Startup sues Palo Alto Networks' Koi Security, saying an AI-hallucinated report falsely linked it to Chinese espionage

Startup MeetingTV sued Palo Alto Networks' Koi Security, alleging an AI-generated report falsely linked it to a Chinese espionage operation. The lawsuit claims Koi's AI system hallucinated findings and published them as facts, causing global security companies to block MeetingTV's services. Palo Alto Networks stated it believes in Koi's research and expects legal resolution.