Musk faces an OpenAI harassment lawsuit after a judge rejects dismissal

A federal judge has rejected Elon Musk’s bid to dismiss claims that he engaged in a ‘years-long harassment campaign’ against OpenAI.

US District Judge Yvonne Gonzalez Rogers ruled that the company’s counterclaims are sufficient to proceed as part of the lawsuit Musk filed against OpenAI and its CEO, Sam Altman, last year.

Musk, who helped found OpenAI in 2015, sued the AI firm in August 2024, alleging Altman misled him about the company’s commitment to AI safety before partnering with Microsoft and pursuing for-profit goals.

OpenAI responded with counterclaims in April, accusing Musk of persistent attacks in the press and on his platform X, demands for corporate records, and a ‘sham bid’ for the company’s assets.

The filing alleged that Musk sought to undermine OpenAI instead of supporting humanity-focused AI, intending to build a rival to take the technological lead.

The feud between Musk and Altman has continued, most recently with Musk threatening to sue Apple over App Store listings for X and his AI chatbot Grok. Altman dismissed the claim, criticising Musk for allegedly manipulating X to benefit his companies and harm competitors.

Despite the ongoing legal battle, OpenAI says it will remain focused on product development instead of engaging in public disputes.

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Santander expands AI-first strategy with OpenAI

Santander is accelerating its AI-first transformation through a new partnership with OpenAI, aiming to embed intelligent technology into every part of the bank.

Over the past two months, ChatGPT Enterprise has been rolled out to nearly 15,000 employees across Europe and the Americas, with plans to double that number by year-end. The move forms part of a broader ambition to become an AI-native institution where all decisions and processes are data-driven.

The bank will plan a mandatory AI training programme for all staff from 2026, with a focus on responsible use, and expects to scale agentic AI to enable fully conversational banking.

Santander says its AI initiatives saved over €200 million last year. In Spain alone, speech analytics now handles 10 million calls annually, automatically updating CRM records and freeing more than 100,000 work hours. Developer productivity has risen by up to 30% on some tasks.

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Anthropic adds recall ability to Claude

Anthropic has added a user-triggered memory function to its Claude chatbot, allowing it to search and summarise previous chats on request. The feature helps users resume projects without repeating themselves.

The upgrade works across web, desktop and mobile platforms and is currently available to Max, Team and Enterprise subscribers, with wider rollout planned.

Claude’s memory does not automatically store personal profiles. Instead, when prompted, it retrieves relevant past chats, prioritising user privacy while enhancing usability.

With this feature, Anthropic aims to make Claude more competitive against rivals like ChatGPT by improving AI continuity in user experience across sessions.

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GPT-5 doubles usage limits and adds smarter features

OpenAI has rolled out GPT-5 as the default AI model powering ChatGPT, bringing new features designed to boost productivity for personal and business users.

The new model seamlessly switches between quick search and in-depth reasoning, allowing more fluid and intelligent responses. Users can prompt ChatGPT to ‘think hard’ to trigger the deeper reasoning mode.

ChatGPT Plus users now benefit from double the previous message limit, with 160 messages allowed every three hours. Meanwhile, Team and Pro plan subscribers enjoy unlimited GPT-5 access unless accounts are misused.

Free users have a limit of 10 messages every five hours and one daily ‘Thinking’ mode message. Older GPT models such as GPT-4.1 and GPT-3 have been discontinued but remain accessible via web settings for paying customers.

All built-in tools are automatically enabled according to user needs, removing the need to toggle features like web search, image generation, or data analysis on and off. OpenAI also revealed plans to support third-party plugins to expand ChatGPT’s development capabilities further.

The new voice mode now follows instructions more accurately and will be available to all users.

Overall, GPT-5 marks a significant leap forward, improving reasoning, creativity, and alignment with user intent. OpenAI aims to make ChatGPT an even more powerful assistant by integrating enhanced capabilities and streamlining the user experience.

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Rollout of GPT-5 proves bumpier than expected

OpenAI’s highly anticipated GPT-5 has encountered a rough debut as users reported that it felt surprisingly less capable than its predecessor, GPT-4o.

The culprit? A malfunctioning real-time router that failed to select the most appropriate model for user queries.

In response, Sam Altman acknowledged the issue and assured users that GPT-5 would ‘seem smarter starting today’.

To ease the transition, OpenAI is restoring access to GPT-4o for Plus subscribers and doubling rate limits to encourage experimentation and feedback gathering.

Beyond technical fixes, the incident has sparked broader debate within the AI community about balancing innovation with emotional resonance. Some users lament GPT-5’s colder tone and tighter alignment, even as developers strive for safer, more responsible AI behaviour.

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Musk and OpenAI CEO Altman clash over Apple and X

After Elon Musk accused Apple of favouring OpenAI’s ChatGPT over other AI applications on the App Store, there was a strong response from OpenAI CEO Sam Altman.

Altman alleged that Musk manipulates the social media platform X for his benefit, targeting competitors and critics. The exchange adds to their history of public disagreements since Musk left OpenAI’s board in 2018.

Musk’s claim centres on Apple’s refusal to list X or Grok (XAI’s AI app) in the App Store’s ‘Must have’ section, despite X being the top news app worldwide and Grok ranking fifth.

Although Musk has not provided evidence for antitrust violations, a recent US court ruling found Apple in contempt for restricting App Store competition. The EU also fined Apple €500 million earlier this year over commercial restrictions on app developers.

OpenAI’s ChatGPT currently leads the App Store’s ‘Top Free Apps’ list for iPhones in the US, while Grok holds the fifth spot. Musk’s accusations highlight ongoing tensions in the AI industry as big tech companies battle for app visibility and market dominance.

The situation emphasises how regulatory scrutiny and legal challenges shape competition within the digital economy.

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DeepSeek’s efficiency forces OpenAI to rethink closed AI model strategy

OpenAI has released reasoning-focused open-weight models in a strategic response to China’s surging AI ecosystem, led by DeepSeek’s disruptive efficiency. Unlike earlier coverage, the shift is framed not merely as competitive posturing but as a deeper recognition of shifting innovation philosophies.

DeepSeek’s rise stems from maximizing limited resources under the US’s export restrictions, proving that top-tier AI doesn’t require massive chip clusters. The agility has emboldened the open-source AI sector in China, where over 10 labs now rival those in the US, fundamentally reshaping competitive dynamics.

OpenAI’s ‘gpt-oss’ models, which reveal numerical parameters for customization, mark a departure from its traditional closed approach. Industry watchers see this as a hybrid play, retaining proprietary strengths while embracing openness to appeal to global developers.

The implications stretch beyond technology into geopolitics. US export controls may have inadvertently fueled Chinese AI innovation, with DeepSeek’s self-reliant architecture now serving as a proof point for resilience. DeepSeek’s achievement challenges the US’s historically resource-intensive approach to AI.

AI rivalry may spur collaboration or escalate competition. DeepSeek advances models like DeepSeek-MoE, while OpenAI strikes a balance between openness and monetization. Global AI dynamics shift, raising both technological and philosophical stakes.

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Altman warns of harmful AI use after model backlash

OpenAI chief executive Sam Altman has warned that many ChatGPT users are engaging with AI in self-destructive ways. His comments follow backlash over the sudden discontinuation of GPT-4o and other older models, which he admitted was a mistake.

Altman said that users form powerful attachments to specific AI models, and while most can distinguish between reality and fiction, a small minority cannot. He stressed OpenAI’s responsibility to manage the risks for those in mentally fragile states.

Using ChatGPT as a therapist or life coach was not his concern, as many people already benefit from it. Instead, he worried about cases where advice subtly undermines a user’s long-term well-being.

The model removals triggered a huge social-media outcry, with complaints that newer versions offered shorter, less emotionally rich responses. OpenAI has since restored GPT-4o for Plus subscribers, while free users will only have access to GPT-5.

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OpenAI restores GPT-4o option for Plus subscribers after feedback

OpenAI will make its GPT-4o model available again for ChatGPT Plus subscribers after replacing it with GPT-5, following complaints from users who said the change was abrupt and unwelcome.

Chief executive Sam Altman confirmed that subscribers can choose between the two models, adding that the company will monitor usage before deciding how long to keep older versions available.

The decision comes days after the debut of GPT-5, which was introduced without the option to select previous models manually.

Some users said they valued the continuity and emotional connection they had formed with GPT-4o, describing it as unique and meaningful instead of simply replaceable. Others preferred having the freedom to select a model manually rather than relying on a default.

Altman acknowledged that GPT-5’s performance appeared weaker at times, attributing it partly to a temporary malfunction in the automatic switching system.

He also said adjustments are being made to improve how the system selects the most suitable model in different scenarios.

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Sam Altman praises rapid AI adoption in India

OpenAI’s new GPT‑5 model has been unveiled, and the company offers it free to all users. Three model versions, gpt‑5, gpt‑5‑mini and gpt‑5‑nano, offer developers a balance of performance, cost and latency.

CEO Sam Altman applauded India’s rapid AI adoption and hinted that India, currently OpenAI’s second‑largest market, may soon become the largest. A visit to India is planned for September.

The new GPT‑5 achieves a level of expertise akin to a PhD‑level professional and is described as a meaningful step towards AGI. OpenAI intends to make the model notably accessible through its free tier.

Head of ChatGPT Nick Turley noted that GPT‑5 significantly enhances understanding across more than twelve Indian languages, reinforcing India as a key market for localisation.

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