Billionaire Elon Musk Enters Courtroom Showdown with OpenAI

Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
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Billionaire Elon Musk Enters Courtroom Showdown with OpenAI

Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)

Jury selection is to begin Monday in a high-profile legal battle between billionaire Elon Musk and artificial intelligence startup OpenAI, which he accuses of betraying its non-profit mission.

The clash in a courtroom across the bay from San Francisco pits the world's richest man against a startup that Musk once backed and now competes against in the booming AI sector.

OpenAI's ChatGPT is a formidable rival to the Grok chatbot made by Musk's xAI lab.

While the lawsuit filed by Musk is part of a feud between him and OpenAI chief executive Sam Altman, it spotlights a debate whether AI should ultimately benefit the privileged few or society as a whole.

Court filings lay out how Altman tried to convince Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world."

Musk pumped some $38 million into the lab before he left.

OpenAI is now valued at $852 billion, with Microsoft among its backers, and is preparing to go public on the stock market.

The judge presiding over the trial is aiming for a jury to decide by late May whether OpenAI broke a promise to Musk in its drive to be a leader in AI or just smartly rode the technology to glory.

- Musk duped? -

Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic.

The tycoon cites an email from Altman in 2017 claiming that he remained "enthusiastic about the non-profit structure" of their AI venture after Musk threatened to cut off funding for the lab.

Just a few months later, however, OpenAI established a commercial subsidiary in the face of needing to invest hundreds of billions of dollars in data centers to power its technology.

Over the course of the following two years, Microsoft pumped billions of dollars into OpenAI and the tech stalwart's stake in the startup is now valued about $135 billion.

Microsoft chief executive Satya Nadella is among those slated to testify at the trial.

- Aimed at Altman -

Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ousting of Altman and OpenAI co-founder and president Greg Brockman.

Musk is also seeking as much as $134 billion in damages and to have the court make OpenAI sever ties with Microsoft.

During pre-trial hearings, US Judge Yvonne Gonzalez Rogers mused that Musk team seemed to be "pulling numbers out of the air" when it came to calculating damages.

If the jury sides with Musk, it will be left to Rogers to determine any remedies or payment.

In what OpenAI has dismissed as a public relations stunt, Musk has vowed that any damages awarded in the suit will go to the startup's nonprofit foundation.

- Quest for control? -

OpenAI internal communications brought to light by the lawsuit reveal tensions that culminated with the temporary ouster of Altman as AI chief executive in late 2023.

Musk's legal team highlighted a 2017 entry in Brockman's personal journal reasoning that it would be lying if Altman publicly asserted OpenAI would stay a nonprofit but became a corporation a short time later.

OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm.

In court filings, OpenAI countered that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status.

"This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a post on X, a platform Musk owns.

"His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor."

The startup noted that days after Musk entered the AI race in 2023 he called for a 6-month moratorium on development of advanced AI.



AI Can Outpace Cybersecurity Norms 'in Months', Says Spy Alliance

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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AI Can Outpace Cybersecurity Norms 'in Months', Says Spy Alliance

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand miniature in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The most advanced artificial intelligence models are improving quickly enough to outsmart prevailing cybersecurity know-how within months, the Five Eyes spy agency alliance has warned.

The risk posed by AI-enhanced hacking is in the spotlight, after US startup Anthropic said in April that its cutting-edge Mythos models had unprecedented abilities to find software vulnerabilities, reported AFP.

The security agencies of Britain, the United States, Australia, Canada and New Zealand urged governments and businesses to act swiftly to prepare themselves as AI evolves.

"The rapid pace of frontier AI development means cyber risk assumptions can become outdated in months, not years," said a joint statement dated Monday.

AI "lowers barriers for malicious actors and increases the speed and complexity of attacks", the Five Eyes advisory said.

"Breaches will occur. Preparedness helps you contain them quickly and prevent escalation into major operational and financial crises."

To improve cyber defenses, organizations should integrate AI tools into their security operations, update old systems and limit access to critical systems among other steps, they said.

Anthropic this month suspended access to Mythos 5 and a restricted version called Fable 5 to comply with a US national security order.

Just days after publicly launching Fable 5, the company said it had received a government directive banning all foreign nationals from accessing the two models.

The intervention is striking for a White House that has otherwise pushed to loosen AI oversight -- even moving to block states from writing their own rules.


Indian Startup Head Appointed as New WhatsApp Boss

The WhatsApp logo is seen in this illustration taken, August 22, 2022. (Reuters)
The WhatsApp logo is seen in this illustration taken, August 22, 2022. (Reuters)
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Indian Startup Head Appointed as New WhatsApp Boss

The WhatsApp logo is seen in this illustration taken, August 22, 2022. (Reuters)
The WhatsApp logo is seen in this illustration taken, August 22, 2022. (Reuters)

Meta has tapped Indian fintech founder Kunal Shah as the new head of WhatsApp, as the US tech giant seeks ways to monetize the messaging app's massive user base.

The announcement, made Monday night, was accompanied by news that Meta would also lead a $900 million funding round in Shah's consumer finance firm CRED.

"Kunal built CRED into one of India's most important technology companies," Meta chief Mark Zuckerberg said in a statement.

"He brings the kind of builder mentality and global perspective that will serve him well in running the world's biggest messaging app."

Shah, a serial entrepreneur and influential figure in India's fintech world, started CRED in 2018 after selling an earlier payments startup to Indian e-commerce giant Snapdeal for roughly $400 million.

He is also one of India's most prolific angel investors, according to data tracker Tracxn, with the local financial press often reporting how Shah agrees to seed funding pitches within minutes of hearing them.

But over the last few years, Shah has focused on building CRED -- which got its start by offering rewards to customers for timely credit card payments.

Since then, the company has aggressively expanded into offering wealth management, insurance and lending services to its 17 million users.

This experience is likely to help WhatsApp as it seeks new revenue streams that go beyond the core advertising business of Meta, which also runs Facebook and Instagram.

While India is WhatsApp's largest market -- with over half a billion users, according to 2021 government figures -- analysts say it has largely missed the chance to build an equally popular payments service.

In May, the messaging app offered businesses in India the ability to use artificial intelligence for services including responding to customers at all hours or booking appointments.

Shah acknowledged the scope for future growth, saying in a statement that the gap between "WhatsApp today and its full potential is massive".

India's startup ecosystem also celebrated Shah's appointment -- the latest example of an Indian-born executive becoming the leader of a Silicon Valley company.

Sajith Pai of Blume Ventures, an early stage Indian start-up backer said Shah was getting an "even bigger canvas to paint his bold brushstrokes in".

"Great news for everyone in the Indian startup ecosystem, and for India!"


Wikipedia Won’t Let AI Edit Articles, Co-founder Says

 The artificial intelligence AI acronym at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. (Reuters)
The artificial intelligence AI acronym at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. (Reuters)
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Wikipedia Won’t Let AI Edit Articles, Co-founder Says

 The artificial intelligence AI acronym at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. (Reuters)
The artificial intelligence AI acronym at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. (Reuters)

Wikipedia does not trust artificial intelligence enough to let it play a direct role in editing articles on its platform, co-founder Jimmy Wales told AFP on Monday.

The problem of AI "hallucinations" -- in which fabricated output is confidently presented -- has been reduced with newer AI models but remains "very, very bad", Wales said on the sidelines of a climate action week event in London.

He added, however, that AI agents could prove useful in alerting Wikipedia's community of millions of editors to certain niche news that would otherwise be missed.

"We would not let it edit directly because you can't really trust it enough," he said.

Artificial intelligence platforms, meanwhile, rely on Wikipedia's content to answer users' questions.

That has contributed to an overall growth in visitors to the site from AI bots, while human traffic has dropped eight percent.

Wales, who sits on the board of trustees at the Wikimedia Foundation, which operates Wikipedia, described the fall in human traffic as "meaningful" but "not a disaster," for the online encyclopedia, which ranks among the 10 most visited websites in the world.

The site, created in 2001, depends on donations from users so its business model does not directly rely on traffic.

Wales encouraged AI companies to "pay their fair share", because "hammering us with millions of requests costs real money," in the cost of running servers.

Wikipedia has already been "very successful" in signing agreements with several tech giants, the founder said.

"We're starting to block the ones who aren't behaving themselves, but we'll see how that goes."