🫨OpenAI Sues Musk for Sabotage

Today we will discuss:

• Sponsored: Picsart—AI-powered tools to optimize, automate, and scale visual content 

• OpenAI strikes back at Musk—Countersuit accuses him of disrupting the mission with a staged bid

• Don’t miss this week’s Workflow Wednesday—AI scaling at work with AI-powered meeting memory using Fireflies.ai, bulk SEO content from Scalenut, and automated dev reminders via GitHub + Zapier;now available at only $20/month! 

• Nvidia strikes deal with Trump—A promise to build US data centers spared Nvidia’s H20 chip from looming China restrictions

• In other AI news today—Google’s Veo 2 can now follow camera-style directions, YouTube expands AI-fake detection to top creators, Elon Musk’s xAI launches a Grok 3 API, and Adobe is building AI agents to assist in Photoshop and Premiere Pro

• Saved the best for last—10 must-try AI tools

Full AI toolset to optimize, automate and scale visual content from Picsart Enterprise

Picsart Creative APIs is more than just a background remover—it’s an AI-powered creative platform that empowers businesses to integrate image and video processing seamlessly into their workflows.

• Extensive AI Toolset – From Remove Background and Image Upscale to Text-to-Image Generation.

• Apps & Plugins for Designers & Teams – Work with Figma, Sketch, GIMP, and Miro to integrate seamlessly to your existing creative workflows.

• Low-Code & No-Code Automation – Automation platforms like Make.com, Zapier, and Elastic.io—no development resources required.

• Built for Businesses – Simple REST APIs with fast deployment and enterprise scalability. Best fit for large amounts of visual assets (e-commerce, web-to-print, mark tech platforms, DAMs).

• Fast & Developer-Friendly – Get started in under 3 minutes, go live in days, not weeks.

• 200 Free Credits on Signup – Try now, no credit card required.

• Enterprise-Ready & Continuously Evolving – Trusted by 150M+ monthly active users on Picsart.

Perfect for businesses, game-changing for individuals.

🚀 Try Picsart for Free 

OpenAI countersues Musk in escalating feud

Key Points 

• OpenAI’s legal team says Musk’s recent actions, including a fake takeover bid, threaten its mission and governance.

• OpenAI claims Musk’s true intentions were never about its mission but centered on his own personal agenda.

• Meanwhile, a group of nonprofits has also  petitioned California’s attorney general to block OpenAI’s shift to a for-profit model.

♨️News - The high-profile feud between OpenAI and its co-founder Elon Musk just escalated, again. 

In a new court filing, OpenAI’s legal team has accused Musk of waging a damaging campaign against the company and asked the court to restrain him from “further unlawful and unfair action.” 

The countersuit claims Musk’s alleged efforts, including what it calls a “fake takeover bid,” are undermining OpenAI’s governance, its mission, and the public trust. The filing also asks that Musk be held accountable for the damage they say he’s already caused.

😵‍💫What's more? In a series of posts on X, OpenAI fired back at Musk, accusing him of being self-serving. “We’re actually getting ready to build the best-equipped nonprofit the world has ever seen,” the company stated, countering Musk’s long-standing criticism of its for-profit ambitions. “Elon’s never been about the mission. He’s always had his own agenda.”

Musk’s attorney, Marc Toberoff, responded in an emailed statement, saying Musk’s nonprofit bid was legitimate and serious. “It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” he said.

🙃Outside pressure builds - It is not just Musk challenging OpenAI. This week, a group of nonprofits and labor organizations, including the California Teamsters, asked the state attorney general to step in. They argue that OpenAI has abandoned its charitable mission and is prioritizing profit. The company needs to complete its for-profit transition by 2025 or risk losing some of its recent funding. 

Read the full story here. 

We’ve just launched the 14th edition of Workflow Wednesday for AI-minded professionals like you—actionable AI workflows delivered straight to your inbox.

This week’s topic: AI Scaling

Join us here

Nvidia’s deal with Trump keeps H20 AI chips flowing to China

Key Points 

• Nvidia’s H20 chip, once likely to face new export restrictions, will still be allowed into China after CEO intervention.

• Huang reportedly proposed major US AI investments during a private dinner with Trump, influencing the administration’s sudden reversal.

☕News - Nvidia CEO Jensen Huang appears to have reached a quiet agreement with the Trump administration that will allow the company to continue exporting its H20 AI chips to China. 

The deal reportedly came together over dinner at Trump’s Mar-a-Lago resort last week, where Huang promised to invest in new AI data centers across the US.

🧐Why the H20 was on the chopping block - The H20 is Nvidia’s most advanced AI chip still approved for export to China, though it’s been modified to run at lower performance levels.

Lawmakers on both sides had been pushing for tighter restrictions, especially after reports surfaced that China-based DeepSeek used the chip to train its R1 model, and Trump’s team was said to be drafting restrictions, until the surprise reversal following the dinner.

🙄Contradictions and compromises - While Huang’s offer aligns with Trump’s “America-first” AI stance, the administration’s decision seems at odds with its broader goal of maintaining US dominance. Even more confusing is that it’s keeping Biden-era chip export restrictions in place, rules Nvidia has called “misguided” and harmful to global innovation.

🥸High stakes & hardball tactics - Nvidia’s move follows a trend of AI giants trying to win Trump’s favor. OpenAI, Oracle, and SoftBank announced a $500B US data center project in January, while Microsoft pledged $80B of US-focused infrastructure. Trump, meanwhile, has warned foreign chipmakers like TSMC of heavy tariffs unless they build on US soil.

Read the full story here.