Shift in pecking order illustrates that investors are reassessing outlook for artificial intelligence

Apple overtook Nvidia on Friday to become the world’s most valuable company, reshuffling the top ranks of tech heavyweights as investors reassess the outlook for artificial intelligence.

Apple was last valued at $4.88tn as ⁠its shares held steady, while Nvidia ⁠was roughly at $4.86tn, ​after a 3.5% decline.

Case is one of first brought by an AI company against a user ⁠for allegedly using a tool to generate child abuse material

Elon Musk’s artificial-intelligence startup xAI has sued a South Carolina man arrested ⁠earlier this year on charges of sexually exploiting minors, alleging he misused the company’s AI system Grok to ⁠create child sexual abuse ⁠material.

xAI ​alleged in the lawsuit, filed in federal court in Texas on Tuesday, that Terry Harwood violated the company’s ⁠terms of service. The case is one of the first brought by an AI company against one of its users ⁠for allegedly using an AI system to generate child sexual abuse material.