分类: technology

  • Australian judge fines X $465,000 for online safety breach after 3-year court battle

    Australian judge fines X $465,000 for online safety breach after 3-year court battle

    In a landmark ruling that wraps up a three-year regulatory dispute, Australia’s Federal Court has imposed a AUD 650,000 (USD 465,000) penalty on Elon Musk-owned X Corp. for refusing to hand over critical information to the country’s top online safety watchdog about its handling of child sexual exploitation material on its platform. The court also ordered the Texas-based social media giant to cover AUD 100,000 (USD 71,000) in legal costs incurred by the Office of the eSafety Commissioner, with payment required within 45 days of Thursday’s ruling.

    The legal conflict dates back to February 2023, when eSafety issued a formal transparency notice to then-Twitter Inc., demanding a public report detailing the company’s actions to curb the spread of child sexual abuse and exploitation content, aligned with Australia’s national Basic Online Safety Expectations. The company was given a March 29, 2023 deadline to submit the completed response, but X failed to provide a report that fully addressed the regulator’s questions. The company ultimately admitted it violated Australia’s 2021 Online Safety Act through this non-compliance.

    X’s legal team told the court the non-compliance occurred during a period of significant corporate transition, when Elon Musk completed his high-profile acquisition of the platform and rebranded Twitter as X. The merger between Twitter Inc. and X Corp. closed in March 2023, just weeks after the transparency notice was issued, and X’s legal representative noted the regulator does not claim the violating conduct continued past May 5, 2023.

    The long legal battle reached its conclusion after two previous court rulings sided with the regulator: an initial October 2024 judgment upheld by the full Federal Court in July last year confirmed X was legally required to respond to eSafety’s inquiry. Notably, both the regulator and X have agreed the size of the issued fine is appropriate. Christopher Tran, the lead lawyer for eSafety, told reporters the penalty was set at this level specifically because of X’s status as a large global corporation. He emphasized that a significant penalty was necessary to avoid treating regulatory violations as just a routine cost of doing business for large tech firms.

    eSafety Commissioner Julie Inman Grant, a former Twitter employee herself, framed the ruling as a critical win for corporate accountability in the tech sector. “In early 2023, we asked some of the world’s biggest technology companies, including Twitter, to report on steps they were taking to comply with the Australian Basic Online Safety Expectations in relation to the proliferation of child sexual exploitation and abuse materials on their platforms,” Inman Grant said in a post-ruling statement. She added, “This is not only a key part of our work as Australia’s online safety regulator, it also provides the Australian public with important information about how these companies are tackling the worst-of-the-worst content on their platforms.”

    As of Thursday, X had not issued any immediate public response to requests for comment on the court’s ruling.

  • Samsung strike on hold – but the fight isn’t over yet. Why?

    Samsung strike on hold – but the fight isn’t over yet. Why?

    Tens of thousands of Samsung Electronics union members gathered at a major factory complex south of Seoul on April 23, bringing a high-stakes labor dispute to the brink of work stoppage that threatened global tech supply chains. On the eve of a planned strike, the tech giant and its largest employee union reached a last-minute tentative wage and bonus agreement, suspending industrial action set to begin Thursday while union members vote on the deal between May 22 and May 27.

    The conflict erupted against a backdrop of unprecedented global demand for AI-related memory chips, which has sent Samsung’s profits and market valuation soaring in recent months. The core point of contention was the unequal distribution of record profits generated by the AI boom across different business units. Samsung initially proposed paying memory chip division workers bonuses equal to as much as 607% of their annual salary – far higher than the 50% to 100% offered to staff in other chip and electronics units, including those producing advanced semiconductors for major clients like Tesla and Nvidia.

    The union, which represents nearly 48,000 Samsung employees, pushed back against the lopsided bonus structure, arguing that 23,000 non-memory chip workers should not be excluded from the windfall. The union also demanded the elimination of a company-wide 50% bonus cap on annual salaries and the allocation of 15% of annual operating profit to a shared worker bonus pool. Industry analysts widely noted that a full strike at Samsung – the world’s largest memory chipmaker by sales and a core supplier to global AI data center builders, smartphone manufacturers, and consumer electronics brands – would have sent shockwaves through already strained global chip supplies.

    Samsung’s outsized role in the global economy amplifies the stakes of any labor unrest: the broader Samsung Group contributes roughly one-fifth of South Korea’s total economic output, making any production disruption a risk to the country’s entire export-driven economy. The dispute also comes at a moment of intensifying competition for Samsung, as rivals SK Hynix and Micron Technology capitalize on the AI chip boom to gain market share. Last year, SK Hynix scrapped its 10-year bonus cap, pushing average bonuses three times higher than Samsung’s previous offerings, which led to a noticeable exodus of skilled Samsung workers to the competitor.

    By early May, booming AI chip demand pushed Samsung’s total market capitalization past the $1 trillion mark, following a 750% year-over-year jump in operating profit during the first quarter of 2025. Even as the deal was struck, legal constraints had already limited the scope of potential strike action: a South Korean court granted Samsung an injunction forcing the company to maintain full staffing for safety, facility maintenance, and quality control operations, and barred the union from blocking facility access or occupying plant grounds, with daily fines of $74,000 for any violations.

    Financial analysts from JP Morgan had projected that a sustained strike could cut Samsung’s annual operating profit by between $14 billion and $20.8 billion, a blow that would have rippled through global tech markets. In a statement released after the tentative agreement was announced, Samsung said: “With a humble attitude, we will build a more mature and constructive labour-management relationship to ensure that such an incident never happens again.” Markets reacted positively to the news, with Samsung’s share price jumping more than 5% on Thursday morning following the announcement.

    The American Chamber of Commerce in Korea had previously warned of the broader global risks of prolonged labor unrest, noting that “In today’s interconnected global economy, disruptions in strategically important industries can create ripple effects extending well beyond a single company or market. Competing regional manufacturing markets could benefit if concerns over predictability and continuity persist.” With the deal now headed for a member ratification vote, the temporary agreement has eased immediate fears of production disruption during a critical period of AI infrastructure expansion worldwide.

  • Up to 350 jobs under threat at Meta in Ireland

    Up to 350 jobs under threat at Meta in Ireland

    Tech conglomerate Meta, the parent company of major social platforms Facebook, Instagram and WhatsApp, is poised to cut hundreds of roles in Ireland as part of a sweeping global workforce restructuring driven by massive artificial intelligence investment. Approximately 350 positions based in the country are now at risk of redundancy, according to official filings and local media reports. Last month, Meta first announced to its global staff via internal memo that it would eliminate 10% of its total workforce – equaling around 8,000 employees worldwide – while also freezing hiring for thousands of additional unfilled roles across the company. Irish public broadcaster RTÉ confirmed that local staff received early-morning notifications alerting them to their potential inclusion in the latest round of cuts. The company has formally filed a collective redundancy notification with Ireland’s Department of Enterprise, Tourism and Employment, confirming the scope of the proposed job cuts for the region. Meta currently employs roughly 1,800 workers across its Irish operations, and the company has not yet issued additional public comment beyond the formal notification filing. Industry sources familiar with the company’s internal planning have confirmed that the core driver behind the latest layoffs is Meta’s push to redirect massive budgets toward AI research and development. The tech giant has earmarked a total of $135 billion (around £100 billion) for AI-related spending this year alone – a sum that matches the total amount Meta invested in the sector over the previous three years combined, according to an individual who reviewed the company’s internal memo. This latest round of job cuts marks a return to large-scale restructuring for Meta, which carried out multiple waves of layoffs starting in 2022 that eliminated tens of thousands of roles globally. After those initial cuts, the company resumed hiring activity through 2024, bringing its total headcount back to pre-layoff levels by the end of last year. The 2026 cuts are the largest single round of layoffs Meta has implemented since 2023, and align with a broader industry trend among major technology firms. Dozens of other leading tech companies that are pouring billions of dollars into developing AI tools and infrastructure have also announced widespread job cuts in 2026, as companies reorient their business models and spending priorities to prioritize AI development over traditional operational headcount.

  • US groups urge investigation into child safety and spending on Roblox

    US groups urge investigation into child safety and spending on Roblox

    Two leading U.S. child safety advocacy groups have lodged a formal complaint with the Federal Trade Commission (FTC), calling for a full investigation into popular gaming platform Roblox over what they describe as unfair and deceptive business practices that put children as young as five at risk. The filing, submitted Wednesday by Fairplay and the National Centre on Sexual Exploitation, outlines three core areas of concern: predatory in-game monetization, manipulative engagement-focused design, and insufficient safeguards that leave minors vulnerable to unwanted contact from strangers.

    At the heart of the complaint is Roblox’s complex in-game economy built around its virtual currency, Robux. Users purchase Robux with real-world money to unlock in-game access, avatar customizations, upgrades and other digital items. The advocacy groups argue that the layered system of virtual currency makes it nearly impossible for young children to grasp the actual real-world cost of the items they are buying, a vulnerability that has led to extreme cases of overspending. One parent included in the filing reported that their 10-year-old daughter racked up more than $7,000 in charges over just two months, even after the family put purchase limits in place.

    The complaint also calls out what advocates label “engagement-maximising” design choices intentionally built to keep children playing for extended periods. These include daily login reward streaks that incentivize consistent use, and social comparison systems that publicly display other players’ rare and expensive virtual possessions, pushing children to spend to keep up with peers. The groups additionally highlight chance-based reward systems such as loot boxes, which they argue function like gambling mechanics that minors lack the developmental maturity to understand. All of these features, the complaint argues, intentionally exploit children’s known developmental vulnerabilities around impulse control and peer pressure.

    Communication features on the platform represent another major point of concern. Even after Roblox implemented new safety controls, the complaint alleges that text and voice chat functions still expose underage users to inappropriate content and unsolicited contact from adult strangers. Researchers testing the platform using under-13 accounts reported encountering sexual references and abusive language within minutes of joining certain public games, and the filing references documented cases of child grooming and exploitation occurring on the platform.

    Roblox has forcefully rejected all of the claims laid out in the complaint. In a statement, a company representative said the platform was “built for fun and connection, not short-term engagement,” noting that the company already maintains clear policies banning both actual and simulated gambling, as well as strict rules governing paid random items. The company emphasized that the vast majority of games on Roblox are free to play, and users are under no obligation to purchase Robux. According to company data, only 1.4% of Roblox’s 132 million daily active users made any purchases on the platform during the first quarter of 2026.

    In response to previous criticism over child safety protections, Roblox has already introduced new measures: it now blocks chat between children and adult users who are not connected through parent-approved friend links, and uses automated age-estimation technology to assign minors to age-appropriate accounts with restricted features. But these changes have failed to ease the concerns of campaigners and many parents, who still worry about excessive screen time and unregulated spending by minors on the platform.

    Industry observers echoed the skepticism around Roblox’s incremental changes. Drew Benvie, CEO of social media consultancy Battenhall and founder of youth safety nonprofit Raise, noted that young digital-native users are often able to bypass basic age-based safety controls with little effort. “What’s needed is greater user and parental awareness of the impact social features in games can have on children, as well as wide scale legislative changes to address addictive or problematic features, not just the digital sticking plaster of age limits,” Benvie said.

    The complaint comes as Roblox continues to see explosive revenue growth: company figures show it generated $4.9 billion in revenue in 2025, a 36% jump from the previous year. The FTC has not yet publicly confirmed whether it will launch a formal investigation into the claims. This action comes amid a broader wave of regulatory scrutiny into how large social media and gaming platforms protect minor users and generate revenue from young audiences. Following a successful California lawsuit that held Meta and YouTube liable for knowingly designing addictive platform features, legal and regulatory experts expect more platforms to face increased scrutiny over manipulative engagement design tactics such as infinite scroll and auto-play.

  • Google to release first smart glasses since Google Glass flop

    Google to release first smart glasses since Google Glass flop

    More than ten years after its high-profile first attempt at wearable smart eyewear ended in public backlash and commercial failure, Google is making a second push into the emerging smart glasses space, with a new AI-integrated model slated to hit the market in autumn this year.

    The tech giant first unveiled the new device during its annual I/O developer conference held on Tuesday in Mountain View, California. The upcoming launch will feature two distinct style variants, one co-designed by popular direct-to-consumer eyewear brand Warby Parker and the other by Seoul-based fashion eyewear label Gentle Monster.

    Google’s original 2013 Google Glass product was pulled from the market in 2015, just seven months after its UK rollout, crippled by widespread criticism over its steep price point and sweeping privacy risks. For its second iteration, Google is leaning heavily on integration with its flagship large language model, Gemini, to deliver a hands-free, heads-up user experience. The new glasses come equipped with a compact camera built into the front frame and small speakers embedded in the arms, and are compatible with both Android and Apple iOS operating systems.

    Unlike the original Google Glass, which included a head-mounted micro-display, the initial launch version will operate exclusively via private audio, delivering Gemini-powered responses directly to the wearer’s ear rather than displaying visual information on a screen. “They are designed to give you all-day help with Gemini that’s spoken into your ear privately rather than shown on a display,” explained Shahram Izadi, a senior Google executive who presented the device at the conference. Izadi confirmed that Google is already developing a follow-up version with an in-lens display capable of showing text and other visual data, but that model is not yet scheduled for public release, with additional details expected to be shared by the end of 2025. Developers are already at work building custom applications for the display-enabled variant, the company added.

    Google’s new entry mirrors the product architecture of rival Meta’s existing AI smart glasses line, which also pairs a small camera and speakers to enable voice interaction with Meta’s in-house AI assistant. Meta’s Ray-Ban co-branded smart glasses have already hit a major sales milestone of seven million units sold, according to company data, but the product has reignited the same privacy concerns that doomed Google’s first attempt: multiple reports have emerged of unknowing members of the public being recorded in public and private spaces by glasses wearers, with footage later uploaded to public online platforms without consent.

    Google is far from the only major tech player racing to capture a share of the growing smart eyewear market. Snap, the parent company of Snapchat, is preparing to launch an updated version of its own smart glasses line this year, and Apple is widely reported to be developing its mixed-reality glasses product as the next major expansion of its wearable device ecosystem.

    Industry observers have largely framed Google’s return to the space as a positive step for the emerging category. Christine Tsai, an investor at early-stage venture capital firm 500 Global, who attended this week’s developer conference, noted that mainstream adoption of smart glasses is widely seen as the next major computing shift following the rise of the smartphone. “It’s good for consumers. And it’s good for early stage start ups, where we tend to invest, because they’re a platform where people can build more capabilities,” Tsai said.

    Independent developers also see clear opportunities to leverage Google’s existing ecosystem of services. Anil Shah, founder of startup tixfix.ai which builds event management tools, says the form factor holds huge promise for integrating existing Google tools from Maps to Voice into a seamless, hands-free experience. For his own business, Shah is already considering building a dedicated integration that would let users find nearby events directly via voice commands to the glasses, without needing to open a smartphone app. “I think being able to just talk with the smart glasses without opening the app would be a very nice integration,” he said.

  • How Palantir is becoming embedded in major newsroom operations

    How Palantir is becoming embedded in major newsroom operations

    Palantir Technologies has long stood as one of the most polarizing technology firms in the modern digital age. Boasting a client roster that includes U.S. Immigration and Customs Enforcement, the U.S. Army, and law enforcement, intelligence and security agencies across multiple European nations, the company has drawn global backlash for its ongoing technology supply agreement with the Israeli military amid the latter’s ongoing military campaign in Gaza that has been widely accused of constituting genocide.

    Despite growing international scrutiny over Palantir’s documented ties to alleged human rights violations and accusations of complicity in Israeli war crimes, a number of major global media organizations have maintained active, deep-rooted partnerships with the controversial firm. Among these partners is German publishing giant Axel Springer, the current parent company of prominent British newspaper The Telegraph, which also owns well-known outlets including Politico, Business Insider, Bild and Welt.

    Axel Springer currently integrates Palantir’s core Foundry software across all of its global publishing operations. Palantir has publicly stated that Axel Springer leverages Foundry to unify disparate data sets from its dozens of individual publications and multiple revenue streams, enabling the creation of what the tech firm describes as “a more agile, data-driven publishing organisation” that can adapt more quickly to changing consumer habits and evolving audience preferences. Per Palantir’s own description, Foundry gives Axel Springer granular, actionable insights into reader behavior, advertising campaign performance, and the effectiveness of its subscription business models.

    But the ties between Axel Springer and Palantir extend far beyond a standard commercial technology partnership. Between 2018 and 2019, Palantir CEO Alexander Karp held a seat on the German publisher’s supervisory board. The personal connection between Karp and Axel Springer CEO Mathias Döpfner dates back decades, with the pair first meeting “at a party during Döpfner’s university days,” according to public records.

    Close links also extend to Döpfner’s son, Moritz Döpfner, who previously served as chief of staff at Thiel Capital, the private investment firm founded by Palantir co-founder Peter Thiel. German business publication Manager Magazin has reported that Thiel later invested approximately $50 million in seed funding into a venture capital fund launched by Moritz Döpfner. Focus Online, another prominent German outlet, has additionally documented that Thiel committed several million dollars in funding to a new European defense startup after being introduced to the project by Moritz Döpfner.
    That startup, Stark Defence, positions itself as “a technology-oriented defence company that delivers the systems Europe and NATO need now.” It markets its unmanned weapons systems as “AI-enabled, software-defined, and ready for affordable production at scale.”

    Axel Springer’s partnership with Palantir also aligns with the publishing giant’s longstanding public stance of unwavering support for Israel. In an official press release issued October 9, 2023, just two days after the 7 October attacks, the company stated: “Axel Springer stands in unconditional solidarity with the State of Israel.” This commitment is formally embedded in Axel Springer’s core corporate principles: one of the five central tenets of its corporate constitution reads, “We support the right of the State of Israel to exist and reject all forms of antisemitism.”
    Döpfner reaffirmed this position at a World Jewish Congress event in May 2026, stating: “I’m a goy [non-Jew] and I’m a Zionist. With all my heart, out of conviction, and with passion. We all shall be Zionists.”

    Palantir and the Israeli government formally announced a strategic partnership in January 2024, three months after Israel launched its military operation in Gaza. At the time of the announcement, Palantir Executive Vice President Josh Harris told Bloomberg that “both parties agreed to harness Palantir’s advanced technology in support of war-related missions” that would “significantly aid the Israeli Ministry of Defense.”

    The full scope of Palantir’s technology offerings to Israel remains undisclosed, but the company has built a broad portfolio of AI-powered military tools, including its flagship Artificial Intelligence Platform (AIP), which Palantir says enables faster, more data-informed decision making for frontline military forces. Multiple independent reports have also linked Palantir’s Maven Smart System to Israeli military operations in Gaza. The Maven system aggregates and analyzes battlefield imagery, surveillance data, logistics information and intelligence to identify potential targets for strikes. In a December 2025 interview, Karp confirmed that Maven had been deployed in Ukraine as well as “in recent operations in the Middle East.” The Washington Post reported in March 2026 that both the U.S. and Israel used the Maven system during their joint war on Iran.
    Karp has also openly acknowledged that Palantir’s technology is used to carry out lethal strikes. Responding to accusations in April 2025 that the company’s systems were complicit in the deaths of Palestinians, Karp stated: “Mostly terrorists, that’s true.”

    Axel Springer has declined to respond to inquiries from Middle East Eye regarding its collaboration with Palantir.

    Beyond Axel Springer, another major European media firm, Swiss publisher Ringier – which owns dozens of media and entertainment brands across Europe and Africa – has maintained a partnership with Palantir since 2018. Like Axel Springer, Ringier’s leadership shares deep personal and professional ties with Palantir’s executive team: both Karp and Ringier CEO Marc Walder are involved in Digitalswitzerland, a leading Swiss digital innovation initiative that Walder founded in 2015 and has led as president ever since, with Palantir listed as a core member organization.

    Per information posted on Ringier’s official website, the publisher uses Palantir’s Foundry software to “drive Ringier’s digital transformation and accelerate the transition to a data-driven, global media company.” Palantir also confirms that in addition to newsroom uses, Ringier leverages Foundry to boost performance across the advertising departments of all its media properties. In May 2024, several months after Palantir announced its strategic defense partnership with Israel, Ringier published its 2023 annual report revealing that the company had expanded its partnership, launching a five-year agreement to adopt Palantir’s Artificial Intelligence Platform. The report notes that AIP helps Ringier “improve relevant content and better understand user preferences” by integrating and processing large volumes of user and content data, while also enabling “precise targeting and optimization of advertising strategies.”
    Ringier has gone beyond just adopting Palantir’s technology, hiring a dedicated in-house Palantir expert. Last winter, the publisher posted a job opening for a “Platform Engineer (Palantir Foundry),” framing the role as “central to the stability, security, and evolution” of Ringier’s enterprise Palantir Foundry and AIP infrastructure. The job posting outlined responsibilities including platform administration, implementing data governance frameworks, collaborating directly with Palantir’s technical teams, and building and maintaining automated monitoring and alert systems using Foundry’s application programming interface. When contacted by Middle East Eye for comment on the partnership, Ringier Chief Communications Officer Johanna Walser said only: “We have communicated the nature of our collaboration with Palantir via press release. Beyond that, there is nothing further to comment.”

    Most recently, U.S.-based Fox News Media announced its own partnership with Palantir to develop a custom suite of AI tools for its newsroom, working alongside the outlet’s journalists, according to an Axios report quoting Fox News Digital President and Editor-in-Chief Porter Berry. The collaboration has produced three custom tools that Palantir engineers have integrated directly into the digital newsroom’s daily workflow. One tool is designed to help reporters quickly get up to speed on fast-developing breaking stories, a second fact-checks articles for errors and ensures alignment with Fox News’ internal style guide, and the third analyzes audience engagement to provide insights for optimizing story performance. Fox News Media has also declined to respond to requests for comment on the partnership.

    These widespread partnerships between major global newsrooms and Palantir have sparked urgent questions about editorial independence and potential conflicts of interest. While Fox News has framed its agreement as “strictly commercial,” critics have raised concerns that these close financial and institutional ties could shape editorial decision-making, particularly when it comes to coverage of Palantir, its activities, and Israel’s military campaign in Gaza.
    Not long after Axel Springer completed its acquisition of The Telegraph, the British newspaper published an opinion piece titled “In defence of Palantir,” followed by a second article headlined “How Palantir became the left’s favourite conspiracy target.” It remains unclear whether these pieces were connected to the broader relationship between the two firms, or whether The Telegraph has begun using Palantir’s technology following the takeover. Axel Springer, The Telegraph, and Palantir all declined to comment on the matter.

    Additional critical questions have emerged over whether newsrooms using Palantir’s platforms are unknowingly contributing to training the AI systems the company develops for military use. Fox News has stated that its agreements “are structured to prevent its AI partners from training on or otherwise exploiting its content.” Palantir, however, has not responded to repeated questions about whether, and how, it ensures that civilian uses of its technology – including its deployments at media organizations – are not repurposed to train or inform its defense-focused AI systems.

  • Zoe Kleinman: Why the AI industry is the real winner of the Musk-Altman trial

    Zoe Kleinman: Why the AI industry is the real winner of the Musk-Altman trial

    For weeks, a high-profile legal battle in Oakland, California, has pulled back the curtain on the cutthroat power struggle unfolding between the most influential men at the peak of the global artificial intelligence industry. When the gavel fell on the case pitting billionaire Elon Musk against OpenAI, the verdict sent a clear message: fierce competition and profit-driven ambition in the fast-growing AI sector are just standard business practice, even as Musk walked away with a technical defeat that leaves his original claims unaddressed.

    What many have framed as a watershed moment for the industry does more than resolve one dispute between two former collaborators. It has torn away the carefully cultivated public image of unified collective action that top AI firms have long presented to the public. For years, industry leaders have positioned themselves as collaborative partners working together to advance safe, inclusive AI research for the good of humanity. But this trial has exposed the deep cracks running through that carefully constructed facade.

    This is not the first time the veil of unity has been pulled back. Earlier this year, at a global AI summit hosted in New Delhi by Indian Prime Minister Narendra Modi, tech leaders were invited on stage to hold hands in a show of collective purpose. Among them were Sam Altman, OpenAI’s chief executive, and Dario Amodei, head of rival AI firm Anthropic – one-time colleagues at OpenAI who are now bitter industry competitors. Rather than clasp hands as directed, both men clenched their hands into tight fists to avoid any physical contact, a small but loaded act that laid bare their deep personal and professional animosity.

    The same brand of dramatic, ego-fueled tension played out across the California courtroom over the course of the trial. No party emerged from the proceedings looking like a hero: the entire spectacle laid bare the oversized personal ambitions that drive many of the men vying for control and profit in the multibillion-dollar AI sector.

    For OpenAI, the verdict comes at a critical moment. The company has burned through hundreds of millions in investor capital in its race to scale its AI products, and has recently brought on Denise Dresser, a veteran executive from workplace communication platform Slack, as its new chief revenue officer to build out sustainable income streams. In a recent meeting, Dresser declined to comment on the trial, but outlined OpenAI’s plan to split future revenue equally between consumer users and enterprise clients. She also highlighted the company’s underdiscussed coding tool Codex, which she described as her internal “chief of staff” for day-to-day work.

    Prior to the ruling, economist and author Sebastian Mallaby projected that OpenAI faced a 50% chance of collapsing into bankruptcy by 2027, driven by its massive spending and mounting competitive pressure. Avoiding a multibillion-dollar damage payout to Musk has drastically improved those odds, and clears the way for OpenAI to move forward with its long-rumored initial public offering, which insiders hint could value the company at as much as $1 trillion. Amid widespread market concerns that the AI sector is a overinflated bubble poised to burst, the court outcome has arguably bought the industry vital time to prove its long-term value.

    For Musk, the technical loss is unlikely to cause lasting damage. The world’s richest man has a long history of high-stakes courtroom battles, and his well-documented tendency to hold grudges means he will almost certainly continue to attack OpenAI and Altman via his social media platform X. While the two AI titans have been distracted by their legal clash, competing firms have surged ahead. Anthropic has drawn global attention with its latest large language model Claude Mythos, which the company claims has advanced hacking capabilities – a claim dismissed by some as empty hype but hailed by others as a defining turning point for AI capability. Meanwhile Google, whose early AI advances originally prompted Musk, Altman and other founders to launch OpenAI as a competitor, continues to rapidly integrate generative AI across its most popular consumer and enterprise services.

    Industry analysts and policy experts say the trial leaves far more questions unanswered than it resolves. “The trial served as a reminder of how much the future of AI still depends on a remarkably small group of powerful tech figures and their personal rivalries,” explained Sarah Kreps, director of the Cornell University Tech Policy Institute. The ruling’s focus on a legal technicality “leaves a lot of questions and debates unresolved,” she added, ranging from how cutting-edge AI systems should be regulated to who gets to capture the massive economic gains the sector is projected to generate. The case also highlighted a wider gap between the small group of people building AI technology and the much larger global population that is now expected to live and work alongside increasingly capable systems, Kreps noted.

    Veteran tech journalist Kara Swisher argued the spectacle has done lasting damage to public trust in the AI industry. Speaking to BBC Radio 4’s *Today* programme, Swisher noted that widespread mistrust of AI, particularly among younger generations, has only been amplified by the trial’s drama. “Right now the brand of AI has just been trashed and this certainly doesn’t help,” she said. “When you look at these testimonies of people who are very petty, there’s a lot of weird drama, obsession with money… the whole thing feels weird and dramatic.”

    On balance, the verdict confirms that the global AI sector still holds enormous market value. But it has also definitively exposed the oversized personal egos and cutthroat competition that are driving its fastest growth – a reality that industry leaders have spent years working to hide from public view.

  • Why Elon Musk lost in the OpenAI court battle against Sam Altman

    Why Elon Musk lost in the OpenAI court battle against Sam Altman

    In a high-stakes legal showdown that has gripped the global tech industry, billionaire entrepreneur Elon Musk has emerged on the losing end of his courtroom battle against OpenAI CEO Sam Altman, rooted in a bitter dispute over the AI research lab’s dramatic transformation from a non-profit entity to a for-profit enterprise. BBC technology correspondent Lily Jamali was present inside the courtroom to observe the proceedings as Musk laid out his core allegation: that Altman had violated the terms of the original non-profit founding agreement that shaped OpenAI’s creation when he oversaw the company’s transition to a for-profit operating model.

    The conflict traces back to OpenAI’s founding in 2015, when it was launched as a non-profit research organization with a stated mission of developing artificial general intelligence that benefits all humanity. Musk was an early founding investor and board member, though he stepped down from the board in 2018 and eventually cut ties with the organization he helped bring to life. After OpenAI launched ChatGPT in 2022 and rapidly grew its user base and commercial valuation, Musk renewed his public criticism of the company, arguing that it had abandoned its original non-profit, public-benefit roots in pursuit of corporate profit.

    Musk’s lawsuit centered on the claim that Altman and other OpenAI leaders breached the binding founding contract that committed the company to remaining non-profit and open in its research activities. The legal battle has been closely watched across the technology sector, as it raises fundamental questions about the governance of high-stakes AI development, the fiduciary duties of founders of mission-driven tech organizations, and the balance between commercial innovation and public benefit in the rapidly growing AI industry. With the court’s ruling siding with Altman and OpenAI, the decision clears a key legal hurdle for the company as it continues its commercial expansion, while leaving Musk’s public campaign to hold OpenAI to its original founding mission without a legal victory.

  • Musk loses blockbuster OpenAI suit as jury says too late

    Musk loses blockbuster OpenAI suit as jury says too late

    One of Silicon Valley’s most anticipated legal showdowns came to a swift and decisive close this Monday, when a federal jury ruled that Elon Musk had waited far too long to file his blockbuster lawsuit against OpenAI and its top leaders, handing a major victory to the ChatGPT developer.

    The verdict, reached quickly after three weeks of high-stakes testimony that featured appearances from a host of technology industry leaders, brings an end to Musk’s legal challenge that accused OpenAI of abandoning its founding non-profit mission to chase massive commercial profits. Sitting in Oakland federal court, the jury concluded that all of Musk’s claims against OpenAI CEO Sam Altman, President Greg Brockman, the OpenAI Foundation, and lead investor Microsoft were time-barred by applicable statutes of limitations, rejecting the core argument of the world’s wealthiest person.

    District Judge Yvonne Gonzalez Rogers, who had asked the jury to deliver an advisory ruling on the threshold limitations issue, formally accepted and finalized the jury’s decision. The outcome removes what many analysts described as a potentially existential legal threat to OpenAI. Had Musk succeeded in his claims, he would have forced the AI leader to revert to a non-profit structure—a move that would have derailed OpenAI’s heavily anticipated initial public offering and dissolved its partnership with major investors that have poured tens of billions of dollars into the company amid the global artificial intelligence arms race. Those investors include Microsoft, Amazon, and SoftBank.

    Outside the courthouse following the ruling, OpenAI lead attorney William Savitt slammed Musk’s lawsuit as a disingenuous attack on a growing competitor. “The finding of the jury confirms that this lawsuit was a hypocritical attempt to sabotage a competitor and to overcome a long history of very bad predictions about what OpenAI has been and will become,” Savitt said. “Musk can bring his claims, and he can tell his stories, but what the nine members of this jury found is that his stories were just that — stories, not facts,” he added.

    Musk, who co-founded OpenAI in 2015, launched the suit in 2024, alleging that Altman and Brockman had improperly hijacked his $38 million founding donation. Musk said he intended the funds to support OpenAI as an open-access non-profit research lab focused on developing AI for the broad public benefit, rather than the $850 billion profit-driven juggernaut it has become.

    The statute of limitations question was resolved as a threshold matter before the jury could consider the underlying substantive claims of the lawsuit. Musk filed his suit four years after he made his last financial contribution to OpenAI, and the jury ultimately agreed that the window to file such a claim had long closed. Judge Rogers had indicated ahead of deliberations that she would almost certainly follow the jury’s advisory recommendation on the issue, a promise she fulfilled in formalizing the ruling’s dismissal. If the case had moved forward, the court would have gone on to weigh whether OpenAI’s co-founders misused Musk’s donation and broke founding agreements to pursue commercial growth and personal financial gain.

    For weeks, industry observers speculated that the trial’s outcome would hinge on which combative tech leader the nine-person jury would find more credible. Much of the testimony and cross-examination focused on Altman’s leadership, including questions about his decision-making integrity and behind-the-scenes operational moves that alienated dozens of early OpenAI employees, many of whom have since left the company.

    OpenAI’s legal team countered Musk’s claims by highlighting inconsistencies in his accounts of OpenAI’s early days, and drew on testimony from Shivon Zilis, a close business associate of Musk’s (with whom he shares four children) who acted as an intermediary between Musk and OpenAI’s leadership after Musk left the company.

    Musk departed OpenAI’s board in 2018, and has since launched his own competing artificial intelligence efforts: first through his aerospace firm SpaceX, and more recently with dedicated AI startup xAI. To date, xAI has failed to gain significant market traction against dominant players like OpenAI and fellow Bay Area AI leader Anthropic.

    For Altman, the ruling does not fully resolve lingering questions about his leadership: the 2023 unexpected board ouster that saw Altman fired over allegations of lack of candor, before widespread employee pressure forced his reinstatement, left unaddressed claims of manipulative behavior and a toxic internal work culture that were raised during the trial.

    Beyond OpenAI itself, the ruling is also a major win for Microsoft, OpenAI’s largest financial backer that has committed $13 billion to the company to date. Industry analyst Dan Ives, of Wedbush Securities, told AFP the outcome clears a major barrier for OpenAI’s planned public listing. “This is an important victory for Altman and OpenAI and clears the path for an IPO by removing this black cloud trial,” Ives said. “Musk was creating noise around this lawsuit but ultimately it was more of a soap opera than a long-term negative for OpenAI,” he added.

  • Jury tosses Elon Musk’s lawsuit against OpenAI and its boss Sam Altman

    Jury tosses Elon Musk’s lawsuit against OpenAI and its boss Sam Altman

    In a landmark legal ruling that closes one chapter of a high-stakes feud over the future of artificial intelligence, a California jury has delivered a unanimous verdict dismissing Elon Musk’s major lawsuit against OpenAI and its chief executive Sam Altman. The case was thrown out entirely on the grounds that Musk filed his legal claims well after the legally mandated statute of limitations for such disputes had expired.

    Musk, one of the original co-founders of OpenAI, launched the suit accusing Altman of breaking a foundational non-profit agreement that guided the company’s early days. When OpenAI was launched in 2015, Musk contributed $38 million in initial funding to support the organization’s stated mission: developing AI technology for the collective benefit of humanity, rather than private profit. Musk alleged that Altman deliberately deceived him by accepting his charitable seed funding, then abandoned the original non-profit mission to transition OpenAI—the creator of the wildly popular ChatGPT—into a for-profit entity. He also named Microsoft and its CEO Satya Nadella as co-defendants, claiming the tech giant aided in what Musk framed as a breach of agreement.

    Over the course of three weeks, jurors pored over thousands of pages of internal OpenAI correspondence and heard testimony from all key parties to the dispute. Both Musk and Altman took the stand to present their competing accounts of the company’s origins and trajectory, while Nadella also appeared as a witness to address Musk’s allegations against Microsoft. Following the close of evidence, jurors deliberated for roughly two hours on Monday before reaching their unanimous decision to dismiss the case.

    During his opening testimony on the first day of the trial, Musk appeared in court in a dark suit and tie, framing his legal action as a defense of the principle of charitable giving. When asked by his legal team to explain the core of his complaint, Musk told the court: “It’s actually very simple. It’s not OK to steal a charity… If it’s okay to loot a charity, the entire foundation of charitable giving will be destroyed.”

    Altman pushed back forcefully against Musk’s narrative during his own testimony, arguing that Musk not only supported the push to convert OpenAI to a for-profit structure—he also pushed for long-term personal control of the company. Altman recalled a pivotal early meeting where Musk’s stance on control became clear, telling jurors: “A particularly hair-raising moment was when my co-founders asked, ‘If you have control, what happens when you die?’ He said something like, ‘maybe it should pass to my children.’”

    Following the jury’s ruling on the claims against OpenAI, Musk’s remaining allegations against Microsoft were also dismissed as a matter of law. The long-running rift between Musk and Altman dates back to 2018, when Musk stepped down from OpenAI’s board after co-founders rejected his request for full control over the organization. The dismissal of the suit brings a definitive legal end to this particular clash between two of the most influential figures in global AI development, though ongoing industry competition between their respective AI projects is expected to continue.