Judge allows lawsuit against Anthropic over Claude Max ads; Trump claims AI threats and Nvidia scandal unfold

Judge allows lawsuit over Claude Max usage claims

US Magistrate Judge Alex Tse ruled that Anthropic must address key allegations in a class action lawsuit over its Claude Max subscription plans. The suit, filed in June by plaintiffs Karl Kahn and Solomon Smith, accuses the company of misleading customers about the usage limits of its $100 and $200 Max plans.

Judge Tse permitted claims of negligent misrepresentation and breach of contract to move forward. However, he dismissed allegations under California’s unfair business practices and false advertising laws. Claims brought by Kahn under a state consumer protection law were also dismissed, though Solomon Smith’s similar claim survived.

How Anthropic’s ad claims fell short

The lawsuit centers on Anthropic’s advertisements, which promised that the $100 and $200 Max plans offered five or 20 times more usage than the company’s Pro plan. Plaintiffs argue that the actual weekly usage limits fall short of these promises. For example, they calculated that the $200 plan provides only six times the weekly usage of the Pro plan, while the $100 plan offers 3.5 times.

Judge Tse noted that Anthropic’s explanation of per-session usage limits was buried in a help page two hyperlinks away from the primary sales pages. He ruled that customers could reasonably interpret the advertised promises as applying monthly, given the monthly billing cycle.

Anthropic renames plans amid legal scrutiny

Last week, Anthropic renamed the Claude Max plans, though the judge’s ruling does not address whether this change resolves the allegations. The company has not commented on the decision.

Trump claims AI executive threatened with jail

Former US President Donald Trump claimed his administration once threatened to imprison the CEO of a major AI company to enforce AI safety regulations. Trump suggested the executive—whom he did not name—was the leader of a "big" AI company and that the threat led to a change in the company’s practices.

Trump has previously singled out Anthropic CEO Dario Amodei in similar claims. However, he clarified that he did not believe the executive acted maliciously. His comments came during an interview with 60 Minutes, where he also dismissed concerns about AI risks as overblown.

Nvidia CEO admits affair with alleged China spy

Nvidia CEO Jensen Huang admitted to having an affair with an executive accused of espionage on behalf of China’s Ministry of State Security. The executive, identified in media reports as Alice Huang, was allegedly recruited to gather information about Nvidia’s advanced hardware and lobby for loosening US restrictions on chip sales to China.

China has denied the allegations. Trump, when asked about the scandal, said he still supports Huang as Nvidia’s CEO and would consider including him in a delegation to China later this month.

AI safety debates escalate amid industry tensions

Anthropic researcher Evan Hubinger claimed that employees at the company believe AI could pose an existential risk to humanity within the next decade. Hubinger personally estimated the risk at greater than 10%.

Anthropic CEO Dario Amodei later published an essay warning that the current pace of AI development is unsafe and called for the industry to slow down. Trump dismissed these concerns as a "hoax" and invited major AI executives to the White House to sign a voluntary, "morally binding" AI safety agreement earlier this year.

Local ballot measures in the midterm elections showed voter opposition to AI data-center expansions, with dozens of restrictions passed and mostly Democratic candidates elected on platforms opposing industry expansion.

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