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Tensions between Elon Musk and OpenAI are escalating. The AI company has warned investors that the Tesla CEO may present “exaggerated and attention-seeking” statements during the April 2026 court trial. The case stems from Musk’s ongoing legal battle against the firm he co-founded in 2015 — now valued at over $500 billion.

A battle over billions and principles
Musk claims he was misled when OpenAI shifted from its nonprofit roots to a for-profit model, forming a multibillion-dollar alliance with Microsoft. He argues he deserves a share of all intellectual property created since the company’s early days — potentially worth billions.
OpenAI strongly disagrees. In a recent letter to investors, it described the lawsuit as “baseless,” adding that any legitimate claim Musk might have would be limited to the $38 million he donated in the company’s early stages.

Trial moves forward
The court has ruled that the case will proceed to a jury trial, giving both sides a chance to present their arguments. OpenAI expects Musk to lean on media-driven tactics, but says its legal team is fully prepared to set the record straight.
“Elon’s lawsuit remains unfounded. We’re confident the jury will see through these claims,” an OpenAI spokesperson said.

From collaborators to rivals
The trial represents more than just a legal dispute — it's a public breakdown between early collaborators now divided over power, principles, and profit. Once united in their vision of safe AI for humanity, Musk and OpenAI now find themselves on opposite sides of a battle that could reshape the rules around artificial intelligence.
Today, the company is valued at over half a trillion dollars and leads the AI space. But the path forward will likely include more challenges — both legal and ethical.

#ElonMusk , #OpenAI , #SamAltman , #technews , #AI

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South Korea’s drive to build a nationally independent artificial intelligence ecosystem has hit an unexpected hurdle. In the country’s flagship government AI competition, more than half of the finalists were found to be using foreign technologies, in some cases Chinese-origin code—a revelation that comes just as Seoul commits record funding to the effort.
Parliament approved a ₩727.9 trillion ($495.8B) budget for 2026, and President Lee Jae-myung has more than tripled AI investment to ₩10.1 trillion ($6.9B). The government frames AI as a cornerstone of South Korea’s future economic competitiveness and national security.

A Costly Irony
The controversy is striking because the competition’s explicit goal is to reduce dependence on U.S. and Chinese AI systems. Launched last June, the three-year program aims to select two domestic champions by 2027 to deliver models built solely on Korean-developed technologies.
Reality has proven more complicated. Of the five finalists, three were found to have incorporated foreign code or components, including technology linked to China.

“Starting From Scratch Isn’t Practical”
Companies involved argue that ignoring existing open-source ecosystems and rebuilding everything from zero is inefficient and unrealistic. Critics counter that relying on foreign tools creates security risks and undermines the very idea of “sovereign AI.”
Harvard electrical engineering professor Gu-Yeon Wei, familiar with the competition, says an absolute ban on external code is unworkable:
“If you give up open-source software, you lose an enormous amount of benefit.”
Governments worldwide face the same dilemma: how to cut reliance on foreign tech without slowing innovation in a field that affects both economic power and defense.

Spotlight on Finalists: Upstage, Naver, and SK Telecom
The sharpest scrutiny fell on Upstage, after Sionic AI CEO Ko Suk-hyun claimed seeable similarities to open-source systems from China’s Zhipu AI, including visible copyright notices in code.
Upstage responded with a live verification session, presenting development logs to show its model was trained using in-house methods. The company acknowledged, however, that its inference code included open-source components commonly used worldwide. Ko later apologized.
Attention then shifted to other finalists. Naver faced claims that its visual and audio encoders resembled products from Alibaba and OpenAI. SK Telecom was questioned over inference code similar to that of DeepSeek, another Chinese AI firm.
Both Naver and SK Telecom admitted using standard external components, while stressing that their core learning and training engines were developed independently.

Rules Unclear, Debate Intensifies
A central issue remains unresolved: the competition rules never clearly stated whether foreign open-source code is allowed. South Korea’s Ministry of Science has not issued new guidance since the controversy broke. Still, Science Minister Bae Kyung-hoon welcomed the debate:
“Watching the technological discussions now energizing our AI industry, I see a bright future for Korean AI.”

What’s at Stake
By 2027, the two winners must achieve at least 95% of the performance of leading global models from firms like OpenAI or Google. In return, they’ll receive government funding for data, talent, and access to critical AI chips.
The episode underscores a broader truth: sovereign AI isn’t just about budgets. It’s a test of where to draw the line between openness and security, speed and control, and whether a truly national AI stack is feasible in a deeply globalized tech ecosystem.

#AI , #SouthKorea , #INNOVATION , #Geopolitics , #technews

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U.S. President Donald Trump said on Tuesday that large technology companies should fully cover the electricity costs of their data centers, which underpin the rapid expansion of artificial intelligence and cloud computing. Trump argued that the growing energy demands of these facilities should not translate into higher electricity bills for American households.
In a post on Truth Social, Trump said his administration is actively engaged in discussions with Microsoft, adding that the software giant is expected to introduce “significant changes” this week. The goal, according to Trump, is to ensure that consumers are not forced to absorb higher power costs driven by the expansion of AI and cloud infrastructure.
“I never want Americans to pay higher electricity bills because of data centers,” Trump wrote.

Rising Electricity Prices Become a Political Flashpoint
Trump’s comments come as energy prices continue to rise faster than overall inflation. According to data from the Federal Reserve Bank of St. Louis, the average cost of electricity per kilowatt-hour in a typical U.S. city has increased by roughly 40% over the past five years.
The president emphasized that while data centers are critical to U.S. technological competitiveness—particularly in artificial intelligence—their energy costs should not be passed on to ordinary consumers. “Big tech companies that build these facilities must pay for the electricity themselves,” Trump said.

Talks With Microsoft, Few Details Disclosed
Trump specifically referenced ongoing talks with Microsoft, stating that the company plans to implement changes, though he did not provide specifics. Microsoft did not immediately respond to Trump’s remarks, but its Vice Chair and President Brad Smith is scheduled to speak at an event in Washington later on Tuesday.
The company has previously said it is “working with communities to harness the power of technology to build a better future,” framing data center expansion as a broader societal benefit.

AI Boom Puts Pressure on Power Grids and Politics
In recent months, Trump’s administration has supported the expansion of domestic data centers as part of a broader effort to compete with China in artificial intelligence. However, the resulting surge in electricity demand is now placing pressure not only on household energy bills but also on the political standing of the Republican majority in Congress.
At the same time, power grid operators face growing challenges as they attempt to balance fair cost allocation with the need to ensure reliable electricity supply amid rapidly rising demand from energy-intensive facilities.

Trump Blames the Biden Administration for High Energy Prices
In a separate post on Monday, Trump blamed Democrats and the administration of former President Joe Biden for higher household electricity costs. He claimed that electricity bills rose by approximately 30% during Biden’s presidency.
Energy affordability has become an increasingly prominent political issue. Democrats scored notable election victories last year in New Jersey, Virginia, and Georgia in part by pledging relief from rising energy costs. Analysts expect electricity prices to remain a central issue ahead of November’s congressional elections.

Data Centers Emerge as a Major Energy Consumer
According to analysis from Visual Capitalist, U.S. data centers consumed a total of 224 terawatt-hours (TWh) of electricity last year, accounting for 5.2% of total U.S. power consumption—a 21% year-over-year increase.
Consulting firm McKinsey projects that by 2030, U.S. data centers could consume more than 600 TWh of electricity, representing nearly 11.7% of total national power usage.
Energy use within data centers is unevenly distributed. Roughly one-third of electricity consumption goes to cooling, while servers and IT equipment account for nearly half or more. According to the International Energy Agency (IEA), electricity consumption from AI-related data centers is growing at around 30% annually, compared with roughly 9% growth for traditional computing systems.

Bitcoin Mining Also Enters the Energy Debate
Another energy-intensive sector is Bitcoin mining, which also relies heavily on data center infrastructure. Estimates from the U.S. Energy Information Administration (EIA) suggest that cryptocurrency mining accounted for approximately 0.6% to 2.3% of total U.S. electricity consumption at the beginning of 2024.
However, ESG analyst Daniel Batten argued last week that Bitcoin does not consume excessive amounts of energy, water, or electronic waste per transaction. He cited four peer-reviewed studies showing that resource usage is not directly tied to transaction volume, challenging common assumptions about Bitcoin’s environmental impact.

#TRUMP , #AI , #technews , #bitcoin , #CryptoNews

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Tech giant Microsoft warns that China is overtaking the United States in the global race for artificial intelligence dominance. According to Microsoft President Brad Smith, China leverages state subsidies, open-source software, and strategic influence in emerging regions such as Africa, Russia, Belarus, and others — gaining a clear advantage over Western firms like OpenAI, Google, or Anthropic.

China Expands Its AI Models Across the Global South
Smith points out that Chinese AI model DeepSeek R1 has gained a dominant position in several critical regions within just one year — areas often out of reach for U.S. firms due to sanctions or pricing models. According to new data, DeepSeek now holds:
🔹 56% of the AI market in Belarus

🔹 49% in Cuba

🔹 43% in Russia

🔹 18% in Ethiopia

🔹 17% in Zimbabwe
The key factor? Low cost and open access. Developers can easily modify, expand, or integrate these systems into local projects. In contrast, Western models often require paid subscriptions, complex infrastructure, and constant cloud connectivity.

"It’s No Longer Just the U.S. vs China, But Openness vs Control"
Smith said DeepSeek is a prime example of how government subsidies are changing the game. "China now has more than one competitive open-source model. These subsidies let them undercut any American firm on price," he added.
Criticism also focuses on growing global inequality. While 24% of people in the Global North now use AI, only 14% do so in the Global South. The global average is 16%, which Smith says shows that “the U.S. risks losing not only technological leadership but also trust from the developing world.”

Microsoft Urges Governments to Support Infrastructure and Education
Smith called on public institutions to stop relying solely on private investment. He suggested that development banks and credit agencies begin funding data centers and energy infrastructure, especially in Africa.
Ghanaian analyst Bright Simons from the IMANI think tank backed Smith’s warning: "Africa can't afford locked-down systems. Local developers either go with Meta's Llama or Chinese AI models. There's no other choice." He also highlighted emerging African-led projects like Masakhane and InkubaLM from South Africa.

“To Ignore Africa Is to Ignore the Future,” Says Microsoft
According to Microsoft, Africa is not just key for development — it is also central to the future of AI itself. If the West focuses only on mature markets, it leaves the field wide open to Chinese technologies.
“If U.S. companies and Western governments close their eyes to Africa, they close their eyes to the future of the world,” Smith warned.
While OpenAI and other firms focus on premium markets, DeepSeek is preparing a new model that promises even more efficiency at lower costs. Its release is expected just ahead of the Lunar New Year — and Silicon Valley is already feeling the pressure.

#AI , #technews , #Geopolitics , #ArtificialInteligence , #DeepSeek

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“