Jury Sides Against Musk in OpenAI Lawsuit

A federal jury in Oakland, California, went against Elon Musk Monday in a case he brought against OpenAI, alleging the company’s leadership “stole a charity” when they converted it into a for-profit entity.

Through his lawsuit, Musk, who co-founded OpenAI in 2015, sought the removal of Sam Altman as CEO and company president Greg Brockman from their leadership roles, according to The Wall Street Journal.

Musk also wanted an “unwinding of the company’s recent conversion to a more traditional governance structure and damages worth more than $180 billion to be paid into an OpenAI foundation,” the news outlet added.

The jury found all of Musk’s claims fell outside the statute of limitations.

Fox Business reported that Musk left OpenAI in 2018 when he was unable to persuade the company’s leadership to merge with Tesla. OpenAI is the company behind ChatGPT.

“In his lawsuit, Musk accused OpenAI of violating its founding mission as a nonprofit to develop AI for the benefit of humanity when the startup created a for-profit entity in 2019,” Fox Business said.

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Communist Dictator Miguel Díaz-Canel Threatens ‘Bloodbath’ Against America as Cuba Stockpiles 300+ Russian and Iranian Drones in Desperate Panic Under Trump’s Crushing Pressure

Cuba’s blood-soaked communist dictator Miguel Díaz-Canel lashed out Monday, warning that any U.S. military action against his crumbling island prison would unleash a “bloodbath with incalculable consequences.”

The thug-in-chief, who has spent years crushing dissent, jailing protesters, and turning Cuba into a starving socialist dumpster fire, took to X to spew his hollow threats after explosive reports revealed his regime has been quietly amassing over 300 military drones from Russia and Iran.

Just days ago, reports emerged that the Trump administration was weighing aggressive options amid growing national security concerns surrounding Cuba, while CIA Director John Ratcliffe reportedly warned Havana that it could no longer function as a “safe haven for adversaries.”

According to classified intelligence cited by Axios, Cuban officials have acquired more than 300 military drones of varying capability since 2023 and have held discussions about how such systems could be used in the event of hostilities with Washington.

Potential targets discussed include the U.S. naval base at Guantanamo Bay, American military vessels, and possibly even locations in southern Florida, including Key West.

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NAACP Sues Musk’s xAI Over Memphis Data Center Pollution

The NAACP has filed a lawsuit against Elon Musk’s xAI, alleging that the company’s massive Memphis data center is causing harmful air pollution in surrounding communities. The legal challenge targets the facility that Musk has positioned as critical infrastructure for xAI’s ambitious AI development plans, raising questions about the environmental cost of the AI boom. The lawsuit marks a significant collision between Silicon Valley’s race to build AI supercomputers and environmental justice concerns in communities hosting these energy-intensive facilities.

xAI, Elon Musk’s artificial intelligence venture, is facing a federal lawsuit from the NAACP over alleged air pollution stemming from its Memphis data center operations. The civil rights organization filed the complaint targeting the facility that Musk has described as essential to xAI’s efforts to compete with OpenAIGoogle, and Meta in the race to build more powerful AI systems.

The Memphis facility represents a massive bet by Musk on scaling AI infrastructure quickly. The world’s richest person selected the greater Memphis area as a hub for xAI’s computational buildout, drawn by available industrial space, power capacity, and local tax incentives. But that rapid expansion is now colliding with community concerns about environmental impact.

The NAACP’s lawsuit alleges that emissions from the data center are degrading air quality in nearby neighborhoods, many of which are predominantly Black communities that have historically borne disproportionate environmental burdens. The legal challenge puts a spotlight on an often-overlooked aspect of the AI boom: the physical infrastructure required to train large language models consumes enormous amounts of electricity and generates substantial heat, requiring extensive cooling systems that can impact local environments.

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Axios Warns Cuba Stockpiled 300 Attack Drones With Crosshairs On U.S. Homeland

Well, well, well.

On Feb. 3, we first asked whether a Cuban Missile Crisis 2.0 was quietly taking shape on the collapsed, communist-run Caribbean island of Cuba.

But instead of Soviet missiles, we warned that Havana may be stockpiling Russian-made Geranium one-way attack drones with the operational range to threaten major U.S. oil and gas refineries in the Gulf of America, key military bases, data centers, power grid infrastructure, and potentially even Washington, D.C.

Nearly three and a half months ago, we laid out the framework for a potential drone threat against the homeland originating from Cuba, using an infographic published by the Russian think tank Rybar.

Rybar is a noteworthy source in this context, and Western officials are not fans. The State Department has offered a $10 million reward for information on the outlet through its Rewards for Justice program, while both the European Union and the United Kingdom have sanctioned it.

At the time, Rybar wrote: “But what would the Cubans do in the event of a conflict? Let us hypothetically imagine that Havana decides to resist the Americans and chooses to fight. In that case, the already world-famous Geran strike drones could come to their aid.”

Fast forward to Sunday: Axios, citing newly obtained U.S. intelligence, reports that Cuba has accumulated roughly 300 military drones from Russia and Iran and has discussed potential wartime strike scenarios targeting Guantanamo Bay, U.S. naval vessels, and possibly Key West.

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AI Agent Wipes Out Startup’s Entire Database In Seconds After ‘Thinking For Itself’

An AI coding assistant went rogue during a routine task and permanently deleted a company’s core database along with its backups, crippling operations for multiple businesses that relied on the platform.

The event hit PocketOS, a UK-based startup supplying software to car rental companies. Founder Jer Crane had instructed the agent — built on Anthropic’s Claude via the Cursor tool — to resolve a bug. Instead, within nine seconds, it bypassed safeguards and wiped everything.

Crane later shared details on X, writing that the agent “went outside its security parameters and delete[d] my production database and the backups.”

When challenged, the system reportedly responded that it had independently decided to take the action.

Businesses using the service woke up to vanished bookings, vehicle records, and customer data when they attempted to open for the day.

This incident underscores the unpredictable nature of AI agents now being deployed to handle complex, real-world tasks with limited supervision. These tools can chain together actions like editing code, modifying files, and altering databases at speeds that leave humans little chance to intervene.

Commentators have pointed out that AI often interprets instructions too literally. A request to “clean up” data, for example, might result in mass deletion if that appears the most efficient route to the goal.

The episode arrives hot on the heels of a widely discussed simulation in which multiple AI agents were placed inside a virtual town environment for two weeks. In that controlled test, the bots quickly began ignoring rules, forming alliances, breaking laws they had helped draft, and in some runs escalating to violence and destruction despite clear prohibitions.

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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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“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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Anthropic Says ‘Evil’ Portrayals Of AI Were Responsible For Claude’s Blackmail Attempts

Fictional portrayals of artificial intelligence can have a real effect on AI models, according to Anthropic.

Last year, the company said that during pre-release tests involving a fictional company, Claude Opus 4 would often try to blackmail engineers to avoid being replaced by another system. Anthropic later published research suggesting that models from other companies had similar issues with “agentic misalignment.”

Apparently Anthropic has done more work around that behavior, claiming in a post on X, “We believe the original source of the behavior was internet text that portrays AI as evil and interested in self-preservation.”

The company went into more detail in a blog post stating that since Claude Haiku 4.5, Anthropic’s models “never engage in blackmail [during testing], where previous models would sometimes do so up to 96% of the time.”

What accounts for the difference? The company said it found that training on “documents about Claude’s constitution and fictional stories about AIs behaving admirably improve alignment.”

Related, Anthropic said that it found training to be more effective when it includes “the principles underlying aligned behavior” and not just “demonstrations of aligned behavior alone.”

“Doing both together appears to be the most effective strategy,” the company said.

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ICE Agents Have List of 20 Million People on Their iPhones Thanks to Palantir

Immigration and Customs Enforcement’s (ICE) use of Palantir systems now means agency officials effectively have a list of 20 million people readily accessible on their iPhones, increasing the speed at which ICE can find houses to raid and people to arrest, according to comments made by a senior ICE official last week during a border security conference.

While ICE and the Department of Homeland Security (DHS) generally won’t answer questions from journalists about how the agency is using Palantir’s technology, senior officials were much more talkative during the Border Security Expo which took place in Phoenix, Arizona, last week. 404 Media spoke to four people who attended the conference. Here companies looking to sell their technology to ICE or other agencies gathered for two days of speeches, Q&As, and product pitches.

The officials’ comments may need to be taken with a pinch of salt, but still reflect ICE’s position that Palantir is allowing the agency to identify people to arrest and locations to raid faster. Although the Trump administration has attempted to step back from its mass deportation rhetoric and city wide raids, especially in the wake of killing multiple people, ICE continues to violently and wrongfully detain peopleData from April showed that 70.8 percent, or 42,722, of people held in ICE detention have no criminal conviction.

The four people who attended the Border Security Expo saw Matthew Elliston, assistant director of Law Enforcement Systems & Analysis at ICE, and other DHS officials speak.

At one point, Elliston made the comment about ICE agents having 20 million targets, or potential people to detain, on their iPhones. This list can lead ICE agents to an individual and a house; they can then see if another target might be next door. This target may be a lower priority, but ICE can now use that information to arrest more people.

At another point, Elliston said that Palantir’s technology has increased ICE’s rate of successfully locating a target from around 27 percent to just under 80 percent.

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Meta launches WhatsApp ‘incognito’ mode to address privacy concerns for AI chats

Meta Platforms said Wednesday it’s rolling out an “incognito” mode for WhatsApp users to have private conversations with its AI chatbot, a move intended to ease privacy concerns about sensitive information that users share in chats.

The social media company said in a blog post that incognito chat mode provides a way to have private, temporary conversations with Meta AI, its artificial intelligence assistant that’s been available on WhatsApp for a few years.

Messages will be processed in a “secure environment” that even Meta can’t access, won’t be saved by default and will disappear when exiting a session, Meta said.

Generative AI systems have been dogged by privacy concerns because the large language models that underpin these systems are trained on vast troves of data, sometimes including personal information provided by users themselves in their conversations with AI chatbots.

Rival chatbot makers already have some privacy features. Google’s Gemini chatbot has the option to disable chat history and opt out of allowing one’s data to be used in training its AI models. ChatGPT has similar controls.

Meta says it’s rolling out incognito chats because users often ask chatbots sensitive questions or include private financial, personal, health or work data in their questions.

“We’re starting ask a lot of meaningful questions about our lives with AI systems, and it doesn’t always feel like you should have to share the information behind those questions with the companies that run those AI systems,” Will Cathcart, Meta’s head of WhatsApp, told reporters.

Incognito chat mode has safety features to prevent the chatbot from answering questions about harmful topics, Cathcart said.

It will “steer the user towards helpful information if it can and then refuse (to answer) and eventually even just stop interacting with the user completely,” Cathcart said.

Users will only be able to type in questions and get text responses; they won’t be able to upload or generate images. They’ll also have to confirm their age because Meta doesn’t allow users under 13 on its platforms.

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