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Policy

Tech is reshaping the world — and not always for the better. Whether it’s the rules for Apple’s App Store or Facebook’s plan for fighting misinformation, tech platform policies can have enormous ripple effects on the rest of society. They’re so powerful that, increasingly, companies aren’t setting them alone but sharing the fight with government regulators, civil society groups, and internal standards bodies like Meta’s Oversight Board. The result is an ongoing political struggle over harassment, free speech, copyright, and dozens of other issues, all mediated through some of the largest and most chaotic electronic spaces the world has ever seen.

Elizabeth Lopatto
Elizabeth Lopatto
Molo is now calling out Altman’s testimony.

“Are you completely trustworthy?” was the first question, and Altman’s answer is “I believe so.” So here’s the thing. I am largely trustworthy unless you leave your french fries unattended near me. What’s the best way to answer that question under oath? “If you are a truthful person, wouldn’t you say, ‘I am absolutely trustworthy?’” Molo asks. Well, I’m truthful. That’s how you know I might eat your french fries. Come on, man.

Elizabeth Lopatto
Elizabeth Lopatto
Molo is suggesting that Greg Brockman’s conduct makes him untrustworthy.

“17 times during his testimony I had to ask him to answer the question,” Molo says. Dude, you don’t want this. If they’re considering conduct, they’re considering your client’s conduct, which was remarkably bad.

Elizabeth Lopatto
Elizabeth Lopatto
Molo has begun his closing statement for Elon Musk, who is in China.

“He’s sorry he could not be here,” Molo says. He’s thumping on how important jury service is, which is never a good sign in a closing statement.

Elizabeth Lopatto
Elizabeth Lopatto
YGR is now reading aloud the instructions to the jury.

I will spare you. This should go on for 20-30 minutes, she tells us.

Elizabeth Lopatto
Elizabeth Lopatto
The monitor has left the courtroom.

First there was a dongle. Then there was an attempt to move it. YGR took the opportunity to chew out Musk’s team for not consulting OpenAI about the monitor. There appeared to be no way for OpenAI to access the monitor and so it has been carried out. I am sitting next to the reporter from Wired and we are trying not to die of laughter.

Elizabeth Lopatto
Elizabeth Lopatto
We are now having a fight about a new, large monitor that has appeared on the Musk table.

OpenAI is concerned it will obscure the view of the defendants, and also that Musk’s team has refused to share it so they can it for their case as well. YGR says Musk’s team can use it if OpenAI’s team can use it, but it does need to be moved. “I wish you would have said something yesterday” about the monitor, she says to Musk’s team.

Elizabeth Lopatto
Elizabeth Lopatto
“They didn’t give us page numbers, your honor.”

YGR is on the bench, and we are going through assorted issues before the jurors come in. It seems that YGR got page numbers on a set of demonstratives from Musk’s team and OpenAI’s team did not. “I would suggest you not use this,” YGR says of the slide at issue. Good morning!

Elizabeth Lopatto
Elizabeth Lopatto
Apropos of nothing in particular...

I enjoyed reading this story about Bill Gates’ malevolent influence on the current crop of Silicon Valley megalomaniacs. If you remember his pre-Gates Foundation reputation, you will particularly appreciate it.

Whither the Nerd-Bully?

[The New York Review of Books]

How companies weaponize the terms of service against you
Play

Brendan Ballou discusses his new book on the rise, and hopefully fall, of forced arbitration.

Nilay Patel
Jess Weatherbed
Jess Weatherbed
Apple defends Google’s walled garden.

Apple says draft measures proposed by the EU — which would force Google to give competing AI services more access to Android — would “create profound risks” for user privacy, security, device integrity, and performance. Given Apple has long protested its own interoperability obligations, its interest in Google’s case isn’t surprising.

Hayden Field
Hayden Field
Musk left the country with President Trump despite a judge’s orders.

U.S. District Judge Yvonne Gonzalez Rogers, the judge presiding over Musk v. Altman, had told Musk when he left the stand that he was not excused from the trial and that he was still under “recall status,” meaning he should stay nearby and ready to testify. But he’s currently in Beijing

Elon Musk’s post

[X (formerly Twitter)]

Sean Hollister
Sean Hollister
Epic and Google will be back in court on July 16th.

We already know what this hearing is about: three weeks ago, Judge Donato told Epic and Google they’d answer six specific pointed questions. The big one: would Google’s “Registered App Stores” really be better at curbing Google’s monopoly? Or should he keep forcing Google to carry rival stores inside its own?

I’ll be there.
I’ll be there.
Image: US District Courts
Elizabeth Lopatto
Elizabeth Lopatto
Microsoft and OpenAI rest.

There is no rebuttal case from Musk’s team. We will get closing statements tomorrow.

Elizabeth Lopatto
Elizabeth Lopatto
In the most boring expert testimony yet, Louis Dudney, a forensic accountant, testified about how those funds were spent.

It was on “functional expsenses,” ie, salaries, compute, etc. The cross is just arguing about the methodology of accounting for commingled money in the donated accounts. I can’t believe we are having a methodology dispute about this. I may die.

Richard Lawler
Richard Lawler
Shutterstock is paying $35 million to settle illegal subscription and cancellation allegations.

Even with the FTC’s click-to-cancel rule vacated (but possibly coming back?), it has reached a settlement over Shutterstock’s subscriptions that allegedly required a phone, chat, or email conversation to get out of.

…Shutterstock advertised its on-demand packs as “Best for a one-time project,” with “no commitment,” but failed to adequately disclose that these packs automatically renewed when the last download in the pack was used and—until early 2024—that they automatically renewed after one year.

Elizabeth Lopatto
Elizabeth Lopatto
The shade we are getting in here is incredible.

John Coates noted that he’s worked for a lot of law firms as an expert witness, including Quinn Emanuel, Musk’s primary firm — and not the one trying the case today. He is excused. The judge is now huddling in sidebar with the primary lawyers for the case, and an animated discussion is taking place.

Elizabeth Lopatto
Elizabeth Lopatto
The cross is focusing on Coates’ pay.

Also, he apparently has worked as an expert witness on a few Twitter cases, including the one where Musk tried to get out of buying Twitter. Incidentally, OpenAI’s lawyers are also the ones who made Musk buy Twitter. Is that deliberate shade? Who can say.

Elizabeth Lopatto
Elizabeth Lopatto
John Coates, OpenAI’s expert witness, is running a demolition derby on Musk’s expert witness.

Some highlights:

  • (while looking at a chart that the plaintiffs showed the jury) I paraphrase but: I don’t know how he thought his slide was a fair representation of anything, much less reality
  • “If he’s saying [the nonprofit] would own more of the for-profit if they hadn’t taken outside investment, that’s true, but then the pie would have been significantly smaller.” Coates would prefer 30 percent of a $200 billion than “a much larger share of a much smaller pie.”
  • The nonprofit has “benefitted enormously” from the for-profit “so I don’t understand his argument.”
Fighting Trump will make or break Disney’s new CEO

It’s time for Josh D’Amaro to lock in.

Charles Pulliam-Moore
Jay Peters
Jay Peters
This week in the big AI data center buildout.

AI data center projects are continuing to pop up across the US, with frequent opposition from locals concerned about their impact. Here are a few recent articles about the projects:

Elizabeth Lopatto
Elizabeth Lopatto
Museum gift shop metaphor found dead in a ditch.

So during the opening statements, Musk’s lawyers said that a for-profit like a museum gift shop shouldn’t be bigger than a nonprofit, like a museum. We are now hearing from Daniel Hemel, OpenAI’s expert witness. Guess what? Museum gift shops generally aren’t for-profit; they’re part of the nonprofit. Also, OpenAI’s for-profit isn’t ancillary to the nonprofit — it’s how the nonprofit pursues its mission, like with the Mozilla Foundation and the Mozilla Corportation.

Hayden Field
Hayden Field
We’re listening to an expert witness, David Hemel, a law professor at NYU.

He said that “for a large nonprofit organization, having for-profit affiliates is very much the norm.” When asked, he also said that oftentimes, the for-profit affiliate of a nonprofit is “quite large compared to the nonprofit,” and he gave the Mozilla Corporation (which owns the Firefox web browser) and the Mozilla Foundation as an example. Hemel also testified that he’s getting paid $1,750 an hour to be here.

Hayden Field
Hayden Field
During Elon Musk’s all-hands Q&A before departing OpenAI, Achiam said he felt Musk wanted to “race towards AGI.”

He said Musk was concerned about Google DeepMind and CEO Demis Hassabis and “expressed a lot of concerns about what would happen if DeepMind got to AGI first.” Achiam said he shared his concern that trying to “race” towards the technology was a “fairly unsafe proposition … He was proposing to do something that seemed … obviously unsafe and reckless.”

Elizabeth Lopatto
Elizabeth Lopatto
Achiam is running circles around this lawyer on cross, without doing the annoying things other witnesses have done.

She quotes a tweet of his saying that he believes Musk was doing his best for humanity. He asks when that was. She says, January 2025. He says, well he’s done some things that undermined my confidence since then.
There’s a brief redirect, and then Achiam steps down. No trophy for the jury. :(

Elizabeth Lopatto
Elizabeth Lopatto
Okay, it’s time for the cross of Achiam.

“Are you aware that OpenAI employees are better-compensated than any other employees in startup history?” lol lady, why would he know that. Anyway, he’s got millions of dollars in OpenAI shares, and he’s also sold some for more than $10 million.

Elizabeth Lopatto
Elizabeth Lopatto
“I think he was just upset that he had been challenged,” Achiam said. “This was not friendly.”

In Musk’s testimony, he claimed he might have said something friendly like “don’t be a jackass” but denied he’d called anyone a jackass. Achiam’s testimony obviously contradicts that. Achiam received a trophy from Dario Amodei at the next meeting in commemoration of Achiam standing up to Musk: “Never stop being a jackass for safety.” The trophy is not introduced, sadly for me.

Elizabeth Lopatto
Elizabeth Lopatto
During the all-hands, Musk expressed concerns about what would happen if DeepMind got to AGI first,

“It sounded like he wanted to race toward AGI.” That sounded unsafe to Achiam. “He was proposing to do something that seemed, based on our understanding at the time, obviously unsafe and reckless,” Achiam said. “We had a pretty tense exchange, and he snapped and called me a jackass.” There were 50 or 60 people at that meeting.

Elizabeth Lopatto
Elizabeth Lopatto
“It was a bit like seeing Bigfoot through Plexiglass,” Achiam says of seeing Elon Musk in the office.

He had a notable interaction with Musk, though, during the all-hands when Musk was departing the organization in Feb. 2018. Musk explained that he was leaving because he had a new conflict of interest with Tesla, which would be hiring from the same pool of researchers — and indicated a general lack of confidence in OpenAI’s path

Hayden Field
Hayden Field
Ilya Sutskever would get up on tables to give speeches in the early days of OpenAI.

That’s according to Josh Achiam, currently the company’s chief futurist, who joined in 2017. He said Sutskever’s impassioned speeches would typically be about the science-fiction-esque future that was approaching.

Hayden Field
Hayden Field
Achiam talked about the roles of Greg Brockman and Ilya Sutskever in OpenAI’s early days.

He said Brockman and Sutskever were the “main leaders,” and that Brockman was the “engineering workhorse that pushed to build scaled-up systems that would train the AI and make it work.” Achiam called Sutskever a “scientific visionary” who articulated what the future would be like, such as football fields of silicon chips making large-scale calculations.

Hayden Field
Hayden Field
Josh Achiam described what it was like to work at OpenAI in 2017.

He said when he joined, OpenAI was a team of about 50 people, and that it essentially felt like “an extension of a graduate student lab in a university” — a “collegiate, academic, super intellectual” environment — with most employees being either current PhD students or recent graduates. He said he appreciated that there wasn’t a “publish or perish” type of culture at the time.

Elizabeth Lopatto
Elizabeth Lopatto
Achiam started at OpenAI as an intern in the summer of 2017, and became a full-time employee in December.

His job was safety research then. He is now the “chief futurist” at OpenAI, where he tries to think about side-effects of AI (such as social impacts, economic impacts, and consequences for national and international security). “It is my best attempt to have us fulfill the mission of OpenAI,” he says. The idea is to ensure AGI benefits everyone, he says. It’s “one of the highest and noblest callings we could possibly have.”

Elizabeth Lopatto
Elizabeth Lopatto
Hi my name is Josh Achiam and welcome to “will we see the jackass trophy?”

He is establishing his background right now. You will be just shocked to hear that he’s into science fiction. This is the witness we may see the jackass trophy for. I am on the edge of my seat.

Elizabeth Lopatto
Elizabeth Lopatto
Fairly stupid choice by Musk’s lawyers to go after Microsoft’s major decision rights.

Microsoft had an approval right on some transactions. It did not have the majority of the board. That’s even though they contributed more than 90 percent of OpenAI’s initial investments. Also, all LPs had major decision rights, Wetter testifies. So this is less control than Musk wanted for more money.

Elizabeth Lopatto
Elizabeth Lopatto
Musk cross. I guess we are now going to have a fight about due diligence.

“We did not talk to Elon Musk during out due diligence process,” Wetter notes. He’s not a party to OpenAI’s agreements with Microsoft. A lot of the direct was “Are there any agreements with Elon Musk here? Are there any there?”

Elizabeth Lopatto
Elizabeth Lopatto
“Our due diligence found no conditions related to Elon Musk,” Wetter says.

We have just gone through the terms of a very boring document. I will spare you. That’s the top line.

Elizabeth Lopatto
Elizabeth Lopatto
Mike Wetter for Microsoft is taking the stand now.

He lead corporate development at Microsoft, where he’s worked for almost 20 years. We saw this deposition earlier as part of Musk’s case. He did a bunch of the work on the 2021 and 2023 OpenAI deals. I believe he is here to talk about Microsoft’s due diligence and also to put the deal in context — “we’ve done over 100 transactions including acquisitions and investments,” in aggregate value of $100 billion.