Stage Set for Elon Musk’s Court Battle with OpenAI

Elon Musk looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025. (AFP)
Elon Musk looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025. (AFP)
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Stage Set for Elon Musk’s Court Battle with OpenAI

Elon Musk looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025. (AFP)
Elon Musk looks on as US President Donald Trump speaks at the US-Saudi Investment Forum at the John F. Kennedy Center for the Performing Arts in Washington, DC on November 19, 2025. (AFP)

Elon Musk's lawsuit accusing high-profile artificial intelligence company OpenAI of betraying its non-profit mission heads for trial on Monday with the selection of jurors.

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

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

While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Sam Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole.

Court filings lay out how Altman convinced 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 millions of dollars into the lab, which he subsequently left.

However, OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology.

Microsoft has poured billions of dollars into OpenAI and its CEO Satya Nadella is among those slated to testify at the trial.

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

San Francisco-based OpenAI has countered in court filings 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 recent X post. "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 six-month moratorium on development of advanced AI.

The judge presiding over the trial will decide by mid-May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory.

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

Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input.

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

Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.



Apple Shows First Touchscreen Laptops Amid Product Blitz

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
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Apple Shows First Touchscreen Laptops Amid Product Blitz

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)

Apple CEO John Ternus unveiled the company's first touchscreen MacBooks on Wednesday, abandoning a long-held aversion to the technology as it caps a burst of product launches ahead of the holiday shopping season.

Ternus, a former Apple hardware veteran and the company's new CEO, took the stage at an Apple event in Los Angeles, part of a media blitz filled with new product launches.

He launched a folding iPhone, Duo, at Apple's Silicon Valley headquarters in September and a smart home hub in New York earlier this month. While those ‌products will test ‌new markets for Apple, the Los Angeles event ‌could ⁠rekindle an old question: should ⁠Apple put the touchscreens that it made mainstream in iPhones and iPads in its oldest product line?

Apple executives long resisted the idea, with Steve Jobs saying in 2010 that touchscreens on laptops were "ergonomically terrible" and then-CEO Tim Cook saying in 2012 that such devices would be as pleasing to users as converging a toaster and a refrigerator.

Before becoming Apple's ⁠latest CEO, Ternus argued that Apple already made a touchscreen ‌computer with its iPad lineup.

But touchscreens ‌have been widely available for more than a decade on Windows devices, ‌and with the iPhone nearing its two-decade anniversary, a new generation of ‌buyers expects screens to respond to touch.

"I believe they were always wrong on pushing back on touch, and this is the long arm of reality setting in," said Anshel Sag, an analyst at Moor Insights & Strategy. "Some things are purely ‌inevitable."

A key question for Apple is how customers will respond. The company has seen an uptick in ⁠Mac sales, ⁠but much of that growth has been among technology enthusiasts and businesses buying the machines to handle AI tasks on-device.

While Apple this week announced an upgraded base model of its MacBook Pro with a new M6 chip, Bloomberg News has reported that it plans to ship touchscreen models with its existing M5 Pro and M5 Max chips that already come in MacBook Pro models, meaning the new machines would not gain a significant performance boost over existing ones.

"The only thing people want is more memory and better processors for local models!" prominent tech commentator Jason Calacanis, the host of the All-In Podcast, wrote on X.


Data Center Next Door Divides Old Massachusetts Mill Town

This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
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Data Center Next Door Divides Old Massachusetts Mill Town

This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)

Retiree Eileen Castle hasn't been able to enjoy her backyard since a data center moved in next door in Lowell, Massachusetts, bringing noise, fumes, dust and water mist.

But a few streets away, contractor Louis Haas is grateful to Markley, the company running the facility, for redeveloping an abandoned site he says was rife with drug use.

Dubbed "the Dungeon" by some locals for the imposing black silhouette it casts over a residential neighborhood of this old milling city, those opposing views encapsulate how data centers are polarizing communities across the United States.

Republican-governed states, with their looser regulations, host most of the country's current AI build-out. But in liberal-leaning New England, some feel betrayed by their elected representatives, while others fear being left behind if the industry is curbed.

- 'Nothing but noise' -

Over the din of construction behind a spiked fence, Castle, 82, told AFP her great-great-grandparents bought the property.

But since the data center moved into a disused pasta factory a decade ago, "We have had nothing but noise.

We have dust, dirt. We have all kinds of mist" from the adjoining cooling towers, which she fears could carry Legionnaires' disease.

Noxious fumes made a long interview outdoors impossible, and she lamented that her grandchildren can no longer swim in her small pool.

"I think every once in a while that maybe I should sell my house," she says, but adds her property value has plummeted.

"The Markley Group serves more than 600 clients in Massachusetts and connects the digital infrastructure that powers our economy, our schools, and the everyday needs of our community," Markley Group CEO Jeff Markley said in a statement to AFP.

The company said its backup diesel generators run only for five minute tests each week and, thanks to abatement efforts, produce "about 44 decibels of sound, quieter than a soft conversation three feet away."

It said it tests its water twice a year for Legionnaires', and has planted 2,000 trees.

In 2015, the city council gave Markley a 20-year property and personal property tax break estimated at $77 million, the Lowell Sun newspaper reported at the time.

Enthusiasm has since cooled. In March, the council unanimously passed a 360-day moratorium on construction and expansion of commercial data centers, though Markley's 352,000-square-foot site was grandfathered in.

Residents represented by the Conservation Law Foundation (CLF) and others have sued to challenge its expansion, which included increasing the number of generators to 27, and won a temporary injunction in August.

CLF attorney Adam Reynolds told AFP that it is the "compounding effect of pollution that's really significant" in a historically industrial area.

- Community divisions -

Markley has supporters. Haas, 50, who supplies coffee to a major tech company, said the boom had been good to contractors like him.

"I'm a big liberal, I'm a Democrat. But I'm also pro-jobs and pro-economy," he told AFP.

Markley said it employs more than 100 full-time staff in Lowell, a third of them local. On top of that, over 100 unionized trades workers work on campus.

Another backer, Sarah Bibeau, a 43-year-old single mother of two who works in the defense sector, told AFP the company had been "kind and considerate," fixing roads and offering favors ranging from yard work to free Red Sox tickets.

Detractors include Jake Fortes, a 44-year-old travel agent who founded the group "Honest Future for Lowell" and whose property sits on the fence line.

"We're getting steamrolled by this company. So some of us have taken it to task," Fortes told AFP.

Like Castle, he feels let down by Democrats, including state Governor Maura Healey -- who signed a sales tax break for data centers into law but then paused new applications this year, a reversal that illustrates the party's dilemma.

Luz Marte, a 38-year-old lab technician, bought her house a year ago, without realizing the site was a data center.

"It sounds very loud, like an airplane is going to take off," she told AFP as her three-year-old son played.

Her home insurer recently moved to triple her premium, which she believes is linked to Markley buying a building even closer to her property.

"This is a home I bought for my son, to grow up, feel alive, and have a future," she said. "Now I'm doubting that idea."


OpenAI Plans to Buy Google's AI Chips, The Information Reports

FILE PHOTO: OpenAI logo and a keyboard in this illustration created on October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo and a keyboard in this illustration created on October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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OpenAI Plans to Buy Google's AI Chips, The Information Reports

FILE PHOTO: OpenAI logo and a keyboard in this illustration created on October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo and a keyboard in this illustration created on October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

OpenAI plans to buy Google's AI chips, The Information reported on Tuesday, citing a person familiar with the matter, as technology companies ramp up spending to meet surging demand for AI computing.

The reported plan would deepen ties between OpenAI and Alphabet's Google, which compete in AI products and search but have increasingly struck commercial deals. Last week, OpenAI said it would make its frontier AI models available through Google Cloud.

The report did not disclose financial terms or other details. Google did not ⁠immediately respond to ⁠a Reuters request for comment outside regular business hours, while OpenAI declined to comment.

Amazon, Microsoft and Google parent Alphabet plan to spend as much as $600 billion combined this year on AI infrastructure as investors increasingly question when such spending will translate into meaningful returns.

OpenAI is already among the ⁠largest buyers of Nvidia's graphics processing units (GPUs), which it uses to train and deploy AI models. Reuters reported in June 2025 that the ChatGPT maker had begun renting Google's AI chips.

Google's Tensor Processing Units (TPUs) have gained traction as an alternative to Nvidia's market-leading AI chips as companies seek cheaper options. Google began selling TPUs directly to some customers this year.

Alphabet will report its quarterly results later on Wednesday, with investors looking for signs that its heavy investment in ⁠AI is ⁠continuing to drive growth in its cloud business.

Deals with customers including rival Anthropic have fueled demand for Google's TPUs. Alphabet expects to begin recognizing a small percentage of revenue from TPU sales agreements by the end of this year, with the vast majority expected to be recognized in 2027, CFO Anat Ashkenazi previously said.

OpenAI in June unveiled its first custom AI chip designed with Broadcom, and said it planned to deploy the processor by the end of this year as part of a multi-generation chip program.