Okay, I am not a lawyer so I only understood about half of what just happened. But I am fairly sure, given the context, that Elon Musk’s lawyers may have just fucked up big.
Technology
The craziest part of Musk v. Altman happened while the jury was out of the room
Jared “James Brickhouse” Birchall, Musk’s finance guy and all-around fixer, took the stand after Musk today. Most of his testimony was dull and seemed to exist primarily to get some documents read into the record, which sucks but is a normal part of sitting through trials. But at the very end of his boring testimony something interesting happened. I believe we all got a surprise, something that rarely happens in courtrooms.
The lawyer conducting his direct examination was passed a note by another member of the team, and asked Birchall what was apparently contained on the note: was he familiar with the xAI bid for OpenAI’s assets?
“Sam Altman was on both sides of the table.”
“As I recall, a lawyer we were working with had asked the attorney general of California to ensure that in their fiduciary duty, proper value was being given to the assets of the nonprofit of OpenAI,” Birchall said. In his understanding, there was a negotiation “between Sam Altman and himself on both sides of the table, the for-profit and the non-profit, attempting to discount the value of the non-profit assets. And we made that bid in an attempt to properly account for the value the foundation had, and create a market bid that would need to be considered by the attorney general.”
Here’s some lore: in February 2025, a Musk-led coalition made a $97.4 billion bid for the non-profit that controls OpenAI. The bid was submitted by Marc Toberoff, one of Musk’s lawyers in the current case. This bid happened as OpenAI was restructuring itself so that the for-profit arm could be cleared to go public. In Birchall’s testimony, that bid was made because Musk, Birchall, and others, thought Altman might undervalue the nonprofit as the company restructured itself. (I’m not really sure why that would be a problem for Musk and xAI, frankly, but whatever.)
The defense counsel objected, and Birchall’s rant was struck for lack of foundation. So we did this piece by piece to establish the foundation, ending with Birchall saying, again, “Sam Altman was on both sides of the table.”
On cross-examination, Bradley Wilson from Wachtell Lipton — OpenAI’s lawyers — picked the thread back up. Wilson asked how much of this Birchall had learned from sources other than lawyers. Birchall said he’d have a hard time being able to untangle that. After a few more exchanges, Wilson moved to strike all of Birchall’s testimony about the xAI bid on grounds that would not be discussed in front of the jury.
“You must have been very convincing. You’re not very convincing today.”
The jury got to leave early while the lawyers duked it out, and this is where it got weird. Judge Yvonne Gonzalez Rogers started asking Birchall questions herself, and it clearly was making Birchall nervous. Birchall said he doesn’t remember discussing the xAI bid with Musk or Shivon Zilis or any other principal of the Musk organization. It sure sounded like Musk’s lawyers hadn’t given OpenAI proper discovery on this topic in the depositions, and so we were doing a fast and dirty deposition with the judge right then. At one point, Gonzalez Rogers told the plaintiff’s counsel to quit coaching the witness.
Birchall said he’d spoken to the other members of the consortium about the bid, but that he wasn’t involved in discussions with Musk about when to send the bid letter. He claimed he’d heard some things from Toberoff, but that he wasn’t aware that Toberoff represented some of the other bidders. He didn’t know if xAI was aware that Toberoff represented some of the other bidders, either.
Birchall didn’t know whether other investors had first-hand information about OpenAI, he claimed. No one had documents from inside OpenAI as far as he knew. Gonzalez Rogers remained unconvinced. “I’m still struggling with how you can have conversations with these individuals to raise $97.5 billion but have no recollections even in a general sense,” she said. Birchall said he had a general sense — he called each of the people involved to see if they were interested in joining Musk on the bid.
“Why would they do that?” Gonzales Rogers asked. Birchall said these were people with whom Musk et al had longstanding relationships. “You must have been very convincing,” she said. “You’re not very convincing today.”
Birchall said there were no numbers besides the topline one floated when he called prospective investors, and that after speaking with him, they were passed off to lawyers. He didn’t remember who chose the $97.4 billion number, and said he got it from the legal team, telling Gonzalez Rogers he didn’t get it from Musk. Gonzalez Rogers asked if that analysis was created by anyone besides Toberoff. Birchall said not that he could recall.
“Did a lawyer tell you this was part of litigation?” Gonzalez Rogers asked.
No, Birchall said. It was strictly a business deal.
Apparently Steven Molo, who’d been defending Musk during the deposition, had made multiple objections to questions about the deal, citing privileged communications. Business deals, apparently, aren’t privileged. But all discovery into the xAI bid for OpenAI had been blocked before the trial began. Unfortunately, by asking Birchall about the xAI deal at the very end of the direct examination, Musk’s team may have opened the door for more digging into it. You may be wondering, “open the door to what” and your guess is as good as mine. More discovery? Maybe something about anticompetitive behavior from Musk? It doesn’t sound like it’s going to be good for Musk, I can tell you that much.
Gonzalez Rogers then asked who’d passed the note, and all the lawyers just sat there like guilty children. Finally, the guy responsible said he’d passed it, but he didn’t write it; a junior lawyer did. Who wrote it? More silence. Finally Toberoff — hardly a junior lawyer — stood up and took responsibility. Why had he done it? “I thought it was appropriate.”
“Sounds like you wanted to open the door, then,” Gonzalez Rogers said. We adjourned while she said she’d consider what to do with this testimony. She will probably rule on it tomorrow.
Correction, April 30th: It is Shivon Zilis, not Sharon Zilis.
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On June 10th, the German container ship Posen docked in Los Angeles after a two-week voyage from Shanghai. As Valve watcher Brad Lynch notes, it was almost certainly carrying the first mass production shipments of the Steam Frame, Valve’s new gaming headset.
Import records show that Valve’s distribution partner Ceva offloaded nearly 32 metric tons of “Virtual Reality Devices” on Valve’s behalf — or roughly 13 tons of actual product, after you subtract the roughly 3,700 kilogram weight of five 40-foot shipping containers.
Speaking of the Steam Machine, Valve’s stockpile may now have grown to 141 metric tons, as that’s roughly how much “Game Consoles” product has arrived in 12,600kg containers since April 23rd.
And it looks like Valve probably received three shipments of Steam Deck handhelds in May, two on May 18th and one on May 30th, judging by how those containers had the higher gross weight of 14,500kg. That’s generally how heavy Valve’s “Game Console” containers were before the Steam Machine was announced.
13 tons isn’t actually a lot of VR headsets, of course, but perhaps more of them fit into a container than the Steam Machine console. They each weigh 654g (roughly 1.44lb) with a pair of wand controllers; back-of-the-napkin math suggests we’re probably talking about fewer than 20,000 units right now.
There might not be that many Steam Machines in the US yet, either: 141 metric tons could easily be fewer than 50,000 units at their higher 2.6kg weight per console, not counting any controllers or cables.
Valve confirmed days ago that both the Steam Machine and Steam Frame will launch this summer, and has signaled that it had to rethink prices because of RAMageddon. Even if they’re pricey, though, they may sell out quickly.
Apple CEO Tim Cook delivered his final WWDC keynote as Apple CEO, announcing smarter features included in the tech company’s next big software update. (Josh Edelson / AFP via Getty Images)
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Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements.
IN TODAY’S NEWSLETTER:
– 12 biggest Apple WWDC 2026 takeaways you need to know
– California city votes to permanently ban data centers in first-of-its-kind measure
– Meta launches $115M skilled trades academy with guaranteed jobs for graduates in 4 states
SIRI UPGRADE: Apple used WWDC 2026, its annual developers conference, to lay out what is coming next for your iPhone, Mac, iPad, Apple Watch and Vision Pro. This year’s keynote also carried extra weight because it marked Tim Cook’s final WWDC as Apple CEO before John Ternus takes over in September. Still, the biggest story for users was software. Apple put Siri AI and Apple Intelligence at the center of the keynote, while also announcing iOS 27 support for older iPhones, new child safety tools, faster performance and smarter features across everyday apps.
Attendees watch a presentation during Apple’s annual Worldwide Developers Conference in Cupertino, California, on June 8, 2026. (Carlos Barria/Reuters)
POWER GRID LOCK: Voters in a Southern California city overwhelmingly approved a ballot measure that permanently prohibits data centers within city limits, underscoring growing local resistance to the infrastructure powering the artificial intelligence boom. Monterey Park voters approved Measure NDC by a margin of 10,321 votes to 1,362 votes, or 88.34%, according to official election results from Los Angeles County.
WORKFORCE WIN: Tech giant Meta on Monday announced that it’s launching a new academy for workers to receive training in a skilled trade at no cost with a job guaranteed for all graduates.
RED THREAT: Sen. Tom Cotton urged the Justice Department to investigate a covert campaign linked to China designed to “kneecap” America’s rapidly expanding artificial intelligence infrastructure in a letter obtained exclusively by Fox News Digital.
Sen. Tom Cotton, R-Ark., arrives for a vote in the U.S. Capitol on April 30, 2025. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
LABOR RECKONING: U.S. employers ramped up layoffs in May as the artificial intelligence (AI) rollout was the leading factor cited by companies cutting their workforces, new data shows.
WHO IS THIS? Your phone rings. It’s your son’s voice. Panicked. He says he’s been in a car accident. He hurt someone. He’s about to be arrested. He needs $15,000 wired before the end of the day, and please, don’t tell anyone yet. You’d wire the money. Of course you would. Except it isn’t your son. It’s a scammer who spent about 10 minutes online, pulled three seconds of audio from a Facebook video your son posted last Christmas, and fed it into an AI voice cloning tool that costs less than a Netflix subscription.
PRIVATE NO MORE? OpenAI said Monday it has taken a formal step toward a potential stock market debut, signaling that the artificial intelligence company is preparing for the possibility of becoming a publicly traded firm.
INTELLIGENCE QUESTIONS: Apple has spent years telling us that privacy starts on the device. For many users, that message feels reassuring. Your messages, photos, emails and app data sit in your hand, protected by Face ID, passcodes and Apple’s security layers. Now, new research gives Apple’s on-device AI a reality check.
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Memory is now the most expensive component in a smartphone. It’s more expensive than the processor, more expensive than the display, and can account for more than 50% of the total hardware bill.
For Phone (4a), memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.
I posted about this earlier this year. It’s now playing out, faster than predicted.
Phone prices are going up, and they’ll keep going up into next year. Since February, new phones have been launching up to $100 more expensive than their predecessors. In India, phones above ₹30K have seen price jumps of ₹7,000 or more.
The natural instinct is to buy ahead. It doesn’t work that way. In a shortage, memory is allocated, not bought. You get what you’re given, at the current price.
If you’ve been waiting to upgrade a device, the best time was yesterday. The next best time is now. This year’s sale season won’t have the discounts people are used to.
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