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On the stand, Elon Musk can’t escape his own tweets

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Elon Musk came to a California federal court on Wednesday to argue that Sam Altman and his cofounders “stole a charity.” He left having admitted, under oath, that Tesla is not currently pursuing artificial general intelligence (AGI)— directly contradicting a tweet he’d posted just weeks earlier.

It was that kind of day for Musk.

The lawsuit he filed challenging the structure of OpenAI alleges Sam Altman and the other cofounders tricked him into backing a non-profit, then launched the frontier lab’s for-profit arm and let it come to dominate the organization. 

After an occasionally testy Musk testified for hours, it appears the case may come down to how much of a distinction jurors and Judge Yvonne Gonzalez Rogers make between investors in OpenAI having their potential profit capped or not. 

In Musk’s telling, when he cofounded the lab with Sam Altman, Ilya Sutskever, Greg Brockman and others, he trusted them to build AI for humanity, but over time became suspicious of their motives, and finally concluded that they were “looting the nonprofit.”

OpenAI’s lawyer William Savitt sought to complicate that story during cross-examination, trying to show that Musk had supported a variety of efforts to transition OpenAI toward for-profit status so it could raise the funds necessary to compete with firms like Google, including incorporating the AI lab into Tesla. 

Musk testified that he had discussed converting the company to a for-profit as early as 2016, and that in 2017, he had explored creating a for-profit arm of OpenAI where he would hold the majority of the equity and control the company. When those plans fell apart, he stopped making regular donations to OpenAI, though he continued to pay for its office space until 2020. 

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Musk insisted that there was a big difference between investors whose profits are capped and those whose profits are unlimited. The earliest major investments by Microsoft in OpenAI limited the software giant’s profits, but those restrictions have been rolled back over the years. Musk says those changes ultimately led him to bring this lawsuit.

Savitt tried to establish that Musk had been consulted by Altman and Shivon Zillis — his longtime adviser who is also the mother of four of his children — about subsequent efforts to raise money, and did not object. Zillis was also a member of the OpenAI board when it approved some of those transactions. 

That cross-examination extended to Tesla’s AI ambitions. Notably, Musk was asked about Tesla’s efforts to develop competing AI technologies and found himself, not for the first time, on the wrong side of one of his own posts on X. After Musk said that Tesla’s AI work was focused only on self-driving and not AGI (a term for AI systems that can perform any intellectual task that a human can), he was asked about a recent post claiming that “Tesla will be one of the companies to make AGI.” “We are not pursuing AGI right now,” Musk told the court. (Tesla shareholders may want to take note.)

Musk was also asked about a post where he claimed to have invested $100 million in OpenAI, rather than the $38 million that actually changed hands. He argued that his reputation and network made up for the disparity. 

Savitt brought up emails where Musk had backed efforts by Tesla and his brain interface company, Neuralink, to poach employees from OpenAI while he was still on that company’s board. Another conversation focused on his efforts to hire OpenAI leaders when he left the board in 2018, including Andrej Karpathy, who departed OpenAI to lead self-driving work at Tesla. Musk was also asked about a conversation where Zillis suggested Musk recruit Sutskever to Tesla. 

The most consequential thread of the day, though, may have been about harm prevention. Part of Musk’s case rests on the idea that OpenAI transition into a traditional corporation is dangerous to society because it reduces the company’s focus on safety. Savitt, in turn, had Musk admit that all AI companies, including his own, suffer from this risk. 

Judge Gonzalez Rogers halted that line of questioning, but in remarks to the lawyers after testimony concluded made clear it would resume, with limits. When Musk’s lawyers floated questions about ChatGPT’s role in the Tumbler Ridge shooting—an incident earlier this year in Canada in which a person went on a killing spree after extensive conversations with the chatbot—she made clear that she didn’t want to hear about scandals caused by AI models, but that xAI and OpenAI’s approaches to safety were fair game. 

Musk returns Thursday for another round of adversarial questioning. Also expected to testify are his family office manager, Jared Birchall; AI safety expert Stuart Russell; and OpenAI president Greg Brockman. 

Correction: An earlier version of this story misstated details of the Tumbler Ridge shooting due to an editing error. It has been updated.

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Rivian’s CFO is leaving the company

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Rivian’s chief financial officer Claire McDonough is resigning her position at the end of October, the company announced in a regulatory filing Thursday.

The company said McDonough is stepping down to “pursue a new opportunity and relocate to the East Coast to be closer to her family.” Rivian said her resignation is “not the result of any disagreement.” The company is already searching for a replacement, and vice president of finance Derek Mulvey will serve as interim CFO once McDonough leaves her post.

Her departure comes as Rivian takes on some of its biggest projects to date, including scaling up production and sales of its R2 SUV, which started shipping to customers this summer.

This story is developing…

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Bluesky adds an ‘algorithmic opt-out’ feature for those who don’t want to go viral

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After adding support for longer videos just yesterday, open social network Bluesky on Thursday introduced a new algorithmic opt-out feature that allows users to stop their posts from appearing in the app’s main Discover feed.

That algorithmic feed can currently surface any post on Bluesky’s network, as posts on the network are public by default.

To be clear, this latest change isn’t a way to make posts private — Bluesky is still working on rolling out support for private data at the protocol level. Instead, the feature simply makes a user’s public posts less discoverable to people outside their existing personal network.

The company says it created the feature because not everyone using its social media site wants to go viral. Sometimes, people just want to post for their followers without having their words exposed to larger crowds.

To opt out of having posts shown in the Discover feed, users can toggle on a new option in the app’s Privacy and Security settings. The change can take up to an hour to fully take effect, the company says.

Image Credits:Bluesky

It’s also worth noting that Bluesky’s implementation of the feature extends beyond its own app.

Instead of just being a setting that applies only within Bluesky, the preference is recorded at the account level. That means the choice travels with the user, even if they’re posting from another app that is powered by the same underlying protocol that Bluesky uses, AT Proto.

However, while those other apps have access to this information, they still have to choose to whether to respect it.

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Buried in Meta’s $18B settlement is a legal pass on kids’ data

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In addition to paying out up to $18 billion and adding child safety measures, Meta’s settlement agreement with attorneys general from 29 states includes an interesting provision: the states have agreed not to sue Meta under existing child safety laws over its retention and use of children’s data.

That permission is being granted for the limited purpose of training and testing Meta’s age-assurance model and includes guardrails, but it’s a curious policy decision to make in a case centered on child safety, and one that could be difficult to properly enforce.

As specified in the settlement agreement, Meta must develop, train, and begin testing a model designed to detect which users on Meta’s platforms are under the age of 13. This must be done within a year of the document’s effective date. (While the agreement doesn’t specify that the model has to be AI-based, Meta’s current age-detection tools are powered by AI technology.)

Under U.S. child safety law, COPPA (the Children’s Online Privacy Protection Act), typically requires that websites and apps limit the collection and retention of children’s personal information. Meta’s settlement agreement says that Meta shouldn’t need to violate COPPA to train or implement its age-assurance models. However, the agreement also says that the state AGs have agreed “fully, finally, and forever” not to bring any past, present or future COPPA claims — or claims under similar state laws — related to Meta’s use of children’s data.

The agreement makes clear that Meta can’t use data from users under age 13 for ad targeting, marketing, or algorithmic optimization.

Meta’s request for legal protection, and the state AGs’ willingness to grant it, isn’t unreasonable, says Philip N. Yannella, a partner at law firm Blank Rome and co-chair of its Privacy, Security & Data Protection practice. “These kinds of data minimization guardrails are pretty typical for privacy compliance: e.g., verifying compliance with deletion requests,” he said, though he noted a caveat: COPPA is a federal law primarily enforced by the FTC, not the states, so it’s unclear whether the FTC, which isn’t a party to this settlement, has separately agreed to the same compromise.

It can be difficult for companies to keep data technically and organizationally isolated from the rest of their systems. Yet Meta is being asked to do just that — to isolate its understanding of children’s behavior signals and other data and use it solely for detecting and removing under-13 users. Fortunately, an independent auditor will be involved in monitoring Meta’s compliance with the settlement so we don’t only have to rely on Meta’s word.

Policing this limitation could be complicated. The data could hypothetically feed into other Meta systems over time, or could raise questions over whether the data, signals, or insights derived from it are being used elsewhere within the company. What’s not clear from the agreement is what data Meta will retain for training the model, how much behavioral information that may include, or how long it will retain the data. We also don’t know how these models will change in the future as Meta meets the settlement’s terms.

Barring state AGs from raising COPPA or similar state-law claims over this use of children’s data in the future could complicate the legal avenues states can pursue if questions arise around how Meta is using the data.

That doesn’t prevent them from pursuing legal claims, notes Joshua Wurtzel, a partner at Schlam Stone & Dolan LLP. “If Meta uses the data outside those lines, the release and covenant not to sue don’t apply,” he said. But those legal disputes could still be complicated, since they’d hinge on whether Meta’s use of the data fell within the settlement’s terms.

Peter Jackson, a Data & IP attorney at Greenberg Glusker LLP, agrees, saying the carve-out here could “disincentivize future enforcement actions.”

“The Settlement Agreement’s age-assurance measures bear all the hallmarks of a heavy, and perhaps hasty, negotiation,” he says.

The decision also touches on a broader question that’s been coming up across the AI industry lately, especially as more AI agents are being developed to help consumers with various tasks. The systems often require significant access to users’ personal data to work well. Similarly, Meta may need deep insight into children’s use of social media use in order to identify which accounts belong to young people.

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