OpenAI

AI feud intensifies as OpenAI sues Elon Musk

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire entrepreneur of a sustained campaign of harassment intended to damage the company and regain control over its AI developments.

The legal filing comes in response to Musk’s lawsuit earlier this year, in which he claimed OpenAI had strayed from its founding mission of developing AI for the benefit of humanity.

In its countersuit, OpenAI urged a federal court to block Musk from taking further ‘unlawful and unfair actions’ and hold him accountable for the alleged damage already inflicted.

The company cited press attacks, legal pressure, and social media posts to Musk’s 200 million followers as tactics aimed at undermining its operations and reputation.

It also described Musk’s demands for corporate records and attempted acquisition efforts as part of a broader scheme to derail OpenAI’s progress.

The legal conflict highlights the growing rivalry between OpenAI and xAI, the AI firm Musk launched in 2023.

OpenAI maintains that Musk’s actions are motivated by self-interest and a desire to slow down a competing organisation. A jury trial has been scheduled for spring 2026 to resolve the escalating dispute.

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Microsoft pauses $1 billion data centre project in Ohio

Microsoft has announced it is ‘slowing or pausing’ some data centre construction projects, including a $1 billion plan in Ohio, amid shifting demand for AI infrastructure.

The company confirmed it would halt early-stage development on rural land in Licking County, near Columbus, and will repurpose two of the sites for farmland.

The decision follows Microsoft’s rapid scaling of infrastructure to meet the soaring demand for AI and cloud services, which has since softened. The company acknowledged that such large projects require continuous adaptation to align with customer needs.

While Microsoft did not specify other paused projects, it revealed the suspension of later stages of a Wisconsin data centre expansion.

The slowdown also coincides with changes in Microsoft’s partnership with OpenAI, with the two companies revising their agreement to allow OpenAI to build its own AI infrastructure. This move reflects broader trends in AI computing needs, which are expensive and energy-intensive.

Despite the pause in Ohio, Microsoft plans to invest over $80 billion in AI infrastructure this fiscal year, continuing its global expansion, though it will now strategically pace its growth to align with evolving business priorities.

Local officials in Licking County expressed their disappointment, as the area had been a hub for significant tech investments, including those from Google and Meta.

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Adaptive Security raises millions to fight AI scams

OpenAI has made its first move into the cybersecurity space by co-leading a US$43 million Series A funding round for New York-based startup Adaptive Security.

The round was also backed by venture capital firm Andreessen Horowitz, highlighting growing investor interest in solutions aimed at tackling AI-driven threats.

Adaptive Security specialises in simulating social engineering attacks powered by AI, such as fake phone calls, text messages, and emails. These simulations are designed to train employees and identify weak points within an organisation’s defences.

With over 100 customers already on board, the platform is proving to be a timely solution as generative AI continues to fuel increasingly convincing cyber scams.

The funding will be used to scale up the company’s engineering team and enhance its platform to meet growing demand.

As AI-powered threats evolve, Adaptive Security aims to stay ahead of the curve by helping organisations better prepare their staff to recognise and respond to sophisticated digital deception.

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New AI firm Deep Cogito launches versatile open models

A new San Francisco-based startup, Deep Cogito, has unveiled its first family of AI models, Cogito 1, which can switch between fast-response and deep-reasoning modes instead of being limited to just one approach.

These hybrid models combine the efficiency of standard AI with the step-by-step problem-solving abilities seen in advanced systems like OpenAI’s o1. While reasoning models excel in fields like maths and physics, they often require more computing power, a trade-off Deep Cogito aims to balance.

The Cogito 1 series, built on Meta’s Llama and Alibaba’s Qwen models instead of starting from scratch, ranges from 3 billion to 70 billion parameters, with larger versions planned.

Early tests suggest the top-tier Cogito 70B outperforms rivals like DeepSeek’s reasoning model and Meta’s Llama 4 Scout in some tasks. The models are available for download or through cloud APIs, offering flexibility for developers.

Founded in June 2024 by ex-Google DeepMind product manager Dhruv Malhotra and former Google engineer Drishan Arora, Deep Cogito is backed by investors like South Park Commons.

The company’s ambitious goal is to develop ‘general superintelligence,’ AI that surpasses human capabilities, rather than merely matching them. For now, the team says they’ve only scratched the surface of their scaling potential.

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OpenAI negotiates $500m deal for AI startup

OpenAI is reportedly in talks to acquire io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman, in a deal that could exceed $500 million.

Instead of focusing solely on software like ChatGPT and API tools, OpenAI appears to be eyeing consumer devices as a way to diversify its revenue.

io Products is said to be working on AI-powered consumer tech, including a screenless smartphone and smart home gadgets.

The company’s team includes several former Apple designers, such as Tang Tan and Evans Hankey. Instead of traditional screens, these new devices are expected to explore more ambient and context-aware ways of interaction.

Jony Ive, best known for his role in designing iconic Apple products like the iPhone and iMac, left Apple in 2019 to launch his design consultancy, LoveFrom.

His collaboration with Altman on io Products was publicly confirmed last year and has already drawn interest from high-profile backers, including Laurene Powell Jobs. Funding for the startup was projected to reach $1 billion by the end of 2024.

The move echoes Altman’s previous investments in AI hardware, such as Humane Inc., a wearable tech startup that also focused on screenless interaction. Instead of scaling that venture, however, HP acquired some of Humane’s assets for $166 million earlier this year.

OpenAI’s potential acquisition of io Products could mark a significant shift toward physical consumer products in the AI space.

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Copyright lawsuits against OpenAI and Microsoft combined in AI showdown

Twelve copyright lawsuits filed against OpenAI and Microsoft have been merged into a single case in the Southern District of New York.

The US judicial panel on multidistrict litigation decided to consolidate, despite objections from many plaintiffs who argued their cases were too distinct.

The lawsuits claim that OpenAI and Microsoft used copyrighted books and journalistic works without consent to train AI tools like ChatGPT and Copilot.

The plaintiffs include high-profile authors—Ta-Nehisi Coates, Sarah Silverman, Junot Díaz—and major media outlets such as The New York Times and Daily News.

The panel justified the centralisation by citing shared factual questions and the benefits of unified pretrial proceedings, including streamlined discovery and avoidance of conflicting rulings.

OpenAI has defended its use of publicly available data under the legal doctrine of ‘fair use.’

A spokesperson stated the company welcomed the consolidation and looked forward to proving that its practices are lawful and support innovation. Microsoft has not yet issued a comment on the ruling.

The authors’ attorney, Steven Lieberman, countered that this is about large-scale theft. He emphasised that both Microsoft and OpenAI have, in their view, infringed on millions of protected works.

Some of the same authors are also suing Meta, alleging the company trained its models using books from the shadow library LibGen, which houses over 7.5 million titles.

Simultaneously, Meta faced backlash in the UK, where authors protested outside the company’s London office. The demonstration focused on Meta’s alleged use of pirated literature in its AI training datasets.

The Society of Authors has called the actions illegal and harmful to writers’ livelihoods.

Amazon also entered the copyright discussion this week, confirming its new Kindle ‘Recaps’ feature uses generative AI to summarise book plots.

While Amazon claims accuracy, concerns have emerged online about the reliability of AI-generated summaries.

In the UK, lawmakers are also reconsidering copyright exemptions for AI companies, facing growing pressure from creative industry advocates.

The debate over how AI models access and use copyrighted material is intensifying, and the decisions made in courtrooms and parliaments could radically change the digital publishing landscape.

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Sam Altman’s AI cricket post fuels India speculation

A seemingly light-hearted social media post by OpenAI CEO Sam Altman has stirred a wave of curiosity and scepticism in India. Altman shared an AI-generated anime image of himself as a cricket player dressed in an Indian jersey, which quickly went viral among Indian users.

While some saw it as a fun gesture, others questioned the timing and motives, speculating whether it was part of a broader strategy to woo Indian audiences. This isn’t the first time Altman has publicly praised India.

In recent weeks, he lauded the country’s rapid adoption of AI technology, calling it ‘amazing to watch’ and even said it was outpacing the rest of the world. His comments marked a shift from a more dismissive stance during a 2023 visit when he doubted India’s potential to compete with OpenAI’s large-scale models.

However, during his return visit in February 2025, he expressed interest in collaborating with Indian authorities on affordable AI solutions. The timing of Altman’s praise coincides with a surge in Indian users on OpenAI’s platforms, now the company’s second-largest market.

Meanwhile, OpenAI faces a legal tussle with several Indian media outlets over their alleged content misuse. Despite this, the potential of India’s booming AI market—projected to hit $8 billion by 2025—makes the country a critical frontier for global tech firms.

Experts argue that Altman’s overtures are more about business than sentiment. With increasing competition from rival AI models like DeepSeek and Gemini, maintaining and growing OpenAI’s Indian user base has become vital. As technology analyst Nikhil Pahwa said, ‘There’s no real love; it’s just business.’

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OpenAI backs Adaptive Security in the battle against AI threats

AI-driven cyber threats are on the rise, making it easier than ever for hackers to deceive employees through deepfake scams and phishing attacks.

OpenAI, a leader in generative AI, has recognised the growing risk and made its first cybersecurity investment in New York-based startup Adaptive Security. The company has secured $43 million in Series A funding, co-led by OpenAI’s startup fund and Andreessen Horowitz.

Adaptive Security helps companies prepare for AI-driven cyberattacks by simulating deepfake calls, texts, and emails. Employees may receive a phone call that sounds like their CTO, asking for sensitive information, but in reality, it is an AI-generated test.

The platform identifies weak points in a company’s security and trains staff to recognise potential threats. Social engineering scams, which trick employees into revealing sensitive data, have already led to massive financial losses, such as the $600 million Axie Infinity hack in 2022.

CEO Brian Long, a seasoned entrepreneur, says the funding will go towards hiring engineers and improving the platform to keep pace with evolving AI threats.

The investment comes amid a surge in cybersecurity funding, with companies like Cyberhaven, Snyk, and GetReal also securing major investments.

As cyber risks become more advanced, Long advises employees to take simple precautions, including deleting voicemails to prevent hackers from cloning their voices.

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OpenAI’s Deep Research feature to expand to free users

OpenAI is preparing to make its Deep Research feature available to free-tier users, following its initial rollout to Plus and Enterprise customers.

The tool, designed to conduct in-depth online research, allows ChatGPT to analyse vast amounts of information, synthesise key findings, and generate detailed reports. Isa Fulford, a member of OpenAI’s technical staff, recently confirmed the planned expansion in a post on X.

Deep Research is powered by an optimised version of the o3 model, which enhances web browsing and data analysis capabilities.

Users can request reports on various topics, such as global smartphone adoption trends, and receive summaries with citations, graphs, and insights. The tool can also process text, images, and PDFs from online sources to provide more comprehensive responses.

No official timeline has been announced for when free users will gain access to the feature, but OpenAI’s move signals an effort to expand the accessibility of advanced AI-driven research.

The functionality may also allow users to upload their own files for more personalised analysis, further enhancing the potential of ChatGPT as a research assistant.

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OpenAI CEO says India leads in AI creativity

Sam Altman sparked interest among Indian users on X after praising the country’s rapid AI adoption and sharing an AI-generated image of himself playing cricket. In his 2 April post, the OpenAI CEO called India’s AI creativity an ‘explosion,’ claiming the country was outpacing the world in adoption rates.

Users questioned why Altman singled out India, with some turning to AI chatbots like Perplexity and Grok for verification. His comments followed a February visit to India, where he met IT Minister Ashwini Vaishnaw and highlighted India as OpenAI’s second-largest market.

Altman’s remarks also came shortly after OpenAI’s GPT-4o update, which enhanced AI-generated images and illustrations. To showcase this, he shared an anime-style image of himself as a cricket player, sporting a Team India jersey.

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