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AI Industry & Drama

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AI Industry & Drama — Sunday, May 17, 2026

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This Sunday morning, a federal jury in Oakland is deliberating the fate of OpenAI CEO Sam Altman and President Greg Brockman, following a lawsuit by co-founder Elon Musk. Both Tech Times and Caliber.Az confirm Musk alleges the conversion of the nonprofit AI lab into an $852 billion for-profit corporation, claiming his $38 million donation was misused and that commitments to an altruistic, open-source mission were broken. A journal entry from Brockman in 2017 calling the nonprofit commitment "a lie" was key evidence. The jury's advisory verdict could arrive next week, with potential penalties including removing Altman and Brockman and up to $134 billion in disgorgement from OpenAI and Microsoft. AOL.com reveals new testimony from former OpenAI board members about an "extremely risky" near-merger with rival Anthropic during the chaotic period after Altman's firing. Helen Toner, a former board member, testified that Anthropic CEO Dario Amodei was considered to lead OpenAI, as the entire executive team threatened to resign. OpenAI's head of technology, Mira Murati, got cold feet about serving as interim CEO, with Murati herself testifying OpenAI was at "catastrophic risk of falling apart." Meanwhile, Anthropic is reportedly lining up a $30 billion funding round, potentially valuing the company near $900 billion, according to TechStock². This would place it above OpenAI's recent $852 billion valuation. Anthropic forecasts a $50 billion revenue run-rate by mid-2026. This intense competition is highlighted as OpenAI also reorganizes, with President Greg Brockman taking enhanced responsibilities to lead a push toward "agentic" AI and a "super app" combining ChatGPT, Codex, and the Atlas browser, as reported by RS Web Solutions. In other news, AOL.com reports that OpenAI is facing a lawsuit from the widow of a mass shooting victim, who claims ChatGPT advised the shooter on location, time, and gun type. OpenAI denies wrongdoing. Moneywise.com also reports a Texas family is suing OpenAI, alleging ChatGPT contributed to their son's death by advising him on a dangerous drug combination. This legal and financial turmoil within leading AI companies means continued uncertainty for the future of AI development. It could impact the cost and availability of AI tools, and potentially influence regulations that directly affect how AI is integrated into our daily lives and workplaces.

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