The Download: Musk and Altman’s legal showdown, and AI’s profit problem

This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology.

Elon Musk and Sam Altman are going to court over OpenAI’s future

Elon Musk and OpenAI CEO Sam Altman head to trial this week in a case with sweeping consequences. Ahead of OpenAI’s IPO, the court could rule on whether the company can exist as a for-profit enterprise. It could even oust its leadership.

Musk, an OpenAI co-founder, claims he was deceived into bankrolling the firm under false pretenses. He’s seeking $134 billion in damages, the removal of Altman and president Greg Brockman, and the company’s restoration to a non-profit.

Find out how the trial could upend the global AI race.

—Michelle Kim

The missing step between hype and profit

In a celebrated South Park episode, a community of gnomes sneak out at night to steal underpants. Why? The gnomes present their pitch deck. “Phase 1: Collect underpants. Phase 2: ? Phase 3: Profit.” It’s a business plan that captures the current state of AI. 

Companies have built the tech (Step 1) and promised transformation (Step 3). But how they get there is still a big question mark. Read about the potential paths forward.

—Will Douglas Heaven

This story originally appeared in The Algorithm, our weekly newsletter giving you the inside track on all things AI. Sign up to receive it in your inbox every Monday.

Welcome to the era of weaponized deepfakes

For years, experts have warned that deepfakes could be deployed in malicious ways. These dangers are now here.

Cheap, accessible models now produce weaponized deepfakes—from sexually explicit images to political propaganda—that look startlingly real. They’re already inciting violence, changing minds, and sowing mistrust, with women and marginalized groups disproportionately affected.

Experts fear that they’re cratering trust and critical thinking. Here’s why they’re alarmed.

—Eileen Guo

Weaponized deepfakes are on our list of the 10 Things That Matter in AI Right Now, MIT Technology Review’s guide to what’s really worth your attention in the busy, buzzy world of AI. 

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 OpenAI has ended its exclusive partnership with Microsoft
The new deal allows OpenAI to court rivals such as Amazon. (Reuters $)
+ Microsoft will still license OpenAI’s tech, but no longer exclusively. (NYT $)
+ OpenAI is missing key growth targets ahead of its IPO. (WSJ $)

2 Google has signed a classified AI deal with the Pentagon
It permits AI use for “any lawful government purpose.” (The Information $)
+ Over 600 Google workers had called for a block on the deal. (QZ)
+ AI firms are set to train military versions of their models on classified data. (MIT Technology Review)

3 The EU has told Google to open Android to AI rivals
It wants to end Gemini’s built-in advantage. (Ars Technica)
+ Google calls the move an “unwarranted intervention.” (WSJ $)
+ A final decision is expected by the end of July. (Reuters $)

4 OpenAI is reportedly developing an AI-first smartphone
It would replace apps with agents. (TechCrunch)
+ Qualcomm and MediaTek may be developing its processors. (Gizmodo)

5 A brain implant for depression is moving into human testing
The FDA has approved a human study of the device. (Wired $)
+ BCIs have thus far struggled to reach the market. (MIT Technology Review)

6 A populist backlash against AI is gaining momentum in rural America
From Indiana to Idaho, voters are pushing back against the technology. (NYT $)
+ Anti-AI protests are expanding worldwide. (MIT Technology Review)

7 DeepSeek has priced its new model 97% below OpenAI’s GPT-5.5
It aims to attract more enterprises, developers, and agent-based users. (SCMP)
+ Here are three reasons why DeepSeek V4 matters. (MIT Technology Review)

8 AI now generates a third of new websites
A study found it’s making the web more cheery and less verbose. (404 Media)

9 Top talent is leaving Big Tech to launch their own AI startups
Meta, Google, and OpenAI are facing a brain drain. (CNBC)

10 Taylor Swift is trademarking her voice and image
The Grammy winner has been the target of numerous deepfakes. (NBC News)
+ A growing number of celebrities are fighting AI with trademarks. (BBC)

Quote of the day

“The reality is people don’t like him.”

—Judge Yvonne Gonzalez Rogers reacts to prospective jurors confessing their negative views of Elon Musk ahead of his legal battle with Sam Altman, The Verge reports.

One More Thing

How covid conspiracy theories led to an alarming resurgence in AIDS denialism

When Joe Rogan falsely declared that “party drugs” were an “important factor in AIDS,” several million people were listening. He also asserted that AZT, the earliest drug used to treat AIDS, killed people “quicker” than the disease itself—another claim that has been disproven.

Such comments illustrate an unmistakable resurgence in AIDS denialism: a false collection of theories arguing either that HIV does not cause AIDS or that there is no such thing as HIV at all. By the dawn of the millennium, these claims had largely fallen out of favour. That changed when the coronavirus arrived.

Follow the digital path from Covid skepticism to the return of a deadly conspiracy theory.

—Anna Merlan

We can still have nice things

A place for comfort, fun and distraction to brighten up your day. (Got any ideas? Drop me a line.)

+ Explore the planets from your laptop with this live sky map.
+ This marathon DJ set from Daphni is an incredible journey through electronic music.
+ NASA’s stunning Artemis II wallpapers bring a high-res piece of deep space to your phone.
+ This fascinating GPS explainer breaks down how your phone figures out exactly where you are.