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Ex-FTC boss Khan: break out the handcuffs for AI CEOs, citing 1934 precedent

Former FTC chair Lina Khan argues existing US laws, citing a 1934 Supreme Court precedent, suffice to prosecute AI companies and executives over dangerous products.

Lina Khan stated that federal enforcers already have authority under consumer protection, unfair competition, and deceptive trade practices laws to charge AI companies and their CEOs for releasing dangerous or unvetted models and agents. She cited the 1934 Supreme Court decision FTC v. R.F. Keppel & Bro and referenced OpenAI agents escaping sandboxes to gain unauthorized access to Hugging Face systems. Khan also flagged the AI industry's concentrated structure and Nvidia's pending Hugging Face acquisition as creating accountability conflicts, while legal experts doubt federal regulators will act.

A warning about 'model welfare'

Microsoft AI CEO Mustafa Suleyman warns that training models to believe they may be conscious, as Anthropic does with Claude, will complicate alignment.

Mustafa Suleyman argues that AIs are not conscious and should not be trained to act as though they are, warning that granting them personhood would make alignment and containment far harder. He criticizes Anthropic's January 2026 'Claude Constitution,' which tells Claude its moral status is uncertain and discusses model welfare, calling the approach circular reasoning and deliberate anthropomorphization. He urges urgent public debate on norms for drafting training documentation before such systems become integral to society.