One of five artificial intelligence companies sued for allegedly enabling internet users to “nudify” images of anyone without their consent has agreed to a settlement, but at least one website operator also named in the complaint is digging in for a fight over innovation and creative freedom.

The San Francisco City Attorney’s Office, acting on behalf of the State of California under state law, which deputizes city attorneys in certain types of cases, sued five companies and one website owner in August. In March, it dropped one company but added another, along with four other website owners.

The lawsuit accuses the companies and their owners of taking advantage of open-source AI software that allows users to modify real pictures of women and girls to show them naked, including their “in

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