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"content": "\u003cp>During the second day of the \u003ca href=\"https://www.kqed.org/news/12081603/elon-musk-takes-aim-at-openai-as-trial-begins-its-not-ok-to-steal-a-charity\">landmark trial between Sam Altman and Elon Musk\u003c/a>, the Tesla founder told the Oakland courthouse that he was a “fool” to fund OpenAI through its early years.\u003c/p>\n\u003cp>Testifying in the lawsuit he brought against Altman, which claims the company’s creators betrayed their mission for profits, Musk suggested Wednesday that Altman and cofounder Greg Brockman wanted to “have your cake and eat it too.”\u003c/p>\n\u003cp>“If you go nonprofit, you’ve got a sort of moral high ground,” he testified.\u003c/p>\n\u003cp>Musk’s testimony tells one version of founding OpenAI: that he, fearing the dangers of artificial intelligence, pursued its development with the goal of benefiting the common good, alongside, he thought, like-minded collaborators. But behind the scenes, those cofounders engaged in a “long con” to profit at his expense.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“What they really wanted was a for-profit, where they could make as much money as possible,” Musk said later.\u003c/p>\n\u003cp>Whether the jury believes him will be integral to the decision they’re tasked with making, as they determine whether OpenAI breached charitable trust and engaged in unjust enrichment as it evolved from a nonprofit organization to its current $730 billion iteration.\u003c/p>\n\u003cp>Under cross-examination, Altman’s attorney, William Savitt, questioned Musk’s story and credibility as an altruistic benefactor. He pointed to an email Musk sent to Altman in 2015, which said it would be “probably better” if OpenAI operated as a for-profit company with a parallel nonprofit.\u003c/p>\n\u003cfigure id=\"attachment_12081637\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081637\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">OpenAI’s lead counsel, William Savitt, presents opening statements in the trial in which Elon Musk claims that Sam Altman and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In another email sent to colleagues at his neurotechnology company, Neuralink, Musk said that Google’s AI development was moving very fast, and that he was concerned OpenAI was not on the path to catch up.\u003c/p>\n\u003cp>“Setting it up as a nonprofit might, in hindsight, have been the wrong move,” Musk wrote. “Sense of urgency is not as high.”\u003c/p>\n\u003cp>Savitt asked if, in 2017, Musk suggested at a party that OpenAI should create a for-profit. He said it was just after the company’s AI model had beaten \u003cem>Defense of the Ancients, \u003c/em>a battle video game, which was a pivotal moment in the development process.\u003c/p>\n\u003cp>Musk said he didn’t remember giving instructions to create a for-profit at the time.\u003c/p>\n\u003cp>“This was nine years ago,” he said.[aside postID=news_12081603 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-02-KQED.jpg']Savitt said Tuesday that in 2017, OpenAI executives, including Musk, were in the midst of conversations about whether and how to transition the company to a for-profit structure.\u003c/p>\n\u003cp>According to OpenAI’s court filings, as early as summer 2017, Musk had insisted on holding a majority equity stake in any for-profit entity, serving as CEO and controlling its board of directors.\u003c/p>\n\u003cp>Pressed by Savitt about what Musk meant by “expressing what you said about control,” the Tesla founder and billionaire said: “I try to be as literal as possible.”\u003c/p>\n\u003cp>In the fall of 2017, Brockman and Ilya Sutskever, another top OpenAI executive, emailed Musk with concerns about the for-profit structure he proposed. Shortly thereafter, discussions over the structure collapsed, and Musk stopped making significant quarterly funding contributions, OpenAI alleges.\u003c/p>\n\u003cp>He left the company less than six months later.\u003c/p>\n\u003cp>Savitt framed the breakdown and Musk’s exit as a result of his not getting control of the for-profit, and the other executives’ focus on maintaining its philanthropic mission. He suggested that Musk tried to pressure them to accept his terms by pausing the majority of his financial backing.\u003c/p>\n\u003cp>“You knew that would create financial pressure for the organization,” Savitt said.\u003c/p>\n\u003cfigure id=\"attachment_12081686\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081686\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Steve Molo, Elon Musk’s attorney, presents opening statements in the trial in which Elon Musk (center-right) claims that Sam Altman (right) and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Musk denied that was his intention. Instead, he alleged that Altman convinced Brockman and the others to go against his proposal, and that their concern over his desire for control was disingenuous.\u003c/p>\n\u003cp>“I’m not going to fund something if I don’t have confidence in the people,” he said.\u003c/p>\n\u003cp>When asked whether he proposed that OpenAI be folded into Tesla, Musk said: “There were a lot of ideas that were brainstormed at the time.”\u003c/p>\n\u003cp>In an email, he wrote that doing so would be the “only path that could even hope to hold a candle to Google.”\u003c/p>\n\u003cp>Musk said he left OpenAI in February 2018 because he was focused on Tesla’s survival, and believed that OpenAI intended to continue operating as a nonprofit.\u003c/p>\n\u003cp>Savitt also laid out a series of exchanges between Musk and Altman, in which the OpenAI CEO kept him apprised of the company’s corporate structure. He said in March 2018, Musk responded to an email that noted the creation of a for-profit entity of OpenAI with “OK by me,” and was sent a term sheet for OpenAI LP that summer.[aside postID=news_12081290 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260422-ALTMANMUSK-MD-01-KQED.jpg']Savitt also said Altman emailed Musk a draft of the company’s public announcement of its for-profit arm in March 2019, and texted him asking if he had time to talk about Microsoft’s plan to invest in OpenAI. Musk never responded to that text, according to Savitt.\u003c/p>\n\u003cp>Musk said he was busy with his other companies in 2018, and while he was aware that it had added a for-profit entity, he hadn’t lost complete faith in the company. While he’d suspended quarterly $5 million funding contributions prior to his departure, he continued to make some contributions until 2020.\u003c/p>\n\u003cp>He said that he’d gone from enthusiastically supportive to uncertain about OpenAI’s mission, but that he’d fully suspended his contributions when he felt that the company was “deliberately not a nonprofit.”\u003c/p>\n\u003cp>When asked why he waited until 2024 to bring the suit, Musk said that’s when he determined OpenAI breached charitable trust.\u003c/p>\n\u003cp>“Thinking that someone might steal your car is not the same as [if] someone has stolen your car,” Musk said. He said after enlisting his attorney, Alex Spiro, to investigate, he heard from him in 2023 that “the car had been stolen.”\u003c/p>\n\u003cp>“I would have sued sooner if I thought the charity had been stolen sooner,” Musk continued.\u003c/p>\n\u003cp>The trial and Musk’s testimony are expected to continue on Thursday.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>During the second day of the \u003ca href=\"https://www.kqed.org/news/12081603/elon-musk-takes-aim-at-openai-as-trial-begins-its-not-ok-to-steal-a-charity\">landmark trial between Sam Altman and Elon Musk\u003c/a>, the Tesla founder told the Oakland courthouse that he was a “fool” to fund OpenAI through its early years.\u003c/p>\n\u003cp>Testifying in the lawsuit he brought against Altman, which claims the company’s creators betrayed their mission for profits, Musk suggested Wednesday that Altman and cofounder Greg Brockman wanted to “have your cake and eat it too.”\u003c/p>\n\u003cp>“If you go nonprofit, you’ve got a sort of moral high ground,” he testified.\u003c/p>\n\u003cp>Musk’s testimony tells one version of founding OpenAI: that he, fearing the dangers of artificial intelligence, pursued its development with the goal of benefiting the common good, alongside, he thought, like-minded collaborators. But behind the scenes, those cofounders engaged in a “long con” to profit at his expense.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“What they really wanted was a for-profit, where they could make as much money as possible,” Musk said later.\u003c/p>\n\u003cp>Whether the jury believes him will be integral to the decision they’re tasked with making, as they determine whether OpenAI breached charitable trust and engaged in unjust enrichment as it evolved from a nonprofit organization to its current $730 billion iteration.\u003c/p>\n\u003cp>Under cross-examination, Altman’s attorney, William Savitt, questioned Musk’s story and credibility as an altruistic benefactor. He pointed to an email Musk sent to Altman in 2015, which said it would be “probably better” if OpenAI operated as a for-profit company with a parallel nonprofit.\u003c/p>\n\u003cfigure id=\"attachment_12081637\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081637\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-01-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">OpenAI’s lead counsel, William Savitt, presents opening statements in the trial in which Elon Musk claims that Sam Altman and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In another email sent to colleagues at his neurotechnology company, Neuralink, Musk said that Google’s AI development was moving very fast, and that he was concerned OpenAI was not on the path to catch up.\u003c/p>\n\u003cp>“Setting it up as a nonprofit might, in hindsight, have been the wrong move,” Musk wrote. “Sense of urgency is not as high.”\u003c/p>\n\u003cp>Savitt asked if, in 2017, Musk suggested at a party that OpenAI should create a for-profit. He said it was just after the company’s AI model had beaten \u003cem>Defense of the Ancients, \u003c/em>a battle video game, which was a pivotal moment in the development process.\u003c/p>\n\u003cp>Musk said he didn’t remember giving instructions to create a for-profit at the time.\u003c/p>\n\u003cp>“This was nine years ago,” he said.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Savitt said Tuesday that in 2017, OpenAI executives, including Musk, were in the midst of conversations about whether and how to transition the company to a for-profit structure.\u003c/p>\n\u003cp>According to OpenAI’s court filings, as early as summer 2017, Musk had insisted on holding a majority equity stake in any for-profit entity, serving as CEO and controlling its board of directors.\u003c/p>\n\u003cp>Pressed by Savitt about what Musk meant by “expressing what you said about control,” the Tesla founder and billionaire said: “I try to be as literal as possible.”\u003c/p>\n\u003cp>In the fall of 2017, Brockman and Ilya Sutskever, another top OpenAI executive, emailed Musk with concerns about the for-profit structure he proposed. Shortly thereafter, discussions over the structure collapsed, and Musk stopped making significant quarterly funding contributions, OpenAI alleges.\u003c/p>\n\u003cp>He left the company less than six months later.\u003c/p>\n\u003cp>Savitt framed the breakdown and Musk’s exit as a result of his not getting control of the for-profit, and the other executives’ focus on maintaining its philanthropic mission. He suggested that Musk tried to pressure them to accept his terms by pausing the majority of his financial backing.\u003c/p>\n\u003cp>“You knew that would create financial pressure for the organization,” Savitt said.\u003c/p>\n\u003cfigure id=\"attachment_12081686\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081686\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Steve Molo, Elon Musk’s attorney, presents opening statements in the trial in which Elon Musk (center-right) claims that Sam Altman (right) and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Musk denied that was his intention. Instead, he alleged that Altman convinced Brockman and the others to go against his proposal, and that their concern over his desire for control was disingenuous.\u003c/p>\n\u003cp>“I’m not going to fund something if I don’t have confidence in the people,” he said.\u003c/p>\n\u003cp>When asked whether he proposed that OpenAI be folded into Tesla, Musk said: “There were a lot of ideas that were brainstormed at the time.”\u003c/p>\n\u003cp>In an email, he wrote that doing so would be the “only path that could even hope to hold a candle to Google.”\u003c/p>\n\u003cp>Musk said he left OpenAI in February 2018 because he was focused on Tesla’s survival, and believed that OpenAI intended to continue operating as a nonprofit.\u003c/p>\n\u003cp>Savitt also laid out a series of exchanges between Musk and Altman, in which the OpenAI CEO kept him apprised of the company’s corporate structure. He said in March 2018, Musk responded to an email that noted the creation of a for-profit entity of OpenAI with “OK by me,” and was sent a term sheet for OpenAI LP that summer.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Savitt also said Altman emailed Musk a draft of the company’s public announcement of its for-profit arm in March 2019, and texted him asking if he had time to talk about Microsoft’s plan to invest in OpenAI. Musk never responded to that text, according to Savitt.\u003c/p>\n\u003cp>Musk said he was busy with his other companies in 2018, and while he was aware that it had added a for-profit entity, he hadn’t lost complete faith in the company. While he’d suspended quarterly $5 million funding contributions prior to his departure, he continued to make some contributions until 2020.\u003c/p>\n\u003cp>He said that he’d gone from enthusiastically supportive to uncertain about OpenAI’s mission, but that he’d fully suspended his contributions when he felt that the company was “deliberately not a nonprofit.”\u003c/p>\n\u003cp>When asked why he waited until 2024 to bring the suit, Musk said that’s when he determined OpenAI breached charitable trust.\u003c/p>\n\u003cp>“Thinking that someone might steal your car is not the same as [if] someone has stolen your car,” Musk said. He said after enlisting his attorney, Alex Spiro, to investigate, he heard from him in 2023 that “the car had been stolen.”\u003c/p>\n\u003cp>“I would have sued sooner if I thought the charity had been stolen sooner,” Musk continued.\u003c/p>\n\u003cp>The trial and Musk’s testimony are expected to continue on Thursday.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"slug": "elon-musk-takes-aim-at-openai-as-trial-begins-its-not-ok-to-steal-a-charity",
"title": "Elon Musk Takes Aim at OpenAI as Trial Begins: ‘It’s Not OK to Steal a Charity’",
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"headTitle": "Elon Musk Takes Aim at OpenAI as Trial Begins: ‘It’s Not OK to Steal a Charity’ | KQED",
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"content": "\u003cp>In a federal courtroom in Oakland on Tuesday, attorneys for tech elites Sam Altman and Elon Musk set the stage for a \u003ca href=\"https://www.kqed.org/news/12081290/how-to-unscramble-an-omelet-in-silicon-valley-the-musk-v-altman-trial-that-will-try\">landmark case to determine whether OpenAI\u003c/a>, one of the most powerful artificial intelligence companies in the world, was founded on a lie.\u003c/p>\n\u003cp>At issue is whether the company’s stated mission — to lead AI development to benefit the common good — was authentic or a deceptive pitch designed to attract talent and investment. \u003ca href=\"https://www.kqed.org/forum/2010101912956/its-elon-musks-world-were-just-living-in-it\">Musk\u003c/a> alleges that co-founders Altman and Greg Brockman, who remains Altman’s second-in-command, participated in a “long con” to enrich themselves at his expense, after the three co-founded OpenAI as a nonprofit in 2015.\u003c/p>\n\u003cp>“They’re going to make this lawsuit very complicated, but it’s very simple,” Musk said of OpenAI on the stand on Tuesday afternoon. “It’s not OK to steal a charity.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>He departed the company after a falling out and \u003ca href=\"https://www.courtlistener.com/docket/69013420/musk-v-altman/\">sued the company\u003c/a> in 2024, alleging that OpenAI had breached charitable trust by restructuring as a for-profit company, now valued at more than $800 billion.\u003c/p>\n\u003cp>But Altman’s attorneys called the Tesla CEO’s behavior “a tale of two Musks,” shifting from pushing for OpenAI to become a for-profit company under his control, to caring about its nonprofit status only after launching competitor xAI in 2023. They argue OpenAI’s decision to adopt a for-profit structure was integral to its survival.\u003c/p>\n\u003cp>“We’re here because Mr. Musk didn’t get his way,” William Savitt, Altman’s lead attorney, said Tuesday. “And because he’s a competitor, he’ll do anything he can to attack OpenAI.”\u003c/p>\n\u003cfigure id=\"attachment_12081686\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081686\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Steve Molo, Elon Musk’s attorney, presents opening statements in the trial in which Elon Musk (center-right) claims that Sam Altman (right) and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Steven Molo, Musk’s counsel, told the jury that when Musk, Altman and Brockman set out to found an AI nonprofit, their goals were to develop the technology safely and for the \u003ca href=\"https://www.kqed.org/news/12034916/about-benefiting-humanity-calls-grow-for-openai-to-make-good-on-its-promises\">benefit of humanity\u003c/a>.\u003c/p>\n\u003cp>“It wasn’t a technology to get rich,” he said.\u003c/p>\n\u003cp>After operating as a strict nonprofit for years, OpenAI added a for-profit arm in 2019, which executives said was necessary to obtain the funding needed to develop artificial general intelligence — a more advanced AI technology that surpasses human intelligence, according to court filings.\u003c/p>\n\u003cp>In early conversations about how the for-profit entity would work, Molo said, the structure was likened to a museum gift shop whose revenue funds the institution’s galleries and operations. Brockman and Altman reassured Musk that they were still committed to the nonprofit structure, he said.\u003c/p>\n\u003cp>But behind the scenes, Molo alleges that the other co-founders had more lucrative desires.[aside postID=news_12081290 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260422-ALTMANMUSK-MD-01-KQED.jpg']In court filings, he cited a journal in which Brockman wrote that “it would be nice to be making the billions … we’ve been thinking that maybe we should just flip to a for-profit. making the money for us sounds great and all.”\u003c/p>\n\u003cp>Brockman also wrote that he and another top OpenAI executive, Ilya Sutskever, “cannot say that we are committed to the non-profit. don’t wanna say that we’re committed. If three months later we’re doing B-Corp [a certification for for-profit corporations with social and environmental missions], then it was a lie.”\u003c/p>\n\u003cp>Years later, after Musk had departed OpenAI, the company was “no longer operating for the good of humanity,” Molo said.\u003c/p>\n\u003cp>“The museum store sold the Picassos,” he said.\u003c/p>\n\u003cp>Musk’s lawsuit claims OpenAI breached charitable trust and alleges unjust enrichment, which means that one party unfairly benefits at the expense of another. He also accuses Microsoft, which is the company’s largest financial backer and until this week held the exclusive rights to license and sell its technology, of aiding and abetting OpenAI’s breach of charitable trust.\u003c/p>\n\u003cp>OpenAI’s defense, meanwhile, alleges that Musk’s suit is less motivated by a desire to do good than it is by vengeance for his former colleagues, whose company is now eyeing an initial public offering valued at up to $1 trillion.\u003c/p>\n\u003cp>“Musk sat on his claims for years,” Savitt said. “He knew everything that was happening when it was happening. My clients had the nerve to go out and succeed without him.”\u003c/p>\n\u003cp>He also pointed out that Musk launched xAI a year before bringing the lawsuit, which would make OpenAI his competitor.\u003c/p>\n\u003cfigure id=\"attachment_12081681\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081681\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Representing Microsoft, Russell Coan (left) speaks as Elon Musk watches in the trial in which Elon Musk claims that Sam Altman and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Savitt pointed to moments early in OpenAI’s development, when Musk suggested that it would be “probably better” for the company to operate as a “standard C corp[oration] with a parallel nonprofit.” He initially promised to cover the balance of the funding it needed, but reneged when he didn’t get to control the company, Savitt told the jury.\u003c/p>\n\u003cp>Musk was in the middle of the conversations about pivoting from a nonprofit, Savitt said. As early as the summer of 2017, he insisted on holding a majority equity stake in any for-profit entity, as well as controlling its board of directors and serving as CEO, according to OpenAI’s court filings.\u003c/p>\n\u003cp>In the fall of that year, after Brockman and Sutskever emailed Musk with concerns about the for-profit structure he proposed, the discussions collapsed, OpenAI alleges. After that, Musk stopped making significant quarterly funding contributions, and he left the company less than six months later.\u003c/p>\n\u003cp>Around that time, Brockman and Altman moved to pursue a for-profit arm — a decision their attorneys say they told Musk about prior to his departure from the board.[aside postID=news_12079896 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/Daniel-Moreno-Gama-AP.jpg']Savitt said in court that Musk had given the company less than 4% of the funding he’d promised. While OpenAI had gotten contributions from other donors, he said, those “kept the lights on, but it wasn’t nearly enough to stay on the cutting edge.”\u003c/p>\n\u003cp>“They needed to get the money from somewhere, or else the project collapsed,” he said, alleging that donors weren’t willing to make the billion-dollar contributions that OpenAI needed without an expectation of return.\u003c/p>\n\u003cp>Since OpenAI established its first for-profit subsidiary, which capped investor returns at 100 times their investment, its business has exploded. It’s now a public benefit corporation, required to consider its mission statement but not necessarily to prioritize it.\u003c/p>\n\u003cp>Over the years, its mission statement has been changed several times. In 2023, according to the nonprofit parent organization’s \u003ca href=\"https://cdn.theconversation.com/static_files/files/4099/2023-IRS990-OpenAI.pdf?1770819990\">IRS disclosure form\u003c/a>, it sought to build AI that “safely benefits humanity, unconstrained by a need to generate financial return.” But last year, \u003ca href=\"https://app.candid.org/profile/9571629/openai-81-0861541?activeTab=7\">that same form\u003c/a> included a shorter mission statement — one that removed the word “safely” and any mention of finances, Tufts University business professor Alnoor Ebrahim \u003ca href=\"https://theconversation.com/openai-has-deleted-the-word-safely-from-its-mission-and-its-new-structure-is-a-test-for-whether-ai-serves-society-or-shareholders-274467\">wrote in \u003cem>The Conversation\u003c/em>\u003c/a>, an academic news outlet.\u003c/p>\n\u003cp>Former OpenAI employees have left and started a competitor, Anthropic, citing concerns over safety and the company’s direction. In 2023, OpenAI executives and board members, including Sutskever, staged a coup to briefly oust Altman as CEO. They said there’d been a breakdown in trust between him and the board, and that Altman engaged in a pattern of deception and wasn’t “consistently candid in his communications.”\u003c/p>\n\u003cp>Whether Altman’s and OpenAI’s pitch to develop their technology for the benefit of the world is an example of that deception is part of what jurors will aim to root out in the current trial.\u003c/p>\n\u003cp>“I didn’t want to pave the road to hell with good intentions,” Musk said on the stand on Tuesday afternoon. “If you have somebody who’s not trustworthy in charge of AI, I think that’s very dangerous for the whole world.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In a federal courtroom in Oakland on Tuesday, attorneys for tech elites Sam Altman and Elon Musk set the stage for a \u003ca href=\"https://www.kqed.org/news/12081290/how-to-unscramble-an-omelet-in-silicon-valley-the-musk-v-altman-trial-that-will-try\">landmark case to determine whether OpenAI\u003c/a>, one of the most powerful artificial intelligence companies in the world, was founded on a lie.\u003c/p>\n\u003cp>At issue is whether the company’s stated mission — to lead AI development to benefit the common good — was authentic or a deceptive pitch designed to attract talent and investment. \u003ca href=\"https://www.kqed.org/forum/2010101912956/its-elon-musks-world-were-just-living-in-it\">Musk\u003c/a> alleges that co-founders Altman and Greg Brockman, who remains Altman’s second-in-command, participated in a “long con” to enrich themselves at his expense, after the three co-founded OpenAI as a nonprofit in 2015.\u003c/p>\n\u003cp>“They’re going to make this lawsuit very complicated, but it’s very simple,” Musk said of OpenAI on the stand on Tuesday afternoon. “It’s not OK to steal a charity.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>He departed the company after a falling out and \u003ca href=\"https://www.courtlistener.com/docket/69013420/musk-v-altman/\">sued the company\u003c/a> in 2024, alleging that OpenAI had breached charitable trust by restructuring as a for-profit company, now valued at more than $800 billion.\u003c/p>\n\u003cp>But Altman’s attorneys called the Tesla CEO’s behavior “a tale of two Musks,” shifting from pushing for OpenAI to become a for-profit company under his control, to caring about its nonprofit status only after launching competitor xAI in 2023. They argue OpenAI’s decision to adopt a for-profit structure was integral to its survival.\u003c/p>\n\u003cp>“We’re here because Mr. Musk didn’t get his way,” William Savitt, Altman’s lead attorney, said Tuesday. “And because he’s a competitor, he’ll do anything he can to attack OpenAI.”\u003c/p>\n\u003cfigure id=\"attachment_12081686\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081686\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Steve Molo, Elon Musk’s attorney, presents opening statements in the trial in which Elon Musk (center-right) claims that Sam Altman (right) and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Steven Molo, Musk’s counsel, told the jury that when Musk, Altman and Brockman set out to found an AI nonprofit, their goals were to develop the technology safely and for the \u003ca href=\"https://www.kqed.org/news/12034916/about-benefiting-humanity-calls-grow-for-openai-to-make-good-on-its-promises\">benefit of humanity\u003c/a>.\u003c/p>\n\u003cp>“It wasn’t a technology to get rich,” he said.\u003c/p>\n\u003cp>After operating as a strict nonprofit for years, OpenAI added a for-profit arm in 2019, which executives said was necessary to obtain the funding needed to develop artificial general intelligence — a more advanced AI technology that surpasses human intelligence, according to court filings.\u003c/p>\n\u003cp>In early conversations about how the for-profit entity would work, Molo said, the structure was likened to a museum gift shop whose revenue funds the institution’s galleries and operations. Brockman and Altman reassured Musk that they were still committed to the nonprofit structure, he said.\u003c/p>\n\u003cp>But behind the scenes, Molo alleges that the other co-founders had more lucrative desires.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>In court filings, he cited a journal in which Brockman wrote that “it would be nice to be making the billions … we’ve been thinking that maybe we should just flip to a for-profit. making the money for us sounds great and all.”\u003c/p>\n\u003cp>Brockman also wrote that he and another top OpenAI executive, Ilya Sutskever, “cannot say that we are committed to the non-profit. don’t wanna say that we’re committed. If three months later we’re doing B-Corp [a certification for for-profit corporations with social and environmental missions], then it was a lie.”\u003c/p>\n\u003cp>Years later, after Musk had departed OpenAI, the company was “no longer operating for the good of humanity,” Molo said.\u003c/p>\n\u003cp>“The museum store sold the Picassos,” he said.\u003c/p>\n\u003cp>Musk’s lawsuit claims OpenAI breached charitable trust and alleges unjust enrichment, which means that one party unfairly benefits at the expense of another. He also accuses Microsoft, which is the company’s largest financial backer and until this week held the exclusive rights to license and sell its technology, of aiding and abetting OpenAI’s breach of charitable trust.\u003c/p>\n\u003cp>OpenAI’s defense, meanwhile, alleges that Musk’s suit is less motivated by a desire to do good than it is by vengeance for his former colleagues, whose company is now eyeing an initial public offering valued at up to $1 trillion.\u003c/p>\n\u003cp>“Musk sat on his claims for years,” Savitt said. “He knew everything that was happening when it was happening. My clients had the nerve to go out and succeed without him.”\u003c/p>\n\u003cp>He also pointed out that Musk launched xAI a year before bringing the lawsuit, which would make OpenAI his competitor.\u003c/p>\n\u003cfigure id=\"attachment_12081681\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12081681\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/260428-MUSK-ALTMAN-VB-03-KQED-1-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Representing Microsoft, Russell Coan (left) speaks as Elon Musk watches in the trial in which Elon Musk claims that Sam Altman and OpenAI abandoned their founding promise to develop AI for the benefit of humanity, rather than solely for profit, in Oakland on April 28, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Savitt pointed to moments early in OpenAI’s development, when Musk suggested that it would be “probably better” for the company to operate as a “standard C corp[oration] with a parallel nonprofit.” He initially promised to cover the balance of the funding it needed, but reneged when he didn’t get to control the company, Savitt told the jury.\u003c/p>\n\u003cp>Musk was in the middle of the conversations about pivoting from a nonprofit, Savitt said. As early as the summer of 2017, he insisted on holding a majority equity stake in any for-profit entity, as well as controlling its board of directors and serving as CEO, according to OpenAI’s court filings.\u003c/p>\n\u003cp>In the fall of that year, after Brockman and Sutskever emailed Musk with concerns about the for-profit structure he proposed, the discussions collapsed, OpenAI alleges. After that, Musk stopped making significant quarterly funding contributions, and he left the company less than six months later.\u003c/p>\n\u003cp>Around that time, Brockman and Altman moved to pursue a for-profit arm — a decision their attorneys say they told Musk about prior to his departure from the board.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Savitt said in court that Musk had given the company less than 4% of the funding he’d promised. While OpenAI had gotten contributions from other donors, he said, those “kept the lights on, but it wasn’t nearly enough to stay on the cutting edge.”\u003c/p>\n\u003cp>“They needed to get the money from somewhere, or else the project collapsed,” he said, alleging that donors weren’t willing to make the billion-dollar contributions that OpenAI needed without an expectation of return.\u003c/p>\n\u003cp>Since OpenAI established its first for-profit subsidiary, which capped investor returns at 100 times their investment, its business has exploded. It’s now a public benefit corporation, required to consider its mission statement but not necessarily to prioritize it.\u003c/p>\n\u003cp>Over the years, its mission statement has been changed several times. In 2023, according to the nonprofit parent organization’s \u003ca href=\"https://cdn.theconversation.com/static_files/files/4099/2023-IRS990-OpenAI.pdf?1770819990\">IRS disclosure form\u003c/a>, it sought to build AI that “safely benefits humanity, unconstrained by a need to generate financial return.” But last year, \u003ca href=\"https://app.candid.org/profile/9571629/openai-81-0861541?activeTab=7\">that same form\u003c/a> included a shorter mission statement — one that removed the word “safely” and any mention of finances, Tufts University business professor Alnoor Ebrahim \u003ca href=\"https://theconversation.com/openai-has-deleted-the-word-safely-from-its-mission-and-its-new-structure-is-a-test-for-whether-ai-serves-society-or-shareholders-274467\">wrote in \u003cem>The Conversation\u003c/em>\u003c/a>, an academic news outlet.\u003c/p>\n\u003cp>Former OpenAI employees have left and started a competitor, Anthropic, citing concerns over safety and the company’s direction. In 2023, OpenAI executives and board members, including Sutskever, staged a coup to briefly oust Altman as CEO. They said there’d been a breakdown in trust between him and the board, and that Altman engaged in a pattern of deception and wasn’t “consistently candid in his communications.”\u003c/p>\n\u003cp>Whether Altman’s and OpenAI’s pitch to develop their technology for the benefit of the world is an example of that deception is part of what jurors will aim to root out in the current trial.\u003c/p>\n\u003cp>“I didn’t want to pave the road to hell with good intentions,” Musk said on the stand on Tuesday afternoon. “If you have somebody who’s not trustworthy in charge of AI, I think that’s very dangerous for the whole world.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003ch4>Here are the morning’s top stories on Monday, April 27, 2026:\u003c/h4>\n\u003cul>\n\u003cli>State courts will start tracking and reporting on immigration arrests at their facilities, starting in June.\u003c/li>\n\u003cli>Two of the most powerful men in tech are set to face off in a federal courtroom today in Oakland. Elon Musk, the world’s richest man, is suing Sam Altman, the CEO of OpenAI.\u003c/li>\n\u003cli>It’s spring cleaning season. And that can involve wiping off something most of us may not otherwise notice: dust. But for researchers at UC Merced and throughout California, dust is much more top of mind. These particles, they say, affect many parts of life… and not just our health.\u003c/li>\n\u003c/ul>\n\u003ch2>Immigration Arrests Will Be Tracked at CA Courts\u003c/h2>\n\u003cp>California’s Judicial Council, which makes policies for the state’s court system, has decided that courts in the state will be required to collect data on civil arrests inside the state’s courthouses. This comes amidst a rise in arrests by federal immigration officials in or around courthouses throughout the country.\u003c/p>\n\u003cp>Prior to the second Trump Administration, federal policy barred Immigration and Customs Enforcement from arresting people at sensitive locations such as hospitals, schools, and courthouses. The reasoning behind this policy was to avoid discouraging people from going to these places.\u003c/p>\n\u003cp>The goal of tracking this this data is to increase transparency, and to provide more information to the state’s judiciary so that they can assess the impacts these arrests are having on people’s ability to access courts and justice. The data collection will begin May 1st.\u003c/p>\n\u003ch2>Musk and Altman Set to Faceoff in Court\u003c/h2>\n\u003cp>Elon Musk, the world’s richest man, is suing Sam Altman, the CEO of OpenAI. The two are set to faceoff in a courtroom in Oakland today. Musk left OpenAI after a bitter falling out in 2018. Now he’s claiming Altman ran a “long con,” secretly planning to turn OpenAI into a for-profit company, while still asking Musk for millions to support a research lab to benefit all humanity. OpenAI says Musk is trying to kneecap a rival to his own AI company, xAI.\u003c/p>\n\u003cp>The lawsuit was filed in 2024. Today, the jury selection process will begin. Musk is seeking more than $150 billion in damages.\u003c/p>\n\u003ch2>\u003ca href=\"https://www.kvpr.org/health/2026-04-21/uc-merced-researchers-sound-the-alarm-on-dust-what-it-could-mean-for-your-health\">A Deeper Look Into Dust\u003c/a>\u003c/h2>\n\u003cp>For most people, dust is something we only think of when wiping it off counters or windowsills. But researchers at UC Merced and throughout California say these particles affect many parts of life — and it’s crucial to know about the risks they carry.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>UC Merced professor and immunologist, Katrina Hoyer, and UC Merced researcher, Adeyemi Adebiyi, are finding ways to help people to limit the amount of dust we breathe in. They are part of a team of researchers throughout the state called the \u003ca href=\"https://ucdust.ucsd.edu/\">UC Dust Team\u003c/a>. The consortium started several years ago because of the increasing prevalence of dust in California. Since launching, the team has published research that studied dust’s correlation with health, environmental drivers, and even the meteorology of dust storms in the state. Their goal is to inform people about dust’s impact. In a \u003ca href=\"https://ucdust.ucsd.edu/wp-content/uploads/sites/492/2025/04/UC-Dust-Report-2025.pdf\">report\u003c/a> the team released last year, they cited dust particles contributing to car accidents from dust storms, injuring livestock and even melting snowpack.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Members of the UC Dust team feel their work is creating change. Since the team started, Hoyer said, information has slowly started to spread to local leaders.\u003c/p>\n\n",
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"description": "Here are the morning's top stories on Monday, April 27, 2026: State courts will start tracking and reporting on immigration arrests at their facilities, starting in June. Two of the most powerful men in tech are set to face off in a federal courtroom today in Oakland. Elon Musk, the world’s richest man, is suing Sam Altman, the CEO of OpenAI. It’s spring cleaning season. And that can involve wiping off something most of us may not otherwise notice: dust. But for researchers at UC Merced and throughout California, dust is much more top of mind. These particles, they say,",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003ch4>Here are the morning’s top stories on Monday, April 27, 2026:\u003c/h4>\n\u003cul>\n\u003cli>State courts will start tracking and reporting on immigration arrests at their facilities, starting in June.\u003c/li>\n\u003cli>Two of the most powerful men in tech are set to face off in a federal courtroom today in Oakland. Elon Musk, the world’s richest man, is suing Sam Altman, the CEO of OpenAI.\u003c/li>\n\u003cli>It’s spring cleaning season. And that can involve wiping off something most of us may not otherwise notice: dust. But for researchers at UC Merced and throughout California, dust is much more top of mind. These particles, they say, affect many parts of life… and not just our health.\u003c/li>\n\u003c/ul>\n\u003ch2>Immigration Arrests Will Be Tracked at CA Courts\u003c/h2>\n\u003cp>California’s Judicial Council, which makes policies for the state’s court system, has decided that courts in the state will be required to collect data on civil arrests inside the state’s courthouses. This comes amidst a rise in arrests by federal immigration officials in or around courthouses throughout the country.\u003c/p>\n\u003cp>Prior to the second Trump Administration, federal policy barred Immigration and Customs Enforcement from arresting people at sensitive locations such as hospitals, schools, and courthouses. The reasoning behind this policy was to avoid discouraging people from going to these places.\u003c/p>\n\u003cp>The goal of tracking this this data is to increase transparency, and to provide more information to the state’s judiciary so that they can assess the impacts these arrests are having on people’s ability to access courts and justice. The data collection will begin May 1st.\u003c/p>\n\u003ch2>Musk and Altman Set to Faceoff in Court\u003c/h2>\n\u003cp>Elon Musk, the world’s richest man, is suing Sam Altman, the CEO of OpenAI. The two are set to faceoff in a courtroom in Oakland today. Musk left OpenAI after a bitter falling out in 2018. Now he’s claiming Altman ran a “long con,” secretly planning to turn OpenAI into a for-profit company, while still asking Musk for millions to support a research lab to benefit all humanity. OpenAI says Musk is trying to kneecap a rival to his own AI company, xAI.\u003c/p>\n\u003cp>The lawsuit was filed in 2024. Today, the jury selection process will begin. Musk is seeking more than $150 billion in damages.\u003c/p>\n\u003ch2>\u003ca href=\"https://www.kvpr.org/health/2026-04-21/uc-merced-researchers-sound-the-alarm-on-dust-what-it-could-mean-for-your-health\">A Deeper Look Into Dust\u003c/a>\u003c/h2>\n\u003cp>For most people, dust is something we only think of when wiping it off counters or windowsills. But researchers at UC Merced and throughout California say these particles affect many parts of life — and it’s crucial to know about the risks they carry.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>UC Merced professor and immunologist, Katrina Hoyer, and UC Merced researcher, Adeyemi Adebiyi, are finding ways to help people to limit the amount of dust we breathe in. They are part of a team of researchers throughout the state called the \u003ca href=\"https://ucdust.ucsd.edu/\">UC Dust Team\u003c/a>. The consortium started several years ago because of the increasing prevalence of dust in California. Since launching, the team has published research that studied dust’s correlation with health, environmental drivers, and even the meteorology of dust storms in the state. Their goal is to inform people about dust’s impact. In a \u003ca href=\"https://ucdust.ucsd.edu/wp-content/uploads/sites/492/2025/04/UC-Dust-Report-2025.pdf\">report\u003c/a> the team released last year, they cited dust particles contributing to car accidents from dust storms, injuring livestock and even melting snowpack.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Members of the UC Dust team feel their work is creating change. Since the team started, Hoyer said, information has slowly started to spread to local leaders.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "How to Unscramble an Omelet in Silicon Valley: The Musk v. Altman Trial That Will Try",
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"headTitle": "How to Unscramble an Omelet in Silicon Valley: The Musk v. Altman Trial That Will Try | KQED",
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"content": "\u003cp>Starting Monday in Oakland, a federal judge will consider \u003ca href=\"https://www.kqed.org/forum/2010101912956/its-elon-musks-world-were-just-living-in-it\">Elon Musk\u003c/a>’s claim that Sam Altman and OpenAI abandoned their founding promise to develop AI for the \u003ca href=\"https://www.kqed.org/news/12034916/about-benefiting-humanity-calls-grow-for-openai-to-make-good-on-its-promises\">benefit of humanity\u003c/a>, rather than solely for profit. At stake is not just $134 billion in potential damages, but whether it matters, legally speaking, that one of the most powerful AI companies in the world was built on a lie.\u003c/p>\n\u003cp>Musk and Altman co-founded OpenAI in 2015 as a nonprofit research lab, along with Greg Brockman, an AI researcher and entrepreneur, and others prominent in the field, but Musk left the company after a bitter falling out in 2018.\u003c/p>\n\u003cp>The following year, OpenAI established its first for-profit subsidiary, with investor returns capped at 100 times their investment. This structure would eventually evolve into the nearly trillion-dollar public benefit corporation OpenAI became in 2025. A public benefit corporation is essentially a for-profit company with a mission statement it’s legally required to consider, but not necessarily to prioritize.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>This\u003ca href=\"https://www.courtlistener.com/docket/69013420/musk-v-altman/\"> lawsuit\u003c/a>, filed in 2024, originally alleged that Altman and Brockman ran a ‘long con,’ conspiring to enrich themselves at Musk’s expense.\u003c/p>\n\u003cp>On the eve of trial, in a move OpenAI called “evasive,” Musk’s lawyers voluntarily dismissed those personal fraud claims. What proceeds to trial today are two claims that go beyond Musk’s personal grievance: unjust enrichment and breach of charitable trust — essentially, the argument that OpenAI betrayed, not just Musk, but the public it promised to serve.\u003c/p>\n\u003cp>OpenAI argues Musk was fully aware the research lab needed to evolve beyond its nonprofit structure, because he participated in those early discussions, and even proposed folding OpenAI into Tesla. Now, OpenAI’s lawyers argue, Musk is disingenuously trying to use the courts to kneecap the most prominent rival to his own weaker and more controversial AI venture, xAI.\u003c/p>\n\u003cfigure id=\"attachment_12075430\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12075430\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts Elon Musk on the stand on March 4, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks,” the company\u003ca href=\"https://openai.com/index/openai-elon-musk/\"> posted\u003c/a> on its website, where it also offers a\u003ca href=\"https://openai.com/index/elon-musk-wanted-an-openai-for-profit/\"> timeline\u003c/a> that Musk v. Altman et al case watchers will find helpful as they follow what promises to be a barnburner of a trial.\u003c/p>\n\u003cp>\u003ca href=\"https://www.courtlistener.com/docket/69013420/musk-v-altman/?page=3\">Hundreds of court filings\u003c/a> provide a dishy treasure trove of private communications worthy of a telenovela, including some juicy excerpts from Brockman’s personal journal.\u003c/p>\n\u003cp>He writes about Musk, “it’d be wrong to steal the nonprofit from him. … that’d be pretty morally bankrupt. and he’s really not an idiot.”[aside postID=news_12072425 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/05/AP24134775174210-1020x680.jpg']Also, “Financially, what will take me to $1B?”\u003c/p>\n\u003cp>But without a doubt, it is the beef between Musk and Altman that will dominate this show. “They really do not like each other. That part is not fake,” said Charlie Bullock, a senior research fellow at the nonprofit Institute for Law and AI who advises state and federal policy makers on AI governance topics.\u003c/p>\n\u003cp>This trial promises to put on lurid public display a mini-universe of incestuous business relationships between men famous for rewriting rules rather than following them.\u003c/p>\n\u003cp>Personal spite between Musk and Altman aside, Bullock said, “We’re going to learn a lot over the course of this case and from the conclusion of this case about whether the legal system can meaningfully constrain frontier AI labs.”\u003c/p>\n\u003cp>This trial, Bullock told KQED, is “sort of the fallback option” in the absence of other checks on bad behavior in the AI space, such as federal regulation.\u003c/p>\n\u003cp>There is, for instance, a well-established law in California about nonprofits, for-profits, and how transitions between the two should be regulated. Whether and how it applies in this case is up to U.S. District Judge Yvonne Gonzalez Rogers in Oakland to determine over the next month.\u003c/p>\n\u003ch2>OpenAI is like nothing that’s come before\u003c/h2>\n\u003cp>Jill Horwitz, a law professor at Northwestern University and faculty director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA Law, likens OpenAI’s unique structure to “An enormous tail on a tiny dog.”\u003c/p>\n\u003cp>“The tail is the operating company, which is what everybody thinks of as being OpenAI, and the dog is the nonprofit, and it’s tiny. And it remains to be seen whether that board can be independent enough, because there’s such overlap between the nonprofit board and the for-profit board,” Horwitz said.\u003c/p>\n\u003cfigure id=\"attachment_12054564\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12054564 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Samuel Altman, CEO of OpenAI, testifies before the Senate Judiciary Subcommittee on Privacy, Technology and the Law on May 16, 2023, in Washington, D.C. \u003ccite>(Win McNamee/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“It’s a weird structure. OpenAI isn’t one company. OpenAI is an interconnected group of companies. But it all is supposed to be advancing the nonprofit purpose,” Horwitz told KQED.\u003c/p>\n\u003cp>In 2018, even as OpenAI was privately contemplating the for-profit restructuring, it voluntarily adopted a new charter that restated and even strengthened its commitment to the public mission articulated at its founding.\u003c/p>\n\u003cp>In part, this had to do with the pressure Altman and OpenAI felt to attract top AI researchers, many of whom are concerned about the ethics of unleashing world-changing software on the rest of us. In 2024, 13 current and former OpenAI and Google DeepMind employees took the extraordinary step of publishing an \u003ca href=\"https://righttowarn.ai\">open letter\u003c/a> titled “Right to Warn,” calling out their own industry, and asking for protection if they warned the public.[aside postID=news_12079267 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/Hegseth-Side-by-Side-c.jpg']“We are hopeful that these risks can be adequately mitigated with sufficient guidance from the scientific community, policymakers, and the public. However, AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this.”\u003c/p>\n\u003cp>To this day, it remains unclear whether Altman’s talk about benefiting humanity was anything more than a savvy sales pitch designed to attract top AI talent and allay the concerns of \u003ca href=\"https://www.kqed.org/news/11976097/california-lawmakers-take-on-ai-regulation-with-a-host-of-bills\">federal regulators\u003c/a>. This is one of the key questions trial watchers will be most keen to see answered.\u003c/p>\n\u003cp>“It’s quite typical for scientific research organizations to do all the hard work of the research before their IP is sold to a for-profit company for practical purposes,” said Rose Chan Loui, founding executive director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA Law.\u003c/p>\n\u003cp>What makes OpenAI unusual, Chan Loui said, is how explicitly and repeatedly the AI developer bound itself to promising its AI would be developed safely and for the benefit of all of humanity. “When they opened up to investment and formed the subsidiary, they recommitted to that purpose. They tied themselves even more tightly.”\u003c/p>\n\u003cp>Anthropic, founded by former OpenAI employees who left over concerns about the company’s direction, has cultivated a reputation as the more safety-conscious, ethically serious player in the AI race, the light gray hat to OpenAI’s dark gray one. Anthropic chose to incorporate as a public benefit corporation from the beginning, rather than a nonprofit, because a public benefit corporation has far more legal flexibility. “Anthropic may be behaving in a way that the public thinks is more charitable, but its legal duties to do so are a lot lower than OpenAI’s,” Horwitz said.\u003c/p>\n\u003ch2>But is Musk the right party to bring this suit?\u003c/h2>\n\u003cp>For legal eagles following this case, it’s curious that Musk is the plaintiff, rather than California’s attorney general, who is the primary legal guardian of charitable assets in the state, where most of OpenAI’s assets are located. But in 2025, Attorney General Rob Bonta negotiated a binding \u003ca href=\"https://oag.ca.gov/system/files/attachments/press-docs/Final%20Executed%20MOU%20Between%20OpenAI%20and%20California%20AG%20re%20Notice%20of%20Conditions%20of%20Non-Objection%20%2810.27.2025%29%20%28Signed%20by%20OpenAI%29%20%28Signed%20by%20CA%20DOJ%29.pdf\">memorandum of understanding\u003c/a> with OpenAI. The AG in Delaware, where OpenAI is incorporated, issued a parallel statement of non-objection.\u003c/p>\n\u003cp>A coalition of more than 30 California foundations and nonprofit organizations, including the San Francisco Foundation and TechEquity, \u003ca href=\"https://www.sff.org/Offsite-Media/Charitable-coalition-letter-on-OpenAI-conversion-1-29-25.pdf\">urged Bonta\u003c/a> to take immediate legal action to protect OpenAI’s charitable assets, arguing his office had both the authority and the responsibility to do so.\u003c/p>\n\u003cfigure id=\"attachment_12063671\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12063671\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">California Attorney General Rob Bonta speaks to reporters as Arizona Attorney General Kris Mayes, left, and Oregon Attorney General Dan Rayfield, right, listen outside the Supreme Court on Wednesday, Nov. 5, 2025, in Washington, D.C. \u003ccite>(Mark Schiefelbein/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/12034916/about-benefiting-humanity-calls-grow-for-openai-to-make-good-on-its-promises\">More than 50 organizations\u003c/a> also petitioned Bonta to halt OpenAI’s for-profit conversion until he calculated the full market value of OpenAI’s nonprofit assets, estimated at the time at up to $300 billion, and directed OpenAI to transfer that value to independent nonprofit entities.\u003c/p>\n\u003cp>“It’s not too late for the Attorney General to revisit his agreement with OpenAI,” wrote Catherine Bracy, founder and CEO of TechEquity, an Oakland-based tech accountability organization. “The evidence this trial unearths, especially how OpenAI violated its original charitable mission in pursuit of profit, will likely leave him no choice.”\u003c/p>\n\u003cp>Chan Loui is among those scratching her head over a basic question: why does Musk get to bring this case at all? “He’s a competitor,” she said.\u003c/p>\n\u003cp>A personal fraud claim, that Altman lied to him to get his money, might have given Musk the clearest standing as an injured party. But Musk voluntarily dismissed those claims late last week. What remains rests almost entirely on a public interest argument, one that California’s attorney general, not a billionaire with a rival AI company of his own, would typically make. [aside postID=news_12079896 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/04/Daniel-Moreno-Gama-AP.jpg']Chan Loui worries about what it would mean if Judge Gonzalez Rogers effectively threw out that hard-won agreement between the attorneys general and OpenAI, essentially substituting a billionaire rival’s lawsuit for the state’s own regulatory process, whatever its deficiencies.\u003c/p>\n\u003cp>“You don’t want just anyone, any donor to complain,” Chan Loui said. “We have all this litigation against charities.” She said she sympathizes with those who want OpenAI to recommit as fully as possible to its original ethos, but she worries about what legal precedents this case could set for everybody else.\u003c/p>\n\u003cp>What’s not in dispute is that this trial will be a riveting spectacle for Silicon Valley, which will be watching this case with a mix of curiosity and fear. Judge Gonzalez Rogers has already proven \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-bonta-epic-v-apple-decision-win-california-law-protecting\">she will rule\u003c/a> against powerful tech companies when she determines the law demands it.\u003c/p>\n\u003cp>Also, the documents already unsealed suggest that what gets said in that Oakland courtroom may reveal a lot more about how Silicon Valley’s AI elite actually operates than anything previously said or posted in public.\u003c/p>\n\u003cp>“How much is OpenAI worth? Most of \u003ca href=\"https://www.reuters.com/business/openai-lays-groundwork-juggernaut-ipo-up-1-trillion-valuation-2025-10-29/\">$1 trillion\u003c/a>?” Bullock said. “There are ways that you could unscramble this omelet, but it would be extremely difficult, and it would be a massive headache for everyone involved.” He anticipates that whoever ends up on the losing end of this case will appeal.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "Two Silicon Valley titans, Elon Musk and Sam Altman, face off in court starting Monday in a case that claims Altman and others enriched themselves by allegedly betraying OpenAI’s founding mission.",
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"title": "How to Unscramble an Omelet in Silicon Valley: The Musk v. Altman Trial That Will Try | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Starting Monday in Oakland, a federal judge will consider \u003ca href=\"https://www.kqed.org/forum/2010101912956/its-elon-musks-world-were-just-living-in-it\">Elon Musk\u003c/a>’s claim that Sam Altman and OpenAI abandoned their founding promise to develop AI for the \u003ca href=\"https://www.kqed.org/news/12034916/about-benefiting-humanity-calls-grow-for-openai-to-make-good-on-its-promises\">benefit of humanity\u003c/a>, rather than solely for profit. At stake is not just $134 billion in potential damages, but whether it matters, legally speaking, that one of the most powerful AI companies in the world was built on a lie.\u003c/p>\n\u003cp>Musk and Altman co-founded OpenAI in 2015 as a nonprofit research lab, along with Greg Brockman, an AI researcher and entrepreneur, and others prominent in the field, but Musk left the company after a bitter falling out in 2018.\u003c/p>\n\u003cp>The following year, OpenAI established its first for-profit subsidiary, with investor returns capped at 100 times their investment. This structure would eventually evolve into the nearly trillion-dollar public benefit corporation OpenAI became in 2025. A public benefit corporation is essentially a for-profit company with a mission statement it’s legally required to consider, but not necessarily to prioritize.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>This\u003ca href=\"https://www.courtlistener.com/docket/69013420/musk-v-altman/\"> lawsuit\u003c/a>, filed in 2024, originally alleged that Altman and Brockman ran a ‘long con,’ conspiring to enrich themselves at Musk’s expense.\u003c/p>\n\u003cp>On the eve of trial, in a move OpenAI called “evasive,” Musk’s lawyers voluntarily dismissed those personal fraud claims. What proceeds to trial today are two claims that go beyond Musk’s personal grievance: unjust enrichment and breach of charitable trust — essentially, the argument that OpenAI betrayed, not just Musk, but the public it promised to serve.\u003c/p>\n\u003cp>OpenAI argues Musk was fully aware the research lab needed to evolve beyond its nonprofit structure, because he participated in those early discussions, and even proposed folding OpenAI into Tesla. Now, OpenAI’s lawyers argue, Musk is disingenuously trying to use the courts to kneecap the most prominent rival to his own weaker and more controversial AI venture, xAI.\u003c/p>\n\u003cfigure id=\"attachment_12075430\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12075430\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-03-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts Elon Musk on the stand on March 4, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks,” the company\u003ca href=\"https://openai.com/index/openai-elon-musk/\"> posted\u003c/a> on its website, where it also offers a\u003ca href=\"https://openai.com/index/elon-musk-wanted-an-openai-for-profit/\"> timeline\u003c/a> that Musk v. Altman et al case watchers will find helpful as they follow what promises to be a barnburner of a trial.\u003c/p>\n\u003cp>\u003ca href=\"https://www.courtlistener.com/docket/69013420/musk-v-altman/?page=3\">Hundreds of court filings\u003c/a> provide a dishy treasure trove of private communications worthy of a telenovela, including some juicy excerpts from Brockman’s personal journal.\u003c/p>\n\u003cp>He writes about Musk, “it’d be wrong to steal the nonprofit from him. … that’d be pretty morally bankrupt. and he’s really not an idiot.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Also, “Financially, what will take me to $1B?”\u003c/p>\n\u003cp>But without a doubt, it is the beef between Musk and Altman that will dominate this show. “They really do not like each other. That part is not fake,” said Charlie Bullock, a senior research fellow at the nonprofit Institute for Law and AI who advises state and federal policy makers on AI governance topics.\u003c/p>\n\u003cp>This trial promises to put on lurid public display a mini-universe of incestuous business relationships between men famous for rewriting rules rather than following them.\u003c/p>\n\u003cp>Personal spite between Musk and Altman aside, Bullock said, “We’re going to learn a lot over the course of this case and from the conclusion of this case about whether the legal system can meaningfully constrain frontier AI labs.”\u003c/p>\n\u003cp>This trial, Bullock told KQED, is “sort of the fallback option” in the absence of other checks on bad behavior in the AI space, such as federal regulation.\u003c/p>\n\u003cp>There is, for instance, a well-established law in California about nonprofits, for-profits, and how transitions between the two should be regulated. Whether and how it applies in this case is up to U.S. District Judge Yvonne Gonzalez Rogers in Oakland to determine over the next month.\u003c/p>\n\u003ch2>OpenAI is like nothing that’s come before\u003c/h2>\n\u003cp>Jill Horwitz, a law professor at Northwestern University and faculty director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA Law, likens OpenAI’s unique structure to “An enormous tail on a tiny dog.”\u003c/p>\n\u003cp>“The tail is the operating company, which is what everybody thinks of as being OpenAI, and the dog is the nonprofit, and it’s tiny. And it remains to be seen whether that board can be independent enough, because there’s such overlap between the nonprofit board and the for-profit board,” Horwitz said.\u003c/p>\n\u003cfigure id=\"attachment_12054564\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12054564 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/Sam-Altman_chatpgt-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Samuel Altman, CEO of OpenAI, testifies before the Senate Judiciary Subcommittee on Privacy, Technology and the Law on May 16, 2023, in Washington, D.C. \u003ccite>(Win McNamee/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“It’s a weird structure. OpenAI isn’t one company. OpenAI is an interconnected group of companies. But it all is supposed to be advancing the nonprofit purpose,” Horwitz told KQED.\u003c/p>\n\u003cp>In 2018, even as OpenAI was privately contemplating the for-profit restructuring, it voluntarily adopted a new charter that restated and even strengthened its commitment to the public mission articulated at its founding.\u003c/p>\n\u003cp>In part, this had to do with the pressure Altman and OpenAI felt to attract top AI researchers, many of whom are concerned about the ethics of unleashing world-changing software on the rest of us. In 2024, 13 current and former OpenAI and Google DeepMind employees took the extraordinary step of publishing an \u003ca href=\"https://righttowarn.ai\">open letter\u003c/a> titled “Right to Warn,” calling out their own industry, and asking for protection if they warned the public.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“We are hopeful that these risks can be adequately mitigated with sufficient guidance from the scientific community, policymakers, and the public. However, AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this.”\u003c/p>\n\u003cp>To this day, it remains unclear whether Altman’s talk about benefiting humanity was anything more than a savvy sales pitch designed to attract top AI talent and allay the concerns of \u003ca href=\"https://www.kqed.org/news/11976097/california-lawmakers-take-on-ai-regulation-with-a-host-of-bills\">federal regulators\u003c/a>. This is one of the key questions trial watchers will be most keen to see answered.\u003c/p>\n\u003cp>“It’s quite typical for scientific research organizations to do all the hard work of the research before their IP is sold to a for-profit company for practical purposes,” said Rose Chan Loui, founding executive director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA Law.\u003c/p>\n\u003cp>What makes OpenAI unusual, Chan Loui said, is how explicitly and repeatedly the AI developer bound itself to promising its AI would be developed safely and for the benefit of all of humanity. “When they opened up to investment and formed the subsidiary, they recommitted to that purpose. They tied themselves even more tightly.”\u003c/p>\n\u003cp>Anthropic, founded by former OpenAI employees who left over concerns about the company’s direction, has cultivated a reputation as the more safety-conscious, ethically serious player in the AI race, the light gray hat to OpenAI’s dark gray one. Anthropic chose to incorporate as a public benefit corporation from the beginning, rather than a nonprofit, because a public benefit corporation has far more legal flexibility. “Anthropic may be behaving in a way that the public thinks is more charitable, but its legal duties to do so are a lot lower than OpenAI’s,” Horwitz said.\u003c/p>\n\u003ch2>But is Musk the right party to bring this suit?\u003c/h2>\n\u003cp>For legal eagles following this case, it’s curious that Musk is the plaintiff, rather than California’s attorney general, who is the primary legal guardian of charitable assets in the state, where most of OpenAI’s assets are located. But in 2025, Attorney General Rob Bonta negotiated a binding \u003ca href=\"https://oag.ca.gov/system/files/attachments/press-docs/Final%20Executed%20MOU%20Between%20OpenAI%20and%20California%20AG%20re%20Notice%20of%20Conditions%20of%20Non-Objection%20%2810.27.2025%29%20%28Signed%20by%20OpenAI%29%20%28Signed%20by%20CA%20DOJ%29.pdf\">memorandum of understanding\u003c/a> with OpenAI. The AG in Delaware, where OpenAI is incorporated, issued a parallel statement of non-objection.\u003c/p>\n\u003cp>A coalition of more than 30 California foundations and nonprofit organizations, including the San Francisco Foundation and TechEquity, \u003ca href=\"https://www.sff.org/Offsite-Media/Charitable-coalition-letter-on-OpenAI-conversion-1-29-25.pdf\">urged Bonta\u003c/a> to take immediate legal action to protect OpenAI’s charitable assets, arguing his office had both the authority and the responsibility to do so.\u003c/p>\n\u003cfigure id=\"attachment_12063671\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12063671\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/RobBontaAP-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">California Attorney General Rob Bonta speaks to reporters as Arizona Attorney General Kris Mayes, left, and Oregon Attorney General Dan Rayfield, right, listen outside the Supreme Court on Wednesday, Nov. 5, 2025, in Washington, D.C. \u003ccite>(Mark Schiefelbein/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/12034916/about-benefiting-humanity-calls-grow-for-openai-to-make-good-on-its-promises\">More than 50 organizations\u003c/a> also petitioned Bonta to halt OpenAI’s for-profit conversion until he calculated the full market value of OpenAI’s nonprofit assets, estimated at the time at up to $300 billion, and directed OpenAI to transfer that value to independent nonprofit entities.\u003c/p>\n\u003cp>“It’s not too late for the Attorney General to revisit his agreement with OpenAI,” wrote Catherine Bracy, founder and CEO of TechEquity, an Oakland-based tech accountability organization. “The evidence this trial unearths, especially how OpenAI violated its original charitable mission in pursuit of profit, will likely leave him no choice.”\u003c/p>\n\u003cp>Chan Loui is among those scratching her head over a basic question: why does Musk get to bring this case at all? “He’s a competitor,” she said.\u003c/p>\n\u003cp>A personal fraud claim, that Altman lied to him to get his money, might have given Musk the clearest standing as an injured party. But Musk voluntarily dismissed those claims late last week. What remains rests almost entirely on a public interest argument, one that California’s attorney general, not a billionaire with a rival AI company of his own, would typically make. \u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Chan Loui worries about what it would mean if Judge Gonzalez Rogers effectively threw out that hard-won agreement between the attorneys general and OpenAI, essentially substituting a billionaire rival’s lawsuit for the state’s own regulatory process, whatever its deficiencies.\u003c/p>\n\u003cp>“You don’t want just anyone, any donor to complain,” Chan Loui said. “We have all this litigation against charities.” She said she sympathizes with those who want OpenAI to recommit as fully as possible to its original ethos, but she worries about what legal precedents this case could set for everybody else.\u003c/p>\n\u003cp>What’s not in dispute is that this trial will be a riveting spectacle for Silicon Valley, which will be watching this case with a mix of curiosity and fear. Judge Gonzalez Rogers has already proven \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-bonta-epic-v-apple-decision-win-california-law-protecting\">she will rule\u003c/a> against powerful tech companies when she determines the law demands it.\u003c/p>\n\u003cp>Also, the documents already unsealed suggest that what gets said in that Oakland courtroom may reveal a lot more about how Silicon Valley’s AI elite actually operates than anything previously said or posted in public.\u003c/p>\n\u003cp>“How much is OpenAI worth? Most of \u003ca href=\"https://www.reuters.com/business/openai-lays-groundwork-juggernaut-ipo-up-1-trillion-valuation-2025-10-29/\">$1 trillion\u003c/a>?” Bullock said. “There are ways that you could unscramble this omelet, but it would be extremely difficult, and it would be a massive headache for everyone involved.” He anticipates that whoever ends up on the losing end of this case will appeal.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003ca href=\"https://www.kqed.org/news/tag/elon-musk\">Elon Musk\u003c/a> has been found liable for attempting to drive down Twitter’s stock price ahead of his $44 billion takeover of the company four years ago, a federal jury in San Francisco decided Friday.\u003c/p>\n\u003cp>Attorneys said the world’s wealthiest person will owe an estimated $2.1 billion in damages to former shareholders in the company, who say they lost out on earnings when they sold their stocks at deflated prices amid Musk’s public waffling over his 2022 acquisition deal.\u003c/p>\n\u003cp>“The jury’s verdict sends a strong message that just because you’re a rich and powerful person, you still have to obey the law and no man is above the law,” attorney Mark Molumphy, who represented the shareholders, said after the verdict was read Friday.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Attorneys for Musk declined to comment on the verdict.\u003c/p>\n\u003cp>The class action lawsuit accused Musk of \u003ca href=\"https://www.kqed.org/news/12076663/lawsuit-accusing-elon-musk-of-tanking-twitter-share-price-goes-to-jury\">making misleading statements\u003c/a> to hurt Twitter’s stock price with the intent to renegotiate a cheaper price in the months it took to close the deal.\u003c/p>\n\u003cp>The weekslong civil trial focused primarily on statements he made in May 2022, a month after signing the binding purchase agreement, speculating that the number of bots on Twitter was much higher than the company publicly reported and suggesting that the deal could be put on pause as a result.\u003c/p>\n\u003cfigure id=\"attachment_12029287\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003ca href=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12029287\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Elon Musk speaks at the Conservative Political Action Conference (CPAC) at the National Harbor in Oxon Hill, Maryland, on Feb. 20, 2025. \u003ccite>(Valerie Plesch/The Washington Post via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In Securities and Exchange Commission filings at the time, Twitter reported that spam accounts made up about 5% of its daily users.\u003c/p>\n\u003cp>Testifying earlier this month, Musk said that in early May 2022, he asked then-CEO Parag Agrawal and CFO Ned Segal how the company determined that percentage, and did not get a clear answer.\u003c/p>\n\u003cp>Days later, he tweeted that the deal was “temporarily on hold” pending that information.\u003c/p>\n\u003cp>Hours after that, he posted that he was “still committed to the acquisition,” but the following Monday, he tweeted again, suggesting that up to 20% of Twitter users could be bots. In the time between those posts, the company’s stock dropped nearly 18%.\u003c/p>\n\u003cp>On the stand, Musk said he was only speaking his mind with his tweets and had not intended to manipulate the market. He also maintained his belief that the company had misrepresented the number of bots, saying at times he felt like up to 90% of comments on his posts were from spam accounts.\u003c/p>\n\u003cp>He deflected blame for investors’ lost earnings, saying that “if somebody had simply held on to their position … the vast number of people benefited greatly from the acquisition.”[aside postID=news_12076608 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/Billboard-AI-Illustration_6.jpg'] Ultimately, the deal closed at its original price point in October 2022, after Twitter sued Musk, accusing him of trying to back out of the deal.\u003c/p>\n\u003cp>Molumphy told reporters on Friday that the verdict was a victory not only for shareholders but also for Twitter as a company.\u003c/p>\n\u003cp>“He was basically saying the company was a sham,” he said. Before Musk’s takeover, he said, “Twitter was an important institution in San Francisco. It was not a sham; it was a real company, and the way he dragged it through the mud in order to basically get a better deal was atrocious.”\u003c/p>\n\u003cp>Attorneys believed the ruling was the first time a jury had held Musk liable for his statements on Twitter.\u003c/p>\n\u003cp>“Going forward, this will have a real chilling effect,” said Monte Mann, a Chicago-based business litigation partner. “Executives and dealmakers will need to think carefully about how public statements can be interpreted — not just as disclosure, but as part of the negotiation itself.”\u003c/p>\n\u003cp>The maximum cost to Musk could be closer to $2.6 billion, accounting for both shares and stock options, the plaintiffs’ lawyers estimated. They said that it will likely take about six months for class members to receive damages.\u003c/p>\n\u003cp>“But it’ll be well earned,” attorney Joseph Cotchett said.\u003cstrong> \u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003ca href=\"https://www.kqed.org/news/tag/elon-musk\">Elon Musk\u003c/a> has been found liable for attempting to drive down Twitter’s stock price ahead of his $44 billion takeover of the company four years ago, a federal jury in San Francisco decided Friday.\u003c/p>\n\u003cp>Attorneys said the world’s wealthiest person will owe an estimated $2.1 billion in damages to former shareholders in the company, who say they lost out on earnings when they sold their stocks at deflated prices amid Musk’s public waffling over his 2022 acquisition deal.\u003c/p>\n\u003cp>“The jury’s verdict sends a strong message that just because you’re a rich and powerful person, you still have to obey the law and no man is above the law,” attorney Mark Molumphy, who represented the shareholders, said after the verdict was read Friday.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Attorneys for Musk declined to comment on the verdict.\u003c/p>\n\u003cp>The class action lawsuit accused Musk of \u003ca href=\"https://www.kqed.org/news/12076663/lawsuit-accusing-elon-musk-of-tanking-twitter-share-price-goes-to-jury\">making misleading statements\u003c/a> to hurt Twitter’s stock price with the intent to renegotiate a cheaper price in the months it took to close the deal.\u003c/p>\n\u003cp>The weekslong civil trial focused primarily on statements he made in May 2022, a month after signing the binding purchase agreement, speculating that the number of bots on Twitter was much higher than the company publicly reported and suggesting that the deal could be put on pause as a result.\u003c/p>\n\u003cfigure id=\"attachment_12029287\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003ca href=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12029287\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/02/ElonMuskGetty-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Elon Musk speaks at the Conservative Political Action Conference (CPAC) at the National Harbor in Oxon Hill, Maryland, on Feb. 20, 2025. \u003ccite>(Valerie Plesch/The Washington Post via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In Securities and Exchange Commission filings at the time, Twitter reported that spam accounts made up about 5% of its daily users.\u003c/p>\n\u003cp>Testifying earlier this month, Musk said that in early May 2022, he asked then-CEO Parag Agrawal and CFO Ned Segal how the company determined that percentage, and did not get a clear answer.\u003c/p>\n\u003cp>Days later, he tweeted that the deal was “temporarily on hold” pending that information.\u003c/p>\n\u003cp>Hours after that, he posted that he was “still committed to the acquisition,” but the following Monday, he tweeted again, suggesting that up to 20% of Twitter users could be bots. In the time between those posts, the company’s stock dropped nearly 18%.\u003c/p>\n\u003cp>On the stand, Musk said he was only speaking his mind with his tweets and had not intended to manipulate the market. He also maintained his belief that the company had misrepresented the number of bots, saying at times he felt like up to 90% of comments on his posts were from spam accounts.\u003c/p>\n\u003cp>He deflected blame for investors’ lost earnings, saying that “if somebody had simply held on to their position … the vast number of people benefited greatly from the acquisition.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp> Ultimately, the deal closed at its original price point in October 2022, after Twitter sued Musk, accusing him of trying to back out of the deal.\u003c/p>\n\u003cp>Molumphy told reporters on Friday that the verdict was a victory not only for shareholders but also for Twitter as a company.\u003c/p>\n\u003cp>“He was basically saying the company was a sham,” he said. Before Musk’s takeover, he said, “Twitter was an important institution in San Francisco. It was not a sham; it was a real company, and the way he dragged it through the mud in order to basically get a better deal was atrocious.”\u003c/p>\n\u003cp>Attorneys believed the ruling was the first time a jury had held Musk liable for his statements on Twitter.\u003c/p>\n\u003cp>“Going forward, this will have a real chilling effect,” said Monte Mann, a Chicago-based business litigation partner. “Executives and dealmakers will need to think carefully about how public statements can be interpreted — not just as disclosure, but as part of the negotiation itself.”\u003c/p>\n\u003cp>The maximum cost to Musk could be closer to $2.6 billion, accounting for both shares and stock options, the plaintiffs’ lawyers estimated. They said that it will likely take about six months for class members to receive damages.\u003c/p>\n\u003cp>“But it’ll be well earned,” attorney Joseph Cotchett said.\u003cstrong> \u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "Lawsuit Accusing Elon Musk of Tanking Twitter Share Price Goes to Jury",
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"content": "\u003cp>Whether Elon Musk will be forced to pay back \u003ca href=\"https://www.kqed.org/news/12075332/elon-musk-defends-himself-in-court-over-posts-before-twitter-takeover\">investors who sold Twitter stock\u003c/a> amid his 2022 takeover is now in the hands of a San Francisco jury, after attorneys wrapped up their closing arguments in the securities fraud case Tuesday.\u003c/p>\n\u003cp>The federal class action lawsuit, brought by former shareholders in the social media company, alleges that in the months before the $44 million buyout, the billionaire made misleading statements to hurt Twitter’s stock price with intent to renegotiate a cheaper deal.\u003c/p>\n\u003cp>“Mr. Musk decided … that he didn’t want to pay investors what he promised to pay. The deal in his mind had gotten too expensive,” said Mark Molumphy, an attorney for the plaintiffs. “So, he did here what he did on the stand: he trashed the company, he trashed the executives and he tanked the stock.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The weekslong civil trial has focused primarily on statements Musk made in May 2022, speculating that the number of bots on Twitter was much higher than the company publicly reported, and suggesting that the deal could be put on pause as a result.\u003c/p>\n\u003cp>The previous month, he’d signed a binding agreement to purchase the company at $54.20 a share.\u003c/p>\n\u003cp>During his testimony earlier this month, Musk said that in a May meeting with then-CEO Parag Agrawal and CFO Ned Segal, he asked the executives how the company determined the number of spam accounts that use the site daily, and said he was “flabbergasted” when they did not know.\u003c/p>\n\u003cfigure id=\"attachment_12075459\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12075459 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts Elon Musk (left) with his defense team on Mar. 4, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Days later, Musk tweeted that the deal was “temporarily on hold,” pending evidence of how the company calculated that percentage. Hours later, he posted that he was “still committed to the acquisition,” but the following Monday, he tweeted again, suggesting that up to 20% of Twitter users could be bots. In the time between those posts, the company’s stock dropped nearly 18%.\u003c/p>\n\u003cp>Molumphy said in total, Twitter stock dropped $8 million amid Musk’s public waffling, and many people sold their shares at deflated prices, believing the deal might fall through.[aside postID=forum_2010101912956 hero='https://cdn.kqed.org/wp-content/uploads/sites/43/2025/04/GettyImages-2203694533-1-1020x574.jpg']“There can be no dispute that Mr. Musk’s tweets caused this loss, caused this drop,” he said.\u003c/p>\n\u003cp>Musk’s defense argued his tweets were just him speaking his mind, and not intended to manipulate the market. Defense Attorney Michael Lifrak said Tuesday that Musk’s concerns about spam on the site were real, and said that when he asked for information about how Twitter calculated its bot numbers at the May executive meeting, the company “clammed up.”\u003c/p>\n\u003cp>Musk never asked directly for a discount on the purchase, Lifrak added.\u003c/p>\n\u003cp>The deal closed at the original price point in October 2022, after \u003ca href=\"https://www.npr.org/2022/07/12/1111032233/elon-musk-twitter-lawsuit-deal\">Twitter sued Musk\u003c/a> over his alleged plan to back out.\u003c/p>\n\u003cp>Lifrak urged the jury to consider the facts of the case, regardless of their feelings toward Musk.\u003c/p>\n\u003cp>“This is about what happened in 2022, whether Mr. Musk engaged in the scheme to defraud, whether he purposely was tanking Twitter’s stock price, whether he lied,” Lifrak said. “He didn’t. They didn’t prove it.”\u003c/p>\n\u003cp>If he’s found guilty, Musk could be forced to repay more than $2 billion in damages to investors, according to Molumphy.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Whether Elon Musk will be forced to pay back \u003ca href=\"https://www.kqed.org/news/12075332/elon-musk-defends-himself-in-court-over-posts-before-twitter-takeover\">investors who sold Twitter stock\u003c/a> amid his 2022 takeover is now in the hands of a San Francisco jury, after attorneys wrapped up their closing arguments in the securities fraud case Tuesday.\u003c/p>\n\u003cp>The federal class action lawsuit, brought by former shareholders in the social media company, alleges that in the months before the $44 million buyout, the billionaire made misleading statements to hurt Twitter’s stock price with intent to renegotiate a cheaper deal.\u003c/p>\n\u003cp>“Mr. Musk decided … that he didn’t want to pay investors what he promised to pay. The deal in his mind had gotten too expensive,” said Mark Molumphy, an attorney for the plaintiffs. “So, he did here what he did on the stand: he trashed the company, he trashed the executives and he tanked the stock.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The weekslong civil trial has focused primarily on statements Musk made in May 2022, speculating that the number of bots on Twitter was much higher than the company publicly reported, and suggesting that the deal could be put on pause as a result.\u003c/p>\n\u003cp>The previous month, he’d signed a binding agreement to purchase the company at $54.20 a share.\u003c/p>\n\u003cp>During his testimony earlier this month, Musk said that in a May meeting with then-CEO Parag Agrawal and CFO Ned Segal, he asked the executives how the company determined the number of spam accounts that use the site daily, and said he was “flabbergasted” when they did not know.\u003c/p>\n\u003cfigure id=\"attachment_12075459\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12075459 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts Elon Musk (left) with his defense team on Mar. 4, 2026. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Days later, Musk tweeted that the deal was “temporarily on hold,” pending evidence of how the company calculated that percentage. Hours later, he posted that he was “still committed to the acquisition,” but the following Monday, he tweeted again, suggesting that up to 20% of Twitter users could be bots. In the time between those posts, the company’s stock dropped nearly 18%.\u003c/p>\n\u003cp>Molumphy said in total, Twitter stock dropped $8 million amid Musk’s public waffling, and many people sold their shares at deflated prices, believing the deal might fall through.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“There can be no dispute that Mr. Musk’s tweets caused this loss, caused this drop,” he said.\u003c/p>\n\u003cp>Musk’s defense argued his tweets were just him speaking his mind, and not intended to manipulate the market. Defense Attorney Michael Lifrak said Tuesday that Musk’s concerns about spam on the site were real, and said that when he asked for information about how Twitter calculated its bot numbers at the May executive meeting, the company “clammed up.”\u003c/p>\n\u003cp>Musk never asked directly for a discount on the purchase, Lifrak added.\u003c/p>\n\u003cp>The deal closed at the original price point in October 2022, after \u003ca href=\"https://www.npr.org/2022/07/12/1111032233/elon-musk-twitter-lawsuit-deal\">Twitter sued Musk\u003c/a> over his alleged plan to back out.\u003c/p>\n\u003cp>Lifrak urged the jury to consider the facts of the case, regardless of their feelings toward Musk.\u003c/p>\n\u003cp>“This is about what happened in 2022, whether Mr. Musk engaged in the scheme to defraud, whether he purposely was tanking Twitter’s stock price, whether he lied,” Lifrak said. “He didn’t. They didn’t prove it.”\u003c/p>\n\u003cp>If he’s found guilty, Musk could be forced to repay more than $2 billion in damages to investors, according to Molumphy.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>\u003ca href=\"https://www.kqed.org/news/tag/elon-musk\">Elon Musk\u003c/a> on Wednesday defended statements he made in the months leading up to the 2022 purchase of Twitter, saying he did not intend to intentionally manipulate stock prices before the deal.\u003c/p>\n\u003cp>In a San Francisco federal court, Musk testified in a trial brought by former Twitter shareholders who alleged the world’s richest man committed securities fraud, attempting to bring down the value of the social media platform before he purchased and renamed it X.\u003c/p>\n\u003cp>On behalf of the investors, attorney Aaron Arnzen peppered Musk with questions regarding high-profile tweets he posted, casting doubt on the deal and questioning the number of spam accounts on the platform in the months preceding his purchase. Arnzen also asked if Musk believed he could renegotiate a lower price for the acquisition at the time.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Musk deflected many of the inquiries, maintaining that his tweets were simply “speaking his mind,” and that changes in stock prices are “up to the market.” He repeatedly accused Twitter and its former executives of lying on U.S. Securities and Exchange Commission filings about the percentage of bot accounts on its site.\u003c/p>\n\u003cp>“They had misrepresented the number of bots … they had lied,” Musk repeatedly said throughout his hourslong testimony.\u003c/p>\n\u003cp>During the first three days of Musk’s civil trial, much of the testimony had focused on statements he made in May 2022, which alleged that he was misled about the number of spam and bot accounts on the platform.\u003c/p>\n\u003cfigure id=\"attachment_12075459\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12075459 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts Elon Musk (left) with his defense team on Mar. 4, 2026. Musk is expected to return to court on Thursday to continue his testimony. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>While Musk had signed a binding agreement to purchase the site for $54.20 a share in April, in the following months, Arnzen suggested, the billionaire seemed to believe he might be able to back out or renegotiate the terms of the deal based on the bot statistics.\u003c/p>\n\u003cp>In social media posts dating back years, Musk has accused Twitter of being overrun by bot accounts. On the stand on Wednesday, he argued repeatedly that more than 50% of comments and responses to his posts were filled with spam accounts.\u003c/p>\n\u003cp>“Anyone who used Twitter would realize there were a lot of bots and a lot of spam,” he said. “I definitely was complaining about bots for years; it was driving me crazy.”\u003c/p>\n\u003cp>According to Musk, he met with Twitter executives in early May — one month after they agreed to sell to him — and raised concerns about the company’s claims that less than 5% of the company’s \u003ca href=\"https://www.bbc.com/news/technology-62571733\">then-240 million\u003c/a> daily Twitter users were spam accounts.[aside postID=news_12071615 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/Tesla-Optimus-Getty.jpg']He told the jury that he was “flabbergasted” when CEO Parag Agrawal and CFO Ned Segal said they did not know how the company determined the 5% figure.\u003c/p>\n\u003cp>Days later, Musk posted on Twitter that the deal was “temporarily on hold” pending evidence supporting how Twitter calculated that percentage. Hours later, he posted that he was “still committed to acquisition.”\u003c/p>\n\u003cp>After the initial post, Twitter stock took “the elevator to the basement,” dropping 18% over the following 48 hours, Arnzen told the jury.\u003c/p>\n\u003cp>Arnzen also asked Musk if, after the early May meeting, he “thought [he] could pay way less for Twitter — half the price?” He also asked the X-owner whether he was “looking at an opportunity to revisit price.”\u003c/p>\n\u003cp>Musk said he believed there should have been an opportunity to renegotiate if there had been “material fraud” in calculating the numbers in Twitter’s SEC filings. Musk maintained, though, that he did not make any comments to intentionally depress stock prices or get a better deal on the purchase.\u003c/p>\n\u003cp>The tweets were intended to inform the public, he said, not sway stock prices.\u003c/p>\n\u003cp>“I’ve seen much bigger changes with no news,” Musk said on the stand. He did acknowledge that he knew the general public was closely attuned to his comments on social media.\u003c/p>\n\u003cfigure id=\"attachment_12075461\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12075461 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts the defense questioning Elon Musk on Mar. 4, 2026. The tech billionaire testified Wednesday, accused of defrauding former shareholders in a lawsuit. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This was in contrast with testimony from former stakeholders, who told the court they sold shares at deflated prices amid Musk’s public waffling. If he’s found guilty, he could be forced to repay them for the money they lost.\u003c/p>\n\u003cp>Separately, Musk also faces charges related to the Twitter acquisition brought by the SEC, which \u003ca href=\"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26219\">alleged\u003c/a> he violated the law by not disclosing his stake in Twitter while the deal was being worked out.\u003c/p>\n\u003cp>When asked directly whether he thought of shareholders who might have sold their stock based on his comments at a deflated price, he said he didn’t have control over whether people chose to sell, adding that in the end, he bought Twitter at his originally proposed price, which was a “premium.”\u003c/p>\n\u003cp>“Share prices go up and down, but if somebody had simply held on to their position … the vast number of people benefited greatly from the acquisition,” he told the courtroom.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Musk deflected many of the inquiries, maintaining that his tweets were simply “speaking his mind,” and that changes in stock prices are “up to the market.” He repeatedly accused Twitter and its former executives of lying on U.S. Securities and Exchange Commission filings about the percentage of bot accounts on its site.\u003c/p>\n\u003cp>“They had misrepresented the number of bots … they had lied,” Musk repeatedly said throughout his hourslong testimony.\u003c/p>\n\u003cp>During the first three days of Musk’s civil trial, much of the testimony had focused on statements he made in May 2022, which alleged that he was misled about the number of spam and bot accounts on the platform.\u003c/p>\n\u003cfigure id=\"attachment_12075459\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12075459 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-04-KQED-1200x675.jpg 1200w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts Elon Musk (left) with his defense team on Mar. 4, 2026. Musk is expected to return to court on Thursday to continue his testimony. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>While Musk had signed a binding agreement to purchase the site for $54.20 a share in April, in the following months, Arnzen suggested, the billionaire seemed to believe he might be able to back out or renegotiate the terms of the deal based on the bot statistics.\u003c/p>\n\u003cp>In social media posts dating back years, Musk has accused Twitter of being overrun by bot accounts. On the stand on Wednesday, he argued repeatedly that more than 50% of comments and responses to his posts were filled with spam accounts.\u003c/p>\n\u003cp>“Anyone who used Twitter would realize there were a lot of bots and a lot of spam,” he said. “I definitely was complaining about bots for years; it was driving me crazy.”\u003c/p>\n\u003cp>According to Musk, he met with Twitter executives in early May — one month after they agreed to sell to him — and raised concerns about the company’s claims that less than 5% of the company’s \u003ca href=\"https://www.bbc.com/news/technology-62571733\">then-240 million\u003c/a> daily Twitter users were spam accounts.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>He told the jury that he was “flabbergasted” when CEO Parag Agrawal and CFO Ned Segal said they did not know how the company determined the 5% figure.\u003c/p>\n\u003cp>Days later, Musk posted on Twitter that the deal was “temporarily on hold” pending evidence supporting how Twitter calculated that percentage. Hours later, he posted that he was “still committed to acquisition.”\u003c/p>\n\u003cp>After the initial post, Twitter stock took “the elevator to the basement,” dropping 18% over the following 48 hours, Arnzen told the jury.\u003c/p>\n\u003cp>Arnzen also asked Musk if, after the early May meeting, he “thought [he] could pay way less for Twitter — half the price?” He also asked the X-owner whether he was “looking at an opportunity to revisit price.”\u003c/p>\n\u003cp>Musk said he believed there should have been an opportunity to renegotiate if there had been “material fraud” in calculating the numbers in Twitter’s SEC filings. Musk maintained, though, that he did not make any comments to intentionally depress stock prices or get a better deal on the purchase.\u003c/p>\n\u003cp>The tweets were intended to inform the public, he said, not sway stock prices.\u003c/p>\n\u003cp>“I’ve seen much bigger changes with no news,” Musk said on the stand. He did acknowledge that he knew the general public was closely attuned to his comments on social media.\u003c/p>\n\u003cfigure id=\"attachment_12075461\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12075461 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260304-Elon-Musk-Trial-05-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A courtroom sketch depicts the defense questioning Elon Musk on Mar. 4, 2026. The tech billionaire testified Wednesday, accused of defrauding former shareholders in a lawsuit. \u003ccite>(Vicki Behringer for KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>This was in contrast with testimony from former stakeholders, who told the court they sold shares at deflated prices amid Musk’s public waffling. If he’s found guilty, he could be forced to repay them for the money they lost.\u003c/p>\n\u003cp>Separately, Musk also faces charges related to the Twitter acquisition brought by the SEC, which \u003ca href=\"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26219\">alleged\u003c/a> he violated the law by not disclosing his stake in Twitter while the deal was being worked out.\u003c/p>\n\u003cp>When asked directly whether he thought of shareholders who might have sold their stock based on his comments at a deflated price, he said he didn’t have control over whether people chose to sell, adding that in the end, he bought Twitter at his originally proposed price, which was a “premium.”\u003c/p>\n\u003cp>“Share prices go up and down, but if somebody had simply held on to their position … the vast number of people benefited greatly from the acquisition,” he told the courtroom.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Fifteen years ago, Tesla began production of its Model S sedan in a \u003ca href=\"https://www.kqed.org/forum/201005210900/tesla-and-toyota-at-nummi\">shuttered auto plant\u003c/a> in Fremont.\u003c/p>\n\u003cp>At the time, the company was a fragile startup on the verge of collapse. Most major automakers didn’t even consider EVs as serious competitors in the mainstream market.\u003c/p>\n\u003cp>Now, the trillion-dollar company is poised to churn out a different edge case product on the plant’s assembly lines: its humanoid robot known as Optimus.\u003c/p>\n\u003cp>“They took a factory that was one of the oldest operating auto factories in the country and turned it into the most productive auto plant in North America,” said Donovan Lazaro, Fremont’s economic development director. “I would imagine they’ll have that same fiery tenacity when it comes to rolling out Optimus.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>CEO Elon Musk said Wednesday that the automaker is ending production of its Model S and X vehicles at the factory to free that part of the space to build Optimus, but overall auto production is not ending in Fremont.\u003c/p>\n\u003cp>“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk said on the company’s fourth-quarter earnings call, “with the long-term goal of having 1 million units [a] year line of Optimus in the SX space in Fremont.”\u003c/p>\n\u003cp>Today, the Fremont factory \u003ca href=\"https://www.bizjournals.com/sanjose/news/2024/01/12/tesla-ups-fremont-workers-salaries.html\">employs 30,000 people\u003c/a> to build four Tesla vehicles: the S and X for now, but also the newer Models 3 and Y. The\u003ca href=\"https://www.npr.org/sections/alltechconsidered/2012/06/22/155525142/teslas-new-electric-sedan-five-passengers-89-mpg-and-no-engine\"> Model S\u003c/a> was the first vehicle built at Tesla’s Fremont factory, but the S and X lines accounted for \u003ca href=\"https://www.wardsauto.com/news/tesla-ending-production-models-modelx-elon-musk/810837/#:~:text=Dive%20Insight:,Tesla's%20year%2Dend%20sales%20summary.\">only 3%\u003c/a> of Tesla’s global production in 2025.\u003c/p>\n\u003cfigure id=\"attachment_12064376\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12064376\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty.jpg\" alt=\"\" width=\"2000\" height=\"1190\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty-160x95.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty-1536x914.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The Tesla manufacturing facility on Sept. 18, 2023, in Fremont, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>To see them sunset is a symbolic loss, but it is not expected to be much of an economic loss for the company or the region.\u003c/p>\n\u003cp>“We’re making big investments for an epic future,” Musk said of the switch.\u003c/p>\n\u003cp>Musk said Tesla expects to increase headcount at the Fremont facility as it builds out robot production and “to significantly increase output.”\u003c/p>\n\u003cp>Tesla is\u003ca href=\"https://www.tesla.com/en_EU/careers/search/?query=Optimus&site=US\"> already hiring\u003c/a> for the Optimus work, and Lazaro said he believes most of the people trained in the Tesla way will stay put through the retooling.\u003c/p>\n\u003cp>“While I can’t speak with granularity to Tesla’s plans, I will just say in general we have a shortage of skilled labor in this country, especially for manufacturing and advanced manufacturing jobs,” he said. “And so I would absolutely imagine that there will be roles found in other parts of the facility for any affected workers.”[aside postID=forum_2010101883541 hero='https://ww2.kqed.org/app/uploads/sites/43/2021/05/GettyImages-1229894905-1020x697.jpeg']Lazaro added that a new product line will require a new supply chain, which could attract all sorts of new suppliers to the region. Tesla is also \u003ca href=\"https://www.bizjournals.com/sanfrancisco/news/2026/01/26/tesla-fremont-factory-expansion.html\">leasing additional space\u003c/a> near its existing factory to support the company’s work in AI, engineering, and, of course, robotics.\u003c/p>\n\u003cp>Fremont Mayor Raj Salwan said city officials are “delighted” by Musk’s announcement.\u003c/p>\n\u003cp>“Tesla’s Fremont facility evolving into robotics manufacturing is a vote of confidence in our workforce, supplier ecosystem, and advanced manufacturing base,” Salwan wrote to KQED.\u003c/p>\n\u003cp>Tesla said it plans to unveil the third generation of Optimus later this quarter, calling it the company’s first design intended for mass production, intended to be used for factory work, household tasks and caregiving. Musk said on the conference call with investors and analysts that he expects artificial intelligence to usher in an era of “sustainable abundance” in which robots do all the work and “everyone can have whatever they want.”\u003c/p>\n\u003cp>He’s also said he imagines one for\u003ca href=\"https://www.businessinsider.com/elon-musk-personal-robots-warns-terminator-style-risks-saudi-robotaxi-2025-5\"> every person on Earth\u003c/a>, all of them running Tesla software. But that may have more to do with his desire to justify his\u003ca href=\"https://www.npr.org/2025/11/06/nx-s1-5596440/tesla-musk-2025-trillion-dollar-compensation-vote\"> outsize Tesla pay package\u003c/a>, involving up to $1 trillion worth of Tesla stock, than his penchant for predicting the future.\u003c/p>\n\u003cp>Musk’s personal move to Texas in 2020, his decision to move \u003ca href=\"https://www.kqed.org/news/11995900/elon-musk-says-hes-moving-spacex-x-headquarters-from-california-to-texas\">SpaceX and Tesla headquarters \u003c/a>to Austin in 2021, his \u003ca href=\"https://www.kqed.org/forum/2010101904725/the-extremely-hardcore-story-of-elon-musks-twitter-takeover\">takeover of Twitter\u003c/a> in 2022, his \u003ca href=\"https://www.kqed.org/news/12071559/growing-wave-of-silicon-valley-workers-condemns-ice-as-c-suites-split-over-fear-of-trump\">support for the Trump administration\u003c/a> and \u003ca href=\"https://www.kqed.org/news/12029281/musks-costly-cuts-x-will-doge-trump-face-similar-fallout\">leadership of DOGE\u003c/a> in 2025 have alienated many Californians. His promotion of Tesla’s controversial “\u003ca href=\"https://www.kqed.org/news/12010070/feds-investigate-tesla-after-deadly-full-self-driving-crash\">self-driving\u003c/a>” technology, despite documented accidents and safety concerns, has led to criticism and lawsuits.” The same is true for his cavalier approach to \u003ca href=\"https://www.kqed.org/news/12069808/california-investigates-elon-musks-ai-company-after-avalanche-of-complaints-about-sexual-content\">complaints about xAI\u003c/a>.\u003c/p>\n\u003cp>Additionally, it’s not clear how many people on Earth will feel a driving need to purchase a robot.\u003c/p>\n\u003cp>It’s no matter to Stephen Baiter, executive director of the East Bay Economic Development Alliance.\u003c/p>\n\u003cp>“They really are leveraging all the plentiful assets, resources, the talent and everything else that makes the Bay Area such a unique and global powerhouse,” he said. “I think their capacity to fulfill their bigger ambitions over time is realistic. What time horizon, I guess, remains to be seen.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "East Bay officials are reacting to the news that Tesla will stop producing its Model S and X vehicles at its Fremont factory and switch to building Optimus humanoid robots by year’s end.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Fifteen years ago, Tesla began production of its Model S sedan in a \u003ca href=\"https://www.kqed.org/forum/201005210900/tesla-and-toyota-at-nummi\">shuttered auto plant\u003c/a> in Fremont.\u003c/p>\n\u003cp>At the time, the company was a fragile startup on the verge of collapse. Most major automakers didn’t even consider EVs as serious competitors in the mainstream market.\u003c/p>\n\u003cp>Now, the trillion-dollar company is poised to churn out a different edge case product on the plant’s assembly lines: its humanoid robot known as Optimus.\u003c/p>\n\u003cp>“They took a factory that was one of the oldest operating auto factories in the country and turned it into the most productive auto plant in North America,” said Donovan Lazaro, Fremont’s economic development director. “I would imagine they’ll have that same fiery tenacity when it comes to rolling out Optimus.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>CEO Elon Musk said Wednesday that the automaker is ending production of its Model S and X vehicles at the factory to free that part of the space to build Optimus, but overall auto production is not ending in Fremont.\u003c/p>\n\u003cp>“It’s time to basically bring the Model S and X programs to an end with an honorable discharge,” Musk said on the company’s fourth-quarter earnings call, “with the long-term goal of having 1 million units [a] year line of Optimus in the SX space in Fremont.”\u003c/p>\n\u003cp>Today, the Fremont factory \u003ca href=\"https://www.bizjournals.com/sanjose/news/2024/01/12/tesla-ups-fremont-workers-salaries.html\">employs 30,000 people\u003c/a> to build four Tesla vehicles: the S and X for now, but also the newer Models 3 and Y. The\u003ca href=\"https://www.npr.org/sections/alltechconsidered/2012/06/22/155525142/teslas-new-electric-sedan-five-passengers-89-mpg-and-no-engine\"> Model S\u003c/a> was the first vehicle built at Tesla’s Fremont factory, but the S and X lines accounted for \u003ca href=\"https://www.wardsauto.com/news/tesla-ending-production-models-modelx-elon-musk/810837/#:~:text=Dive%20Insight:,Tesla's%20year%2Dend%20sales%20summary.\">only 3%\u003c/a> of Tesla’s global production in 2025.\u003c/p>\n\u003cfigure id=\"attachment_12064376\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12064376\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty.jpg\" alt=\"\" width=\"2000\" height=\"1190\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty-160x95.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty-1536x914.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The Tesla manufacturing facility on Sept. 18, 2023, in Fremont, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>To see them sunset is a symbolic loss, but it is not expected to be much of an economic loss for the company or the region.\u003c/p>\n\u003cp>“We’re making big investments for an epic future,” Musk said of the switch.\u003c/p>\n\u003cp>Musk said Tesla expects to increase headcount at the Fremont facility as it builds out robot production and “to significantly increase output.”\u003c/p>\n\u003cp>Tesla is\u003ca href=\"https://www.tesla.com/en_EU/careers/search/?query=Optimus&site=US\"> already hiring\u003c/a> for the Optimus work, and Lazaro said he believes most of the people trained in the Tesla way will stay put through the retooling.\u003c/p>\n\u003cp>“While I can’t speak with granularity to Tesla’s plans, I will just say in general we have a shortage of skilled labor in this country, especially for manufacturing and advanced manufacturing jobs,” he said. “And so I would absolutely imagine that there will be roles found in other parts of the facility for any affected workers.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Lazaro added that a new product line will require a new supply chain, which could attract all sorts of new suppliers to the region. Tesla is also \u003ca href=\"https://www.bizjournals.com/sanfrancisco/news/2026/01/26/tesla-fremont-factory-expansion.html\">leasing additional space\u003c/a> near its existing factory to support the company’s work in AI, engineering, and, of course, robotics.\u003c/p>\n\u003cp>Fremont Mayor Raj Salwan said city officials are “delighted” by Musk’s announcement.\u003c/p>\n\u003cp>“Tesla’s Fremont facility evolving into robotics manufacturing is a vote of confidence in our workforce, supplier ecosystem, and advanced manufacturing base,” Salwan wrote to KQED.\u003c/p>\n\u003cp>Tesla said it plans to unveil the third generation of Optimus later this quarter, calling it the company’s first design intended for mass production, intended to be used for factory work, household tasks and caregiving. Musk said on the conference call with investors and analysts that he expects artificial intelligence to usher in an era of “sustainable abundance” in which robots do all the work and “everyone can have whatever they want.”\u003c/p>\n\u003cp>He’s also said he imagines one for\u003ca href=\"https://www.businessinsider.com/elon-musk-personal-robots-warns-terminator-style-risks-saudi-robotaxi-2025-5\"> every person on Earth\u003c/a>, all of them running Tesla software. But that may have more to do with his desire to justify his\u003ca href=\"https://www.npr.org/2025/11/06/nx-s1-5596440/tesla-musk-2025-trillion-dollar-compensation-vote\"> outsize Tesla pay package\u003c/a>, involving up to $1 trillion worth of Tesla stock, than his penchant for predicting the future.\u003c/p>\n\u003cp>Musk’s personal move to Texas in 2020, his decision to move \u003ca href=\"https://www.kqed.org/news/11995900/elon-musk-says-hes-moving-spacex-x-headquarters-from-california-to-texas\">SpaceX and Tesla headquarters \u003c/a>to Austin in 2021, his \u003ca href=\"https://www.kqed.org/forum/2010101904725/the-extremely-hardcore-story-of-elon-musks-twitter-takeover\">takeover of Twitter\u003c/a> in 2022, his \u003ca href=\"https://www.kqed.org/news/12071559/growing-wave-of-silicon-valley-workers-condemns-ice-as-c-suites-split-over-fear-of-trump\">support for the Trump administration\u003c/a> and \u003ca href=\"https://www.kqed.org/news/12029281/musks-costly-cuts-x-will-doge-trump-face-similar-fallout\">leadership of DOGE\u003c/a> in 2025 have alienated many Californians. His promotion of Tesla’s controversial “\u003ca href=\"https://www.kqed.org/news/12010070/feds-investigate-tesla-after-deadly-full-self-driving-crash\">self-driving\u003c/a>” technology, despite documented accidents and safety concerns, has led to criticism and lawsuits.” The same is true for his cavalier approach to \u003ca href=\"https://www.kqed.org/news/12069808/california-investigates-elon-musks-ai-company-after-avalanche-of-complaints-about-sexual-content\">complaints about xAI\u003c/a>.\u003c/p>\n\u003cp>Additionally, it’s not clear how many people on Earth will feel a driving need to purchase a robot.\u003c/p>\n\u003cp>It’s no matter to Stephen Baiter, executive director of the East Bay Economic Development Alliance.\u003c/p>\n\u003cp>“They really are leveraging all the plentiful assets, resources, the talent and everything else that makes the Bay Area such a unique and global powerhouse,” he said. “I think their capacity to fulfill their bigger ambitions over time is realistic. What time horizon, I guess, remains to be seen.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "california-investigates-elon-musks-ai-company-after-avalanche-of-complaints-about-sexual-content",
"title": "California Investigates Elon Musk’s AI Company After ‘Avalanche’ of Complaints About Sexual Content",
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"headTitle": "California Investigates Elon Musk’s AI Company After ‘Avalanche’ of Complaints About Sexual Content | KQED",
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"content": "\u003cp>\u003c!-- Creative Commons Attribution-NonCommercial-NoDerivatives https://creativecommons.org/licenses/by-nc-nd/4.0/ -->\u003c/p>\n\u003cp>\u003cem>This story was originally published by \u003ca href=\"https://calmatters.org/\">CalMatters\u003c/a>. \u003ca href=\"https://calmatters.org/subscribe-to-calmatters/\">Sign up\u003c/a> for their newsletters.\u003c/em>\u003c/p>\n\u003cp>California Attorney General \u003ca href=\"https://www.kqed.org/news/tag/rob-bonta\">Rob Bonta\u003c/a> today announced an investigation into how and whether Elon Musk’s X and xAI broke the law in the past few weeks by enabling the spread of naked or sexual imagery without consent.\u003c/p>\n\u003cp>xAI \u003ca href=\"https://www.wsj.com/tech/xai-grok-child-sexualized-photos-59cabffe?gaa_at=eafs&gaa_n=AWEtsqeXFpqFQcrxsO5WTkfUv06n_yUF6SLsaiidykNtXuu99sfcWdIeGHE6&gaa_ts=6967eaf6&gaa_sig=Xo5Vee-O05o95LbH9S5pemMTlPI6DdA5iZKEj5SEbQPtBBwZQuX9-vC1SF3WvpfVZT6YyP8zLGAprQ5MlwHhpQ%3D%3D\">reportedly\u003c/a> updated its Grok artificial intelligence tool last month to allow image editing. Users on the social media platform X, which is connected to the tool, began using Grok to remove clothing in pictures of women and children.\u003c/p>\n\u003cp>“The avalanche of reports detailing the non-consensual sexually explicit material that xAI has produced and posted online in recent weeks is shocking,” Bonta \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-bonta-launches-investigation-xai-grok-over-undressed-sexual-ai\">said in a written statement\u003c/a>. “This material, which depicts women and children in nude and sexually explicit situations, has been used to harass people across the internet. I urge xAI to take immediate action to ensure this goes no further.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Bonta urged Californians who want to report depictions of them or their children undressed or commiting sexual acts to visit \u003ca href=\"http://oag.ca.gov/report\">oag.ca.gov/report\u003c/a>. In an emailed response, xAI did not address questions about the investigation.\u003c/p>\n\u003cp>Research \u003ca href=\"https://www.bloomberg.com/news/articles/2026-01-07/musk-s-grok-ai-generated-thousands-of-undressed-images-per-hour-on-x?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc2Nzc5MDk4NywiZXhwIjoxNzY4Mzk1Nzg3LCJhcnRpY2xlSWQiOiJUOEhRS0hLR0lGUE8wMCIsImJjb25uZWN0SWQiOiJGRUIzODlCNUI2ODI0RTY0QjY5MENEODE1RTBDREZGRCJ9.3B4JWnmqmXFC3DOqhs11h99g5gNzi4j_poKAHLuWdrY&leadSource=uverify%20wall\">obtained by Bloomberg\u003c/a> found that X now produces more non-consensual naked or sexual imagery than any other website online. In a posting on X, Musk promised “consequences” for people who made illegal content with the tool. On Friday, Grok limited image editing to paying subscribers.\u003c/p>\n\u003cp>One potential route for Bonta to prosecute xAI is a law that \u003ca href=\"https://www.gov.ca.gov/2025/10/13/governor-newsom-signs-bills-to-further-strengthen-californias-leadership-in-protecting-children-online/\">went into effect\u003c/a> just two weeks ago \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202520260ab621\">creating legal liability for the creation and distribution\u003c/a> of “deepfake” pornography.\u003c/p>\n\u003cfigure id=\"attachment_12013478\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12013478\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Attorney General Rob Bonta speaks with KQED politics reporters Marisa Lagos and Scott Shafer for Political Breakdown at the KQED offices in San Francisco on Nov. 7, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>X and xAI appear to be violating the provisions of that law, known as AB 621, said Sam Dordulian, who previously worked in the sex crimes unit of the Los Angeles District Attorney’s Office but today works in private practice as a lawyer for people in cases involving deepfakes or revenge porn.\u003c/p>\n\u003cp>Assemblymember Rebecca Bauer-Kahan, author of the law, told CalMatters in a statement last week that she reached out to prosecutors, including the attorney general’s office and the city attorney of San Francisco, to remind them that they can act under the law.\u003c/p>\n\u003cp>What’s happening on X, Bauer-Kahan said, is what AB 621 was designed to address.\u003c/p>\n\u003cp>“Real women are having their images manipulated without consent, and the psychological and reputational harm is devastating,” the San Ramon Democrat said in an emailed statement. “Underage children are having their images used to create child sexual abuse material, and these websites are knowingly facilitating it.”\u003c/p>\n\u003ch2>A global concern\u003c/h2>\n\u003cp>Bonta’s inquiry also comes shortly after a \u003ca href=\"https://x.com/cagovernor/status/2011489740026232891\">call for an investigation\u003c/a> by Gov. Gavin Newsom, backlash from regulators in the European Union and India and bans on X in Malaysia, Indonesia, and potentially the United Kingdom. As Grok app downloads \u003ca href=\"https://sherwood.news/tech/grok-has-been-climbing-apple-and-googles-app-store-rankings-amid-calls-to/\">rise in Apple and Google app store\u003c/a>s, lawmakers and advocates are calling for the smartphone makers to prohibit the application.\u003c/p>\n\u003cp>Why Grok created the feature the way it did and how it will respond to the controversy around it is unclear, and answers may not be forthcoming, since \u003ca href=\"https://www.bloomberg.com/news/articles/2026-01-07/musk-s-grok-ai-generated-thousands-of-undressed-images-per-hour-on-x?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc2Nzc5MDk4NywiZXhwIjoxNzY4Mzk1Nzg3LCJhcnRpY2xlSWQiOiJUOEhRS0hLR0lGUE8wMCIsImJjb25uZWN0SWQiOiJGRUIzODlCNUI2ODI0RTY0QjY5MENEODE1RTBDREZGRCJ9.3B4JWnmqmXFC3DOqhs11h99g5gNzi4j_poKAHLuWdrY&leadSource=uverify%20wall\">an analysis recently concluded\u003c/a> that it’s the least transparent of major AI systems available today. xAI did not address questions about the investigation from CalMatters.\u003c/p>\n\u003cp>Evidence of concrete harm from deepfakes is piling up. In 2024, the FBI warned that the use of \u003ca href=\"https://www.fbi.gov/contact-us/field-offices/nashville/news/sextortion-a-growing-threat-targeting-minors\">deepfake tools to extort young people is a growing problem\u003c/a> that has led to instances of self-harm and suicide. Multiple audits have found that \u003ca href=\"https://www.techpolicy.press/laion-and-the-challenges-of-preventing-ai-generated-csam/\">child sexual abuse material is inside the training data of AI models\u003c/a>, making them capable of generating vulgar photos. A \u003ca href=\"https://cdt.org/wp-content/uploads/2024/09/FINAL-UPDATED-CDT-2024-NCII-Polling-Slide-Deck.pdf\">2024 Center for Democracy and Technology survey\u003c/a> found that 15% of high school students have heard of or seen sexually explicit imagery of someone they know at school in the past year.\u003c/p>\n\u003cp>The investigation announced today is the latest action by the attorney general to push AI companies to keep kids safe. Late last year, Bonta endorsed a bill that would have prevented chatbots that talk about self-harm and engage in sexually explicit conversations from interacting with people under 18.[aside postID=news_12064374 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/11/TeslaFremontGetty.jpg']He also joined attorneys general from 44 other states in sending a letter that questions why companies like Meta and OpenAI allow their chatbots to have sexually inappropriate conversations with minors.\u003c/p>\n\u003cp>California has passed roughly half a dozen laws since 2019 to protect people from deepfakes. The \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202520260ab621\">new law by Bauer-Kahan\u003c/a> amends and strengthens a 2019 law, most significantly by allowing district attorneys to bring cases against companies that “recklessly aid and abet” the distribution of deepfakes without the consent of the person depicted nude or committing sexual acts. That means the average person can ask the attorney general or the district attorney where they live to file a case on their behalf. It also increases the maximum amount that a judge can award a person from $150,000 to $250,000. Under the law, a public prosecutor is not required to prove that an individual depicted in an AI-generated nude or sexual image suffered actual harm to bring a case to court. Websites that refuse to comply within 30 days can face penalties of $25,000 per violation.\u003c/p>\n\u003cp>In addition to those measures, two 2024 laws (\u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202320240ab1831\">AB 1831\u003c/a> and \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202320240sb1381?slug=CA_202320240SB1381\">SB 1381\u003c/a>) expand the state’s definition of child pornography to make possession or distribution of artificially-generated child sexual abuse material illegal. \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202320240sb981\">Another required\u003c/a> social media platforms to give people an easy way to request the immediate removal of a deepfake, and defines the posting of such material as a form of digital identity theft. A California law limiting the use of deepfakes in elections was signed into law last year, but was \u003ca href=\"https://www.politico.com/news/2025/08/05/elon-musk-x-court-win-california-deepfake-law-00494936\">struck down by a federal judge last summer\u003c/a> following a lawsuit by X and Elon Musk.\u003c/p>\n\u003ch2>Future reforms\u003c/h2>\n\u003cp>Every new state law helps give lawyers like Dordulian a new avenue to address harmful uses of deepfakes, but he said more needs to be done to help people protect themselves. He said his clients face challenges proving violation of existing laws since they require distribution of explicit materials, for example, with a messaging app or social media platform, for protections to kick in. In his experience, people who use nudify apps typically know each other, so distribution doesn’t always take place, and if it does, it can be hard to prove.\u003c/p>\n\u003cp>For example, he said, he has a client who works as a nanny who alleges that the father of the kids she takes care of made images of her using photos she posted on Instagram. The nanny found the images on his iPad. This discovery was disturbing for her and caused her emotional trauma, but since he can’t use deepfake laws, he has to sue on the basis of negligence or emotional distress, and laws that were never created to address deepfakes. Similarly, \u003ca href=\"https://www.cnbc.com/2025/09/27/nudify-ai-generated-deepfake-fbi.html\">victims told CNBC last year\u003c/a> that the distinction between creating and distributing deepfakes left a gap in the law in a number of U.S. states.\u003c/p>\n\u003cp>“The law needs to keep up with what’s really happening on the ground and what women are experiencing, which is just the simple act of creation itself is the problem,” Dordulian said.\u003c/p>\n\u003cfigure id=\"attachment_12069820\" class=\"wp-caption aligncenter\" style=\"max-width: 1980px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12069820\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657.jpg\" alt=\"\" width=\"1980\" height=\"1320\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657.jpg 1980w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1980px) 100vw, 1980px\">\u003cfigcaption class=\"wp-caption-text\">An iPhone screen displays the Grok logo on the Grok AI app on January 11, 2026. \u003ccite>(Anna Barclay/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>California is at the forefront of passing laws to protect people from deepfakes, but existing law isn’t meeting the moment, said Jennifer Gibson, cofounder and director of \u003ca href=\"https://psst.org/\">Psst\u003c/a>, a group created a little over a year ago that provides pro bono legal services to tech and AI workers interested in whistleblowing.\u003c/p>\n\u003cp>A \u003ca href=\"https://calmatters.org/economy/technology/2025/12/new-ai-regulation/\">California law that went into effect Jan. 1\u003c/a> protects whistleblowers inside AI companies but only if they work on catastrophic risk that can kill more than 50 people or cause more than $1 billion in damages. If the law protected people who work on deepfakes, former X employees who \u003ca href=\"https://www.businessinsider.com/elon-musk-grok-explicit-content-data-annotation-2025-9?utm_source=substack&utm_medium=email\">detailed witnessing Grok generating illegal sexually explicit material last year to Business Insider\u003c/a> would, Gibson said, have had protections if they shared the information with authorities.\u003c/p>\n\u003cp>“There needs to be a lot more protection for exactly this kind of scenario in which an insider sees that this is foreseeable, knows that this is going to happen, and they need somewhere to go to report to both to keep the company accountable and protect the public.”\u003c/p>\n\u003cp>\u003cem>This article was \u003ca href=\"https://calmatters.org/economy/technology/2026/01/california-investigates-deepfakes-elon-musk-company/\">originally published on CalMatters\u003c/a> and was republished under the \u003ca href=\"https://creativecommons.org/licenses/by-nc-nd/4.0/\">Creative Commons Attribution-NonCommercial-NoDerivatives\u003c/a> license.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "Attorney General Rob Bonta said his office is looking into whether a new AI image editing tool from Elon Musk’s company violates California law.",
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"title": "California Investigates Elon Musk’s AI Company After ‘Avalanche’ of Complaints About Sexual Content | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003c!-- Creative Commons Attribution-NonCommercial-NoDerivatives https://creativecommons.org/licenses/by-nc-nd/4.0/ -->\u003c/p>\n\u003cp>\u003cem>This story was originally published by \u003ca href=\"https://calmatters.org/\">CalMatters\u003c/a>. \u003ca href=\"https://calmatters.org/subscribe-to-calmatters/\">Sign up\u003c/a> for their newsletters.\u003c/em>\u003c/p>\n\u003cp>California Attorney General \u003ca href=\"https://www.kqed.org/news/tag/rob-bonta\">Rob Bonta\u003c/a> today announced an investigation into how and whether Elon Musk’s X and xAI broke the law in the past few weeks by enabling the spread of naked or sexual imagery without consent.\u003c/p>\n\u003cp>xAI \u003ca href=\"https://www.wsj.com/tech/xai-grok-child-sexualized-photos-59cabffe?gaa_at=eafs&gaa_n=AWEtsqeXFpqFQcrxsO5WTkfUv06n_yUF6SLsaiidykNtXuu99sfcWdIeGHE6&gaa_ts=6967eaf6&gaa_sig=Xo5Vee-O05o95LbH9S5pemMTlPI6DdA5iZKEj5SEbQPtBBwZQuX9-vC1SF3WvpfVZT6YyP8zLGAprQ5MlwHhpQ%3D%3D\">reportedly\u003c/a> updated its Grok artificial intelligence tool last month to allow image editing. Users on the social media platform X, which is connected to the tool, began using Grok to remove clothing in pictures of women and children.\u003c/p>\n\u003cp>“The avalanche of reports detailing the non-consensual sexually explicit material that xAI has produced and posted online in recent weeks is shocking,” Bonta \u003ca href=\"https://oag.ca.gov/news/press-releases/attorney-general-bonta-launches-investigation-xai-grok-over-undressed-sexual-ai\">said in a written statement\u003c/a>. “This material, which depicts women and children in nude and sexually explicit situations, has been used to harass people across the internet. I urge xAI to take immediate action to ensure this goes no further.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Bonta urged Californians who want to report depictions of them or their children undressed or commiting sexual acts to visit \u003ca href=\"http://oag.ca.gov/report\">oag.ca.gov/report\u003c/a>. In an emailed response, xAI did not address questions about the investigation.\u003c/p>\n\u003cp>Research \u003ca href=\"https://www.bloomberg.com/news/articles/2026-01-07/musk-s-grok-ai-generated-thousands-of-undressed-images-per-hour-on-x?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc2Nzc5MDk4NywiZXhwIjoxNzY4Mzk1Nzg3LCJhcnRpY2xlSWQiOiJUOEhRS0hLR0lGUE8wMCIsImJjb25uZWN0SWQiOiJGRUIzODlCNUI2ODI0RTY0QjY5MENEODE1RTBDREZGRCJ9.3B4JWnmqmXFC3DOqhs11h99g5gNzi4j_poKAHLuWdrY&leadSource=uverify%20wall\">obtained by Bloomberg\u003c/a> found that X now produces more non-consensual naked or sexual imagery than any other website online. In a posting on X, Musk promised “consequences” for people who made illegal content with the tool. On Friday, Grok limited image editing to paying subscribers.\u003c/p>\n\u003cp>One potential route for Bonta to prosecute xAI is a law that \u003ca href=\"https://www.gov.ca.gov/2025/10/13/governor-newsom-signs-bills-to-further-strengthen-californias-leadership-in-protecting-children-online/\">went into effect\u003c/a> just two weeks ago \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202520260ab621\">creating legal liability for the creation and distribution\u003c/a> of “deepfake” pornography.\u003c/p>\n\u003cfigure id=\"attachment_12013478\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12013478\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241107-ATTORNEYGENERALBONTA-09-BL-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Attorney General Rob Bonta speaks with KQED politics reporters Marisa Lagos and Scott Shafer for Political Breakdown at the KQED offices in San Francisco on Nov. 7, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>X and xAI appear to be violating the provisions of that law, known as AB 621, said Sam Dordulian, who previously worked in the sex crimes unit of the Los Angeles District Attorney’s Office but today works in private practice as a lawyer for people in cases involving deepfakes or revenge porn.\u003c/p>\n\u003cp>Assemblymember Rebecca Bauer-Kahan, author of the law, told CalMatters in a statement last week that she reached out to prosecutors, including the attorney general’s office and the city attorney of San Francisco, to remind them that they can act under the law.\u003c/p>\n\u003cp>What’s happening on X, Bauer-Kahan said, is what AB 621 was designed to address.\u003c/p>\n\u003cp>“Real women are having their images manipulated without consent, and the psychological and reputational harm is devastating,” the San Ramon Democrat said in an emailed statement. “Underage children are having their images used to create child sexual abuse material, and these websites are knowingly facilitating it.”\u003c/p>\n\u003ch2>A global concern\u003c/h2>\n\u003cp>Bonta’s inquiry also comes shortly after a \u003ca href=\"https://x.com/cagovernor/status/2011489740026232891\">call for an investigation\u003c/a> by Gov. Gavin Newsom, backlash from regulators in the European Union and India and bans on X in Malaysia, Indonesia, and potentially the United Kingdom. As Grok app downloads \u003ca href=\"https://sherwood.news/tech/grok-has-been-climbing-apple-and-googles-app-store-rankings-amid-calls-to/\">rise in Apple and Google app store\u003c/a>s, lawmakers and advocates are calling for the smartphone makers to prohibit the application.\u003c/p>\n\u003cp>Why Grok created the feature the way it did and how it will respond to the controversy around it is unclear, and answers may not be forthcoming, since \u003ca href=\"https://www.bloomberg.com/news/articles/2026-01-07/musk-s-grok-ai-generated-thousands-of-undressed-images-per-hour-on-x?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc2Nzc5MDk4NywiZXhwIjoxNzY4Mzk1Nzg3LCJhcnRpY2xlSWQiOiJUOEhRS0hLR0lGUE8wMCIsImJjb25uZWN0SWQiOiJGRUIzODlCNUI2ODI0RTY0QjY5MENEODE1RTBDREZGRCJ9.3B4JWnmqmXFC3DOqhs11h99g5gNzi4j_poKAHLuWdrY&leadSource=uverify%20wall\">an analysis recently concluded\u003c/a> that it’s the least transparent of major AI systems available today. xAI did not address questions about the investigation from CalMatters.\u003c/p>\n\u003cp>Evidence of concrete harm from deepfakes is piling up. In 2024, the FBI warned that the use of \u003ca href=\"https://www.fbi.gov/contact-us/field-offices/nashville/news/sextortion-a-growing-threat-targeting-minors\">deepfake tools to extort young people is a growing problem\u003c/a> that has led to instances of self-harm and suicide. Multiple audits have found that \u003ca href=\"https://www.techpolicy.press/laion-and-the-challenges-of-preventing-ai-generated-csam/\">child sexual abuse material is inside the training data of AI models\u003c/a>, making them capable of generating vulgar photos. A \u003ca href=\"https://cdt.org/wp-content/uploads/2024/09/FINAL-UPDATED-CDT-2024-NCII-Polling-Slide-Deck.pdf\">2024 Center for Democracy and Technology survey\u003c/a> found that 15% of high school students have heard of or seen sexually explicit imagery of someone they know at school in the past year.\u003c/p>\n\u003cp>The investigation announced today is the latest action by the attorney general to push AI companies to keep kids safe. Late last year, Bonta endorsed a bill that would have prevented chatbots that talk about self-harm and engage in sexually explicit conversations from interacting with people under 18.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>He also joined attorneys general from 44 other states in sending a letter that questions why companies like Meta and OpenAI allow their chatbots to have sexually inappropriate conversations with minors.\u003c/p>\n\u003cp>California has passed roughly half a dozen laws since 2019 to protect people from deepfakes. The \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202520260ab621\">new law by Bauer-Kahan\u003c/a> amends and strengthens a 2019 law, most significantly by allowing district attorneys to bring cases against companies that “recklessly aid and abet” the distribution of deepfakes without the consent of the person depicted nude or committing sexual acts. That means the average person can ask the attorney general or the district attorney where they live to file a case on their behalf. It also increases the maximum amount that a judge can award a person from $150,000 to $250,000. Under the law, a public prosecutor is not required to prove that an individual depicted in an AI-generated nude or sexual image suffered actual harm to bring a case to court. Websites that refuse to comply within 30 days can face penalties of $25,000 per violation.\u003c/p>\n\u003cp>In addition to those measures, two 2024 laws (\u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202320240ab1831\">AB 1831\u003c/a> and \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202320240sb1381?slug=CA_202320240SB1381\">SB 1381\u003c/a>) expand the state’s definition of child pornography to make possession or distribution of artificially-generated child sexual abuse material illegal. \u003ca href=\"https://calmatters.digitaldemocracy.org/bills/ca_202320240sb981\">Another required\u003c/a> social media platforms to give people an easy way to request the immediate removal of a deepfake, and defines the posting of such material as a form of digital identity theft. A California law limiting the use of deepfakes in elections was signed into law last year, but was \u003ca href=\"https://www.politico.com/news/2025/08/05/elon-musk-x-court-win-california-deepfake-law-00494936\">struck down by a federal judge last summer\u003c/a> following a lawsuit by X and Elon Musk.\u003c/p>\n\u003ch2>Future reforms\u003c/h2>\n\u003cp>Every new state law helps give lawyers like Dordulian a new avenue to address harmful uses of deepfakes, but he said more needs to be done to help people protect themselves. He said his clients face challenges proving violation of existing laws since they require distribution of explicit materials, for example, with a messaging app or social media platform, for protections to kick in. In his experience, people who use nudify apps typically know each other, so distribution doesn’t always take place, and if it does, it can be hard to prove.\u003c/p>\n\u003cp>For example, he said, he has a client who works as a nanny who alleges that the father of the kids she takes care of made images of her using photos she posted on Instagram. The nanny found the images on his iPad. This discovery was disturbing for her and caused her emotional trauma, but since he can’t use deepfake laws, he has to sue on the basis of negligence or emotional distress, and laws that were never created to address deepfakes. Similarly, \u003ca href=\"https://www.cnbc.com/2025/09/27/nudify-ai-generated-deepfake-fbi.html\">victims told CNBC last year\u003c/a> that the distinction between creating and distributing deepfakes left a gap in the law in a number of U.S. states.\u003c/p>\n\u003cp>“The law needs to keep up with what’s really happening on the ground and what women are experiencing, which is just the simple act of creation itself is the problem,” Dordulian said.\u003c/p>\n\u003cfigure id=\"attachment_12069820\" class=\"wp-caption aligncenter\" style=\"max-width: 1980px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12069820\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657.jpg\" alt=\"\" width=\"1980\" height=\"1320\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657.jpg 1980w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/GettyImages-2255688657-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1980px) 100vw, 1980px\">\u003cfigcaption class=\"wp-caption-text\">An iPhone screen displays the Grok logo on the Grok AI app on January 11, 2026. \u003ccite>(Anna Barclay/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>California is at the forefront of passing laws to protect people from deepfakes, but existing law isn’t meeting the moment, said Jennifer Gibson, cofounder and director of \u003ca href=\"https://psst.org/\">Psst\u003c/a>, a group created a little over a year ago that provides pro bono legal services to tech and AI workers interested in whistleblowing.\u003c/p>\n\u003cp>A \u003ca href=\"https://calmatters.org/economy/technology/2025/12/new-ai-regulation/\">California law that went into effect Jan. 1\u003c/a> protects whistleblowers inside AI companies but only if they work on catastrophic risk that can kill more than 50 people or cause more than $1 billion in damages. If the law protected people who work on deepfakes, former X employees who \u003ca href=\"https://www.businessinsider.com/elon-musk-grok-explicit-content-data-annotation-2025-9?utm_source=substack&utm_medium=email\">detailed witnessing Grok generating illegal sexually explicit material last year to Business Insider\u003c/a> would, Gibson said, have had protections if they shared the information with authorities.\u003c/p>\n\u003cp>“There needs to be a lot more protection for exactly this kind of scenario in which an insider sees that this is foreseeable, knows that this is going to happen, and they need somewhere to go to report to both to keep the company accountable and protect the public.”\u003c/p>\n\u003cp>\u003cem>This article was \u003ca href=\"https://calmatters.org/economy/technology/2026/01/california-investigates-deepfakes-elon-musk-company/\">originally published on CalMatters\u003c/a> and was republished under the \u003ca href=\"https://creativecommons.org/licenses/by-nc-nd/4.0/\">Creative Commons Attribution-NonCommercial-NoDerivatives\u003c/a> license.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "What kind of no sabo word is Hyphenación? For us, it’s about living within a hyphenation. Like being a third-gen Mexican-American from the Texas border now living that Bay Area Chicano life. Like Xorje! Each week we bring together a couple of hyphenated Latinos to talk all about personal life choices: family, careers, relationships, belonging … everything is on the table. ",
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"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
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"info": "The MindShift podcast explores the innovations in education that are shaping how kids learn. Hosts Ki Sung and Katrina Schwartz introduce listeners to educators, researchers, parents and students who are developing effective ways to improve how kids learn. We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>",
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"politicalbreakdown": {
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"tagline": "Politics from a personal perspective",
"info": "Political Breakdown is a new series that explores the political intersection of California and the nation. Each week hosts Scott Shafer and Marisa Lagos are joined with a new special guest to unpack politics -- with personality — and offer an insider’s glimpse at how politics happens.",
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"possible": {
"id": "possible",
"title": "Possible",
"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"pri-the-world": {
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"title": "PRI's The World: Latest Edition",
"info": "Each weekday, host Marco Werman and his team of producers bring you the world's most interesting stories in an hour of radio that reminds us just how small our planet really is.",
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"radiolab": {
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"title": "Radiolab",
"info": "A two-time Peabody Award-winner, Radiolab is an investigation told through sounds and stories, and centered around one big idea. In the Radiolab world, information sounds like music and science and culture collide. Hosted by Jad Abumrad and Robert Krulwich, the show is designed for listeners who demand skepticism, but appreciate wonder. WNYC Studios is the producer of other leading podcasts including Freakonomics Radio, Death, Sex & Money, On the Media and many more.",
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},
"reveal": {
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"title": "Reveal",
"info": "Created by The Center for Investigative Reporting and PRX, Reveal is public radios first one-hour weekly radio show and podcast dedicated to investigative reporting. Credible, fact based and without a partisan agenda, Reveal combines the power and artistry of driveway moment storytelling with data-rich reporting on critically important issues. The result is stories that inform and inspire, arming our listeners with information to right injustices, hold the powerful accountable and improve lives.Reveal is hosted by Al Letson and showcases the award-winning work of CIR and newsrooms large and small across the nation. In a radio and podcast market crowded with choices, Reveal focuses on important and often surprising stories that illuminate the world for our listeners.",
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},
"rightnowish": {
"id": "rightnowish",
"title": "Rightnowish",
"tagline": "Art is where you find it",
"info": "Rightnowish digs into life in the Bay Area right now… ish. Journalist Pendarvis Harshaw takes us to galleries painted on the sides of liquor stores in West Oakland. We'll dance in warehouses in the Bayview, make smoothies with kids in South Berkeley, and listen to classical music in a 1984 Cutlass Supreme in Richmond. Every week, Pen talks to movers and shakers about how the Bay Area shapes what they create, and how they shape the place we call home.",
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"order": 16
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