The UK government is closing a “loophole” in new online safety legislation that will make AI chatbots subject to its requirement to combat illegal material or face fines or even being blocked.

After the country’s government staunchly criticized Elon Musk’s X over sexually explicit content created by its chatbot Grok, Prime Minister Keir Starmer announced new measures that mean chatbots such as OpenAI’s ChatGPT, Google’s Gemini, and Microsoft Copilot will be included in his government’s Online Safety Act.

The platforms will be expected to comply with “illegal content duties” or “face the consequences of breaking the law,” the announcement said.

This comes after the European Commission investigated Musk’s X in January for spreading sexually explicit images of children and other individuals. Starmer led calls for Musk to put a stop to it.

Earlier, Ofcom, the UK’s media watchdog, began an investigation into X reportedly spreading sexually explicit images of children and other individuals.

“The action we took on Grok sent a clear message that no platform gets a free pass,” Starmer said, announcing the latest measures. “We are closing loopholes that put children at risk, and laying the groundwork for further action.”

Starmer gave a speech on Monday on the new powers, which extend to setting minimum age limits for social media platforms, restricting harmful features such as infinite scrolling, and limiting children’s use of AI chatbots and access to VPNs.

One measure announced would force social media companies to retain data after a child’s death, unless the online activity is clearly unrelated to the death.

“We are acting to protect children’s wellbeing and help parents to navigate the minefield of social media,” Starmer said.

Alex Brown, head of TMT at law firm Simmons & Simmons, said the announcement shows how the government is taking a different approach to regulating rapidly developing technology.

“Historically, our lawmakers have been reluctant to regulate the technology and have rather sought to regulate its use cases and for good reason,” Brown said in a statement to CNBC.

He said that regulations focused on specific technology can age quickly and risk missing aspects of its use. Generative AI is exposing the limits of the Online Safety Act, which focuses on “regulating services rather than technology,” Brown said.

He said Starmer’s latest announcement showed the UK government wanted to address the dangers “that arise from the design and behaviour of technologies themselves, not just from user‑generated content or platform features,” he added.

There’s been heightened scrutiny around children and teenagers’ access to social media in recent months, with lawmakers citing mental health and wellbeing harms. In December, Australia became the first country to implement a law banning teens under 16 from social media.

Australia’s ban forced apps like Alphabet’s YouTube, Meta’s Instagram, and ByteDance’s TikTok to have age-verification methods such as uploading IDs or bank details to prevent under-16s from making accounts.

Spain became the first European country to enforce a ban earlier this month, with France, Greece, Italy, Denmark, and Finland also considering similar proposals.

The UK government launched a consultation in January on banning social media for under-16s.

Additionally, the country’s House of Lords, an unelected upper legislative chamber, voted last month to amend the Children’s Wellbeing and Schools Bill to include a social media ban for under-16s.

The next phase will see the bill reviewed by parliament’s the House of Commons. Both houses have to agree on any changes before they pass into law.

The recent release by the Department of Justice of millions of pages of emails and other documents related to the notorious sex predator Jeffrey Epstein has led to a wave of resignations and other uncomfortable fallout for high-profile people around the world whose dealings with him have been exposed.

Those individuals include the top lawyer at the major investment bank Goldman Sachs, the CEO of Dubai’s largest port, a former president of Harvard University, a former U.S. president and ex-secretary of State, and the chairman of a leading American corporate law firm.

The fallout from the Epstein files and people mentioned in them has even imperiled the government of United Kingdom Prime Minister Keir Starmer, even though the Labour Party leader never knew the convicted sex offender.

Epstein, who cultivated relationships with many rich and powerful men and women, pleaded guilty in 2008 in Florida to state criminal charges related to soliciting prostitution, with one charge related to a girl under the age of 18.

He ended up serving 13 months in prison in that case, but was allowed to go to his office many days for work.

In August 2019, Epstein killed himself in a jail in New York City, weeks after being arrested on federal child sex trafficking charges.

A number of the people who have resigned their jobs in recent weeks had friendly dealings with Epstein after his 2008 conviction, which was widely publicized at the time.

Being mentioned in the Epstein files does not mean that someone was implicated in any of the crimes that he previously pleaded guilty to, or was later charged with. No one on the list of names compiled by CNBC of those affected by their association with Epstein has been charged for such conduct.

Here are some high-profile figures who have been burned by their appearances in the Epstein files:

Sultan Ahmed bin Sulayem: CEO of DP World

Sulayem resigned as CEO of Dubai’s largest port operator on Feb. 13, after leading the company for 10 years. Documents showed Epstein once referring to Sulayem as one of his “most trusted friends.” CNBC has reached out to the government of Dubai Media Office and DP World, seeking comment from Sulayem, who to date has not issued a statement on the situation.

Kathryn Ruemmler: Chief Legal Officer and General Counsel at Goldman Sachs

Ruemmler, a former White House counsel under then-President Barack Obama, announced her resignation from Goldman Sachs on Feb. 12, effective at the end of June. Last week, The Wall Street Journal reported that Ruemmler was one of three people Epstein called when he was arrested in July 2019. She once thanked Epstein after receiving luxury gifts from him, calling him “Uncle Jeffrey.” Ruemmler told the Journal in January: “As I have said, I regret ever knowing him, and I have enormous sympathy for the victims of Epstein’s crimes.” 

Brad Karp: Chairman of Paul Weiss

Karp resigned as chairman of Paul Weiss on Feb. 4, after leading the major corporate law firm since 2008. Files show Karp thanking Epstein for a “once in a lifetime” evening in 2015, and asking if he could help his son land a job on a Woody Allen film in 2016. Days before he resigned, Paul Weiss issued a statement to The New York Times saying, “Mr. Karp attended two group dinners in New York City and had a small number of social interactions by email, all of which he regrets.”

David Gelernter: Yale University computer science professor

Gelernter was barred from teaching classes at Yale on Feb. 11 as the university conducts a review of his relationship with Epstein. Gelernter had extensive email communications with Epstein, which included one 2011 missive in which the professor recommended a Yale student for a project, referring to her as a “small goodlooking blonde.” Gelernter has not responded to CNBC’s requests for comment after Yale took action.

Bill Clinton: Former U.S. president

Clinton flew on Epstein’s private plane multiple times in 2002 and 2003, and was photographed in casual social settings with Epstein and the sex offender’s now-convicted procurer, Ghislaine Maxwell. Clinton initially resisted a subpoena by the House Oversight Committee to testify about Epstein, but agreed to appear after it threatened to hold him in contempt of Congress. Clinton is due to testify on Feb. 27. Clinton’s spokesman in 2019 issued a statement saying, “President Clinton knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some years ago, or those with which he has been recently charged in New York.” Clinton on Feb. 7 retweeted a post on X from his spokesman that said, “What DOJ has released thus far, and the manner in which it has done so, makes one thing clear: someone or something is being protected. We don’t know who, what, or why. We do know this: we need no such protection. It’s why only the Clintons have called for a public hearing.”

Hillary Clinton: Former secretary of State

Hillary Clinton, who is married to the former president, has said she does not recall ever speaking to Epstein. Despite that, the House Oversight Committee subpoenaed her to testify for its inquiry into the predator. Like former President Clinton, the former secretary of State initially refused to appear, but then agreed to testify on Feb. 26 after being threatened with a contempt finding. Speaking at the Munich Security Conference on Feb. 14, Clinton again called for the release of all of the Epstein files, saying, “It is something that needs to be totally transparent,” The Independent reported. “I’ve called for many, many years for everything to be put out there so people can not only see what’s in them but also, if appropriate, hold people accountable. We’ll see what happens,” she said.

Peter Mandelson: UK ambassador to the U.S.

Mandelson was fired by UK Prime Minister Keir Starmer on Sep. 12 and resigned from the Labour Party on Feb. 2 over his ties to Epstein. Mandelson wrote a note in Epstein’s 50th Birthday Book, addressing him as “my best pal,” and has been accused of sending Epstein market-sensitive government information following the 2008 financial crisis. Mandelson, in comments to the Financial Times in February 2025, said, “I regret ever meeting him or being introduced to him by his partner Ghislaine Maxwell.” He also said, “I regret even more the hurt he caused to many young women. I’m not going to go into this. It’s an FT obsession and frankly you can all f— off. OK?”

Morgan McSweeney: Chief of Staff to the U.K. prime minister

McSweeney resigned Feb. 11, taking responsibility for Starmer’s appointment of Mandelson as ambassador. McSweeney told reporters, “The decision to appoint Peter Mandelson was wrong,” adding that the former ambassador “damaged our party, our country and trust in politics itself.”

Larry Summers: OpenAI board member and former Harvard University president

Summers announced in November that he would step back from public commitments, including serving as a board member at the artificial intelligence company OpenAI and teaching classes as a professor at Harvard. The former Treasury secretary was named as a backup executor in a 2014 version of Epstein’s will. Summers, in a statement in November, said, “I am deeply ashamed of my actions and recognize the pain they have caused. I take full responsibility for my misguided decision to continue communicating with Mr. Epstein.”

Andrew Mountbatten-Windsor: Former prince, Duke of York

Andrew Mountbatten-Windsor, formerly known as Prince Andrew, Duke of York, was stripped of his titles and mansion in a statement from Buckingham Palace on Oct. 30. Mountbatten-Windsor settled a lawsuit filed by Epstein victim Virginia Giuffre in 2022 without admitting wrongdoing, and is being investigated by authorities in London for claims that he sent Epstein confidential trade documents. In a 2019 statement, Mountbatten-Windsor said, “I continue to unequivocally regret my ill-judged association with Jeffrey Epstein. His suicide has left many unanswered questions, particularly for his victims, and I deeply sympathise with everyone who has been affected and wants some form of closure. I can only hope that, in time, they will be able to rebuild their lives. Of course, I am willing to help any appropriate law enforcement agency with their investigations, if required.”

Sarah Ferguson: Former Duchess of York

Ferguson’s charity, Sarah’s Trust, which focused on improving the lives of women and children, announced on Feb. 2 that it would be shutting down. The ex-wife of Andrew Mountbatten Windsor described Epstein as “a legend” and “the brother I have always wished for” in emails long after his first conviction in 2008. In a statement to the Guardian last September, a spokesperson for Ferguson said, “The duchess spoke of her regret about her association with Epstein many years ago, and as they have always been, her first thoughts are with his victims.”

Jack Lang: President of the Arab World Institute and former Culture minister of France

Lang, the highest-profile figure in France affected by the files, resigned as president of the Arab World Institute on Feb. 7 after leading the cultural center since 2013. Lang was mentioned more than 600 times in newly released files dating back to 2012 when he was introduced to Epstein by their mutual friend Woody Allen, according to The New York Times. French authorities have said they are investigating reports of financial connections between Lang and Epstein, with the financial prosecutor’s office probing Lang and his daughter, Caroline, on suspicion of “aggravated tax fraud laundering.” Lang has called the allegations against him “baseless,” and said the investigation “will bring much light on to the accusations that are questioning my probity and my honour.” His daughter denies any wrongdoing.

Mona Juul: Norwegian ambassador

Juul resigned on Feb. 8 after Norway’s foreign ministry suspended her earlier in the week. She resigned after reports that her children and husband, Terje Rød-Larsen, were left $10 million in a will written by Epstein two days before his suicide. Juul said in early February that she had contact with Epstein through Rød-Larsen, but also said that she “should have been much more careful.”

Miroslav Lajčák: National security advisor to the prime minister of Slovakia and former president of the UN General Assembly

Lajčák resigned Jan. 31 after serving four Slavic governments. Messages from 2018 show Lajčák discussing women with Epstein, writing, “Why don’t you invite me for these games? I would take the ‘MI’ girl.” Lajčák reportedly told Radio Slovakia, “When I read those messages today, I feel like a fool.” He said in the same interview that he had shown “poor judgment and inappropriate communication … Those messages were nothing more than foolish male egos in action, self-satisfied male banter.” He added, “There were no girls … the fact that someone is communicating with a sexual predator does not make him a sexual predator.”

David Ross: Chair of New York’s School of Visual Arts

Ross, formerly the director of the Whitney Museum, resigned as the chair of the Master of Fine Arts in art practice at SVA on Feb. 3. Ross called Epstein “incredible” after he suggested an exhibit featuring girls and boys aged 14-25 titled “Statutory.” Ross told The New York Times that he regretted being “taken in” by Epstein’s claim that he had been the victim of a political frame-up because of his connection to Bill Clinton. “I continue to be appalled by his crimes and remain deeply concerned for its many victims,” he told the Times.

Joanna Rubinstein: Chair of Sweden for the UN Refugee Agency

Rubinstein announced her resignation on Feb. 2 from the United Nations High Commissioner for Refugees after documents unveiled a 2012 family visit to Epstein’s private island. In an email, Rubinstein thanked Epstein for “an afternoon in paradise” on behalf of her children and herself. “I was aware of the verdict at the time of the visit. What has subsequently emerged about the extent of the abuse is appalling and something I strongly distance myself from,” Rubinstein told the Swedish newspaper Expressen.

Casey Wasserman: Founder, Chairman and CEO of Wasserman talent agency; Chairman of the LA28 Olympic and Paralympic Games

Wasserman, owner of a high-profile talent and marketing agency and the chairman of the 2028 Los Angeles Olympic and Paralympic Games, began the process of selling his company after emails between him and Maxwell from over 20 years ago were made public. Following the revelations, several clients, including Grammy winner Chappell Roan, announced they were leaving the agency. Wasserman said he “never had a personal or business relationship with Jeffrey Epstein” and that he’d “become a distraction” in a memo to his staff, which was reported by The Wall Street Journal. The Journal also reported, citing people familiar with the situation, that the committee organizing the LA Olympic Games had voted unanimously to keep Wasserman as chairman.

Steve Tisch: Chairman and co-owner of the New York Giants

The National Football League announced Feb. 2 that it will look into Tisch, a former film producer who has been the Giants’ executive vice president since 2005. Tisch was named over 400 times in the files, with one document showing that he asked Epstein whether women were “pro or civilian.” In a January statement to ESPN, Tisch said, “We had a brief association where we exchanged emails about adult women, and in addition, we discussed movies, philanthropy, and investments.” Tisch added, “I did not take him up on any of his invitations and never went to his island. As we all know now, he was a terrible person and someone I deeply regret associating with.”

Thorbjørn Jagland: Former prime minister of Norway

Jagland was charged with “aggravated corruption” on Feb. 12 after a police probe into his ties with Epstein. Jagland, who served as Norway’s prime minister from 1996 to 1997, is being investigated to see whether “gifts, travel and loans were received in connection with his position,” according to investigators. A 2014 email shows a planned visit for Jagland and his family to Epstein’s private island in the U.S. Virgin Islands. Jagland’s lawyers have said he “denies all the charges.”

Jes Staley: CEO of Barclays

Staley served as CEO of Barclays from October 2015 until his resignation in late 2021. Staley’s departure followed a probe by the UK’s Financial Conduct Authority into his relationship with Epstein. The regulator fined him more than $2 million and permanently banned him from holding a management role in the sector in 2023. In 2020, Staley said, “Obviously I thought I knew him well and I didn’t. For sure, with hindsight with what we know now, I deeply regret having any relationship with Jeffrey.”

Alex Acosta: U.S. Labor secretary

Acosta announced his resignation in a letter to President Donald Trump on July 12, 2019, following controversy over his striking a federal non-prosecution deal with Epstein in 2008 when he was the U.S. attorney for the Southern District of Florida. Acosta defended that deal — which had required Epstein to plead guilty to Florida state charges of soliciting a minor for prostitution — in six hours of testimony in September to the House Oversight Committee. “I testified for six hours. I’ll let the record speak for itself,” Acosta said after the hearing.

— CNBC’s Garrett Downs contributed to this report.

WATCH: Commerce Sec. Howard Lutnick admits visiting Epstein island during family vacation

The release of further Epstein files last week triggered a series of events that left U.K. Prime Minister Keir Starmer fighting for his political life, despite the fact that he never knew the late financier and sex offender.

Starmer is under pressure over his decision to appoint Peter Mandelson as U.S. ambassador, despite knowledge of Mandelson’s connections to Epstein. The latest document release by the U.S. Department of Justice revealed more messages between Mandelson and Epstein, including after Epstein had pleaded guilty in Florida to a state charge of felony solicitation of prostitution, a case that involved an underage girl.

Starmer, who is facing calls to step down, has apologized to the victims of Epstein for believing Mandelson’s “lies.”

Starmer held a pivotal meeting with Labour members of parliament afterwards, in which he reportedly said he was “not prepared to walk away.”

A spokesperson for the Prime Minister’s Office was not immediately available for comment.

Known as a behind-the-scenes fixer and nicknamed the “Prince of Darkness,” Mandelson was a Labour member of parliament from 1992 to 2004 and served in Blair’s cabinet.

He left parliament to become a European Commissioner before returning to Britain in 2008 to work with then-Prime Minister Gordon Brown, having been appointed to parliament’s unelected House of Lords.

After becoming prime minister in July 2024, Starmer appointed Mandelson as ambassador in Washington that December, a role he described at the time as “a great honor.” The appointment was controversial as Mandelson had twice previously resigned — in 1998 and 2001 — over scandals: one about not declaring a loan and another about allegedly influencing a passport application.

Starmer fired Mandelson from the ambassadorship in September, after Downing Street said new information had come to light about the extent of his association with Epstein.

The subsequent release of millions of files from the U.S. Department of Justice last week showed further links between Mandelson and Epstein. They prompted accusations that Mandelson had sent market-sensitive government information to Epstein following the 2008 global financial crisis.

One exchange appeared to show Mandelson giving Epstein advance notice of an impending 500 billion euro bailout for banks in 2010.

In a statement to U.K. broadcaster Sky News last month, Mandelson apologized for remaining friends with Epstein following his 2008 conviction.

“I was not culpable, I was not knowledgeable for what he was doing, and I regret, and will regret to my dying day, the fact that powerless women were not given the protection they were entitled to expect,” he said.

U.K. government borrowing costs jumped on Monday, amid growing pressure on Starmer.

By Tuesday, after many Cabinet ministers rallied around the prime minister, yields on U.K. government bonds, known as gilts, were moving lower.

The yield on the benchmark 10-year gilt was 3 basis points lower at 4.496%, while the 30-year gilt yield also fell by 4 basis points to settle at 5.309%.

Among the potential candidates to replace Starmer are left-leaning Angela Rayner, who resigned as deputy prime minister last autumn after a tax scandal, the current health minister, Wes Streeting, and former party leader Ed Miliband.

Andy Burnham, the current mayor of Greater Manchester, was recently blocked from standing in a special election that could have seen him return to parliament — paving the way for a potential leadership challenge.

Despite Burnham’s popularity, investors are wary of a pivot away from efforts by Starmer and his finance minister, Rachel Reeves, to shore up the U.K.’s public finances.

Kallum Pickering, chief economist at Peel Hunt, said in a note on Tuesday that Burnham “polls strongly” but “whether his successful regional economic policies translate into successful national policies is an open question — his past snipes that the U.K. is ‘in hock to the bond markets’ have alarmed investors.”

Pickering said the fact that Rayner remained under investigation for her tax affairs “hurts her chances — and risks the narrative of replacing one scandalised PM with another.” But he added: “Her popularity within the party suggests she may be able to consolidate the left with the moderates.”

British oil giant BP on Tuesday posted fourth-quarter profit in line with expectations and suspended share buybacks, seeking to shore up its balance sheet as lower crude prices take their toll.

The London-listed energy firm reported underlying replacement cost profit, used as a proxy for net profit, of $1.54 billion for the final three months of 2025. That matched analyst expectations of $1.54 billion, according to an LSEG-compiled consensus.

BP’s full-year 2025 net profit came in at $7.49 billion, missing analyst expectations of $7.58 billion. That’s down from nearly $9 billion in 2024.

BP said the board decided to suspend the share buyback and fully allocate excess cash “to accelerate strengthening” of its balance sheet. The firm’s previous buyback was $750 million and was announced alongside third-quarter results in November.

For the fourth quarter, the company announced a dividend per ordinary share of 8.320 cents.

“2025 was a year of strong underlying financial results, strong operational performance, and meaningful strategic progress,” Carol Howle, BP interim CEO, said in a statement.

“We have made progress against our four primary targets – growing cash flow and returns, reducing costs, and strengthening the balance sheet – but know there is more work to be done, and we are clear on the urgency to deliver,” she added.

Woodside Energy boss Meg O’Neill is scheduled to take the reins at BP on April 1, following Murray Auchincloss’ decision to step down late last year.

Shares of BP fell 5.4% during morning deals, slipping toward the bottom of the pan-European Stoxx 600 index.

Some other earnings highlights included:

• BP’s fourth-quarter net debt came in at $22.18 billion, down from around $23 billion in the same period last year.
• Fourth-quarter operating cash flow came in at $7.6 billion, up from $7.43 billion a year ago.
• BP set its 2026 capital expenditure budget at $13 billion to $13.5 billion, reflecting the lower end of its guidance range.

The results come at a tough time for Europe’s oil and gas sector.

Oil prices notched their biggest annual loss since the Covid-19 pandemic last year, partly due to oversupply concerns, ratcheting up the pressure on Big Oil’s commitment to shareholder returns.

BP’s industry rivals Equinor and Shell both reported weaker quarterly earnings last week, citing lower crude prices, among other factors.

Equinor announced it would reduce share buybacks to $1.5 billion this year, down from $5 billion last year, while also trimming investments in its renewables and low-emission energy projects.

Shell, for its part, kept its buybacks steady at $3.5 billion, a move that marked the firm’s 17th consecutive quarter of $3 billion or more in buybacks.