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New York City Sues Tech Giants Over Alleged Role in Youth Mental Health Crisis

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New York City has filed a sweeping lawsuit against major social media companies, accusing them of fueling a youth mental health crisis by intentionally designing addictive features that target children and teenagers.

The 327-page complaint, filed in Manhattan federal court, names the parent companies of Facebook, Instagram, TikTok, Snapchat, Google, and YouTube. It alleges that the firms knowingly created platforms engineered to capture and hold users’ attention, despite being aware of the negative psychological effects on younger audiences.

According to the city, social media giants built their platforms around “algorithmically-driven endless feeds” and “incessant notifications,” which encourage compulsive use and prevent users from disconnecting. These design features, the lawsuit claims, have contributed to rising rates of depression, anxiety, loneliness, and low self-esteem among young people.

“Instead of feeding coins into slot machines, kids are feeding social media platforms with an endless supply of attention, time, and data,” the lawsuit stated. It argues that companies prioritized profits over public health, deliberately exploiting the vulnerabilities of children and teenagers to maximize engagement and advertising revenue.

The city also accuses the companies of ignoring mounting evidence linking heavy social media use to mental health harms. “The defendants have long been aware of research connecting use of their apps with harm to their users’ well-being but chose to ignore or brush it off,” the filing said.

The lawsuit seeks damages and claims the companies acted with gross negligence and created a public nuisance. It adds to a growing number of legal challenges brought by U.S. state governments, school districts, and advocacy groups over the impact of social media on young users.

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Google spokesperson José Castañeda rejected the allegations, telling Euronews Next that the case “fundamentally misunderstands how YouTube works.” He described YouTube as “a platform for watching videos, not a social network where people go to catch up with friends.” Other companies named in the lawsuit, including Meta, TikTok, and Snapchat, did not immediately respond to requests for comment.

The case comes amid intensifying global scrutiny of social media’s effects on young people. Policymakers in several countries have called for tighter regulation, with Denmark’s Prime Minister Mette Frederiksen recently proposing a ban on social media use for children under 15.

New York City officials say the lawsuit is intended to hold tech companies accountable for what they describe as a “systemic assault on the mental health of a generation.” They argue that while social media has become deeply embedded in modern life, its design should not come at the expense of children’s well-being.

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Study Finds AI Use May Weaken Basic Problem-Solving Skills

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Meta Launches Muse Spark, Its First Major AI Model in Nine Months

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Meta has unveiled its first major AI model in nine months, following a $14.3 billion (€12.24 billion) investment spree and executive hiring push to rival OpenAI and Google. The American tech company introduced the model, called Muse Spark, on Wednesday, claiming it is faster and smarter than its previous technologies.

The company, founded by Mark Zuckerberg, invested $14.3 billion in Scale AI in June 2025 and recruited its CEO and co-founder, Alexandr Wang, to oversee Meta Superintelligence Labs, which houses teams working on foundational AI models. Zuckerberg also embarked on a hiring campaign, bringing in executives from competitors including OpenAI, Anthropic, and Google.

In a blog post, Meta said, “Over the last nine months, Meta Superintelligence Labs rebuilt our AI stack from the ground up, moving faster than any development cycle we have run before. This initial model is small and fast by design, yet capable enough to reason through complex questions in science, math, and health. It is a powerful foundation, and the next generation is already in development.”

Muse Spark is positioned as a significant upgrade over Meta’s last major release, Llama 4, launched in April 2025. The company highlighted that the model excels in advanced reasoning, particularly in scientific, mathematical, and medical queries. To improve its health advice capabilities, Meta worked with over 1,000 physicians to curate training data, aiming for more accurate and comprehensive responses.

The AI model will power the company’s digital assistant in the Meta AI app and website, with planned integration across Facebook, Instagram, WhatsApp, Messenger, and the Ray-Ban Meta AI glasses. A “contemplating mode” will gradually roll out, allowing multiple AI agents to reason in parallel on complex tasks. Meta’s technical blog noted this feature is designed to compete with high-level reasoning in models such as Gemini Deep Think and GPT Pro.

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Zuckerberg emphasized on social media that Meta aims to build AI products that “don’t just answer your questions but act as agents that do things for you.” Unlike conventional chatbots, these AI agents operate autonomously, gathering information based on user preferences to assist without direct human commands.

One notable shift for Meta is the move away from open-source AI models. Unlike earlier releases, Muse Spark is not available for public download, meaning access to the technology is currently restricted. The company said the model is initially available only in the United States.

Muse Spark underscores Meta’s aggressive push into the competitive AI market, combining extensive investment, executive recruitment, and technical innovation to challenge the dominance of established players like OpenAI and Google.

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OpenAI Urges Governments to Rethink Economy as AI Growth Accelerates

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OpenAI has called on governments to rethink the foundations of the economy, warning that artificial intelligence (AI) could soon surpass human intelligence and drastically change how people work, live, and pay taxes. The company outlined its initial policy ideas on Monday, aimed at mitigating the economic disruption caused by rapid AI adoption in the United States and worldwide.

One key proposal is the creation of a public wealth fund that would give citizens a direct stake in AI-driven economic growth. According to the policy document, the fund could invest in diversified, long-term assets, including AI companies and broader firms adopting AI technologies, with returns distributed to all citizens.

The company also suggested that governments encourage businesses to launch four-day workweek pilot programs without any reduction in pay. This approach aims to balance the productivity gains provided by AI with the well-being of workers. Lawmakers are also urged to modernize tax systems by increasing taxation on corporate income and capital gains instead of labor income, which could be affected by AI-related job losses. The report proposes additional measures, such as taxing companies that replace human labor with automation.

OpenAI recommends that social benefits, including retirement pensions and healthcare, be provided through portable accounts that follow individuals across different jobs, industries, and entrepreneurial ventures. This model would help ensure continuity of support in a labor market increasingly influenced by AI.

These recommendations echo broader discussions among AI leaders about the future of work. OpenAI CEO Sam Altman and xAI’s Elon Musk have previously highlighted universal basic income as a potential necessity as traditional employment declines. Other tech leaders, including Nvidia’s Jensen Huang and Zoom’s Eric Yuan, have advocated shorter workweeks to distribute productivity gains from AI more evenly.

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Concerns about AI’s long-term impact extend beyond economics. In January, Anthropic CEO Dario Amodei warned that superintelligent AI, capable of outpacing human decision-making, poses “existential danger.” He suggested tighter controls on the export of key technologies, such as semiconductor chips used to train large language models, as one way to manage the risk. Amodei also called for transparency laws requiring AI companies to disclose how they guide their models’ behavior.

OpenAI’s policy document represents an early step in urging governments to address the structural changes AI may bring. The proposals highlight the need to rethink traditional concepts of work, taxation, and social support as the technology continues to advance rapidly.

As AI continues to reshape global economies, policymakers and industry leaders face increasing pressure to develop strategies that protect citizens while fostering innovation and sustainable growth.

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