xAI Co-Founder Igor Babuschkin Leaves to Launch AI Safety Investment Firm

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Igor Babuschkin, co-founder of Elon Musk’s AI startup xAI, announced his departure on Wednesday to launch Babuschkin Ventures, an investment firm focused on AI safety research. Babuschkin, who previously worked at Google’s DeepMind and OpenAI, played a key role at xAI in developing foundational tools for model training and overseeing engineering across infrastructure, product, and applied AI projects.

xAI, launched by Musk in 2023 to challenge Big Tech’s AI efforts, has faced recent executive departures, including legal head Robert Keele and X CEO Linda Yaccarino. Babuschkin’s exit comes amid intense competition in the AI sector, with companies like OpenAI, Google, and Anthropic heavily investing in advanced system development.

Russia Restricts Telegram and WhatsApp Calls Over Alleged Law Breaches

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Russia has begun restricting some voice calls on Telegram and WhatsApp, citing the platforms’ failure to share information with law enforcement in fraud and terrorism cases, the digital development ministry said. The partial blocking affects calls only, with other functions remaining operational. Authorities stated the restrictions would be lifted if the platforms comply with Russian law, including opening local legal entities and cooperating with regulators.

The move reflects Moscow’s push for “digital sovereignty,” including the development of a state-backed messaging app integrated with government services. Telegram said it actively monitors public channels with AI tools to remove malicious content, while Meta and Telegram did not immediately comment. Reporters verified that Telegram calls have been largely non-functional since August 11, and WhatsApp calls experience severe disruptions.

Critics warn that Russia’s new messaging app may track users and encourage migration from foreign platforms, while human rights groups highlight growing censorship and internet control in the country.

New York Sues Zelle Over $1 Billion in Consumer Fraud Losses

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New York Attorney General Letitia James filed a lawsuit against Zelle, claiming the electronic payment platform’s failure to adopt key security measures allowed fraudsters to steal more than $1 billion from consumers. The case was filed in Manhattan state court following the U.S. Consumer Financial Protection Bureau’s decision in March to drop a similar case.

James alleged that Zelle’s parent, Early Warning Services, owned by seven major U.S. banks, knew about the platform’s vulnerabilities for years but resisted implementing safeguards. She said fraudsters exploited the platform through scams such as fake utility bills, nonexistent goods, and impersonating banks, leaving victims without support even after money was stolen.

Zelle responded that fraud occurs when users are tricked into sending money and that over 99.95% of transactions are completed without reported fraud. The company called the lawsuit a “political stunt” and warned that holding it liable could raise consumer fees.

The lawsuit seeks stronger anti-fraud protections and restitution for affected New Yorkers. Previous actions by James include suits against Capital One and settlements with MoneyGram over similar consumer protections issues.