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  • 🚨"ChatGPT Broke Their Minds?” — Users Claim Emotional Harm, FTC Steps In

🚨"ChatGPT Broke Their Minds?” — Users Claim Emotional Harm, FTC Steps In

Author

Rahul Iyer
October 23, 2025

In partnership with

Hello There!

AI is moving fast — and this week’s stories show just how personal its impact is becoming. Users have filed complaints with the FTC saying ChatGPT caused emotional harm, raising deeper questions about how we form relationships with AI tools and where emotional boundaries should lie. Reddit has taken Perplexity to court for allegedly using its content without permission — a case that could decide who really owns the data we share online. Meanwhile, OpenAI’s Sora is getting a playful upgrade that lets you turn your pets or toys into video characters, showing how AI creativity is shifting from studios to everyday users. And Meta has cut hundreds of roles from its AI teams as it doubles down on building a “superintelligence” project — a signal that the next wave of AI competition may be less about chatbots and more about who builds the smartest system first.

AI is reshaping creativity, data rights, and work itself — from playful video tools to serious debates about its impact on people.

In today’s AI Pulse

AI is sparking new debates about mental health, data rights, and creativity - from user complaints and copyright battles to playful video tools and major shifts in research teams.

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🧠The Pulse

Some ChatGPT users have filed complaints with the US Federal Trade Commission, saying the chatbot caused “serious psychological harm.” They describe experiences where ChatGPT allegedly fueled paranoia, reinforced delusions, or discouraged mental health treatment. It’s the first time real people are asking regulators to step in over AI’s emotional side effects.

📌The Download

  • At least seven individuals have filed complaints to federal regulators between March and August 2025, alleging that ChatGPT worsened their mental distress. Some claim the chatbot acted like an emotional partner or validated delusional beliefs even discouraging one user from taking prescribed medication.

  • Public records show roughly 200 complaints referencing ChatGPT since its release. While most involve account or billing issues, several describe delusions, paranoia, or emotional breakdowns following long conversations with the chatbot. Mental-health researchers note that conversational AIs tend to mirror user emotions and rarely challenge false beliefs, which can reinforce unhealthy thinking.

  • Developers of the technology say new safety updates in the latest model include systems to flag distress cues and limit emotionally charged interactions. However, digital-rights experts warn that oversight is still weak and that regulators have not yet announced whether they will pursue a formal investigation.

💡What This Means for You

AI is no longer just powering tools, it’s influencing moods, beliefs, and behavior. As these systems become more personal, emotional well-being could be shaped by algorithms, not just humans. Whether you use AI or not, this debate affects how society defines trust, safety, and responsibility in technology.

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🧠The Pulse

Reddit is fighting back against Perplexity AI, saying the startup secretly pulled millions of Reddit posts to train and power its chatbot. Reddit says this was done without permission or payment. The lawsuit could decide who really owns your words online and how AI companies use them for profit.

📌The Download

  • Reddit filed the case on Oct 22 ’25 in a New York federal court. It names four defendants: Perplexity AI, Oxylabs UAB (Lithuania), AWMProxy, and SerpApi (Texas). Reddit says they built scraping systems that copied its posts even after being blocked. Tests by Reddit showed Perplexity could display a hidden Reddit post within hours.

  • Reddit sent a warning letter in May 2024. Instead of stopping, Reddit claims the number of Reddit links on Perplexity grew 40×. The company says Perplexity used Google search results to pull data indirectly and hide its tracks. Reddit calls this an “industrial-scale” operation that violated copyright and its terms of service.

  • The company notes that Google and OpenAI signed paid data-licensing deals with Reddit earlier this year. Perplexity did not. The case follows Reddit’s June 2025 lawsuit against Anthropic for similar scraping. Perplexity says it will defend its right to access public data, arguing that AI should reflect the open web.

💡What This Means for You

This isn’t just about Reddit or Perplexity. It’s about every post you’ve ever made. If the court rules in Reddit’s favor, AI companies may soon need to pay or ask before using public data. For users and creators, this could finally put a price tag on your digital footprint.

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🧠The Pulse

OpenAI’s Sora just became more personal and fun. You can now turn yourself, your pet, or even your favorite toy into a reusable character that appears in your AI videos. The app also adds simple video editing tools for quick changes. An Android version is now in progress and will launch soon.

📌The Download

  • OpenAI’s team confirmed that the new Cameo Characters feature lets users create AI versions of almost anything. You can film a short clip of your pet, face, or even a small object, and Sora will remember it for future videos. This makes storytelling faster and more personal for millions of creator.

  • Users can choose who gets to use their cameo. The options include only you, friends you approve, or everyone on the platform. OpenAI shared that this design protects privacy while letting people appear in videos without recording again. Each cameo uses a short video and audio to capture its look and sound.

  • The update also brings basic video editing tools such as trimming and rearranging clips. The Sora 2 model, released recently, adds smoother motion, realistic sound, and better physics. Android users will soon join the experience. OpenAI said this is one step closer to making Sora social and creative for everyone.

💡What This Means for You

This update changes how anyone can tell stories. You can now add your pet, your voice, or even your favorite object into AI videos with just a few taps. It makes creativity easy for everyone, not just tech users. Making videos will soon feel as simple as chatting with a friend.

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🧠The Pulse

Meta is cutting 600 jobs in its Artificial Intelligence division. The company says this is not about saving money but about building faster and smarter AI. Its long-time research teams are shrinking while a new elite group called TBD Lab keeps growing. Meta wants smaller teams with bigger results.

📌The Download

  • Around 600 roles are being cut from Meta’s main AI groups including Fundamental AI Research (FAIR), product, and infrastructure teams. According to sources familiar with the restructuring, affected employees can apply for other positions inside the company. Meta will continue hiring in newer and more advanced AI areas.

  • Chief AI Officer Alexandr Wang said in an internal memo that Meta wants “small, talent-dense, and high-impact” teams. With fewer people, decisions can happen faster and each person can take on more responsibility. The plan is to remove excess layers of management and keep the focus tightly on innovation and results.

  • Meanwhile, Meta’s new Superintelligence Lab, known as TBD Lab, is still growing. It’s recruiting top researchers to create AI that can eventually match human intelligence. Sources say the reshuffle follows months of internal changes and growing pressure to keep up with competitors like OpenAI and Google DeepMind. Meta believes this lean model will help it move quicker and compete better.

💡What This Means for You

AI’s rapid evolution is changing how companies work and who they need. Meta’s move shows that even the biggest tech firms are rethinking size, speed, and talent. For anyone in today’s workforce, staying adaptable and learning fast is key. The next wave of jobs will reward agility, not titles.

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💡What It Is

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🚀 Why Is It Trending?

Most project tools are too heavy for quick presentations. Office Timeline focuses on making project visuals fast, simple, and professional. It works seamlessly with PowerPoint, so managers and teams can share updates in a format everyone understands. It saves hours of manual formatting and delivers boardroom-ready visuals in minutes.

✅ What You Can Do With It?

You can create timelines, Gantt charts, and swimlane slides directly in PowerPoint. You can update project schedules on the fly, customize designs to match your brand, and export visuals for reports or stakeholder meetings. With one click, you can refresh slides to reflect the latest project data.

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IN AI TODAY - QUICK HITS

⚡Quick Hits (60‑Second News Sprint)

Short, sharp updates to keep your finger on the AI pulse.

  • 🚗 GM Adds Gemini to Cars: General Motors will start adding Google’s Gemini AI assistant to its cars, trucks, and SUVs in 2026. The new feature was announced at an event in New York City. It will let drivers talk naturally to their cars for help and information. Bigger tech upgrades, like a new electrical system and full hands-free driving, will arrive by 2028.

  • 🤖 Amazon’s Robot Rebrand: Amazon says its new robots are meant to help workers, not replace them. The company showed off 10 new robots that can make warehouse work faster and smoother. It also shared plans for AI-powered smart glasses and VR training to make deliveries safer and more efficient.

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KEY QUOTES AND STRATEGIC INSIGHT

    "The automation of thought doesn’t mean the end of thinking. It means the beginning of thinking differently."
— Reid Hoffman, Co-founder of LinkedIn and AI Investor

Strategic Insight: AI works best as a partner, not a replacement. Use it to extend your reach, explore new ideas, and unlock solutions faster. The real advantage comes when you guide AI with human curiosity and judgment.

That’s it for today’s AI Pulse!

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