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Musk’s Lawsuit Against OpenAI May Proceed to Trial, Judge Says

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A U.S. District Judge, Yvonne Gonzalez Rogers, announced on Tuesday that parts of Elon Musk’s lawsuit against OpenAI could go to trial, with Musk himself required to testify in court. The case, which centers on Musk’s effort to block OpenAI’s transition to a for-profit entity, is evolving into a public legal battle between Musk and OpenAI CEO Sam Altman.

Judge Rogers, presiding in Oakland, California, stated that “something is going to trial in this case,” and indicated that Musk would be called to the stand to present his case to a jury. She also noted that Musk’s legal team had not provided sufficient evidence to issue a preliminary injunction halting the transition, suggesting the possibility of an evidentiary hearing where both sides could present witnesses and evidence.

The case stems from Musk’s claims that OpenAI’s founders initially approached him to help fund a nonprofit organization focused on developing artificial intelligence (AI) for the benefit of humanity. However, Musk contends that OpenAI has since shifted its focus to making a profit. Musk’s lawsuit, filed last year, expanded to include antitrust and other claims against the company. He has asked the court to prevent OpenAI from completing its transition to a for-profit business.

OpenAI, in its defense, has moved to dismiss Musk’s claims, arguing that Musk should focus on competing in the marketplace rather than through legal channels. The company argues that restructuring to a for-profit entity is necessary to secure the capital needed to continue developing advanced AI models. A recent fundraising round of $6.6 billion and a potential future round of up to $25 billion from SoftBank hinge on OpenAI’s restructuring.

The situation has raised questions about the unusual nature of nonprofit organizations converting into for-profit entities. Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits, pointed out that such transitions are typically seen in health care sectors, not in venture capital-backed tech companies.

 

Lawsuit Accuses Amazon of Secretly Tracking Consumers Through Cellphones

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Key Points:

  • Amazon is facing a class action lawsuit filed in San Francisco federal court, accusing the company of secretly tracking consumers’ movements and selling the collected data.
  • The lawsuit claims Amazon used its Amazon Ads SDK code to allow app developers to collect geolocation data from users’ phones without their consent, revealing sensitive information such as religious affiliations, sexual orientations, and health concerns.
  • The complaint is led by Felix Kolotinsky, a California resident, who alleges that Amazon collected his personal data through the Speedtest by Ookla app.
  • The plaintiffs seek unspecified damages for millions of affected California consumers. The lawsuit cites violations of California state law related to unauthorized computer access and penal law.

Broader Implications:

  • The case highlights growing concerns about companies profiting from user data without proper consent, a trend that has sparked multiple lawsuits and regulatory inquiries in recent years.
  • The lawsuit comes amid other similar cases, such as a recent suit filed by Texas against Allstate for tracking drivers through cellphones.

Apple Clarifies Siri Privacy After $95 Million Settlement

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Apple has clarified its stance on Siri’s privacy practices following a $95 million settlement in a class action lawsuit that accused the company of recording private conversations after unintentional activations of its voice assistant. The lawsuit alleged that these conversations were then shared with third parties, including advertisers.

Apple denied the claims, stating that it has never sold or used Siri data to build marketing profiles. The company emphasized that no data was shared for advertising purposes, and no audio recordings were retained unless users explicitly consented to improve Siri’s performance. As part of the settlement, Apple agreed to pay up to $20 per device to affected users of Siri-enabled devices like iPhones and Apple Watches.

The company clarified that certain Siri features do require real-time data input from Apple servers to function correctly, but it uses the minimum amount of data necessary. Apple also reiterated its commitment to enhancing privacy features for Siri in the future.

This settlement comes amid ongoing legal scrutiny, including a similar lawsuit involving Google’s Voice Assistant, which is currently pending in federal court in California.