😳Musk In Trouble

Tesla shareholders file lawsuit against Musk over xAI venture

Key Points 

• The shareholders' lawsuit claims that Musk and the board violated their fiduciary duty to Tesla by founding xAI in 2023.

• They are seeking a court order to compel Musk to surrender his ownership stake in xAI to Tesla.

♨️News - Several Tesla shareholders are suing Elon Musk and the company's board, alleging that they diverted talent and resources from Tesla to Musk's rival AI company, xAI. 

This lawsuit directly challenges Musk's decision to start xAI, following his ultimatum to develop AI independently unless given more voting control over Tesla.

📒Key details -

• The lawsuit was filed just hours before Tesla's annual meeting, where shareholders were expected to vote on re-ratifying Musk's $56 billion compensation package that was previously struck down by a judge.

• The shareholders' lawsuit claims that Musk and the board violated their fiduciary duty to Tesla by founding xAI in 2023, under the pretense of understanding "the true nature of the universe."

• The plaintiffs argue that Musk promoted Tesla as a robotics and AI leader, which boosted its stock price and overall value. The lawsuit claims that while doing so, Musk diverted talent and resources from Tesla to xAI, raising billions for xAI by emphasizing its access to Tesla's AI-related data.

• The plaintiffs also reference a recent CNBC report that alleges Musk instructed thousands of Nvidia-made AI chips originally intended for Tesla to be sent instead to xAI. [*Following CNBC's publication, Musk explained on X that Tesla couldn't use the Nvidia GPUs due to incomplete construction at its factory in Austin, Texas.]

• The plaintiffs claim that Musk violated Tesla’s business ethics by establishing and leading xAI. They also accuse Tesla’s board of negligence for allowing Musk to divert resources from Tesla to xAI, thereby generating significant AI-related value for a company other than Tesla. They are seeking a court order to compel Musk to surrender his ownership stake in xAI to Tesla.

Pope Francis calls for ethical AI standards in landmark G7 address

Key Points 

• Francis addressed a special session of the Group of Seven summit after being invited by the host (Italy) to discuss the risks and potential of artificial intelligence.

• This marks the first time a pope has participated in the G7.

• Francis urged politicians to prioritize human oversight in the development of artificial intelligence.

• He emphasized that while everyone should use AI responsibly, the primary responsibility lies with politics to establish conditions that ensure its ethical and beneficial use.

🎙️News  - Pope Francis has urged leaders from wealthy democracies to prioritize human dignity when developing and deploying artificial intelligence. He cautioned that this advanced technology could reduce human interactions to mere algorithms, emphasizing the need for ethical considerations in its use.

Francis addressed a special session of the Group of Seven summit after being invited by the host (Italy) to discuss the risks and potential of artificial intelligence, marking the first time a pope has participated in the G7. His ethical perspective highlighted the growing global concern over AI, which is increasingly shaping international agendas, government policies, and corporate strategies.

Francis urged politicians to prioritize human oversight in the development of artificial intelligence, stressing that critical decisions, including the use of weapons and other tools, must always remain under human control rather than delegated to machines. He cautioned that relegating decision-making to AI could strip individuals of their ability to determine their own futures, undermining human dignity. Additionally, he underscored the importance of safeguarding a space where humans maintain proper control over AI programs to uphold fundamental values and ethical standards.

🥸What's more? Earlier this year, Pope Francis used his annual peace message to advocate for an international treaty aimed at ensuring ethical development and use of AI. He warned that unchecked advancement of technology devoid of human values such as compassion, mercy, morality, and forgiveness poses significant risks. While he did not reiterate this specific call in his recent speech on Friday, he emphasized that political leaders must take responsibility for addressing these issues. He urged them to work towards banning lethal autonomous weapons, often referred to as "killer robots," stressing that machines should never be permitted to decide to take human life.

Addressing the leaders gathered, Pope Francis concluded by highlighting that while everyone should use AI responsibly, the primary responsibility lies with politics to establish conditions that ensure its ethical and beneficial use.