Texas AG Investigates Meta and Character.AI Over Mental Health Claims

Aug 18, 2025
Texas Attorney General Ken Paxton has launched an investigation into Meta and Character.AI for allegedly misleading children with AI-generated mental health services.

Ken Paxton, the Attorney General of Texas, has initiated an investigation into Meta and Character.ai for potentially deceptive trade practices. The companies are accused of misleadingly marketing their AI platforms as mental health tools, particularly to children, announced in a press release.

The investigation aims to determine if these platforms, which lack proper medical credentials, have violated Texas consumer protection laws by presenting themselves as professional therapeutic tools. Concerns have been raised about the AI chatbots impersonating licensed mental health professionals and offering generic advice disguised as therapeutic support.

Paxton's office has issued Civil Investigative Demands to both companies to assess if they have engaged in fraudulent claims, privacy misrepresentations, and data usage concealment. The investigation underscores ongoing efforts to ensure AI tools are transparent and not exploitative, especially towards vulnerable users like children.

We hope you enjoyed this article

Consider subscribing to one of our newsletters like AI Policy Brief, Enterprise AI Brief or Daily AI Brief.

Also, consider following us on social media:

AI Safety & Regulation Enterprise AI AI Brief AI Brief (X)
Free newsletter

AI Policy Brief

Weekly report on AI regulations, safety standards, government policies, and compliance requirements worldwide.

AI Token Webinar

Whitepaper

Tensordyne Napier: What If One Rack Could Do the Work of Nine?

Tensordyne

This Tensordyne whitepaper presents Napier, an inference-focused AI processor and rack-scale system based on the company’s TDN Math logarithmic number system. It examines infrastructure requirements for large mixture-of-experts and agentic models, compares major inference architecture approaches, and details the TDN AIP processor, TDN72 pod, TDN Link fabric, and Napier Ultra configuration. The paper reports simulation-based performance, cost, and accuracy-validation results, including Tensordyne’s projected comparison of one Napier rack with a nine-rack Nvidia Rubin plus Groq deployment; the chip is reported as taped out and in fabrication.

Read more

You may also like

Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.