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openai and its co-founder, elon musk, are locked in a legal battle over openai's transition to a for-profit entity.

Company raises $200 million to fund rapid expansion and build domestic factory. Letโ€™s dive deeperโ€ฆ

In today's ContentBuffer update:

  • OpenAI vs Musk: Legal Battle Continues

  • Base Power grows massive battery fleet in Texas

  • Meta targeted teens with ads based on emotional state

  • Ex-Facebook exec testifies on Meta's ties to China

  • Nvidia's H20 AI chip spared from export restrictions

  • Threads gets X creator support

  • 5 new AI tools & 5 new AI jobs

  • More tech news

Latest Development

Tech News

Image source: TechCrunch

Summary: OpenAI's transition to a for-profit entity is being challenged by Musk in a legal battle that has been ongoing since 2024. The lawsuit has led to concerns about OpenAI's charitable mission and its ability to ensure safe artificial intelligence.

Key Points:

  • Musk had sought a preliminary injunction to halt OpenAI's transition to a for-profit structure but was denied in March 2025.

  • OpenAI needs to complete its for-profit conversion by 2025 or relinquish some of the capital it has raised in recent months.

  • A group of organizations, including nonprofits and labor groups, petitioned California Attorney General Rob Bonta to stop OpenAI from becoming a for-profit entity.

Why it matters: The outcome of this lawsuit could have significant implications for OpenAI's charitable mission and its ability to ensure safe artificial intelligence.

Energy Storage Solutions

Image source: TechCrunch

Summary: Base Power raises $200M to grow battery fleet in Texas, plans to build domestic factory, and accelerate installations.

Key Points:

  • The startup offers massive residential battery systems that can be used for grid-balancing operations and backup power during outages.

  • Base Power's batteries are designed to be installed quickly and easily, allowing the company to build a massive fleet of batteries in a short period of time.

  • The company plans to use its funding to build a domestic factory, which will help it reduce its reliance on imports and improve its supply chain.

Why it matters: This article is significant because it highlights the growth of Base Power's battery fleet and its plans to expand its operations in Texas.

Tech News

Image source: TechCrunch

Summary: Meta whistleblower Sarah Wynn-Williams has revealed that the company targeted teens with ads based on their emotional state. This was done to serve relevant advertisements to users when they were feeling down or depressed. The motive behind this strategy was to increase the chances of users buying products.

Key Points:

  • Meta's targeting of teens was based on their emotional state, including feelings of depression and low self-esteem.

  • The company used this information to serve ads that took advantage of users' vulnerable emotions.

  • This strategy was implemented to maximize ad revenue, as users in this demographic are considered valuable for advertisers.

Why it matters: This revelation highlights the potential harm that Meta's advertising practices can cause to teenagers, who may already be struggling with mental health issues.

Data Privacy

Image source: TechCrunch

Summary: Meta's former head of Global Public Policy, Sarah Wynn-Williams, testified before the US Senate about Meta's relationship with China. She alleged that Meta worked directly with the CCP to undermine US national security and betray American values. The company created custom-built censorship tools for the CCP, which gave a 'chief editor' extensive power over content moderation.

Key Points:

  • Meta created custom-built censorship tools for the Chinese Community Party (CCP).

  • The tools allowed a 'chief editor' to have extensive power over content moderation.

  • Wynn-Williams claimed that Meta's relationship with China runs deeper than previously reported.

Why it matters: This testimony highlights concerns about data privacy and national security in the context of Meta's relationships with foreign governments.

Artificial Intelligence

Image source: TechCrunch

Summary: Nvidia CEO Jensen Huang agrees to invest in US AI infrastructure, allowing H20 exports to China. The Trump administration had been preparing export controls on H20 chips, but reversed course due to Huang's proposal.

Key Points:

  • H20 chips are modified to have lower performance than other Nvidia chips

  • The agreement allows H20 exports to China, despite concerns about potential use by Chinese AI labs

  • Nvidia has called the proposed export controls 'unprecedented and misguided'

Why it matters: This deal highlights the complex relationships between US tech companies, the Trump administration, and international trade policies.

Social Media

Image source: TechCrunch

Summary: Meta tests a feature that lets users follow X creators on Threads, making it easier to connect with popular creators. The feature is currently in beta testing and allows users to import their following list from X.

Key Points:

  • The feature provides instructions on how to download the following list from X and import it to Threads

  • It's unclear how Meta matches X creators to their profiles on Threads

  • Threads has more than 320 million monthly active users

Why it matters: This move helps Threads become a solid alternative to X, with a steady growth rate.

New Tools & Job

  • Aurora Payments - Senior Financial Data Engineer (EU/UK/LatAm/UAE)

  • ZipChat - AI RAG engineer, Ruby on Rails | Earn equity

  • Walter - Mid/Senior Backend Developer

  • Semaphore - Senior Software Engineer

  • Toggl - Senior Backend Engineer (Toggl Hire)

QUICK HITS

  • ๐Ÿ”ฅ OpenAI co-founder Ilya Sutskever's new AI startup, Safe Superintelligence, uses Google Cloud's TPU chips to accelerate its research and development efforts. .

  • ๐Ÿšจ Bankruptcy judge approves sale of Canoo's assets to its CEO, Anthony Aquila, for $4 million in cash. .

  • ๐Ÿ”’ NSO group's notorious spyware pegasus targeted 1,223 whatsapp users in 51 different countries during a 2019 hacking campaign. .

  • ๐Ÿ’ธ Anthropic's new Max plan offers higher usage limits and priority access to its newest AI models and features. .

  • ๐Ÿค– A recent MIT study found that AI models don't have coherent values, contradicting previous claims. .

Read more news here โ†’

THATโ€™S A WRAP

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