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Plus: This AI-Fueled Startup Is Helping Attorneys Find New Class Action Lawsuits

Forbes
Good morning,

TikTok’s future in the U.S. remains murky, as the Trump Administration’s third legally dubious extension of the TikTok sale-or-ban law is set to expire next month. But the Chinese government is making it clear that the app’s signature algorithm is not for sale.

In an editorial published Wednesday in state-owned media, the Chinese Communist Party explicitly states that Chinese law “prohibits the export of core technologies such as short video algorithms, drawing a red line for the TikTok transaction.” 

That doesn’t mean President Donald Trump and ByteDance won’t still make a deal. TikTok has been planning for the possibility, reportedly exploring options like creating a U.S.-only version of the For You algorithm or a separate U.S. TikTok app. Either way, the platform’s defining feature could look very different than it does today.

Let’s get into the headlines,

Danielle Chemtob Staff Writer, Newsletters

Follow me on Forbes.com

Who are the richest people in the world today?
FIRST UP
Chipmakers lost big on Wall Street Wednesday, headlining broader tech losses as the Trump Administration is reportedly considering seeking equity in firms in exchange for grants given under the Biden-era CHIPS Act. The U.S. has typically acquired a stake in private companies only during times of financial instability, such as the 2008 financial crisis. While some economists say U.S. investment could boost sectors, others argue it could expose taxpayers to potential losses.

AI juggernaut Anthropic has partnered with startup Binti, which provides a digital platform for more than 12,000 social workers, in an effort to build new tools to help them manage their cases more easily. The partnership aims to cut back on paperwork—one of the biggest stumbling blocks to meaningful social work that assists at-risk children—by adding features such as the ability to transcribe recordings of meetings with families and then use that information to fill out reports.

  Illustration by Samantha Lee for Forbes; Images by Suspended Image/Getty Images; Ekaterina Bedoeva/Getty Images; ita/Getty Images
Daily Cover Story
This AI-Fueled Startup Is Helping Attorneys Find New Class Action Lawsuits
Read Article
Israeli tech startup Darrow is using AI to scour the internet for arguably illegal—and more importantly, class-action-lawsuit-worthy—corporate behavior.

It identifies the seeds of a suit in various locations, including online consumer complaints and an app’s privacy policies. Then it compares its findings to laws and regulations to gather ideas for class action lawsuits.

Darrow sells the ideas to attorneys and even helps them find people to become plaintiffs for a case through targeted digital advertising. The novel approach is a striking example of how AI is reaching remote niches of industries and transforming them (or at least speeding them up and making them more efficient). AI is already widely used by lawyers for such functions as reviewing masses of documents or emails turned over during discovery in a legal case. But the notion of using AI to discover legal causes of action is a new one.

Darrow makes money the same way many software firms do, by charging customers both subscription and usage-based fees. But it also has a more controversial revenue source: When lawyers win cases originated with a Darrow idea, the startup quietly takes a cut of the lucrative attorneys’ fees.

Regardless of what legal-ethics sticklers might think of its business model, the 156-person startup has been growing quickly. It counts 80 law firms as customers and charges them between tens of thousands of dollars and millions of dollars a year for its services, according to cofounder and CEO Evyatar Ben Artzi. The company’s revenue reached $26 million in 2024, and he expects it to surpass $50 million this year.

WHY IT MATTERS
“Several lawyers we spoke with are convinced that Darrow is onto something and will ultimately be one of many companies offering AI-powered lawsuit-idea services,” says Forbes senior editor Jeff Kauflin. “Says Jeffrey Cunningham, a legal ethics expert and partner at law firm Cohen Vaughan, ‘I think in 10 years, this is going to be normal.’”
MORE
BUSINESS + FINANCE
Target CEO Brian Cornell will step down next year as the retailer continues to suffer from the fallout over its reversal of DEI efforts. The rollback of such policies led to a consumer boycott, which began earlier this year and coincided with three consecutive quarters of declining sales.

Fawn Weaver founded Tennessee whiskey brand Uncle Nearest to honor the formerly enslaved Nearest Green, who taught Jack Daniel how to make whiskey, and it made her one of Forbes’ Richest Self-Made Women in 2024. But now she’s fighting for control of the company after it defaulted on $108 million in loans, and a judge placed the business under a receivership, which would give an independent individual the legal power to make sure the creditor gets repaid.

MONEY + POLITICS
President Donald Trump called for the resignation of Federal Reserve Governor Lisa Cook after she was accused of mortgage fraud, as Trump has grown increasingly critical of the Federal Reserve’s cautious monetary policy approach. Cook, the central bank’s first Black woman to serve as a governor, is the latest to face mortgage fraud allegations from the president.

In a major roadblock to the Trump Administration’s efforts to quell the uproar over the Jeffrey Epstein files, a federal judge rejected the Justice Department’s request to unseal grand jury materials in its prosecution against the disgraced financier. Instead, New York Judge Richard Berman suggested the DOJ release its files in the case, noting the information in the grand jury materials “pales in comparison.”

Texas House lawmakers approved a new gerrymandered map Wednesday that would likely give Republicans five additional congressional seats, following a lengthy delay after dozens of Democratic state legislators left Texas to prevent the House from reaching a quorum. The new map has set up a battle with Democratic-led states, including California, which will attempt to even the scales ahead of the 2026 midterms.

TRENDS + EXPLAINERS
The Trump Administration has sought to restrict student loan forgiveness, and new regulations published this week would prohibit employers from participating in Public Service Loan Forgiveness if they’re engaged in “illegal activities.” But critics worry the changes will be used against left-leaning groups, as they would disqualify employers for actions like promoting gender-affirming care for minors.
FACTS + COMMENTS
Netflix signed a deal for a new educational family competition show with popular YouTuber Mark Rober, as the streaming giant goes all-in on children’s programming. The announcement follows the company’s signing of educational content creator Ms. Rachel in January:

$25 million

The amount Forbes estimates Rober, who ranked No. 8 on Forbes’ 2025 list of top-earning creators, made in the last year

 

49%

The share of parents who consider what children’s content is available on a platform before subscribing

 

2011

The year Netflix launched its dedicated children’s section

STRATEGY + SUCCESS
Unlike the more casual trend of quiet quitting, “quiet cracking” refers to employees who feel stuck in their roles but can’t leave due to external financial pressure. Some workplaces weaponize this financial dependency by reminding employees of job insecurity or exploiting workers in the name of efficiency. For those who find themselves in this situation, seek professional support and build an exit strategy to take back your agency.
VIDEO
GAMES
QUIZ
A major video game company became the latest to announce a price increase for its main gaming console Wednesday, citing a “challenging economic environment” amid rising tariffs. Which of the following gaming systems have seen price hikes due to the tariffs?
A.Nintendo’s Switch
B.Microsoft’s Xbox
C.Sony’s PlayStation
D.All of the above