Three YouTube channels have banded together and filed a class action lawsuit against Apple, as first spotted by MacRumors. According to the lawsuit, the creators behind h3h3 Productions, MrShortGameGolf and Golfholics have accused Apple of violating the Digital Millennium Copyright Act by scraping copyrighted videos on YouTube to train its AI models. While the YouTubers' videos are available to watch on the platform, the lawsuit alleged that Apple illegally circumvented the "controlled streaming architecture" that regular users are limited to. The creators claimed that Apple's video scraping was used to train its generative AI products, adding that the tech giant's "massive financial success would not have been possible without the video content created" by the YouTubers. MacRumors noted that these YouTube channels have also filed similar lawsuits against other tech companies, including Meta, Nvidia, ByteDance and Snap. It's not the first time a company's alleged AI training methods have gotten them in legal trouble. OpenAI and Microsoft were both accused of using copyrighted articles from the NYTimes to train its AI chatbots. Similarly, Perplexity was recently sued by Reddit and Encyclopedia Britannica for alleged copyright and trademark infringements. Last year, Apple was also named in a separate class action lawsuit from two neuroscience professors who claimed their copyrighted works were used without permission. We reached out to Apple for comment and will update the story when we hear back. This article originally appeared on Engadget at https://www.engadget.com/ai/three-youtubers-accuse-apple-of-illegal-scraping-to-train-its-ai-models-181028745.html?src=rss
Kalshi can't be stopped in New Jersey. A 3rd US Circuit Court of Appeals panel ruled on Monday that New Jersey has no authority to regulate Kalshi's prediction market allowing people to bet on the outcome of sports events. That power rests with the Commodity Futures Trading Commission, the panel ruled 2-1. The CFTC is headed by President Donald Trump appointee Michael Selig, who vocally and actively supports prediction markets like Kalshi and Polymarket, calling them "exciting products." The Trump family agrees: Donald Trump Jr. is a paid adviser to Kalshi and an unpaid adviser to Polymarket, and Truth Social, which is run by the Trump Media and Technology Group, is set to start a prediction market of its own. Online prediction markets are an emerging phenomenon that allow users to bet on the outcome of basically anything, from local athletic competitions to lethal military invasions. Though they're new, these marketplaces have already shown evidence of insider trading on an extreme scale, with suspicious bets and big payouts tied to the US and Israel's military strikes in Iran, and also the US' brief invasion in Venezuela. According to blockchain analyst DeFi Oasis, fewer than 0.04 percent of Polymarket accounts captured more than 70 percent of profits, totaling $3.7 billion. Multiple state gaming regulators have filed legal challenges against Kalshi and Polymarket in recent months, and just last week the CFTC sued Arizona, Connecticut and Illinois over their attempts to regulate prediction markets. While each state has its own angle of attack, from election issues to underage betting, they're all broadly claiming that prediction markets are just illegal gambling businesses. Today's ruling marks the first federal-level decision in one of these cases and it's in favor of the prediction markets. New Jersey sent Kalshi a cease and desist letter in 2025, claiming the service violated the state's ban on collegiate sports betting. Kalshi escalated the situation and sued New Jersey, arguing that its sports contracts are actually swaps, a type of financial investment that's (conveniently) regulated by the CFTC. A lower-court judge previously sided with Kalshi, prompting New Jersey to appeal. Two of the three judges in that appeal ruled that Kalshi's sports-related event contracts were indeed swaps. Kalshi CEO Tarek Mansour called Monday's ruling "a big win for the industry." US Circuit Judge Jane Richards Roth dissented, writing that Kalshi's "offerings were virtually indistinguishable from the betting products available on online sportsbooks, such as DraftKings and FanDuel." New Jersey Attorney General Jennifer Davenport has the option to ask the full 3rd Circuit to rehear the case, and the issue is also pending in several other courts. This article originally appeared on Engadget at https://www.engadget.com/big-tech/new-jersey-has-no-right-to-ban-kalshis-prediction-market-us-appeals-court-rules-214448284.html?src=rss
