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Plus, Anguilla won the AI lottery.
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The real winners of the AI boom? The roughly 16,000 people living in Anguilla. The tiny Caribbean island could have raked in around $70 million last year—nearly half the government’s annual revenue—thanks to its .ai domain designation (which it scored in the ’90s when it meant very little). Fast-forward to ChatGPT’s launch in 2022, and suddenly every AI startup on the planet desperately wanted a .ai domain to look legit—making Anguilla the world’s most unexpected digital landlords.

There are now over 1 million .ai domains registered, typically going for around $140 for two years, though premium domains have sold for as much as $700,000. The money is going toward airport and road upgrades, hurricane-proof infrastructure, and paying down Anguilla’s national debt. AI hype: good for something after all.

Also in today's newsletter:

  • Today’s bellwether trial could have big consequences for social media platforms.
  • The new AI assistant everyone is talking about.
  • Google will pay $68 million to settle claims it eavesdropped on users through phones.

—Whizy Kim and Saira Mueller

THE DOWNLOAD

A teenager in their room, holding a phone with the Instagram logo on the screen

Vincent Feuray/Getty Images

TL;DR: A landmark trial starting today puts Meta and Google in court over whether they intentionally designed apps like Instagram and YouTube to addict kids—and whether that makes them legally liable for the damage. Snap and ByteDance (TikTok) both settled out of court. If the plaintiffs win, social media apps as we know them could change forever.

What happened: A 19-year-old known as "KGM" is suing Meta and Google, claiming she developed serious mental health issues after becoming addicted to social media, which she began using at age 10. Jury selection begins today in Los Angeles Superior Court. The key question: Did these companies intentionally design their platforms to hook children?

This is a "bellwether case"—a test meant to show how juries respond to the evidence and legal arguments. It's part of a much larger joint proceeding in California involving around 1,600 plaintiffs, ranging from families to school districts, all making similar claims against social media platforms, including Snap and ByteDance (despite settling within the past week for today's case). One expert told The Guardian that the decision to settle is a sign of how damaging the evidence could be. “You don’t settle unless you don’t want that stuff to be public,” she said.

The trial will unseal internal documents, research, and emails that have never been made public, including Instagram employees allegedly calling the app a “drug” and joking they were “basically pushers.”

What the plaintiffs say: These platforms pull us in with dark-pattern design features that maximize engagement—infinite scroll, nonstop notifications, autoplay, and recommendation algorithms (something users of all ages can likely attest to). But plaintiffs argue that the companies intentionally tried to rope in vulnerable young users to boost their profits.

That addictiveness, they say, increases vulnerability to depression, eating disorders, self-harm, and anxiety. Their case leans heavily on internal company research, whistleblower testimony, and product design choices that allegedly prioritized engagement over safety.

What the defense says: They are leaning on a “correlation isn’t causation” defense for these cases. Mental health problems are complex, they argue, and impossible to blame on a single source. They’ll stress that there’s no formal medical diagnosis for social media addiction, unlike substance use disorders. Companies will also likely argue that they’ve introduced a whole arsenal of child safety tools over the past several years—parental controls, teen accounts, content filters, and time-limit nudges. But reporting shows that, internally, Meta knew Instagram worsened body-image issues for many teen users, and its algorithm repeatedly surfaced eating disorder and self-harm content to vulnerable kids.

Execs expected to be grilled: Mark Zuckerberg and Instagram head Adam Mosseri are expected to be key witnesses. There’s no word yet on which leaders from Google will testify.

Why it matters: This is the first time major social platforms are being asked under oath whether they’ve made their products addictive on purpose. If the answer is yes, it could dramatically reshape how these apps are designed, weaken social media’s legal shields, and even accelerate social media bans for children—like the one Australia passed for under-16s last month.

Critics warn that holding social media companies liable for kids’ mental health could lead to overmoderation and less open platforms. But for supporters, the benefits are clear: It could protect kids. Recent history offers some perspective on the potential for drastic change. In the mid-90s, over 1 in 3 US high schoolers smoked cigarettes. After decades of lawsuits, warnings, and advertising bans, that figure has fallen to the low single digits. Vaping has brought new problems, sure—but it shows how quickly norms can shift when products are treated as public health risks. —WK

Presented By Dell

A stylized banner image that says Signal or Noise.

This tiny device upgrades your flight

You’re finally on the plane after an arduous journey dodging airport crowds, waiting in labyrinthine security lines, and fighting for a sliver of overhead bin space. As you kick back and turn on the in-flight entertainment, it hits you: You forgot your wired headphones.

Twelve South’s AirFly Pro 2 Deluxe is a handy little device that lets you forget about your scuffed wired earbuds or the uncomfortable relics airlines hand out. The small dongle has a 3.5mm audio adapter that can pair with your high-quality Bluetooth headphones, and the deluxe version comes in a small gray pouch that contains the dongle, a USB-A to USB-C charging cable, and an adapter for those two-pronged headphone outlets you sometimes still see on planes. A full charge lasts about 25 hours, according to Twelve South, and you can pair two headphones at a time—perfect for watching a show with the stranger in the seat next to you. There’s a toggle to both receive audio (like when you’re watching in-flight movies) and transmit it (like streaming music from your phone to a set of speakers).

The AirFly Pro 2 Deluxe on a colorful backgroundTwelve South

I tested the AirFly on two six-hour flights recently, and it let me watch Top Gun, Top Gun: Maverick, and Catch Me If You Can (what can I say, I like movies about planes when on a plane) with my AirPods. After about 6.5 hours’ worth of films, there was still plenty of charge left. The AirFly is so small and easy to use that it’s a no-brainer addition to every packing list, right alongside your battery pack and a good neck pillow.

The Good: Once your Bluetooth headphones are paired to the AirFly, they seamlessly connect every time—and the On/Off toggle makes it easy to ensure my AirPods link to my iPhone instead when I want them to.

The Bad: You might occasionally get static (as I did during one of the movies I watched on the plane) or hear a low hum in the background.

Verdict: Signal WK

THE ZEITBYTE

The Moltbot logo on a colorful background

Molty

The people are yearning for an actually good AI assistant that will do everything but breathe for them. Enter Moltbot (formerly Clawdbot), an open-source AI assistant that gets Claude or ChatGPT running 24/7 on a local machine—and people can’t stop raving about it on social media.

The big difference between Moltbot and a chatbot like Claude? The latter only responds when you ask it something. Moltbot, meanwhile, is a proactive go-getter who can nudge you first. It watches for your patterns, remembers preferences and schedules, and—at least in theory—maintains close to unlimited memory. Many users are installing it on a Mac mini, as it’s relatively cheap yet powerful enough to run an AI assistant. Once it’s set up, Moltbot can interact through apps like WhatsApp, Telegram, or Slack.

Moltbot fans have gushed about what their MacGyvered setups can do: automatically notify them when important emails arrive, schedule or update meetings, check in for flights, draft Slack or email replies in their voice, and even keep up text conversations with their spouse. “I haven't talked to my wife for at least two days now,” one user wrote on X.

The unexpected cult following around Moltbot shows how much people want agentic AI assistants—like what Claude Cowork tries to be and the new Siri promises to be. (Never mind all the security risks that come with Moltbot.) If Moltbot fever keeps up, Apple may win the AI race by doing nothing at all. —WK

Chaos Brewing Meter: /5

A stylized image with the words open tabs.

  • Meta could soon roll out subscriptions for Facebook, Instagram, and WhatsApp. On IG, this could allow you to view stories without people knowing—among other features people will definitely pay for.
  • France is ditching Microsoft Teams and Zoom for a homegrown platform over safety concerns.
  • Google is settling a lawsuit that claims it secretly listened to—and recorded—people’s private conversations through their phones. The payout? $68 million.
  • TikTok competitors are seeing such a massive surge in new users that their servers are crashing—UpScrolled being the latest casualty.
  • A new study suggests music with "beat-based stimulation" could reduce anxiety. Time to update those playlists.
  • The Department of Transportation plans to use Gemini to write regulations. As one official put it: “We don’t even need a very good rule on XYZ. We want good enough.” What could go wrong?
  • Another day for TikTok USA, another “nothing to see here” moment. This time, some users say the app won’t let them send the word "Epstein" in DMs.
  • Ditch your old laptop + grab the all-new Dell XPS powered by Series 3 Intel® Core™ Ultra processors. Throw in an extra-long battery life and efficient performance, and you’ve got the ultimate machine for work + play.*

*A message from our sponsor.

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