I sat down in the Musk v. Altman trial courtroom today, painfully aware that no one was going to ask Shivon Zilis the question on everyone’s minds: Girl, what the fuck are you doing?
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Musk’s biggest loyalist became his biggest liability
Zilis, who testified under oath that she is the mother of four of Musk’s children, was… what’s the best way to characterize this? A Musk advisor? She denies she was a “chief of staff” but says she worked for Musk’s “entire AI portfolio: Tesla, Neuralink, and OpenAI” starting in 2017. The two met through OpenAI, and they had what she referred to as a “one off” before becoming “friends and colleagues.” The “one off,” she confirmed, was “romantic in nature.”
Her job under Musk was “to go find bottlenecks and solve them,” and she claims to have worked 80 to 100 hours a week doing that. “It was just bananas,” she said. Her first two children by Musk — twins — were born in 2021, while Zilis was serving on OpenAI’s board. She kept this a secret. She did not tell the board who the father was until Business Insider reported on court documents that listed Musk as the father.
“My first call was to my dad,” said Zilis, who testified that even her own family didn’t know the children’s paternity. “The call right after that was to Sam Altman.” Greg Brockman, OpenAI’s president, had testified he found out about Zillis’ children from news reports. When he talked to her about it, she claimed her relationship with Musk was “platonic” and that she’d had kids via IVF. This was reassurance enough for Brockman, who’d been friends with her since 2013. She remained on the board.
On the stand, Zilis spoke softly and quickly. She seemed mousy. A significant part of what made her testimony so bad for Musk was that she appeared to be the only person taking notes on what Brockman, Altman, Ilya Sutsekever, and Musk were discussing when the cofounders considered their options for creating a for-profit arm of OpenAI. She also was “aiding and facilitating communication between the principal parties.” Those notes are the trial’s most important evidence — more important, even, than Brockman’s diary.
The goal of the direct testimony seemed to be to take the sting out of what Zilis and the plaintiff’s lawyers had to know was coming. So she told the court that her role also meant telling Altman when Musk was “in a good headspace” for a conversation — perhaps inadvertently strengthening Brockman’s testimony yesterday that at one point he feared Musk would physically attack him —while vehemently denying that she funneled information to Musk.
Look, she and Musk testified they lived together and have a romantic relationship and four kids. She was originally a plaintiff in the suit. She kept her children’s paternity secret from her own father. All of those things would be reason enough to doubt her testimony about thinking OpenAI betrayed its mission during the chaos when Altman was fired by the board. She claimed that Microsoft CEO Satya Nadella said something to the effect of “we are above them, we are below them, we are around them” during that chaotic period as being “terrifying.” (The quote was “We are below them, above them, around them.”)
But the notes are really what did Musk’s case in. Try as she might, Zilis couldn’t explain them away.
There were a lot of ideas batted around in 2017 and 2018. We saw a lot of Zilis’ emails from that period. Notably in one, an option was “switch to for profit in next couple of weeks (woah fast!).” Another email noted that a “complete non-negotiable” for Altman, Brockman and Sutskever “is an ironclad agreement to not have Elon (or anyone) have absolutely [sic] control of AGI they create.” In another she wrote to Musk money manager Jared Birchall, “They say they will not move forward without a guarantee to switch away from him having control. You and I can argue that’s stupid all we want but they are holding firm on it.”
“If he hung around E perhaps it would force him to think about humanity more”
Zilis also knew about Musk halting donations before OpenAI did. On August 20, 2017, she wrote, “Funding freeze: OpenAI is likely to realize this week that their $5M in Q3 is, albeit correctly, on hold. Unsure how this will impact negotiations but wanted to flag it since it’s likely to have a big psychological impact on them if they find out.” Musk told Brockman and Sutskever over a week later, on September 1st, that he’d pulled funding.
There were other machinations:
- At one point, Musk seemed to have suggested that she, Sam Teller, and Birchall — two of Musk’s closest fixers — should all take seats on OpenAI’s board so that Musk would have control of the nonprofit. Zilis wrote to Teller that she didn’t share that with the OpenAI team.
- In November 2017, Musk was thinking of creating a “world-class AI lab” inside Tesla. To that end, Musk offered Altman a board seat at Tesla.
- Zilis wrote an email to Musk saying that to save him time she’d brainstormed some solutions for him. Three of them involved developing AGI at Tesla. One was making OpenAI a public benefit corporation subsidiary of Tesla. One was getting Altman as an “anchor” for TeslaAI.
- My favorite of those solutions was: “Find a way to get Demis. Seriously…. Demis really does fanboy hard and I don’t think he’s immoral… just amoral. If he hung around E perhaps it would force him to think about humanity more.”
- After hiring Andrej Karpathy, Musk asked for a list of top OpenAI people to poach.
We had already seen one of her text messages in the docket — the one where Musk leaves the board and she asks him whether she should remain “close and friendly” to continue funneling him information. In her direct testimony, she tried to put that in the context: “They were going through this weird half-breakup,” she said. But in the cross, we found out that she didn’t remember that in her deposition.
“Your long-lost memories have been recovered,” said Sarah Eddy, the OpenAI attorney, in one of the trial’s funnier moments. Sure, Musk’s team objected and the objection was sustained, but we all heard it. In fact, it was one of several times Zilis seemed to have recovered memories she didn’t have at her deposition, memories that — coincidentally I’m sure — happened to be good for Musk’s case.
To be fair, Zilis performed the best under cross examination of anyone we’ve seen so far, but she doesn’t exactly come across as truthful. And there was even more reason to be skeptical of her when we discovered how she left the board, which — according to her deposition — happened “because I picked up a call from Sam and he said, ‘I’ve heard Elon is starting a competitive venture’ and I said, ‘Well if that’s true, this is the time to resign.’”
Her primary allegiance was and is to Musk
Mysteriously, she had forgotten that call between the deposition and today. But she did seem to know that Musk was moving on AI when she texted a friend, who was in her phone as “Shahini Rubicon Fluffer.” (Incredible name. Thomas Pynchon will be so jealous.) “Have to resign OpenAI board btw,” she wrote. “E’s effort has become well-known.” Her friend didn’t seem surprised by the revelation. Zilis went on: “When the father of your babies starts a competitive effort and will recruit out of OpenAI there is nothing to be done.”
Zilis added that Musk “proactively apologized that he had pruned my friend network through this.”
Here’s what it added up to, as far as I am concerned: Her primary allegiance was and is to Musk. To believe she didn’t know about xAI, I would have to believe that despite their — at the time — three children and the time he spent with them every week, he never discussed it with her. I don’t believe that. Who would? There’s enough evidence in her meeting notes to suggest she routinely held back information from OpenAI on Musk’s behalf — xAI would be no different. I also don’t believe that she didn’t give Musk information about the Microsoft deals she approved while sitting on OpenAI’s board.
Musk didn’t have a problem converting the whole of OpenAI to a for-profit or kneecapping the charity by recruiting its strongest researchers. He didn’t mind the idea of subsuming it into Tesla in any of a variety of ways. The thing he did mind was not being in control of it. That’s what I took away from Zilis’ texts and emails.
Brockman and the OpenAI board were incredibly naive to allow Zilis to continue working there after learning of her twins’ paternity. But then, maybe no one expected someone so meek to be so devious. She was smart enough not to raise her voice or nitpick obvious questions during her cross-examination, so her bearing read as more trustworthy than anyone we’ve seen yet. It’s just that the overall takeaway from her written communications is that she’s put Musk first in her life. Everyone else — including, apparently, her own father — comes second. So on the stand, you might as well assume she’s saying what Musk wants to hear too.
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Xbox just allcapsmaxxed: Meet XBOX. This isn’t a joke; Microsoft appears to be actually rebranding Xbox to XBOX. Asha Sharma, Xbox CEO, ran a poll on X earlier this week, asking fans whether Microsoft should use Xbox or XBOX. The results were in favor of XBOX, and the company has now renamed its X account.
Curiously, the Threads and Bluesky accounts for Xbox haven’t been renamed yet, but if Microsoft is going ahead with a rebranding then I expect those will change soon. I asked Microsoft to comment on this potential Xbox rebranding and the company simply referred me to Sharma’s post.
The use of all caps for Xbox is a return to original form, though. Microsoft’s first Xbox logo for its console was all caps, and the company has favored using similar capped versions for the Xbox 360, Xbox One, and Xbox Series X / S console logos.
The apparent rebranding comes just a few weeks after Sharma scrapped Microsoft Gaming and renamed Microsoft’s gaming division back to Xbox. It’s part of Sharma’s continued promise of a “return of Xbox,” which has involved fan-focused console updates, a new Xbox logo, Game Pass pricing changes, and lots more in recent weeks.
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Artificial intelligence (AI) already shows up in your phone, your searches and plenty of apps you use every day. Now, some Silicon Valley investors are betting the machines behind those AI answers could one day run at sea.
A company called Panthalassa has raised $140 million in new funding to develop and deploy autonomous, floating AI computing nodes powered by ocean waves. The Series B round brings Panthalassa’s total funding to $210 million, a sign that investors are taking this ocean-based AI idea seriously. The round was led by Peter Thiel, the Palantir co-founder, and the company says the money will help complete a pilot manufacturing facility near Portland, Oregon. Panthalassa also plans to deploy its Ocean-3 pilot node series in the northern Pacific Ocean later in 2026.
Instead of building another giant AI data center on land, Panthalassa wants to place computing power out at sea. Ocean waves would generate electricity. Seawater would help with cooling. Onboard computing systems would process AI prompts and send the results back to land through low-Earth-orbit satellites.
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LOWERING YOUR ELECTRIC BILL COULD BE FLOATING IN THE OCEAN
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Panthalassa’s Ocean-2 prototype rides in open water during testing, giving a real-world look at the kind of floating wave-energy system behind the company’s ocean AI plan. (Panthalassa)
How AI data centers at sea could work
Panthalassa’s floating nodes are designed to capture wave motion and turn it into electricity. The company says it has spent a decade developing the technology behind its power generation, onboard computing and autonomous ocean operations. Its earlier Ocean-1, Ocean-2 and Wavehopper prototypes were tested in 2021 and 2024. Think of each node like a floating power station with AI hardware inside. Waves move the system. That motion helps drive a generator. The power then feeds the onboard chips.
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The company’s plan is to use those chips for AI inference. That is the part of AI where a model responds to your prompt after it has already been trained. In simple terms, it is what happens when you ask a chatbot a question and get an answer back. That makes the ocean plan a little easier to understand. Training massive AI models requires huge data movement and tight coordination. Answering prompts may be more realistic for a floating node, at least in some situations.
Why AI data centers are moving offshore
AI data centers need huge amounts of electricity. They also need space, cooling systems and local support from communities that may not want a massive facility nearby. Those problems have pushed companies to look for unusual answers. Ocean-based computing is one of them.
Panthalassa says its nodes would operate far from shore in wave-rich parts of the ocean. The goal is to use that wave energy directly onboard instead of sending the power back to land. “We’ve built a technology platform that operates in the planet’s most energy-dense wave regions, far from shore, and turns that resource into reliable clean power,” said Garth Sheldon-Coulson, Panthalassa’s co-founder and CEO.
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The ocean also offers cold surrounding water. That could help cool the chips onboard. Cooling is a major issue because data centers produce a lot of heat. Panthalassa is taking a different path from traditional land-based data centers. Instead of pulling more power from the grid, it wants floating nodes that generate their own electricity from waves.
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The Ocean-2 prototype sits inside a coastal facility, showing the size and shape of Panthalassa’s floating node before deployment at sea. (Panthalassa)
The satellite problem for ocean AI data centers
The ocean may help with power and cooling, but it creates another problem: connection. Traditional data centers rely on high-capacity fiber-optic connections because they need to move huge amounts of data fast. A floating node far out at sea may depend on low-Earth-orbit satellite links. That can work for some AI responses, but it may be slower and more limited than fiber.
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The challenge grows when multiple nodes need to work together. AI systems often depend on fast communication between chips, servers and storage. If those parts are floating in the ocean and talking by satellite, coordination gets harder. That means AI data centers at sea may not replace land-based data centers anytime soon. They may be better suited for certain AI tasks where the model can live onboard, and the response does not require constant back-and-forth with other machines.
Repairing floating AI nodes could be difficult
There is another practical question: What happens when something breaks? A land-based data center can send in technicians. A floating AI node in rough seas may need a ship, special equipment and the right weather window. That adds cost and delay.
Panthalassa says it is developing autonomous systems meant for harsh ocean conditions. Its press release says Ocean-3 testing is meant to demonstrate AI inference and refine manufacturing before commercial deployments in 2027. Still, the ocean is brutal. Saltwater eats away at equipment. Storms can turn a routine repair into a major operation. Constant motion also puts stress on the hardware. For this plan to work, Panthalassa will have to show that each node can keep running for years in harsh ocean conditions without frequent human repairs.
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Panthalassa’s Ocean-2 prototype is transported by barge, a reminder that building AI infrastructure at sea also means solving major deployment and maintenance challenges. (Panthalassa)
Ocean data centers have been tested before
Ocean data centers are not new. Microsoft experimented with underwater data center servers through Project Natick, including tests in 2015 and 2018. Those tests showed that sealed underwater servers could run reliably while using seawater for cooling, with Microsoft reporting a lower failure rate than comparable land-based systems. Microsoft later ended the project.
Chinese companies have also reportedly pushed ahead with underwater data center projects near Hainan and Shanghai. Keppel has explored floating data center designs in Singapore, where land constraints make the concept especially attractive. Panthalassa’s plan goes in a different direction. It combines wave power with onboard AI chips and satellite-based results. It also depends on floating nodes that would need to operate far from the kind of support a normal data center gets. That is why the idea is getting attention. It is also why skepticism is fair.
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What AI data centers at sea mean for you
For now, this will not change how your phone or computer works. You will not suddenly see a “powered by ocean waves” label on your favorite AI app. But the bigger picture affects everyone. AI needs an incredible amount of electricity. As more companies add AI tools to their products, they need more places to run those systems. That pressure can affect energy grids, water use, local battles over new data centers and even your utility bills over time.
Panthalassa argues its approach could reduce the need for new data centers and power plants on land. That could ease pressure on local communities and the grid, but the company still has to prove the system can work reliably at sea. If ocean-based AI moves beyond testing, it could also raise fresh questions about marine maintenance, environmental oversight and who controls computing infrastructure in international waters.
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Kurt’s key takeaways
Everyone is using AI on their phones and computers these days, but the heavy lifting often happens in huge data centers behind the scenes. That is why Panthalassa’s ocean plan is getting attention. The company wants to use waves for power and seawater for cooling. The hard part is proving that floating AI nodes can survive rough seas, limited satellite links and complicated maintenance. If Panthalassa can pull it off, ocean-based AI could become part of the tech we use every day. If it cannot, it may show just how difficult it is to keep feeding AI’s growing demand for power.
If this kind of ocean-powered AI takes off, would you worry about what these floating nodes could mean for our oceans? Let us know by writing to us at Cyberguy.com
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OpenAI announced yet another reorganization Friday, consolidating certain areas and making company president Greg Brockman the official lead of all things product.
In a memo viewed by The Verge, Brockman wrote that since OpenAI’s product strategy for this year is to go all-in on AI agents, the company is combining its products to “invest in a single agentic platform and to merge ChatGPT and Codex into one unified agentic experience for all.”
To do this, the company is making a suite of org chart changes, although it’s still operating under some of the same ones from last month. That’s when AGI boss Fidji Simo went on medical leave and OpenAI announced that Brockman would be in charge of product strategy and CSO Jason Kwon, CFO Sarah Friar, and CRO Denise Dresser would take control of business operations.
It’s all part of OpenAI’s recent strategic shift to focus on key revenue drivers like coding and enterprise and stop pouring resources into “side quests” ahead of its potential IPO later this year and amid investor pressure to turn a profit.
In Simo’s continued absence, Brockman’s role leading product strategy is now official, as well as the company’s “scaling” arm. Under Brockman will be four different pillars. The first is core product and platform, led by Thibault Sottiaux, who has been OpenAI’s engineering lead for Codex, and the second is critical enterprise industries, led by ChatGPT head Nick Turley. Third is the consumer pillar, such as health, commerce, and personal finance, which will be led by Ashley Alexander, who has been its healthcare products VP. The fourth pillar — core infrastructure, ads, data science, and growth — will be led by Vijaye Raji, who has been OpenAI’s CTO of applications.
Brockman wrote in the memo that OpenAI’s goal is now to “bring agents to ChatGPT scale, in order to give individuals and organizations significantly more value and utility from our products.”
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