Grok's crisis isn't about AI capabilities. ChatGPT and Gemini generate similar content. The difference: X publishes outputs to a public feed by default. That architectural choice, plus gutted safety teams, created the first mainstream abuse engine.
Google and Character.AI settled lawsuits from families of teenagers who died after talking to chatbots. No liability admitted. No trial. The first AI harm settlements reveal what the industry fears most: discovery.
Arm reorganized around "Physical AI" at CES 2026, combining automotive and robotics under one executive. The stock moved 0.3 percent. The market sees what the press releases won't say: this is a rebrand, not a transformation.
Larry Page dismantled his California ties in late December. Jensen Huang said he hadn't thought about the tax once. Both face billion-dollar bills. The divergence reveals something deeper than economics: what happens when builders become allocators.
In late December, as most Californians prepared for New Year's Eve, Larry Page's lawyers were filing paperwork. Lots of it. His family office, Koop, converted from California to Delaware. His flu research vehicle, Flu Lab LLC, did the same. So did One Aero, which funds his flying car ventures, and Dynatomics, his AI-focused aircraft manufacturing startup. The addresses scattered across Florida, Nevada, and Texas like a wealth manager's game of pin the tail on the tax haven.
A source close to Page confirmed to Business Insider what the filings suggested: the Google cofounder had already left the state.
Then there's Jensen Huang. At CES in Las Vegas, a Bloomberg reporter asked the Nvidia CEO about California's proposed wealth tax. Huang's answer landed like a slap: "I've got to tell you, I have not even thought about it once." You could almost hear Page's lawyers grinding their teeth.
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Google and Character.AI settled lawsuits from families of teenagers who died after talking to chatbots. No liability admitted. No trial. The first AI harm settlements reveal what the industry fears most: discovery.
Larry Page quietly moved his family office out of California before the wealth tax hits. Jensen Huang says he hasn't even thought about it. Two billionaires, one state, opposite responses and a revealing question about what citizenship means at the top.
Greg Brockman wrote a $25 million check to Trump's super PAC eight days after a White House dinner. Three months later, Trump signed an order blocking all state AI regulation. For the cost of a seed round, OpenAI bought a federal off-switch.
Chinese AI firms MiniMax and Zhipu AI race to Hong Kong IPOs at $6.5B valuations despite massive losses. Zhipu burned $271M on $27M revenue in six months. The Manus-Meta deal reveals the emerging pattern: Chinese talent, Singapore HQ, American buyer.
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