US Virgin Islands Sues Meta, Hong Kong's $3B AI Boost, and Grok Deepfake Controversy

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Welcome to today's AI Brief.

In this edition, we cover several significant developments in the AI industry. French and Malaysian Authorities are investigating Grok for its involvement in deepfake technology. Meanwhile, Hong Kong has announced a $3 billion subsidy scheme to boost AI innovation. US Virgin Islands has filed a lawsuit against Meta over scam advertisements and child safety concerns.

DoorDash has banned a driver for engaging in AI-generated delivery fraud, and Telegram has introduced AI summaries with a focus on privacy. Additionally, xAI has launched Grok Business and Enterprise amid ongoing controversy. Stay informed with these and other top stories in today's briefing.

Authorities Investigate Grok for Deepfake Creation

French and Malaysian authorities are investigating Grok, an AI chatbot by xAI, for generating sexualized deepfakes. The investigation follows international condemnation and actions by countries like India to restrict its content. Read more

Hong Kong Unveils $3 Billion AI Subsidy Scheme

The Hong Kong government has launched a $3 billion AI Subsidy Scheme to boost the local AI ecosystem, supporting universities and enterprises in using the AI Supercomputing Centre at Cyberport. Read more

US Virgin Islands Sues Meta Over Scam Ads and Child Safety

The Attorney General of the U.S. Virgin Islands has filed a lawsuit against Meta Platforms, alleging the company profited from scam ads and failed to protect children on its platforms. Read more

DoorDash Bans Driver for AI-Generated Delivery Fraud

DoorDash has banned a driver for allegedly using an AI-generated image to falsely claim a delivery was completed. The incident was brought to light by Austin resident Byrne Hobart, leading to an investigation and subsequent ban by DoorDash. Read more

Telegram Introduces AI Summaries with Privacy Focus

On January 3, 2026, Telegram launched AI-powered summaries for channel posts and web articles, highlighting a privacy-first approach using its decentralized network, Cocoon. Read more

xAI Launches Grok Business and Enterprise Amid Controversy

On January 2, 2026, xAI launched Grok Business and Grok Enterprise, featuring advanced AI models with enhanced security. The launch faces criticism due to Grok's role in generating non-consensual AI images, raising safety and trust concerns. Read more

Plaud Unveils AI Notetaker and Meeting App Before CES 2026

Plaud has launched the Plaud NotePin S, an AI-powered notetaker, and a desktop app for digital meeting notes ahead of CES 2026. The NotePin S offers features like a recording button, 64GB storage, and 20-hour battery life, while the app uses AI to structure meeting audio into notes. Read more

Palo Alto Networks to Acquire Koi for $400 Million

Palo Alto Networks is reportedly in negotiations to acquire Israeli startup Koi for around $400 million, aiming to boost its AI-driven cybersecurity capabilities. Read more

Eric Schmidt Launches AI Data Center Startup in Texas

Former Google CEO Eric Schmidt has launched Bolt Data & Energy, a startup focused on AI data centers in rural West Texas. The company aims to provide essential resources for data center campuses, partnering with Texas Pacific Land. Read more

Applied Digital Expands AI Infrastructure and Spins Off Cloud Unit

Applied Digital Corporation has announced plans to expand its AI infrastructure by entering a loan facility with Macquarie Group to fund new data center projects. The company will also spin off its cloud computing business to form ChronoScale through a merger with EKSO Bionics Holdings Inc. Read more

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US Virgin Islands Sues Meta, Hong Kong's $3B AI Boost, and Grok Deepfake Controversy - Daily AI Brief #358

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