12 – Breaking News & Latest Updates 2026
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AI

Artificial intelligence is more a part of our lives than ever before. While some might call it hype and compare it to NFTs or 3D TVs, generative AI is causing a sea change in nearly every part of the technology industry. OpenAI’s ChatGPT is still the best-known AI chatbot around, but with Google pushing Gemini, Microsoft building Copilot, and Apple adding its Intelligence to Siri, AI is probably going to be in the spotlight for a very long time. At The Verge, we’re exploring what might be possible with AI — and a lot of the bad stuff AI does, too.

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Elizabeth Lopatto
Elizabeth Lopatto
OpenAI has raised “approximately $175 billion” in investment, Altman says.

2023 was “the beginning of the inflection.” ChatGPT had been introduced, and “it became clear to us we would need a lot more compute.” They needed it for both research and for the models being used by the public. Around then, Shivon Zilis resigned from the OpenAI board. Shortly after that, Musk announced xAI, and Altman says there were”a lot of efforts to recruit our employees” and “negative tactics from Mr. Musk toward us.” Musk’s lawyers don’t like this but over their objections, Altman “started to hear rumblings” about litigation.

Elizabeth Lopatto
Elizabeth Lopatto
Altman seems to be getting into his testimony...

...and it’s a little catty. (I live!) At one point, Altman says that Zilis told him Musk had “front-runner-itis” — but there’s an objection that stops Altman from telling the rest of this story. Altman looks slightly disappointed. We then hear that Zilis advised Altman on how to engage Musk so that Musk wouldn’t “bash us on Twitter.”

Elizabeth Lopatto
Elizabeth Lopatto
Musk didn’t invest in the OpenAI for-profit because “he was no longer going to invest in any startups he did not control.”

Musk didn’t raise any objections, though. And then he sent the infamous message where he rated OpenAI’s chances as zero. Altman appears to be concentrating hard on his testimony but is coming across as being a little bewildered about why he is here at all — but maybe that’s just how his eyebrows look at all times.

Jay Peters
Jay Peters
Meta’s Connect conference is scheduled for September 23rd and 24th.

Meta says the event will offer “the first glimpse of what’s coming to the next computing platform,” with an “evening keynote” and “developer sessions where we’ll share the latest in VR, wearables, metaverse, and AI.”

At last year’s event, Meta debuted its smart glasses with a display.

A promotional image for Meta Connect 2026.
Image: Meta
Elizabeth Lopatto
Elizabeth Lopatto
It looks like Sam Altman discussed the for-profit OpenAI with Elon Musk in detail.

We’re getting testimony about emails and meetings Altman had with Musk to try to walk him through the for-profit. They reviewed documents together at the meeting and then emailed him the term sheet that Musk testified he didn’t read.

Elizabeth Lopatto
Elizabeth Lopatto
“Unlike a lot of other meetings with Mr. Musk, this was a good vibes meeting.”

It was when Altman met with Musk and Zilis to discuss plans for for-profit meetings. Zilis texted after the meeting to say she was glad they had the meeting to let Musk think about “the investment thing so it won’t irk him later.”
A good vibes meeting means a long conversation of Musk”showing us memes on his phone.”

Elizabeth Lopatto
Elizabeth Lopatto
Now into Shivon Zilis. Altman says he retained her on the board to try to keep friendly relations with Musk.

He learned in 2022 that Musk was the father of her kids, and keeping her on the board was “a close call for me personally because she had sort of told us that Mr Musk was playing a more involved role than originally intended and that they were spending more time together.” On the other hand, Altman says he thinks highly of Zilis “and valued her counsel.”

Jay Peters
Jay Peters
The Meta AI app now has “live AI.”

The feature means you can point your camera at something, ask about it, and get a response in real time. Meta also now lets you “talk naturally” with its Muse Spark model in the app.

Elizabeth Lopatto
Elizabeth Lopatto
“I was annoyed” when Elon Musk tried to recruit talent from OpenAI, Altman said.

Musk’s departure from the board had a mixed result on morale. “Mr. Musk is a well known figure and known to be fairly mercurial and people wondered if he was gonna try to take a vengeance out on us or something.”
On the other hand, people were relieved to be rid of him. “I don’t think Mr Musk understood how to run a good research lab.,” Altman said, “He had demotivated some of our most key researchers.”

Elizabeth Lopatto
Elizabeth Lopatto
Musk resigned because he had lost confidence in OpenAI “and did not believe we were going to be successful.”

He “didn’t want to be associated with something he couldn’t control and didn’t think would succeed.” Additionally, Musk wanted to work on AI at Tesla and didn’t want to be conflicted.

Elizabeth Lopatto
Elizabeth Lopatto
Musk suspended his quarterly donations in 2017. That left OpenAI in “a very tough position.”

“We were kind of running the org on a shoestring” and had “an extremely short runway of cash,” Altman said. OpenAI didn’t meet its fundraising goal of $100 million in 2018, raising only a hair under $50 million. Major donors are Aphorism Foundation (Reid Hoffman), Fidelity Charitable, Gabe Newell, Good Ventures Foundation (Dustin Moskowitz), Amazon Web Services and, hilariously, Alameda Research (FTX / Sam Bankman-Fried).

Elizabeth Lopatto
Elizabeth Lopatto
When it was time to get more capital, Musk was pushing OpenAI to be acquired by Tesla.

“The only path - the best path that he saw - was for OpenAI to become part of Tesla,” Altman says. We are now looking at text messages. Musk “remains very open to you joining the Tesla board as part of this,” Musk’s subordinate Sam Teller wrote. And, also, Teller said, “regardless of how these conversations about OpenAI shake out, he is committed to building a stronger AI team within Tesla.” Altman said, “I viewed a vague, like a lightweight threat in there” that Tesla would do it with or without OpenAI.

Elizabeth Lopatto
Elizabeth Lopatto
A particularly “hair-raising moment” for Altman was a succession plan from Musk.

Altman asked what would happen if Musk died. Musk said, “I haven’t thought about it a ton, but maybe control should pass to my children,” Musk replied. We also see an email where Altman says, “I desperately want to see this work with Elon... but I am worried about control. I don’t think any one person should have control of the world’s first AGI.” He says he’d be open to creative structures - like Musk having control up to a certain milestone.

Elizabeth Lopatto
Elizabeth Lopatto
Elon Musk has control issues, Altman says.

Someone — Altman doesn’t remember whether it was Musk or his subordinate, Sam Teller, said it — told Altman that Musk had “long since decided” he would only work on companies that he controlled. “Mr. Musk felt very strongly that if we were going to form a for-profit he ended to have total control over it initially and this was because he only trusted himself to make non-obvious decisions that were going to turn out to be correct,” Altman says.

Elizabeth Lopatto
Elizabeth Lopatto
OpenAI has called Sam Altman as a witness.

He is being sworn in now.

Elizabeth Lopatto
Elizabeth Lopatto
Taylor says the reason OpenAI Foundation has been able to do more work is the recapitalization.

Having the ability to sell their equity let them finance their activities, such as AI research into Alzheimer’s research.

Elizabeth Lopatto
Elizabeth Lopatto
Bret Taylor is back on the stand.

He is now testifying about Musk’s attempt to buy OpenAI using xAI, which happened after this lawsuit was filed. “I was surprised” by it, Taylor says. “Ostensibly this lawsuit is about our nonprofit purpose and mission adn this proposal was to acquire this nonprofit by a group of for-profit investors, which felt contradictory to the spirit of this lawsuit.” The OpenAI Foundation board rejected the bid because they didn’t feel it was appropriate for one person to control the mission

Jay Peters
Jay Peters
“I just find AI to be creatively soulless.”

That’s a quote given to Bloomberg by Casey Hudson, who directed Star Wars: Knights of the Old Republic at BioWare and is helming a spiritual successor. “It’s hard to imagine where it’s actually helpful in the process. I’m just really unimpressed with it.”

Game developers I spoke with at GDC this year shared similar sentiments.

Elizabeth Lopatto
Elizabeth Lopatto
We’ve talked about how this case isn’t just for whatever happens in the court...

But also about some light character assassination. It looks like Musk now has a broader strategy to try to make Altman a liability to OpenAI.

Dominic Preston
Dominic Preston
Gemini is about to get quicker at controlling your smart home.

Google says it has “optimized backend processing” for smart home device controls, alarms, and timers to make Gemini for Home better at the basics. Improved age-gating and content controls mean it should now be able to give you the recipe for a margarita too.

Jay Peters
Jay Peters
BuzzFeed CEO Jonah Peretti is getting a new job: President of BuzzFeed AI.

Byron Allen’s family office is taking a majority stake in the embattled BuzzFeed, and Allen will become BuzzFeed’s chairman and CEO while Peretti will transition to the new AI-focused role. In the role, Peretti will “bring his strategic focus to applied AI research, product innovation, and the development of new technology-driven media formats,” according to a press release.

Lauren Feiner
Lauren Feiner
The Take It Down Act comes into full force next week.

The Federal Trade Commission reminded more than a dozen companies that it can soon begin enforcing the new mandate for platforms to remove nonconsensual intimate images within 48 hours of a valid request. The provision is one that critics fear could be enforced selectively or used to limit speech.

Elizabeth Lopatto
Elizabeth Lopatto
Bret Taylor has been asked to slow down twice.

He has not managed to do this at all. He is speaking rapidly, in a monotone.

Elizabeth Lopatto
Elizabeth Lopatto
“OpenAI is decidedly not profitable,” Taylor said.

“We’re decidedly not cash-flow-positive today.” The company has not generated any profits to date.

Elizabeth Lopatto
Elizabeth Lopatto
There’s “a lot of tension” between LLMs and what Taylor calls “content companies”...

Because LLMs keep stealing people’s work, lol. Anyway he was talking about the OpenAI deal with Reddit, which was done to avoid litigation.

Elizabeth Lopatto
Elizabeth Lopatto
Plantiff rests. OpenAI calls its first witness, Bret Taylor of OpenAI Foundation.

He is in a gray suit and gray tie. I am expecting more pleated khaki pants testimony. He was also the chair of Twitter’s board when it was acquired by Musk.

Elizabeth Lopatto
Elizabeth Lopatto
Ilya Sutskever says he was uncomfortable with Musk’s large ownership demand.

Also, Musk gave no guarantee his proposed control of the board would diminish over time. “I found it to be aggressive because I knew that Mr Musk had many other obligations in many other companies that the was running that were much larger than OpenAI,” he said. He also didn’t like the proposal that Tesla take over OpenAI. “It would be on some level, it would be like, it would kill a dream,” he said. “When one starts a company, one has dreams for a company to flourish and do different things, and in general being absorbed into another company means to give up that dream.”

Elizabeth Lopatto
Elizabeth Lopatto
Sutskever’s testimony is kind of a snooze so far.

We are now at “the blip” again. The board chose “not consistently candid” carefully, he says. Sutskever said he prepared a document of incidents with Altman, with some other people at OpenAI. Altman has a pattern of lying and pitting executives against each other, “this leads to tremendous loss of productivity,” trust, and difficulty creating safe AGI.

Lauren Feiner
Lauren Feiner
OpenAI sued over ChatGPT’s ‘defective’ design that allegedly assisted an accused FSU shooter.

The family of a victim of April’s mass shooting at Florida State University is suing OpenAI over its chatbot’s alleged role in encouraging the attack, which is already being probed by Florida’s attorney general. OpenAI spokesperson Drew Pusateri called the shooting a “tragedy” but said “ChatGPT is not responsible for this terrible crime.” More from Pusateri:

“In this case, ChatGPT provided factual responses to questions with information that could be found broadly across public sources on the internet, and it did not encourage or promote illegal or harmful activity.”

Elizabeth Lopatto
Elizabeth Lopatto
Satya Nadella is excused.

Our next witness is Ilya Sutskever. This promises to be more interesting, I think.

Elizabeth Lopatto
Elizabeth Lopatto
A lot of people contact Satya Nadella about their boards, apparently!

He says he provides suggestions a lot. And they’re just suggestions, including in the case of OpenAI. While Microsoft put forward 14 names, none of those names were added to the new OpenAI board except Sue Desmond-Hellman. CEO of the Bill and Melinda Gates Foundation, who was added later.