AI Infrastructure

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As we have noted on this site, the increasing number of AI-related corporate and securities lawsuit filings is one of the most important recent developments in the world of D&O liability and insurance. Among the AI lawsuits is a particular category of claims involving allegations against AI infrastructure companies. By way of example, last week, two AI infrastructure companies were hit with securities suits alleging that the companies overstated their business opportunities  arising from providing infrastructure to support the burgeoning AI  build-out. As discussed further below, these AI infrastructure lawsuits represent their own category of AI-related suit filings.

Continue Reading AI Infrastructure Companies Hit with Securities Suits     

The emergence of artificial intelligence (AI) technology presents an enormous opportunity for many companies and indeed for commerce generally. It also presents an enormous challenge for companies trying to establish themselves as one of the winners in the AI scramble. Among the prominent companies involved in this scramble are several of the technology giants, including, for example, Microsoft, a company that, at least according to press reports, recently has faced some challenges with its AI product, Copilot.

Now, the company has been hit with a securities suit alleging the company overstated its AI prospects and success, while downplaying the difficulties it was facing. The complaint illustrates many of the important features of the  still-emerging AI-related litigation. A copy of the June 12, 2026, complaint against Microsoft can be found here.

Continue Reading Microsoft Hit with AI-Related Securities Suit

The rise of Artificial Intelligence (AI)-based tools and applications has also meant the rise in AI-related infrastructure, such as data centers and power generation support. And just as we have seen the rise of securities litigation relating to companies’ adoption of AI tools and processes, we have also seen securities suits relating to AI infrastructure development.

In the latest example of this kind of AI infrastructure-related litigation, on March 20, 2026, a plaintiff shareholder filed a securities class action lawsuit against the engine and power systems company Power Solutions International, alleging that the company’s new strategy of providing power generation solutions for AI data centers had fallen short of the company’s representations. A copy of the new complaint against Power Solutions can be found here.

Continue Reading Power Supply Company Hit with AI-Related Securities Suit

There’s lots to worry about as we enter the New Year, not least a newly emboldened and militarily active U.S. There are also things to worry about in the financial markets, even as the various indices trade at or near record levels. Much of the recent run-up in market valuations is due to investor enthusiasm for artificial intelligence (AI). Some commentators worry that the current investor AI enthusiasm may prove to be a bubble – that is, that valuations have gotten out of whack and that infrastructure investment have run far ahead of any possible (or profitable) need. Some (including me) are concerned that things could get messy if investors sour on AI or lose confidence or patience.

One of the possible consequences from an AI bubble burst could be a wave of corporate and securities litigation. A lawsuit filed earlier this week against the start-up AI energy support company Fermi, which just completed an IPO in October, may suggest what post AI-bubble litigation might look like. A copy of the complaint can be found here.

Continue Reading Worried About a Possible AI Bubble Burst?