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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Most people download an insurance app for a simple reason. They want a discount. Maybe it is a safe driving program. Maybe it is a wellness incentive. Either way, the pitch sounds simple. Share a little data and save a little money. But what exactly are you sharing?
Jan emailed us with a question that many people have probably wondered about:
“To get lower insurance, they have the app, and I use Travels, but I know other ones have it. When I opened it up, I noticed that it looks like they can access your health information and all kinds of things, and I don’t know if there’s a way to prevent them from following everything that’s on there. I am sure you have an opinion on this, and if it’s worth the 10% off from the get-go, and the following year.”
Jan, you’re not alone. Many insurance companies now offer programs that promise lower premiums if you install their app and agree to share certain types of data. That can include how you drive, where you travel and, in some cases, limited health or fitness information if the app connects to systems like Apple Health. The key point is that these programs are usually optional, and the data sharing is part of the trade.
TOP 20 APPS TRACKING YOU EVERY DAY
Insurance apps may offer lower premiums, but many also collect location, driving behavior and, in some cases, limited health data. (Neil Godwin/Future via Getty Images)
The good news is that you can often limit what these apps can see. The bigger question is whether the discount is worth the access.
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How insurance apps track your driving and health data
CyberGuy has previously covered telematics programs where insurers track driving behavior through smartphone apps or connected car data. Those programs monitor things like speed, braking patterns and the time of day you drive. In another report, we explained how your car may be sharing driving data with insurance companies.
We’ve also reported on how apps collect and sell personal data, including sensitive health information many users assume stays private. What has not always been discussed together is the broader pattern. Insurance companies are increasingly using smartphone apps to gather behavior data about both how you drive and how you live. Your phone becomes the measurement tool. For you, that raises a simple question. How much personal data are you willing to trade for a discount?
What data insurance apps can track about you
The details vary depending on the program. However, many insurance apps collect several types of information.
For driving programs, apps may monitor:
- Location
- Speed
- Braking and acceleration
- Time of day you drive
- Motion patterns detected by your phone
The goal is to calculate a driving score. Safer drivers may receive a discount when the policy renews. Some insurance apps also ask for access to other phone data, such as Motion & Fitness or camera permissions.
On the health side, programs may connect to health and fitness platforms. If you grant permission, the app may read data such as:
- Steps or activity levels
- Workout information
- Limited health metrics stored in Apple Health
It is important to understand that apps typically cannot see this data unless you grant access during setup. Still, many people click through permission screens quickly and later wonder what they agreed to share.
Why insurance app tracking raises privacy concerns
Location data alone can reveal a surprising amount about a person’s life. It can show where you live, where you work and where you travel every day. Driving patterns can also reveal how often you are on the road at night or during busy traffic periods.
Health and fitness data can paint an even more personal picture. That does not mean insurers are secretly spying on everything in your phone. But the more permissions you grant, the more insight the app may gain into your routines and habits.
That is why we encourage you to review app permissions carefully.
Are insurance tracking apps optional?
In most cases, yes. Insurance companies typically frame these programs as voluntary discount opportunities. If you enroll, you agree to share certain data that helps calculate a risk score.
If the data shows safe driving or healthy activity levels, you may receive a discount at renewal. However, if you decide you are uncomfortable with the tracking, you can usually opt out. Just keep in mind that the associated discount may disappear.
BLUE SHIELD EXPOSED 4.7M PATIENTS’ HEALTH DATA TO GOOGLE
Drivers looking for discounts through insurance apps are being urged to review app permissions and understand what personal data they are sharing. (Kurt “CyberGuy” Knutsson)
How to limit what an insurance app can access
The good news for Jan and anyone else wondering about this is that you can adjust permissions on your phone. These controls exist on both iPhone and Android devices. A smart approach is to review every permission the app requests and only allow what is truly necessary.
Limit location tracking
On iPhone:
- Go to Settings
- Tap Privacy & Security
- Click Location Services
Find the insurance app and adjust its access. You can often set location access to:
On Android:
Settings may vary depending on your Android phone’s manufacturer
- Go to Settings
- Tap Location
- Click App permissions
or
- Go to Settings
- Tap Security and Privacy
- Tap More privacy settings at the very bottom
- Click Permission Manager
- Tap Location
Find the insurance app and choose a more limited option, such as:
- Allow only while using the app
- Don’t allow
These settings help prevent constant background location tracking.
Check health data access
If an insurance app connects to Apple Health or Google Health Connect, you can manage that separately.
On iPhone:
- Go to Settings
- Scroll down to the bottom and tap Apps
- Tap Health
- Click Data Access & Devices
Select the insurance app to see what information it can read. You can turn off specific categories of health data.
On Android:
Settings may vary depending on your Android phone’s manufacturer
- Go to Settings
- Click Privacy or Security and privacy
- You might have to click More privacy settings at the bottom of the screen
- Tap Health Connect
- Tap App permissions
There, you can see which apps have permission to read or write health and fitness data, such as activity or workout information. You can turn those permissions off if you prefer.
Review other permissions insurance apps request
While you are already in your phone’s Settings reviewing permissions, it is also worth checking access to:
- Camera
- Motion & Fitness
- Contacts
Only allow the permissions the app truly needs to function. This follows a simple security principle called least privilege. Give an app the minimum access it needs to work. Not every permission it asks for. For example, a driving app may need motion data to measure braking. But it may not need continuous location tracking or access to health records. By limiting permissions, you reduce how much information the app collects.
Is the discount worth it?
This brings us back to Jan’s question. Is a 10% discount worth the trade? For some people, the answer is yes. If you are comfortable sharing driving data and the program is transparent about how it works, the savings can add up. For others, the trade may feel too intrusive. The most important thing is understanding what the app can access and deciding whether the benefit outweighs the data you share. A discount can be helpful. But privacy has value too.
5 MYTHS ABOUT IDENTITY THEFT THAT PUT YOUR DATA AT RISK
Telematics and wellness apps promise insurance discounts, but the tradeoff may include access to detailed data about how you drive and live. (Kurt “CyberGuy” Knutsson)
Pro tip: Reduce how much of your data is available online
Insurance apps are only one way companies can collect information about you. Data brokers also gather location patterns, behavioral details, and personal information from apps and online activity. Using a data removal service can help reduce how much of that information is available online.
While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.
Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.
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Kurt’s key takeaways
Insurance apps reflect a bigger shift in how companies assess risk. Instead of relying only on traditional factors like age or claims history, insurers can now measure behavior through the device in your pocket. That can reward safe drivers and active lifestyles. It can also create new privacy questions that many of you never expected to face when you downloaded an app. Jan’s instinct to question what the app could access was exactly right. Before accepting a discount, take a few minutes to review permissions and decide what level of tracking you are comfortable with. Your phone holds a lot of personal information. It is worth making sure you stay in control of it.
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Here is the question for you: Would you trade detailed data about your driving or health for a lower insurance bill? Let us know by writing to us at CyberGuy.com.
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Autonomous vehicles roving California’s roads will no longer be immune to traffic tickets starting on July 1st. New regulations announced by the California DMV this week allow law enforcement to give AV manufacturers a “notice of AV noncompliance” when one of their cars commits a traffic violation, like running a red light or failing to stop for school buses.
The updated regulations come after years of viral traffic violations and multiple safety investigations involving robotaxis. Tesla’s Full Self-Driving (FSD) system is also under investigation for running red lights and driving in the wrong direction. Now, driverless vehicle companies can get cited for those violations, at least in California.
California’s new regulations could also help prevent driverless cars from getting in the way during emergencies, like an incident in San Francisco last year when Waymos blocked traffic during a power outage. AV companies will now have to answer first-responder calls within 30 seconds and must allow emergency responders to “issue electronic geofencing directives,” which will block AVs from entering active emergency areas. Any driverless cars already in the area will have to leave.
The new regulations also allow AV companies to test and deploy heavy-duty autonomous trucks and include “licensing qualifications and permitting and training requirements for remote drivers and assistants.”
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Inside Meta, the parent company of Facebook, Instagram and WhatsApp, employees’ everyday clicks, shortcuts and screen habits are now part of how the company trains its artificial intelligence systems.
Meta has started rolling out internal software that tracks how employees use their computers, including how they move through apps and complete routine tasks. The company says this data will help build smarter AI tools, but it also raises new questions about how far workplace monitoring should go.
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HOW TO OPT OUT OF AI DATA COLLECTION IN POPULAR APPS
Inside Meta, employee computer habits are becoming training data as the company pushes deeper into AI-powered workplace automation. (Unknown)
What Meta’s employee tracking tool actually does
The system is called the Model Capability Initiative, or MCI. It runs on work apps and websites used by employees.
Here is what it tracks:
- Mouse movements and clicks
- Keystrokes and keyboard shortcuts
- Navigation behavior like dropdown selections
- Occasional screenshots of what is on screen
Meta says the idea is simple. If AI is supposed to act like a human using a computer, it needs real examples of how people actually work.
“If we’re building agents to help people complete everyday tasks using computers, our models need real examples of how people actually use them – things like mouse movements, clicking buttons, and navigating dropdown menus,” a Meta spokesperson told CyberGuy. “To help, we’re launching an internal tool that will capture these kinds of inputs on certain applications to help us train our models. There are safeguards in place to protect sensitive content, and the data is not used for any other purpose.”
The company insists that data collected through this tool is used only for model training, not for employee performance reviews, and managers do not have access to it. Company devices were already subject to monitoring, and this isn’t unique to Meta.
Why Meta is collecting employee data for AI
Meta isn’t collecting this information just for insight. It is feeding it into a broader push to build artificial intelligence agents that can handle work tasks. In an internal memo, Meta’s CTO Andrew Bosworth described a future where AI agents do most of the work while humans guide and review.
The company is already reorganizing around that idea. Internal programs like “AI for Work,” now called the Agent Transformation Accelerator, are designed to bring AI into daily workflows across teams.
Meta believes this approach will make operations faster and more efficient. The trade-off is that human work becomes training data for the systems that may replace parts of it.
META EMPLOYEE ACCUSED OF ACCESSING PRIVATE IMAGES
Meta is rolling out a workplace tracking tool that records employee clicks, keystrokes and screen activity to help train its AI systems. (Joan Cros/NurPhoto via Getty Images)
Privacy concerns around Meta’s employee tracking
Workplace monitoring has been around for years, but this takes it a step further. For example, tracking keystrokes and clicks in real time creates a level of oversight that companies have more often used with gig workers than office employees. As a result, employers can now watch day-to-day activity more closely.
At the same time, a legal gray area exists. In the United States, companies generally have broad authority to monitor employees as long as they provide notice. Because of that, employers have significant room to expand how they collect data.
However, outside the U.S., the rules can be stricter, and some regions place tighter limits on how companies collect and use employee data.
Even so, knowing someone is tracking your activity at this level can change how you work, how you communicate and how much autonomy you feel on the job.
How this fits into the broader AI job shift
Meta is hardly alone in pushing toward automation. Companies across Silicon Valley are investing heavily in AI systems that can write code, organize data and assist with decision-making. At the same time, many are cutting jobs or reshaping roles.
Meta plans to reduce its workforce by about 10 percent globally. Amazon has also trimmed tens of thousands of corporate roles in recent months.
The message is clear. AI has evolved beyond a tool that helps employees. It is increasingly positioned as a replacement for certain types of work.
JOBS THAT ARE MOST AT RISK FROM AI, ACCORDING TO MICROSOFT
Meta says its new internal monitoring tool will improve AI agents, but the program is also raising fresh concerns about employee privacy. (Donato Fasano/Getty Images)
What this means to you
Even if you do not work at Meta, this shift has wider implications. First, workplace monitoring is expanding beyond factories and delivery jobs into office environments. That could become standard across industries.
Second, your everyday work habits may become valuable data. Companies are realizing that human behavior is one of the most useful training resources for AI.
The line between assisting and replacing workers is getting thinner. Tools that start as helpers often evolve into something more autonomous over time.
If your job involves repetitive computer tasks, it is worth paying attention to how AI is being trained to handle them.
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Kurt’s key takeaways
Meta’s move marks a turning point. AI no longer relies only on public data or curated datasets. It now learns directly from how people work in real time. That shift raises practical questions about productivity and efficiency. It also brings deeper concerns about privacy, control and the future role of human workers. Companies argue they need this data to build better tools. At the same time, employees now help train systems that could eventually replace parts of their roles.
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If your daily work became training data for AI that could eventually do your job, would you be comfortable with that? Let us know by writing to us at CyberGuy.com.
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Copyright 2026 CyberGuy.com. All rights reserved.
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