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42 State AGs Build AI Agent Liability Framework as Congress Stalls
A bipartisan coalition of 42 state attorneys general is building the liability framework for agentic AI that Congress has yet to codify, filling a federal regulatory void confirmed by the Congressional Research Service. In December 2025, the coalition, led by officials from Pennsylvania, New Jersey, West Virginia, and Massachusetts, issued a coordinated letter to 13 major AI companies including Anthropic, Apple, Google, Meta, Microsoft, OpenAI, and xAI, demanding chatbot safeguards with a response deadline of January 16, 2026. State AGs are repurposing existing UDAP statutes, consumer protection laws, civil rights frameworks, and antitrust authority to police AI behavior, an approach that produced a first-of-its-kind settlement by Texas Attorney General Ken Paxton with healthcare AI company Pieces Technologies over false accuracy claims. Connecticut's AI Responsibility Act, signed in May 2026, grants the state AG exclusive enforcement authority under CUTPA starting October 1, 2026, with a mandatory one-year cure period through September 2027, while New Jersey's Fair Price Protection Act, effective August 2027, allows a private right of action for surveillance pricing with treble damages and no cure period. The Pennsylvania AG has sought preliminary injunctions against an AI company for falsely representing a chatbot as a licensed psychiatrist, and the Florida AG launched a criminal investigation in April 2026 after a violent incident involving a chatbot. State AGs filed seven antitrust actions in 2026 alone, surpassing the prior two years combined, including a 30-state coalition continuing the monopolization case against Live Nation and twelve states suing to block the Paramount-WBD merger despite federal declination.
Qualcomm Unveils Two New Snapdragon Chips Built for On-Device Agentic AI
Qualcomm has unveiled two new smartphone chips built around agentic AI, the Snapdragon 8 Elite Gen 6 and the Snapdragon 8 Elite Extreme Gen 6. The chips will be built into smartphones from premium Android makers, with Qualcomm's big push centered on on-device AI capabilities. Qualcomm is making this push alongside Intel, AMD and Nvidia, while Apple has been pushing on-device AI in its new laptops, and HP and Dell are also talking up the approach. The pitch is that running AI models directly on a device keeps user information private and avoids the need to sign up for a cloud provider. Qualcomm has been in this space for a while, having previously debuted PC chips for Windows laptops, and the company is now emphasizing GPU, CPU and neural processing unit cores because running AI agents on a device requires a strong CPU to avoid processing delays.
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Meta's Muse Chatbot Sparks AI Narrative Shift, Fastest App Store Adoption Since ChatGPT
Meta Platforms' Muse chatbot has driven AI stocks higher this week and may have triggered a broader tonal shift in the AI narrative and how consumers use the technology. Futurum CEO Daniel Newman said the new Muse agentic platform is "taking over the internet," with the fastest adoption in the App Store since ChatGPT. Newman noted that Meta's Muse Spark model, the new model released first, tested and benchmarked on pinnacle very close to leading edge models from OpenAI and Anthropic. He said the launch followed a period in which investors questioned Meta's exploding CAPEX and its Reality Labs investments, and after Meta went all in on its super intelligence lab with elite hires costing hundreds of millions and billions on individual talent. Newman added that Muse arrived "out of nowhere" after a week of AI doomerism, and that bringing AI to consumers this way was needed to get the next leg up of optimism on the AI trade.
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