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Former OpenAI employees show support for Musk lawsuit

The employees claim that the removal of non-profit status would “fundamentally violate” OpenAI’s mission.

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Credit: OpenAI | YouTube

After Elon Musk filed a lawsuit last year against the Sam Altman-run AI firm OpenAI, a group of former employees of the company this week has filed a legal brief supporting the xAI and Tesla leader’s case.

On Friday, a group of 12 former OpenAI employees said in a court filing that the company’s restructuring efforts would “fundamentally violate” the original non-profit mission, as detailed in a report from Reuters. The employees said they were in technical and leadership positions at the company, along with explaining that they believed the not-for-profit model was important for a variety of reasons.

During their time there, oversight of the non-profit was considered a key part of the company’s discussions, according to the group. Although this approach was regularly emphasized during their time at the company, recent pressures from investors to restructure the company into a for-profit could impede on crucial elements of the company’s mission.

The former employees argued that the non-profit structure helped in recruiting efforts, as many of the company’s staffers simply joined because they believed in the original mission. OpenAI, however, responded by claiming that the original mission wouldn’t change even if the structure does.

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“Our Board has been very clear: our nonprofit isn’t going anywhere and our mission will remain the same,” the company said in a statement.

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READ MORE ON ELON MUSK AND OPENAI: Elon Musk’s criticism about ChatGPT’s ‘woke’ nature gets response from OpenAI co-founder

Musk, who helped start OpenAI but left in 2018, has been highly critical of Altman and OpenAI’s efforts to become a for-profit in recent years. He officially filed a lawsuit against the ChatGPT maker last February, before dropping it in June and reviving it in August.

In the suit, Musk alleged that he had been “betrayed by Altman and his accomplices” after investing around $45 million dollars into the company, while OpenAI and investor Microsoft “established an opaque web of for-profit OpenAI affiliates, engaged in rampant self-dealing.”

In November, Musk’s legal team filed a motion for an injunction with U.S. District Judge Yvonne Gonzalez Rogers, who is presiding over the case, claiming that “irreparable harm” would occur if it wasn’t granted. The judge last month denied the injunction request, saying that Musk’s recent offer to buy OpenAI for $97.4 billion undermined his claims of harm.

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“Musk has not demonstrated likelihood of success on the merits,” Rogers said in response to the request for an injunction, adding that the original $45 million “is just a lot of money [to invest] on a handshake.”

Despite denying the request, the judge did say that the case could proceed in a California courtroom as soon as this fall, “given the public interest at stake and potential for harm if a conversion contrary to law occurred.”

Musk says xAI has acquired X in $33 billion stock deal

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Elon Musk

Microsoft partners with Starlink to expand rural internet access worldwide

The update was shared ahead of Mobile World Congress.

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Credit: Starlink/X

Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.

The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.

In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.

“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.

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The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.

Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.

Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.

Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure. 

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Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.

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Tesla expands US LFP battery supply with LG Energy Solution deal: report

The report was initially published by TheElec, citing industry sources.

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Credit: Tesla

LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility. 

The report was initially published by TheElec, citing industry sources.

LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.

LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.

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Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.

Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.

For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.

Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.

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xAI’s Grok approved for Pentagon classified systems: report

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

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Credit: xAI

Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.

Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.

Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations. 

The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.

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Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards. 

Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD. 

Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible. 

The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.

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