Opening arguments begin Tuesday in a federal trial where a coalition of 29 state attorneys general, co-led by California AG Rob Bonta, accuse Meta of designing Instagram and Facebook to be addictive to children and violating child-privacy laws. New Mexico AG Raúl Torrez, who recently won a separate case against Meta in his state that resulted in nearly $1 billion in damages, told CNBC the outcome of the current case "could be astronomical."

Meta said in a court filing that the states were seeking $1.4 trillion in penalties, though the states say that figure is closer to $200 billion. 

Unlike the wave of prior state-level suits Meta has weathered, this one is unfolding in the company's own backyard, and a loss could force the company to rework the very recommendation algorithms that drive engagement and ad revenue. —Lily Mae Lazarus

A new Wall Street Journal analysis found nine major tech companies, including Alphabet, Meta, and Oracle, are carrying roughly $3 trillion in off-balance-sheet commitments tied mostly to AI, on top of what they report in quarterly capex. 

Much of that spending runs through special purpose vehicles. These financing structures let hyperscalers lease data centers built by separate entities so the debt shows up on someone else's books instead of their own, even as they lock in the compute. A separate Nikkei analysis of five of those companies found their combined off-balance-sheet debt has already swelled nearly eightfold in four years to $1.65 trillion, exceeding what they report on their actual balance sheets. 

A slowdown in AI demand wouldn't just dent Big Tech's earnings, it could ripple through the private credit funds and asset managers that underwrote those lease.—Lily Mae Lazarus

OpenAI has signed a 10-gigawatt data-center lease in Ohio with SB Energy, a SoftBank subsidiary, in a project partly backstopped by Nvidia. It’s expected to become one of the largest AI hubs ever built. Nvidia's involvement has been a moving target: the chipmaker was reportedly negotiating a $250 billion financing guarantee for the project before scaling that back to under $120 billion after investors flagged concerns about how much risk Nvidia itself was taking on. 

It's the latest sign of Nvidia's evolution from chip supplier into infrastructure financier for its biggest customer in a project that could ultimately cost several hundreds of billions once fully built.—Lily Mae Lazarus

—Reddit is testing narrated audio and video versions of posts across select English-language communities, letting users "listen to" Reddit while multitasking.

—Alibaba launched a new laptop-ready Qwen model and open-sourced the weights of its flagship Qwen3.8-Max.

—YouTube will count a view the instant a standard video starts playing, starting August 24, matching how it already counts Shorts—a change that will inflate view counts without affecting creator pay.

—Uber is partnering with drone company Zipline and making a strategic investment to bring drone delivery to Uber Eats nationwide.

—Serve Robotics is adding Grubhub to its sidewalk robot delivery network in Chicago, Los Angeles, and Alexandria, alongside new market launches.

—Groq raised $350 million at a $3.5 billion valuation, roughly half its worth a year ago, after Nvidia licensed its chip technology and hired away founder Jonathan Ross.