An expert witness in a case brought by New Mexico Attorney General Raúl Torrez against Meta, the parent company of Facebook and Instagram, testified that the design features of its social media apps are addictive, likening them to a “drug,” especially when affecting youth.

The landmark case, in which Torrez accuses Meta of exposing children to “sexual exploitation and mental health harm” through interactions on the platform, continued in a New Mexico courtroom Tuesday with witness testimony.

Dr. Anna Lembke, psychiatrist and Stanford professor, told the court after reviewing thousands of pages of internal documents and reviewing social media companies’ own research, she determined the design features of social media are addictive.

The mother of four, who is the highest ranking person overseeing addiction initiatives at the university, defined addiction as “the continued, compulsive use of a substance or a behavior despite harm to self or others.”

Lembke argued that Meta deploys “potent” features, such as Instagram’s “infinite scroll” and tailored-for-you algorithms, to stimulate dopamine release that “drugifies human connection.”

FACEBOOK AND INSTAGRAM ALLOW PREDATORS TO ‘TRADE CHILD PORNOGRAPHY,’ ACCORDING TO LAWSUIT FILED BY NEW MEXICO

An expert witness testified Tuesday that social media apps such as Instagram are addictive, likening them to a “drug,” especially when affecting youth. (Getty Images / Getty Images)

With social media addiction, Lembke said downstream harms include depression, anxiety, eating disorders, self-harm, loneliness, suicidal ideation, cyberbullying and sexual exploitation. Children, she added, are especially prone to rage attacks, screaming, threats of self-harm and insomnia.

After reviewing Meta documents, Lembke argued that the tech giant is aware of social media addiction and has used the term “Problematic Internet Use” internally as a synonym, indicating that the company is “working hard not to call it addiction” or acknowledge the gravity of the issue.  

Lembke testified that individuals would rarely be able to self-identify a social media addiction and would require a skilled therapist to diagnose it. 

She explained that a therapist who is not educated in the field of addiction may spend a lot of time talking about other things, or looking for underlying reasons, rather than targeting the addictive behavior. 

META RESEARCHER WARNED OF 500K CHILD EXPLOITATION CASES DAILY ON FACEBOOK AND INSTAGRAM PLATFORMS

New Mexico Attorney General Raúl Torrez accuses Meta of exposing children to “sexual exploitation and mental health harm” through interactions on the platform. (Jemal Countess/Getty Images for Accountable Tech / Getty Images)

Having diagnosed people with social media addiction, Lembke said identifiers are typically frequency of use, loss of control, cravings and withdrawal, consequences and risk factors.

While adolescents are particularly vulnerable due to brain development, Lembke said anyone can develop an addiction with enough exposure.

She added social media can function neurologically like other addictive substances, especially in youth.

“A child growing up in a family not feeling supported or verbally abused, it would be natural to turn to a self-soothing mechanism,” Lembke said.

On Monday, a safety researcher for Meta also warned executives that there may be upward of half a million cases of sexual exploitation of minors every day on social media platforms. 

META SUED AFTER TEEN BOYS’ SUICIDES, FAMILIES CLAIM TECH GIANT IGNORED ‘SEXTORTION’ SCHEMES

It’s unclear whether Meta CEO Mark Zuckerberg will testify at trial.  (David Paul Morris/Bloomberg via Getty Images / Getty Images)

Citing Meta’s internal documents, Lembke said the company acknowledged that females are more likely to be vulnerable to social media.

She added that through her own clinical work, boys are more prone to gaming, while girls experience “negative social comparisons,” body dysmorphia driven by filters, and a heightened need for validation and approval after viewing idealized bodies and faces girls feel unable to measure up to.

She further criticized Instagram for providing ‘frictionless access,’ noting that children often lie about their age during the platform’s ‘ineffective age verification’ process, and that its parental controls are too complex for even well-educated parents to navigate.

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Among other addictive qualities of Instagram’s app, Lembke described the notification tool as a potent feature that ‘triggers’ or induces cravings to return to the platform. She added that the 24-hour time limit on stories creates a “fear of missing out,” or “FOMO,” which compels users to check the platform more frequently.

Adam Mosseri, head of Instagram, is expected to be questioned in court Wednesday.

Fox News’ Eric Revell contributed to this report. 

London-based Mozart AI has raised $6 million in an oversubscribed seed funding round led by Balderton Capital, as the startup looks to reshape how music is created in the age of artificial intelligence.

The fundraise follows a $1.1 million pre-seed round completed last summer, taking Mozart AI’s total funding to more than $7 million. The latest investment coincides with the launch of the company’s long-awaited mobile app and comes amid rapid early traction for its AI-powered “Generative Audio Workstation”.

Mozart AI is positioning itself as a creator-first alternative to legacy digital audio workstations, many of which have dominated music production since the 1990s. Its platform is designed to support everyone from professional producers refining chart-ready releases to bedroom musicians creating and sharing their first tracks online.

The company says more than 100,000 users signed up within two months of its beta launch in September, with over one million songs already created. Artists using the platform include producers and collaborators linked to A$AP Rocky, Avicii and Kodak Black, while some tracks created using the software have already surpassed 10 million streams on Spotify.

Alongside Balderton, the seed round attracted participation from Mercuri, EWOR and a group of high-profile angel investors including Eventbrite co-founder Kevin Hartz, Oscar-winning director Charles Ferguson and Frame.io founder Emery Wells.

The funding will be used to expand Mozart AI’s team, further develop its core technology and build on the viral momentum generated by its beta launch, ahead of a full public release.

Built by musicians, the platform combines traditional digital audio workstation functionality with AI-driven tools that assist rather than replace the creative process. Users can create music from scratch with AI support or generate tracks using prompt-driven “agentic” workflows.

Features include context-aware stem generation, real-time suggestions for MIDI progressions and drums, synth and effects creation, and the ability to remix sounds into new styles. Time-consuming production tasks such as quantisation and time stretching are handled automatically, while built-in video tools allow users to create and share music videos directly to social platforms.

Crucially, Mozart AI says artists retain full copyright over their work. The platform is built on commercially cleared third-party generative models, including those from ElevenLabs, which are trained exclusively on licensed material, enabling users to release and monetise their music without legal uncertainty.

Sundar Arvind, chief executive and co-founder of Mozart AI, said the company’s aim was to remove technical barriers without diluting artistic control. “Far from replacing creativity, AI is levelling up the adrenaline-filled process through which musicians compose and discover the right sounds,” he said. “We’re building toward a world where a spark of creativity can be turned into a release-ready, monetisable song in minutes.”

Industry figures echoed that sentiment. Ash Pournori, songwriter and former manager of Avicii, said the most successful AI music platforms would be those that empower rather than threaten artists. Meanwhile Umair Ali, producer for Kodak Black and Lil Baby, described Mozart AI as “an always-on sketchpad” that accelerates ideation without flattening the creative process.

Daniel Waterhouse, general partner at Balderton Capital, said the investment reflected a belief that AI tools must work with musicians, not against them. “Mozart AI enables artists to spend more time experimenting and iterating on ideas, rather than wrestling with clunky legacy software,” he said.

Founded by a team that blends musical and technical expertise, Mozart AI has moved from concept to premium product in less than a year. With fresh funding secured and a growing user base, the company is now betting that its artist-led vision can help define the next generation of music technology.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Amazon may be preparing a significant shift in how AI companies access training data, as mounting copyright lawsuits continue to reshape the industry.

According to recent reports, the tech giant is exploring a new content marketplace that would enable publishers to directly license their material to AI developers, potentially offering a cleaner and legally safer alternative to scraped data.

Amazon’s AI Content Marketplace Explained

The Information first reported that sources familiar with the discussions say Amazon has been meeting privately with publishing executives to outline a centralized marketplace for licensable content.

Ahead of a recent AWS conference aimed at publishers, Amazon reportedly circulated internal materials referencing a potential “content marketplace,” signaling that the idea has moved beyond early speculation.

While Amazon has not officially announced the project, the company confirmed it is actively collaborating with publishers across AWS, advertising, and AI-related initiatives. If launched, the marketplace would position Amazon as a key intermediary between content owners and AI companies seeking high-quality training data.

Why Licensed AI Training Data Is Now Critical

The push for licensed datasets comes as AI firms face increasing legal and regulatory pressure. Lawsuits from authors, publishers, and media organizations have challenged the widespread use of scraped copyrighted content in AI training. These disputes have exposed financial and reputational risks for companies relying on unlicensed material.

To mitigate that risk, tech giants are pivoting toward direct licensing agreements that provide a clearer legal footing while ensuring access to reliable, premium data. A marketplace model could scale this process dramatically.

Microsoft Has Already Set the Blueprint

According to TechCrunch, Amazon would be following a path already established by Microsoft, which recently launched its Publisher Content Marketplace. Microsoft’s platform provides publishers with a transparent way to license content, while offering AI developers consistent and scalable access to approved material.

Why Publishers Are Paying Attention

For publishers, an Amazon-backed marketplace could unlock a new, recurring revenue stream at a time when traditional traffic models are under pressure.

Many media companies have raised concerns that AI-generated summaries in search engines and assistants reduce click-throughs and ad revenue.

Licensing content directly to AI systems could help offset those losses, turning AI adoption from a threat into a monetization opportunity.

Speaking of AI, some Amazon employees criticized CEO Andy Jassy for saying that AI will take their jobs. Back in July, they feared that more layoffs were expected to come in 2026.

Fast forwardto 2026, the Seattle giant announced its plans to lay off thousands of corporate employees last month.

Originally published on Tech Times

Apple appears prepared to maintain pricing for its next-generation iPhone 18 Pro and iPhone 18 Pro Max, offering flagship performance without a cost increase despite rising component expenses.

According to GF Securities analyst Jeff Pu, Apple’s strategic supplier negotiations and internal cost optimizations are key to avoiding price hikes in 2026.

iPhone 18 Pro Pricing Likely to Remain Stable

Based on MacRumors’ report, Pu’s research note highlights Apple’s aggressive approach to managing costs. Even as memory prices surge due to AI data center demand, the tech giant’s enormous purchasing power reportedly allows it to secure favorable RAM deals from suppliers like Samsung and SK Hynix.

Combined with targeted savings in displays, camera modules, and other components, the company is positioning itself to launch the 18 Pro series at the same price as last year’s models.

Pu is also the same source who said that Intel will make chips using the 14A process. This will be a big move for the iPhone maker who is looking to diversify chip suppliers outside the normal TSMC negotiation.

Strategic Supply Chain Moves

Apple’s careful supply chain management reflects a broader strategy to protect consumers from inflation-driven smartphone price spikes. The company aims to deliver next-gen performance while maintaining premium value through leveraging supplier negotiations and optimizing manufacturing efficiencies.

Stable Prices Matter

Maintaining steady pricing is especially important in 2026, as buyers face more competition from high-end Android devices offering comparable features at lower costs.

A price hold could encourage upgrades among existing users and sustain Apple’s market share in the premium segment.

What Buyers Can Expect

While official confirmation awaits Apple’s launch event, analysts suggest the iPhone 18 Pro and Pro Max will deliver upgraded hardware, enhanced performance, and new features without a higher price tag.

For consumers, this could be a rare opportunity to access cutting-edge technology at familiar costs, according to GSM Arena. This is an attractive proposition in an otherwise inflationary tech market.

Originally published on Tech Times

“Now, we have been saying in our previous discussion, in our previous interaction that we have been very positive on the earnings outlook and that is what has happened, in last two quarters sequentially earnings have been better. So, by and large earnings have been in line with the expectations and even especially in the mid and smallcap space earnings have been very good and nothing changes from our perspective. We think this momentum will continue,” Khemani said.

He added that recent resolutions in the US trade deal and tariff uncertainties have further bolstered corporate confidence, especially among exporters in the mid and smallcap space.

Reflecting on the broader market outlook for 2026, Khemani expressed optimism. “I have said in our previous discussion that 2026 would be a better year than 2025 for the simple reason. If you see, we started 2025 with a lot of negativity or noise or negative news… When all these things were happening, India was going through a significant monetary stimulus as well as the fiscal stimulus and that was obviously working very well at the economic level. There was uncertainty around a little bit of on the export due to tariffs which also has got lifted. Also, in this crisis what India has been able to do is FTAs, long pending FTAs with the other countries, likes of EU and the New Zealand and other parts of the world. So today, we are sitting on a situation where you have good monetary and economic stimulus and all the broader uncertainties are behind. There will always be uncertainty in the market something or other, there is no doubt on that, but broadly there is not much uncertainty on the growth and as more and more people get comfortable around this environment and meanwhile in this period the valuations have come down, a lot of froth which has got kind of cleared, so you will see markets doing well. Now, how much it does well it all depends a lot more on the liquidity which I think should get better this year especially from the foreign investor perspective. So, I am quite optimistic about the market in 2026.”

When asked about the lagging mid and smallcap sectors, Khemani explained that recovery typically starts with largecaps before extending to smaller companies. “It always happens that once the recovery happens it always led by the largecaps and the mid and smallcap follows through… A) they tend to accelerate. I mean, the volatility in the earning with the change in the macro environment generally tends to be far more pronounced than in any largecap or large company and that happens in the share prices as well. So, I am quite optimistic that this environment is going to be good for mid and smallcap. Now whether it really meaningfully picks up in two months, three months, six months, I do not know but directionally we are finding interesting ideas, risk-reward looks very good.”

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On investment strategy, Khemani emphasized stock-specific valuations rather than broad index levels. “See, looking at the broad indices cannot be the right answer, you have to look at individual stock specific and you have to see in the context of the potential growth… So, always you have to see valuation in the context of the growth and the ROEs business model company generates and that is how we always evaluate, we do not get carried away by the broader noise and you have seen over the years how our stock picks have been… we have never believed only in the consensus calls, we have taken contra… I mean against the consensus calls but once we are convinced about the potential growth and the risk-reward of the story, then we do take the sizable bets.”
Khemani also discussed the consumption sector, highlighting selective exposure in consumer discretionary stocks, automobiles, and auto ancillaries. “Like I said that it is linked to the macro environment which we saw last 12 to 18 months and with that lag it happened… in last six-eight months we have meaningfully kind of played that out especially in a consumer discretionary space, even automobiles we take as part of the consumption and that we have fairly large exposure… you look at companies, what are the growth drivers, you do not necessarily play only the first order impact, you can play also second order impact where you understand the risk-reward given the valuations.”Looking ahead, Khemani confirmed a focus on mid and smallcaps within his portfolio. “We have product which is more mid and smallcap focused, we have flexicap product where we are definitely right now almost 60% mid and smallcap… Some of the spaces which could stand out in this year would be chemicals… Auto, auto components look pretty decent. The building materials product looks very decent. So, consumer discretionary space you can find lots of ideas. Within banking and financial services you are finding… we think that is more likely to play out. So again, you look at different-different segments… line towards AI related enabled companies, there we are kind of playing out more.”

With optimism around earnings, macro stability, and selective sector plays, experts like Khemani suggest that 2026 could offer better opportunities for investors, particularly in mid and smallcap spaces, while staying alert to market volatility.

Growing numbers of Scottish spirits producers are showing signs of financial strain as weakening export demand, rising costs and trade barriers squeeze margins across the sector.

Research by restructuring specialist BTG Begbies Traynor found that 69 Scottish distillers were facing “significant” or “critical” financial distress at the end of the year, up from 49 in the previous quarter.

According to the Scotch Whisky Association, Scotland is home to more than 150 whisky distilleries, alongside more than 90 producing gin and a smaller number making vodka, rum and liqueurs.

Thomas McKay, managing partner of BTG in Scotland, said producers were facing a “perfect storm of lowering demand, rising production costs and increased tariffs in key markets”.

Exports to the United States and China, two of Scotch whisky’s most important markets, have been dented by tariffs and duties, while domestic trends have also shifted.

Several UK pub groups have reported that customers are increasingly trading down from spirits to cheaper alternatives such as beer or soft drinks. At the same time, broader societal changes, including declining alcohol consumption among younger consumers, have weighed on volumes.

McKay noted that demand for Scotch whisky and gin peaked during the pandemic in 2020, when lockdown consumption surged both in the UK and internationally.

“When that demand fell away, the resulting oversupply pushed prices down, just as additional export costs to the US began to rise sharply,” he said.

Distillers have also been hit by steep increases in energy and labour costs over the past two years, further eroding profitability.

The challenges have already prompted retrenchment. Last month, craft brewer BrewDog announced plans to close its distillery and spirits arm, underscoring the pressure across the wider drinks sector.

The strain is not confined to Scotland. Export volumes of French wine and spirits fell last year to their lowest level in 25 years.

Industry body FEVS said shipments dropped 3 per cent year-on-year to 168 million cases, the weakest performance since the turn of the century. The value of sales declined 8 per cent to €14.3 billion, the poorest showing on that measure for five years.

Tariffs imposed by the United States under President Trump, as well as duties in China, were cited as key headwinds.

Gabriel Picard, chairman of FEVS, said that new trade agreements between the European Union and India, as well as Mercosur countries in South America, could help support exports in the year ahead. However, he warned that sales of cognac and wine to the US and China could deteriorate further.

For Scotland’s distillers, the coming year is likely to test resilience. With costs elevated, export markets volatile and domestic consumers tightening belts, the industry that has long been one of Britain’s flagship exporters is confronting one of its most challenging trading environments in decades.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.