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Lawyers for Elon Musk and OpenAI make their final case in a trial that could shape AI’s future

Lawyers for Elon Musk and OpenAI made their final arguments Thursday in the landmark trial whose outcome could shape the future of artificial intelligence.

Musk, the world’s richest man, was a co-founder of OpenAI, which started in 2015 and went on to create ChatGPT. His lawsuit filed in 2024 accuses OpenAI CEO Sam Altman and his top deputy of betraying a plan to keep it as a nonprofit and shifting into a moneymaking mode behind his back.

The trial’s outcome could sway the balance of power in AI — breakthrough technology that increasingly has raised fears about its potential impacts on the economy, society and even humanity’s survival. Scrutiny of Altman’s leadership comes at a crucial time for the company and its competitors, Musk’s own AI firm and Anthropic, formed by a group of seven ex-OpenAI leaders.

All three firms are moving toward planned initial public offerings that are expected to be among the largest ever. Musk is seeking damages and changes to OpenAI’s business structure, as well as Altman’s ouster from company leadership. If Musk wins, it could derail OpenAI’s IPO plans.

Timing of lawsuit is key question
One of the jury’s tasks is to decide if Musk filed his lawsuit in time. Much of the testimony has centered on OpenAI’s early years after its founding, but there’s a relatively short timeline to allege the claims Musk is making of breach of charitable trust and unjust enrichment.

OpenAI has argued that Musk waited too long and cannot claim harms that occurred before August 2021.

The judge wrote in a court filing last month that “if the jury finds that Musk failed to file his action within the statute of limitations, it is highly likely” that she will “accept that finding and direct verdict to the defendants.”

If the jury decides the lawsuit was filed in time, it then has to decide if OpenAI had a “charitable trust” that was broken by OpenAI and its executives. Musk’s other claim means jurors must determine whether Altman, Greg Brockman — co-founder and president — and OpenAI unjustly enriched themselves at Musk’s expense.

For Microsoft, a co-defendant in the trial, the jury has to decide whether the company aided and abetted that breach. Musk invested $38 million in OpenAI during its first years, and Microsoft became OpenAI’s biggest investor after Musk’s departure.

Musk lawyer focuses on Altman’s credibility
Altman and Brockman were in the courtroom Thursday, while Musk was in China with President Donald Trump and other prominent tech executives.

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Ethanol: Not The Energy Transition We’re Looking For

With current events stirring up global energy prices, corn ethanol is again being dressed up as if it is a domestic energy source and agent of energy security. The truth is that corn ethanol is an energy sump, and that it takes more fossil fuel energy to make a gallon of corn ethanol than a gallon of gasoline. It is time to face this unpleasant truth and the other perverse outcomes achieved by twenty years of misguided policy.

In 2005 and 2007, Congress passed the Energy Policy and Energy Independence and Security Acts that together created the Renewable Fuel Standard (RFS) program. RFS had three stated objectives: to improve U.S. energy security, to reduce greenhouse gas (GHG) emissions, and to support rural economies and agricultural development. Instead, RFS has increased motor fuel prices, increased food prices, put millions of carbon-sequestering acres of land into intensive cultivation, increased GHG emissions and air pollution, and increased water consumption and pollution. As to energy security, the gallons of U.S. gasoline displaced by federal ethanol blending mandates are being exported to Mexico and other nations. The great success of RFS has been the hand of government transferring wealth from motorists to big ag corporations. It’s past time to stop the economic and chemical absurdity of forcing food to be fuel.

The government wanted biofuels bad, and it got them bad. Under Corn Belt lobbying pressure, Congress cynically waived the need for RFS to achieve actual GHG reductions for all existing corn ethanol biorefineries, plus all that could be built by the end of 2010. The bulk of the corn ethanol produced over the past 20 years and still today comes from these waivered plants. The EPA’s specious 2010 prediction that corn ethanol would achieve a 21% GHG reduction by 2022 was immediately challenged by the National Research Council for not properly counting land-use change and not realistically treating food competition and water use. This panel of experts from the National Academy of Sciences even questioned the viability of the entire concept of reducing GHG with biofuels. The most rigorous and honest estimate by a third party in testimony before Congress used the EPA’s own methodology to show that adding corn ethanol to gasoline has increased GHG emissions by 28% over the pure gasoline baseline with no trajectory to ever recover.

As to energy security, the goal was noble, but the method was irrational. Corn ethanol is critically dependent upon fossil fuels at every stage of production—tractor and truck fuel, fertilizer and pesticides, biorefinery energy and chemicals. Biofuels in general are just a way to put a green fig leaf on petroleum by inefficiently re-routing it through a farm field. While corn ethanol production has plateaued at 15-16 billion gallons for the past 10 years—not coincidentally matching the federal subsidy limit—domestic crude oil production has skyrocketed due to technological innovations that have opened up vast new geological formations to economic production. Despite a raft of federal policies and actions as negative for petroleum as they have been favorable for biofuels, the USA is once again energy self-sufficient and the world’s largest producer of crude oil and natural gas. In 2024, the USA exported 100 billion gallons of refined petroleum. Other countries are burning U.S. gasoline in their cars and producing the same CO2 emissions as if Americans were allowed to use it. The energy security objective for RFS is moot, and it was never achievable with fossil-fuel dependent corn ethanol.

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“Beneficial Bloodsucking”: Bioethicists Claim Tick-Borne Meat Allergies Are A Good Thing Because They’ll Make You Stop Eating Red Meat.

You just can’t make this stuff up.

A pair of so-called “bioethicists” from Western Michigan University published a jaw-dropping paper last year arguing that alpha-gal syndrome (AGS) — the red meat allergy spread by lone star tick bites — is actually a good thing.

They even titled the paper “Beneficial Bloodsucking.”

The bioethicists believe that “if eating meat is morally impermissible, then efforts to prevent the spread of tick-borne AGS are also morally impermissible.” They argue that AGS is actually a “moral bioenhancer if and when it motivates people to stop eating meat.” And in their twisted view of the world, fewer farting cows means a win for the climate cult.

Of course, the idea that farting cows contribute to climate change is baseless, as methane emissions by livestock have a negligible effect on Earth’s temperature. So “killing all the 1.6 billion cattle on Earth” would cause a temperature change of about −0.04 C. That’s it.

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“Send Us A Tip”: U.S. Dangles $15 Million Reward For New Intel On Iran’s Drone Network

There is little doubt that Iran’s Shahed drone threat has become a major concern, menacing surrounding Gulf states, commercial tanker traffic in the Strait of Hormuz, and U.S. bases across the region. This backdrop helps explain why the State Department’s Rewards for Justice program has now put up to $15 million for new information in connection with an already sanctioned Iranian drone-production network linked to the IRGC-Qods Force. 

Rewards for Justice has named Kimia Part Sivan Company (KIPAS), which the State Department says serves as the drone-production arm of the IRGC-Qods Force. KIPAS has tested drones, supported drone transfers to Iraq, and procured foreign-made components for Iran’s drone program.

“The IRGC has financed numerous terrorist attacks and activities globally, including via its proxies outside Iran, such as Hamas, Hizballah, and Iran-backed militia groups in Iraq. The IRGC funds its international activities – in part – through sales of military equipment, including UAVs. Proceeds from Iran’s sale of weapons and UAVs, including to buyers in Russia, also benefit the Iranian military, including the IRGC-QF,” Rewards for Justice wrote on its website.

The U.S. Treasury’s OFAC already sanctions KIPAS and appears on the Specially Designated Nationals list. OFAC designated KIPAS on October 29, 2021, for materially assisting the IRGC with its drone program.

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CIA Whistleblower: Fauci Led Multi-Agency Cover-Up of COVID Lab Leak Evidence

A CIA whistleblower today told the U.S. Senate that Dr. Anthony Fauci intentionally helped cover up evidence showing that COVID-19 emerged from a Chinese laboratory that worked with U.S.-funded scientists — some of whom were involved with gain-of-function research and coronaviruses months before the pandemic.

“Dr. Fauci’s role in the cover-up was intentional,” said James E. Erdman III, a senior operations officer for the CIA. Erdman testified during a hearing organized by the Senate Committee on Homeland Security & Governmental Affairs, chaired by Sen. Rand Paul (R-Ky.).

Erdman, who worked for the federal Director’s Initiatives Group (DIG) between March 2025 and April 2026, leading its investigation into COVID-19’s origins, said this position exposed him to evidence that Fauci, the CIA and other elements of the U.S. intelligence community actively covered up evidence of a COVID-19 lab leak.

He said a “small circle” of scientists was involved in the cover-up and helped promote the theory that the SARS-CoV-2 virus had a zoonotic — or natural — origin. Fauci then referred investigators from various U.S. intelligence agencies leading an interagency probe into the virus’s origins to the same scientists, Erdman said.

Erdman said the scientists were linked to gain-of-function research, which increases the virulence or transmissibility of viruses and is used in vaccine development.

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UCLA Medical School Accused Of Racial Discrimination In Defiance Of Supreme Court

We previously discussed a disturbing account of how medical students at the David Geffen School of Medicine at the University of California, Los Angeles (UCLA) were subjected to a bizarre class where one of the university’s “activists-in-residence” showered them with anti-Semitic postings and racist rhetoric. Now, the Justice Department has found that the university engaged in systemic racial discrimination in the admission of medical students. Given the university’s history, it is hardly surprising, but it remains unclear how the university will respond to the findings.

The DOJ’s Civil Rights Division announced that the medical school violated Title VI of the 1964 Civil Rights Act by giving preferential treatment to black and Hispanic applicants.

The investigation followed the Supreme Court’s 2023 ruling in Students for Fair Admissions v. Harvard, which barred race-based admissions.

In the DOJ’s “Findings” letter, black and Hispanic admits in some years averaged MCAT scores in the 66th to 72nd percentile, while Asian and white students averaged scores in the mid-to-high 80th percentiles.

Assistant Attorney General Harmeet Dhillon indicated that the Justice Department found that UCLA medical school leadership discussed how to achieve “diversity goals” and other strategies after the Supreme Court ruling.

After the historic ruling in the Harvard and North Carolina cases barring the use of racial criteria in admissions, administrators and academics admitted what they had long denied: that race was having a major role in admissions.

In anticipation of the rulings, many schools, including the California system, eliminated standardized testing. Without objective scores, there is less ability to identify the use of non-scholastic criteria for admissions. By eliminating or devaluing standardized testing, admissions offices can use the more subjective essays to achieve the same race-based results.

I wrote about how administrators were already preparing to use essays as an indirect way to achieve the same identifications and preferences in admissions.

The essay “prompts” encourage students to effectively self-identify by discussing incidents where they faced discrimination.

The shift to the essays would allow the removal of high-scoring students while elevating those with lower scores. That prediction was quickly confirmed, as top candidates were rejected based on their essays, while schools used essays to flag their backgrounds.

Faculty and administrators at UCLA and other schools remain adamant in using race-based admissions. They simply justify discrimination as equity and diversity. 

This is the same school that required medical students to sit through a raving lecture from “a formerly unhoused and incarcerated poverty scholar who prefers to keep their face covered in public.”

In her two-hour lecture, Gray-Garcia dismissed modern medicine as “white science” and told the medical students to engage in a prayer to “mama Earth.” Students were expected to pray and affirm that “Mama Earth was never meant to be bought, sold, pimped or played.”

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FEDS FOIL CHILLING ISIS PLOT on Michigan U.S. Army Base Just Hours Before Mass Shooting—Planned by 19-Year-Old Somali-American Ex-National Guard Soldier

A 19-year-old former member of the Michigan Army National Guard has been charged with planning a horrific mass shooting attack on a major U.S. military facility right here in Michigan, all in the name of ISIS.

According to the U.S. Department of Justice, Ammar Abdulmajid-Mohamed Said of Melvindale, Michigan was arrested on May 13, 2025 — the very day he planned to carry out the attack — after launching a drone near the U.S. Army’s Tank-Automotive & Armaments Command (TACOM) facility at the Detroit Arsenal in Warren, Michigan.

Said faces federal charges of attempting to provide material support to a foreign terrorist organization (ISIS) and distributing information related to a destructive device. If convicted, he faces up to 20 years in prison on each count.

Court documents reveal the chilling details of the plot.

Said allegedly provided undercover agents, whom he believed were fellow ISIS supporters, with armor-piercing ammunition and high-capacity magazines. He conducted drone reconnaissance flights over the TACOM base, trained the undercover officers on firearms and how to construct Molotov cocktails, and mapped out entry points while identifying specific buildings to target for maximum casualties. Videos included in the complaint allegedly show Said pledging loyalty to ISIS leadership while standing in front of an ISIS flag.

Said first began communicating with the undercover officers in June 2024, openly expressing his desire to carry out “violent jihad” either overseas or here in the United States. The plot against the Warren military base ramped up in November 2024. On the morning of the planned attack, Said traveled to the area near TACOM, launched his drone in support of the operation, and was taken into custody by federal agents.

“This defendant is charged with planning a deadly attack on a U.S. military base here at home for ISIS,” said Sue J. Bai, head of the Justice Department’s National Security Division. “Thanks to the tireless efforts of law enforcement, we foiled the attack before lives were lost.”

U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan added, “Helping ISIS or any other terrorist organization prepare or carry out acts of violence is not only a reprehensible crime — it is a threat to our entire nation and way of life.”

Said enlisted in the Michigan Army National Guard in September 2022, completed basic training, and was discharged in December 2024 for failing to meet initial entry requirements.

This is yet another terrifying example of the deadly consequences of Joe Biden’s wide-open southern border and his administration’s catastrophic failure to vet the hundreds of thousands of military-age men from terror-prone regions who poured into America over the last four years.

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Was Fed Chair Warsh Chosen For A Controlled Demolition?

Supposed monetary hawk Kevin Warsh, who was officially sworn in as the 17th Fed Chair earlier this week, will now face the dilemma of staying true to his hawkish roots or caving to his unabashed high-rate hating President. That is, of course, unless there’s a deeper plan at play…

Last night, Cornell professor Dave Collum hosted Michael Lebowitz and Stephanie Pomboy for a deep dived into ‘How F***ed Markets Are’ where Dave posited the theory that Warsh man be a demolition man for a managed crash.

Collum and co. also talked about the insane disconnect between the economy and financial markets… and why Pomboy has increasingly abandoned financial assets altogether in favor of gold and hard assets.

Dave’s Fed truther theory and other highlights from last night below:

Retail Retards

Collum warned that modern markets have become completely detached from traditional valuation discipline… but that reality will eventually set in.

“It’s my assertion that probably greater than 50% of the investors in the world don’t understand what valuation means… Everything’s a Bitcoin price now.”

Standard valuation metrics have compounded roughly 4% annually for 45 years and are now firmly in “the nosebleed section,” yet “nobody cares,” per Collum.

Classic warning indicators are now near historic extremes. Lebowitz noted that “CAPE is near its all-time high. It’s above the 1929 level and just short of the dot-com level.” He argued the bigger danger may actually be hiding in supposedly “safe” stocks like Walmart and Costco.

Pomboy has opted out of the mania altogether. How? Real assets.

“Markets can go on longer than you can remain solvent betting against it…. I finally just sort of resigned myself to buying gold… At the end of the day I have been outperforming those markets by only gold.”

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Pirro Threatens to Charge Parents of ‘Youths’ who Violate Curfew Amid Disturbing Trend of “Teen Takeovers” 

US Attorney for DC Jeanine Pirro on Friday announced her office will be charging parents of ‘youths’ who violate curfew amid a disturbing trend of ‘teen takeovers.

Mobs of teens are rampaging through the streets of DC and other cities across the country, terrifying residents and causing major damage.

Pirro says she’s going after the parents.

Jeanine Pirro said she will charge the parents with the local DC statute 22-811.

“Starting today, my office will aggressively prosecute parents under D.C.’s curfew law, and the specific statute that we will use is a violation of D.C. Code 22-811, and it involves contributing to the delinquency of a minor,” she said.

“This statute makes it unlawful for an adult to enable, facilitate, or permit a minor to engage in delinquent acts.”

“And if you drop your kid off, and you fail to supervise them, or you let them skip school to join the chaos, you are going to face fines, court-ordered classes, and possible jail time!”

“Penalties can be imposed even if the juvenile minor is not prosecuted,” she said.

“So a parent commits this offense if they permit, or by insufficient control, allow a minor under the age of 18 to violate a curfew.”

“Law-abiding taxpayers should no longer have to pay for parental neglect,” Pirro said on Friday during a press conference.

“Parents, do your job. Or we will do ours,” she said.

“The penalty is up to six months imprisonment, so if the evidence shows the parent knew, or should have known, or permitted, or failed to prevent participation, we’re going to charge them,” she said.

“Now, we’re going to be asking the Metropolitan Police Department to issue parental citations whenever a minor’s curfew violation is tied to a takeover.”

“We will seek to pair these citations with mandatory parental notification and court-mandated parental classes or family counseling as a condition of the resolution of the case.”

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Musical Chairs

Yesterday, Trump spoke with Xi in Beijing. While markets kept a watchful eye on any headlines about the war in Iran, palates were left dry as only tepid announcements dripped out, such as that China “offered help” on Iran and “pledged not to send weapons.” What they did not manage to evade was a conversation about Taiwan. During the two and a half hour conversation with Trump, Xi underscored that US intervention in Taiwan could trigger a “highly dangerous situation.” While Rubio underscored that the topic of American arms sales to Taiwan wasn’t a major focus of discussion, it likely will be when Congress’ approved USD 14bn arms sale to Taiwan lands on Trump’s desk, and again when Xi visits the White House in September.

While the US and China are stalled in the geopolitical arena, the financial scene seems to be bearing fruit. Treasury secretary Scott Bessent announced that conversations around the creation of a “Board of Investment” were underway, and that tariffs would be reduced or removed for products that the US doesn’t plan on reshoring, like fireworks. China also agreed to buy 200 “big” Boeing planes, according to Trump, which would mark the first significant Chinese purchase of Boeing jets since the last time Trump went to Beijing in 2017. China also hinted that they may intend to buy more US energy to compensate for flows disrupted by the war.

Though Iran didn’t appear to produce much in the way of headlines, the Strait is still closed, and Brent crude oil is still trading above $100/bbl at $106/bbl at the time of writing. According to Reuters, the IRGC announced that some 30 vessels have crossed the Strait since Wednesday (with Tehran’s permission), and transit is being permitted for “some” Chinese vessels.

US Treasury yields closed higher after hotter-than-expected trade price data for April printed, with import prices up 1.9% m/m and export prices up 3.3% m/m. These were the fastest monthly price index increases since early 2022 for both. However, the import price index, excluding petroleum, registered more modest gains of only 0.7% which, while hotter than the expected print of 0.5%, is cooler than levels seen as recently as January and February of this year. USD was the best performing G10 currency yesterday on a one day view. Yesterday afternoon saw a surge in yields across the board, absent a clear driver in sparse news flow, as the 2 year closed 3bp higher, above 4.00%.

Warsh was recently voted in as Fed Chair by the US Senate, but this creates a game of grown up musical chairs for the Board of Governors. There can only be seven Governors on the FOMC, and with Powell not giving his seat up just yet, if no one steps down, we have eight. However, Stephen Miran has announced that he would be stepping down as Governor and has submitted his resignation, effective upon Warsh being sworn in. Miran also assured that while he believes it’s important that the Fed only have one chair, Powell could help Warsh through the transition.

Bloomberg’s Anna Wong hit Powell with an uncomfortable reality check: “if Powell’s Fed had been more active in getting its own house in order following a massive miss on inflation, outsiders would have had less motive and opportunity to attack.” Powell’s Fed was criticized for its slow response to the inflationary pressures which led to “the Great Inflation.” Wong summarizes that “[Powell’s] limited push for accountability, such as a thorough review of Fed’s forecasting framework, opened the door to the nomination of a more aggressive outside like Warsh, who has vowed to ‘break some heads’ at the Fed. The moral of story: Get your own house in order or someone will do it for you.”

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