Meta ordered to pay $375 million in child safety case, OpenAI discontinues Sora to reduce costs, and U.S. lawmakers near shutdown deal as Merck buys Terns for $6.7 billion.
Meta Loses Child Safety Trial
- A New Mexico jury found Meta liable for violating the state's unfair practices act by not safeguarding children on Facebook and Instagram, awarding $375 million in damages. Meta spokesperson said they will appeal the verdict.
- Separately, AI startup Anthropic sought a court injunction against the Defense Department's ban on its products, with a judge questioning the Pentagon's motives.
OpenAI Discontinues Sora App
- OpenAI announced it is shutting down its Sora short-form video app, which had rapid adoption, to cut expenses as it prepares for a potential public offering.
- CFO Sarah Friar confirmed the company is raising an additional $10 billion from investors to support its operations.
U.S. Shutdown Negotiations Advance
- Senate Republicans and the White House are close to an agreement to fund the Department of Homeland Security, though part of the ICE budget remains unresolved.
- Delta Air Lines suspended airport escort services for Congress members and staff, citing disruptions from the partial government shutdown.
Merck's $6.7 Billion Acquisition
- Merck, based in New Jersey, agreed to acquire Terns Pharmaceuticals for $6.7 billion to strengthen its drug portfolio before the 2028 expiration of Keytruda's patent protection.
- Terns shares surged over 5% pre-market, while Merck's stock remained stable.