The evening briefing.
Today across AI and tech: OpenAI's legal battle with Elon Musk heats up, Spotify enables AI remixes, and Trump delays an AI executive order.
AI Governance & Policy. The high-stakes legal battle between Elon Musk and Sam Altman over OpenAI continues, with Musk accusing the company of abandoning its founding mission. Meanwhile, former President Trump postponed signing an AI executive order, citing concerns it could hinder innovation. Meta settled a significant social media addiction lawsuit with a US school district, a case that was set to be a bellwether trial. Google is also auditing websites for AI agent compatibility through a new "Agentic Browsing" category in its Lighthouse tool.
AI Infrastructure & Investment. Anthropic and Microsoft are reportedly in talks for an AI chip deal, building on a previous $5 billion investment. The US government announced plans for $2 billion in funding and equity stakes for quantum computing firms, causing quantum stocks to soar. China unveiled what it claims is the world's first underwater data center, powered by offshore wind and cooled by seawater. Additionally, Meta, Broadcom, and other tech giants are launching a $125 million semiconductor research hub at UCLA.
AI Applications & Adoption. Spotify and Universal Music Group reached a landmark deal allowing Premium subscribers to create AI-generated song covers and remixes, with artists receiving revenue shares. In contrast, Starbucks abandoned its AI inventory management tool after only nine months, reverting to manual processes. Waymo halted freeway operations for its robotaxis after they struggled in construction zones, highlighting ongoing challenges in autonomous driving. Workday, however, saw its stock jump 14% on the strength of its artificial intelligence offerings.
Elon Musk and Sam Altman's high-stakes OpenAI lawsuit continues
The trial, initiated by Musk in 2024, accuses OpenAI of abandoning its founding mission for profit. Testimony from key figures like Musk, Altman, and Microsoft CEO Satya Nadella has been heard.
Spotify and Universal Music Group agree to allow AI-generated remixes
This licensing agreement is the first time Spotify will enable subscribers to use AI to create content on its platform. Participating artists will receive a share of the revenue generated from these fan-made AI covers and remixes.
Quantum stocks surge as US announces $2 billion in funding and equity stakes
The U.S. government plans to award grants to nine quantum computing firms. This initiative aims to accelerate development in the quantum space.
Waymo pauses freeway operations after robotaxis struggle in construction zones
This service suspension follows Waymo's previous halts in Atlanta and San Antonio due to robotaxis driving into flooded streets. The company is addressing challenges in complex urban environments.
China unveils 'world's first' underwater data center powered by offshore wind
The 2,000-server facility uses seawater for cooling, making it highly efficient. This innovation addresses rising energy demands for AI infrastructure.
Starbucks abandons its AI inventory management tool after nine months
The company will revert to manual inventory management. This decision follows a trial period where the AI tool did not meet expectations.
Nvidia appears to de-emphasize gaming GPUs in investor reports
The company will no longer break down graphics sales in its major investor reports. This suggests a shifting priority away from gaming in favor of other segments.
Meta, Broadcom, and others to launch $125 million semiconductor research hub at UCLA
Applied Materials, GlobalFoundries, and Synopsys are also joining the initiative. The hub aims to advance semiconductor research and development.
Threat hunters find Google API keys remain usable for 23 minutes after deletion
This delay creates a window for malicious actors to potentially access data or incur significant costs. The finding highlights a security vulnerability in the deletion process.
Firefox plans a rounded redesign with easy-to-find privacy and AI controls
Codenamed "Project Nova," the overhaul will feature rounded UI elements and a refreshed color palette. It will include a switch to disable all present and future AI features.
Anthropic and Microsoft in talks for AI chip deal after $5 billion investment
Microsoft's Maia 200 chips are currently used in its data centers for efficiency. The potential deal would expand access to these specialized AI processors.
iOS 27 rumored to drop support for four older iPhone models
The software update is expected to be unveiled at WWDC on June 8. This move aligns with Apple's typical cycle of discontinuing support for older devices.
Meta settles social media addiction lawsuit with US school district
This settlement concludes a case that was set to be the first bellwether trial in federal multidistrict litigation. Google's YouTube, Snap, and TikTok previously settled similar claims.
Trump postpones AI executive order signing due to concerns over potential blockers
Trump stated he was concerned the order "could have been a blocker" to the "tremendous good" AI is causing. The executive order aimed to address AI regulation.