You might be shocked to learn there is a world outside AI! And we got a glimpse of it in an Oakland, Calif., courtroom today, at the opening of the trial in a lawsuit brought by California and several other states against Meta Platforms over the alleged harms its social media apps have done to kids. This case, part of a deluge of such lawsuits against Meta and other social media companies that started going to trial in January, may be existential for the companies involved, given the damages sought and the operational changes requested of them.Meta, for instance, has said that the states in the Northern California case are seeking $1.4 trillion in penalties—equivalent to its market capitalization—although the states put the number at closer to $200 billion, according to Reuters. Let’s assume Meta is being hyperbolic. The point is there are thousands of cases, many filed by individuals rather than states, so the costs could quickly add up. As Meta’s finance chief, Susan Li, said on an earnings call last month, the trials scheduled for this year in the U.S. “may ultimately result in a material loss.” When Meta uses the word “material,” you know it’s serious.
Don't miss out on breaking stories and in-depth articles.
