has launched a new smartwatch that moves away from Wear OS and is now certified as 'Made for iPhone.' This shift is significant as it positions TAG Heuer as a strong alternative to the Apple Watch, appealing to iPhone users who seek luxury and functionality in their wearable technology. The change reflects a growing trend among tech companies to create more tailored experiences for specific devices, enhancing user satisfaction and brand loyalty.
A big Google Pixel software update is rolling out now – and it promises to fix 6 annoying bugs and display issues
PositiveTechnology
A significant software update for Google Pixel phones is now being rolled out, addressing six frustrating issues such as unexpected shutdowns and blurry screens. This update is crucial as it enhances the overall user experience and stability of the devices, ensuring that Pixel users can enjoy their phones without these annoying bugs.
Apple iPhone 17 Pro Max vs. Samsung Galaxy S25 Ultra: I tested both flagships, and here's who wins
PositiveTechnology
In a head-to-head comparison of the Apple iPhone 17 Pro Max and the Samsung Galaxy S25 Ultra, both flagship phones showcase impressive features and performance, making the choice for consumers in 2025 a tough one. The article dives into their specifications, camera capabilities, and user experience, highlighting what sets each device apart. This matters because as technology evolves, understanding the strengths of these leading smartphones can help buyers make informed decisions that suit their needs.
1Password might just have a solution to the password security problem posed by AI agents
PositiveTechnology
1Password is stepping up to tackle the growing concerns around password security in the age of AI agents. With the rise of sophisticated AI technologies, the potential for credential theft has increased, making it crucial for users to have robust security measures in place. 1Password believes it has developed a solution that could significantly enhance the safety of user credentials, which is vital as more people rely on digital platforms for their daily activities.
The weirdest $14 gadget on Amazon I've found turned out to be beyond useful
PositiveTechnology
A quirky $14 gadget from Amazon, originally designed for inspecting ear canals, has proven to be an unexpectedly versatile tool for various inspection tasks. Its compact size and functionality make it a valuable addition to anyone's toolkit, showcasing how innovative products can exceed their intended use and provide practical solutions in everyday life.