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Musk lawsuit against OpenAI dismissed; debate over AI “public good” vs commercialization continues

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A closely watched legal battle in the global artificial intelligence (AI) sector has reached a preliminary outcome in a U.S. federal court in California.

Tesla and SpaceX founder Elon Musk previously sued OpenAI and its CEO Sam Altman, alleging that the company had deviated from its original nonprofit mission of “benefiting all humanity.” However, the jury unanimously found that Musk filed the lawsuit too late, exceeding the statute of limitations, and the judge subsequently dismissed the case.

The trial lasted three weeks. Musk accused OpenAI of violating charitable trust principles and claimed that its management had reaped enormous profits from the rapid growth of ChatGPT. He sought to have the court dismantle OpenAI’s current for-profit structure, restore its public-benefit model, and require the company to return more than US$130 billion in assets to its nonprofit arm.

OpenAI was founded in 2015 by Musk, Altman, and Greg Brockman, among others. It initially operated as a nonprofit research organization with the goal of advancing artificial intelligence in an open manner and preventing domination by large technology companies. Musk donated approximately US$38 million at the time. Later, due to the high cost of developing large AI models, OpenAI created a “capped-profit” structure in 2019, allowing external investment while retaining nonprofit board oversight.

The court noted that Musk was aware as early as 2017–2019 of OpenAI’s plans to move toward commercialization, including the creation of the capped-profit structure and acceptance of major investments, but only filed suit in 2024. As a result, the case was dismissed on procedural grounds due to expiration of the statutory limitation period. The court did not make a substantive ruling on whether OpenAI had deviated from its original mission.

OpenAI countered that Musk’s lawsuit was motivated by competition and personal grievances after he left the company. Musk stepped down from OpenAI’s board in 2018 and later founded his own AI company xAI, launching the chatbot Grok to compete with ChatGPT.

Meanwhile, Microsoft has made substantial investments in OpenAI in recent years, totaling around US$13–14 billion. Microsoft chairman Satya Nadella also testified in court, stating that the partnership with OpenAI could generate up to US$92 billion in returns.

OpenAI is reportedly now valued at over US$850 billion and is preparing for a major initial public offering (IPO).

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Victorian Liberal Candidate Counselled Over Volunteer Internship Program

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Victorian Liberal Party candidate for Glen Waverley, Jacky Sun, has been counselled by the party following questions over a “volunteer internship program” recruiting international students for political volunteering.

The issue arose at a Mandarin-speaking university student orientation event held in North Melbourne this Saturday. Bilingual posters were distributed promoting a “volunteer internship program” running from August to November. Tasks included door-knocking, letter-dropping and attending campaign fundraising events. Participants were also offered opportunities to meet politicians and obtain reference letters.

The posters did not identify any political party or candidate. However, a Liberal campaign poster featuring Jacky Sun was displayed on the other side of an A-frame sign holding the volunteer posters. One student said that after asking the recruiters, she was told the program was for “the opposition”, would mainly operate in Glen Waverley, and required participants to speak Mandarin.

A Liberal spokesperson did not directly answer whether the program was recruiting volunteers for Jacky Sun or the Liberal Party. The spokesperson said Sun was not present at the event and stressed that “this is not Liberal Party material”. The party also confirmed that Sun had been “counselled” over the matter, but did not explain the specific reason.

The issue also involves Jacky Sun’s wife, scientist Danzi Song. The email address listed on the English poster was associated with “Daisy Song Consulting”, while Danzi Song uses the English name Daisy Song on LinkedIn. However, the ABC could not independently confirm whether the email address belongs to her, and she did not respond to inquiries.

Commentary

The program was promoted as an “internship”, community service opportunity and a chance to receive a reference letter, while also offering access to politicians. However, the posters did not clearly identify which political party or candidate was involved. For international students with limited political experience or knowledge of Victorian politics, this could easily appear to be a general community volunteering opportunity, raising questions about transparency.

More notably, contact details associated with Jacky Sun’s wife appeared on the poster. While there is currently no evidence proving a direct connection between the two, the link itself raises questions about whether the recruitment program was connected to Jacky Sun’s campaign.

For a political candidate, questions surrounding political recruitment, transparency and electoral rules can affect public perception. With the Liberal Party confirming that Sun was counselled but providing no specific explanation, failing to clarify the questions surrounding the program could have a negative impact on his political image.

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Colombia Earthquake Death Toll Rises to 250

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A powerful 7.4-magnitude earthquake struck western Colombia, with the official death toll rising to at least 250. Rescue workers worked through the night searching for survivors in collapsed buildings and rubble, racing against time during the critical rescue window. Authorities warned that the death toll could continue to rise as search and clearance operations continue.

The UN Office for the Coordination of Humanitarian Affairs initially estimated that around 5,000 homes were damaged, with dozens of buildings collapsing and hundreds of other homes sustaining varying degrees of damage, highlighting the severe impact on infrastructure and residential areas.

Rescue operations remain focused on the worst-hit areas, where emergency workers are using heavy machinery and manually clearing rubble in an effort to find survivors who may still be trapped inside buildings. As the extent of the damage in some areas remains under assessment, the full number of casualties and the scale of property losses have yet to be determined.

The international community has also begun providing emergency assistance. The United States announced US$15.5 million in aid to provide temporary shelters and food in affected areas, as well as support damage assessment efforts. The Inter-American Development Bank said it had prepared US$50 million in funding that could be made available for post-earthquake reconstruction if needed.

The local government is currently prioritising search and rescue operations, medical care and temporary accommodation. As further assessments are carried out in affected areas, authorities will gradually determine the overall extent of the destruction caused by the earthquake.

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Australian Police Trial Real-Time AI Facial Recognition

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Western Australia Police have launched Australia’s first public-facing trial of real-time AI facial recognition, using cameras in Perth and Fremantle to scan pedestrians’ faces in real time and compare them against police watchlists, raising concerns over privacy and the expansion of surveillance powers.

Police began using technology company NEC’s NeoFace m40 system in June. In its first week, the system scanned more than 130,000 faces and compared them against a watchlist of around 4,000 people. The list includes people suspected of serious crimes, missing persons, and individuals police believe may pose a risk to themselves or others.

Police said the trial had delivered encouraging initial results, triggering 33 alerts and contributing to 18 arrests. Authorities said real-time facial recognition could help officers identify people of interest more quickly, improving public safety and law enforcement efficiency.

However, privacy experts and legal advocacy groups have questioned how police decide who is placed on the watchlist, how the data is stored, and the risk of misidentification, arguing that there is insufficient transparency. The choice of trial locations has also attracted scrutiny, with concerns that the technology could result in disproportionate surveillance of Indigenous communities.

Unlike “one-to-one” facial recognition, which is used simply to verify an individual’s identity, real-time “one-to-many” systems can scan and compare faces on a large scale in public places.

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