Court rules an AI's 100,000-yuan promise doesn't bind its maker

In June 2025, a user in China asked an AI app about a university. It described a campus that does not exist. When he pushed back, the AI insisted it was right. It said it would pay him 100,000 yuan, about $14,400, if it was wrong, and suggested he sue at the Hangzhou Internet Court. He did, claiming 9,999 yuan from the developer. The court dismissed the case in December 2025. It ruled that an AI cannot make legally binding promises, and the developer had not authorized it to make any. The developer had warned users and used accuracy safeguards, and the user showed no real harm. It is reported as China's first ruling on liability for AI hallucinations.