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Major regulatory action hits AI platforms this week as governments worldwide respond to Grok's image generation controversy. Anthropic rockets to a $350 billion valuation with a massive $10 billion funding round, nearly doubling in just four months. Meanwhile, Elon Musk's lawsuit against OpenAI heads to trial in March over allegations the company abandoned its nonprofit mission. OpenAI counters with ChatGPT Health, targeting 230 million weekly users asking health questions. Plus, CES reveals AI's invasion of physical products, Microsoft embeds shopping directly into Copilot, and Stanford unveils an AI that predicts disease risk from a single night's sleep data. From regulatory crackdowns to healthcare breakthroughs, today's episode covers the urgent developments reshaping AI's role in society.

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