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The Trump administration is seeking to join Elon Musk’s appeal against a €120 million EU fine of the billionaire’s social media platform X, the latest escalation in the transatlantic clash over Brussels’ efforts to rein in US tech companies.
The US Department of Justice on Thursday filed an application to intervene in a pair of cases brought by Musk and X seeking annulment of the penalty, which will be heard at the EU’s General Court in Luxembourg.
“The European Commission inappropriately attempted to expand its regulatory authority to reach American companies not present or operating within its jurisdiction,” assistant attorney general Brett Shumate said.
Cloud-based AI models operated by OpenAI, Anthropic, xAI, and Google suffered a rare and overlapping set of significant service interruptions over a period of hours Thursday morning.
Anthropic first reported a "partial outage" related to "elevated errors on requests to Claude Mythos 5.1, Claude Fable 5.1, and Claude Opus 5" at 9:23 am (all times Eastern). The company reported that it had "identified the cause" of the error roughly 15 minutes later, before reporting that "a fix has been deployed" and the issue was resolved by 12:16 pm. A separate incident report indicated "elevated errors on requests to Claude Sonnet 5" for a brief period just after noon.
OpenAI, meanwhile, reported "elevated errors across ChatGPT and Codex" were resulting in "degraded performance" as of 10:43 am Thursday morning. A mitigation put in place a little more than half an hour later led to the issue being marked as "resolved" by 12:55 pm.
xAI has now been accused of training Grok on child sex abuse materials (CSAM), as regulators and courts continue to probe how far the problem goes, and some Grok users have been arrested.
In a complaint filed on Wednesday, a plaintiff known as Jane Doe explained that she was preschool-age in the early 2000s when adult men repeatedly raped her to create CSAM to sell to pedophiles online. Since then, Doe’s images have been hashed by groups like the National Center for Missing and Exploited Children (NCMEC) and the Canadian Centre for Child Protection (CCCP).
For her safety, Doe has opted to receive alerts from the US Department of Justice Victim Notification System any time she may be a victim in a new criminal investigation. Although she has received countless alerts, she was shocked when the CCCP notified her that it had identified AI-generated CSAM on xAI that depicted her. This re-traumatized Doe, whose complaint alleged that messages were found on online forums “between offenders chatting about creating AI generated CSAM of Plaintiff and other similarly situated known, legacy, victims of CSAM.”
SpaceX shares dropped on Wednesday after Elon Musk’s plans for blockbuster spending to position his AI and rocket company as a data center developer spooked investors.
SpaceX surpassed analysts’ expectations in Tuesday’s debut earnings report, posting quarterly revenues of $7.8 billion, well above analysts’ estimates of $6.82 billion and up 92 percent from a year earlier. It posted a net loss of about $541 million, better than estimates of $2.12 billion.
But shares in SpaceX fell 10 percent in early trading after it reported capital expenditure of almost $16 billion on AI, double the previous quarter and well above Wall Street’s expectations. It said spending would persist at current levels for at least two more quarters.
Elon Musk’s xAI is trying to sue its way out of a Grok reckoning as arrests of Grok users accused of making child sex abuse materials (CSAM) have triggered lawsuits from kids to sue xAI to force changes to the tool to block harmful outputs.
Earlier this month, xAI started suing users who are allegedly circumventing its safeguards to generate AI CSAM, seemingly hopeful that an early court win will guarantee it’s not liable for supposedly user-generated content.
For its next move, the Grok maker pointed to that lawsuit in a complaint filed Monday, accusing Minnesota of trying to force changes to Grok and Grok Imagine by enforcing a ban on nudification technology that would guarantee that xAI was liable for the harmful outputs, as well as outputs that allegedly weren’t sexualizing people without consent. According to xAI, suing a Grok user is proof that xAI is already doing everything in its power to punish bad actors, and therefore, Grok deserves safe harbor from Minnesota’s ban.
Facing mounting pressure to acknowledge that Grok can still be used to generate non-consensual sexualized images of adults and minors, xAI filed a lawsuit Tuesday, suing the first user that Elon Musk’s firm has accused of using its chatbot to create illegal content.
The complaint targets Terry Wayne Harwood, who was arrested earlier this year for possession and distribution of child sexual abuse materials (CSAM), the South Carolina attorney’s office announced.
As xAI alleged, the company assisted in that arrest after discovering that Harwood had been using two xAI accounts for months to undress or “nudify” non-sexual images of multiple victims, including a young girl who appeared to be as young as 10.
Ahead of a July 2 deadline to submit public comments, advocates are warning the Federal Trade Commission that it must keep close watch over Elon Musk’s X and firmly reject a recent bid to end the agency’s ongoing audits of the platform’s data handling.
Last month, the FTC posted a notice explaining that X had argued that an FTC order was no longer necessary due to changes Musk had made to the platform.
The initial order came as a penalty after the FTC found that a coding error had caused then-Twitter to improperly share users’ contact information for ad targeting that had initially been submitted for two-factor authentication. Under the order, X is subjected to costly independent audits, and the FTC has authority to demand documents to ensure compliance with data privacy laws without taking additional legal action.
The Trump administration is trying to help Elon Musk's xAI Corp. beat a Clean Air Act lawsuit filed by the National Association for the Advancement of Colored People (NAACP). The US said the NAACP lawsuit threatens an xAI data center that powers Grok systems needed by the military.
The NAACP sued xAI and subsidiary MZX Tech in April, alleging that they violated the Clean Air Act by operating 27 gas turbines without an air permit in Southaven, Mississippi. The number of unpermitted turbines rose to 57 by mid-May and there were plans to install two more, the NAACP said in a June 12 filing.
"Defendants’ Colossus Gas Plant powers xAI’s nearby Colossus 2 data center, which in turn powers the chatbot 'Grok,'" the lawsuit said. The gas turbines have fueled both health concerns and noise complaints.
SpaceX will acquire AI coding tool Cursor for $60 billion in an all-stock transaction, the companies announced today. The deal is expected to close in the third quarter.
It comes just two days after SpaceX's unprecedented IPO and a few months after the merger of SpaceX and xAI, which brought a significant restructuring of xAI.
Cursor was one of the first tools to fully bake features that leverage large language models into an IDE. It's a branch of Visual Studio Code with heavy AI integration. However, incumbent platforms and bigger AI companies have since rolled out comparable features.
Critics hope to keep Elon Musk from escaping a strict data-privacy order imposed by the Federal Trade Commission (FTC) shortly before he took over Twitter.
The FTC order placed restrictions on X's data use for 20 years, while requiring regular independent audits and granting the agency authority to request documents as needed to ensure compliance.
The FTC’s action came after Twitter voluntarily disclosed that between May 2013 and September 2019, a coding error accidentally allowed phone numbers and email addresses that users shared for two-factor authentication purposes to be used for targeted advertising aimed at those same users. In a settlement that came just months before Musk's 2022 takeover, Twitter agreed to pay $150 million and to allow the FTC to monitor the platform's data-handling practices until 2042 in order to protect user privacy.
Elon Musk’s SpaceX has highlighted AI as the tentpole of the company’s future, projecting a multi-trillion-dollar market opportunity that rivals the total value of all US economic activity. But the company must first win over customers who generally favor AI models from competitors such as OpenAI and Anthropic.
SpaceX described its traditional space launch and satellite business as playing a supporting role to its fledgling AI business in financial disclosures that preceded an expected initial public offering of company stock. That stems from SpaceX having formally acquired Musk’s company xAI earlier this year—the SpaceXAI division now oversees the Grok AI models and the associated Grok chatbot previously developed by xAI.
The SpaceX S-1 filing claimed that the company has “the largest actionable total addressable market in human history” and highlighted AI as representing most of that opportunity at an estimated $26.5 trillion market—a number that comes close to rivaling US nominal GDP that stood at nearly $32 trillion in the first quarter of 2026.
Elon Musk took too long to file his lawsuit that accused OpenAI of stealing a charity, a nine-person jury unanimously decided Monday.
Musk sued OpenAI in 2024 for making a "fool" out of him after Musk donated $38 million to kick-start OpenAI as a nonprofit, only to later be blindsided when OpenAI created a for-profit arm that he felt gutted funding for the charity while enriching executives like Sam Altman and Greg Brockman.
But the jury found that Musk was aware of OpenAI's restructuring plans as early as 2021 and therefore missed the statute of limitations requiring him to bring the lawsuit within three years, The New York Times reported. Because Musk took too long to file the litigation, the jury deemed Altman and Brockman not liable for any of the claims that Musk brought against OpenAI, the NYT reported. The jury also let Microsoft off the hook, finding no liability for the OpenAI investor after Musk alleged they aided OpenAI's get-rich scheme.
OpenAI is reportedly exploring legal options after Apple's ChatGPT integration into its products didn't live up to the AI firm's expectations.
When the deal was announced, Apple likened features linking Siri to ChatGPT to its now-infamous deal embedding Google search in the Safari browser, insiders granted anonymity to discuss the "strained" partnership told Bloomberg. And the promise of that excited OpenAI, which expected the deal "could generate billions of dollars per year in subscriptions," an OpenAI executive granted anonymity to discuss the partnership told Bloomberg.
Instead, OpenAI suspects Apple intentionally failed to promote the integration and fears that the deal may have damaged the ChatGPT brand, sources said.
Elon Musk and Sam Altman had very different experiences while testifying at a trial that will determine OpenAI's future, including who runs it, where its research funding comes from, and who can profit from its boldest new technologies.
Musk—who filed the lawsuit alleging that OpenAI under its current leadership has abandoned its nonprofit mission to build AI that benefits humanity and instead serves to enrich people like Altman—spent three grueling days on the stand. At times, he lost his temper, as OpenAI's lawyer, William Savitt, tried to poke holes in Musk's claims that OpenAI executives teamed up with Microsoft to "steal a charity" after duping Musk into donating $38 million in early funding.
On Tuesday, Altman did not face such a grilling from Musk's lawyer, Steven Molo. Instead, Altman appeared jittery at first but steeled his nerves rather quickly. He hopped off the stand after about four hours of rather calmly discussing evidence that he's hoping shows that Musk's claims about OpenAI's for-profit restructuring are disingenuous. Since Musk filed the lawsuit, Altman has insisted that Musk is only after revenge, supposedly stemming from his jealousy that he was not picked as OpenAI's CEO and that his rival company, xAI, now lags behind.
This week, the Trump administration back pedaled and signed agreements with Google DeepMind, Microsoft, and xAI to run government safety checks on the firms' frontier AI models before and after their release.
Previously, Donald Trump had stubbornly cast aside the Biden-era policy, dismissing the need for voluntary safety checks as overregulation blocking unbridled innovation. Soon after taking office, he took the extra step of rebranding the US AI Safety Institute to the Center for AI Standards and Innovation (CAISI), removing "safety" from the name in a pointed jab at Joe Biden.
But after Anthropic announced that it would be too risky to release its latest Claude Mythos model—fearing that bad actors might exploit its advanced cybersecurity capabilities—Trump is suddenly concerned about AI safety. According to White House National Economic Council Director Kevin Hassett, Trump may soon issue an executive order mandating government testing of advanced AI systems prior to release, Fortune reported.
Greg Brockman never wanted to discuss his personal journal in public. But the OpenAI president has been stuck for days doing exactly that, while testifying in a trial in which Elon Musk has alleged that OpenAI abandoned its nonprofit mission to instead focus on personally enriching leaders like Brockman and Sam Altman.
"It's very painful," Brockman told OpenAI lawyer Sarah Eddy during his second day on the stand.
Although he's not "ashamed" of any of the journal entries, he considers them to be deeply personal, he said. Rather than serving as a straightforward log of his actions or feelings, the entries reflect a stream of consciousness that meanders as it explores alternate viewpoints.
Just days before the trial started, Elon Musk tried to settle his lawsuit, which alleges that under Sam Altman's direction, OpenAI abandoned its mission to serve as a nonprofit making AI to benefit humanity.
According to a Sunday court filing from OpenAI, Musk messaged OpenAI President Greg Brockman two days ahead of the trial to "gauge interest" in a possible settlement. Brockman promptly responded, suggesting that "both sides" drop their claims. But Musk refused, then appeared to grow threatening enough that the court may allow Brockman to testify on the message as evidence supposedly revealing Musk's true motives for pursuing the litigation.
"By the end of this week, you and Sam will be the most hated men in America," Musk responded to Brockman's suggestion that all claims be dropped. "If you insist, so it will be."
This week, Minnesota became the first state to pass a law banning nudification apps that make it easy to "undress" or sexualize images of real people.
Under the law, developers of websites, apps, software, or other services designed to "nudify" images risk extensive damages, including punitive damages, if a victim decides to sue. Their offending products could also be blocked in the state. Additionally, Minnesota's attorney general could impose fines up to $500,000 per fake AI nude flagged. Any fines collected would be used to fund services for victims of "sexual assault, general crime, domestic violence, and child abuse," the law stipulates.
On Wednesday, the Minnesota Senate unanimously voted 65–0 to pass the law. That vote came after the bill just as quickly passed in the House last week, the 19th News reported. Gov. Tim Walz is expected to sign the law when it reaches his desk, and if that happens, the state will start enforcing the ban this August.
Elon Musk seems tired and cranky. On Thursday, he took the stand for the third day in a four-week trial stemming from his lawsuit alleging that OpenAI abandoned its mission and should be blocked from taking the company public later this year. If Musk plays his cards right, Sam Altman could be ousted and OpenAI would remain a nonprofit forever.
But Musk stumbled at least seven times in ways that possibly put his chances at winning in jeopardy. Most notable, 1) OpenAI's lawyer managed to get him to make several concessions over his own lawyer's objections. 2) He also lost a fight to keep xAI's safety record off the table, calling his reputation as a supposed AI savior defending OpenAI's mission into question. 3) He repeatedly appeared dishonest, as OpenAI's lawyer showed documents contradicting his testimony. And he twice appeared disingenuous, 4) first when confronted with calling OpenAI's safety team "jackasses," 5) and then again when admitting that he didn't know what "safety cards" are, even though his own AI firm issues them. Perhaps most embarrassing, 6) he testified that he never loses his temper before raising his voice at OpenAI's lawyer. And finally, 7) his lawyers failed to keep his ties to Donald Trump off the record, with the judge agreeing to hear discussions that might further discredit Musk's testimony.
Since he was called as the trial's first witness, Musk has spent more than seven hours over the past two days testifying that OpenAI made a "fool" out of him. He repeatedly claimed that OpenAI executives "stole a charity" after accepting $38 million in donations. Musk insists he was conned into giving "free funding" to start a nonprofit that Altman supposedly always intended to turn into an $800 billion company—not for the benefit of humanity, but to enrich Altman and his co-conspirators.
A hotly anticipated trial starts this week, where Elon Musk will attempt to prove that OpenAI, under Sam Altman, has abandoned its mission to remain a nonprofit in order to ensure that artificial intelligence serves humanity, and not just billionaires.
Many view the lawsuit as a grudge match between Musk—who left OpenAI after serving as an early major donor and advisor—and Altman—who currently runs OpenAI, despite insiders' allegedly growing distrust in his commitment to the dominant AI firm's mission. But the lawsuit is about much more than a couple billionaires' big egos. The outcome could radically change the AI landscape, impacting how OpenAI runs and what resources the firm will have to uphold its mission.
If Musk wins, OpenAI's hopes of growing a for-profit arm that can fund the nonprofit could be dashed. Additionally, Brockman and Altman could be dropped as officers, and Altman risks losing his seat on OpenAI's board.
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