Business Technology News Roundup: May 16, 2025

In a historic move, the state of Texas secured a $138 billion settlement from Google, concluding a years-long legal battle over the company’s data privacy practices. The lawsuit, initiated by Texas Attorney General Ken Paxton, accused Google of collecting and using personal data from millions of Texans without proper consent, violating state and federal privacy laws. The settlement not only includes the massive financial penalty but also mandates significant changes to Google’s data handling and transparency protocols within the state. Legal experts say this case sets a powerful precedent for how US states can hold tech giants accountable and could inspire similar actions across the country. Texas officials have stated that the funds will be used to bolster digital privacy initiatives and consumer protection programs, while Google has pledged to overhaul its privacy policies to regain public trust.

OpenAI, the leading artificial intelligence research lab, has entered into preliminary talks with the US Food and Drug Administration (FDA) to explore the integration of AI technologies into the pharmaceutical evaluation process. The partnership aims to leverage OpenAI’s advanced language models and data analysis tools to streamline the review and approval of new drugs. By automating the analysis of clinical trial data and regulatory submissions, the FDA hopes to accelerate the approval timeline for life-saving medications while maintaining rigorous safety standards. Industry analysts believe this collaboration could set a new benchmark for regulatory science, potentially making the US the first country to use AI at scale in drug evaluation. The move is also expected to spark debate over transparency, ethical considerations, and the need for robust oversight as AI becomes more deeply embedded in public health decision-making.

Microsoft has put the brakes on approving OpenAI’s proposed corporate restructuring, citing concerns about the security of its $13.75 billion investment in the AI powerhouse. The restructuring plan, which would have given OpenAI more operational independence, raised questions within Microsoft about governance, intellectual property rights, and the future direction of their partnership. Insiders report that Microsoft’s leadership is seeking additional assurances that their strategic interests, particularly around exclusive access to OpenAI’s technology, will be protected. This development highlights the growing tension and complexity in high-stakes AI collaborations, as major tech firms race to secure their positions in the rapidly evolving artificial intelligence landscape. The outcome of these negotiations could have significant implications for the pace of AI innovation and the structure of future industry alliances.

The gaming world was rocked last week by news of a massive alleged data breach involving Steam, the world’s largest digital gaming platform. A hacker claimed to have obtained and leaked a database containing 89 million two-factor authentication (2FA) codes, potentially exposing millions of user accounts to unauthorized access. Cybersecurity experts quickly warned that if the leak is authentic, it represents one of the largest breaches of its kind in the gaming industry. Valve, Steam’s parent company, responded by launching an urgent investigation and advising users to update their security settings and enable additional protective measures. The incident has reignited discussions about the importance of robust authentication systems and the persistent threat posed by cybercriminals targeting popular digital platforms. Industry observers expect this breach to prompt new security protocols and greater investment in user protection across the gaming sector.

Netflix rolled out a major update to its TV streaming platform, introducing generative AI-powered search capabilities and a revamped recommendation engine. The new search function, built on OpenAI’s ChatGPT technology, allows users to find movies and shows using natural language queries, such as “Show me award-winning comedies from the last five years.” Alongside this, Netflix has enhanced its recommendation algorithms to deliver more personalized content suggestions based on viewing habits, preferences, and even mood. The update also features a refreshed user interface designed to make content discovery faster and more intuitive. Netflix executives say these changes are part of the company’s ongoing strategy to stay ahead in the highly competitive streaming market by leveraging cutting-edge artificial intelligence. Early user feedback has been positive, with many praising the improved ease of finding new and relevant content.