The Download: Musk v. Altman, smart glasses for warfare, and Google I/O

This is today's edition of The Download, our weekday newsletter that provides a daily dose of what's going on in the world of technology.

Here’s why Elon Musk lost his suit against OpenAI

Elon Musk has lost his lawsuit against OpenAI, which centered on whether the company breached its founding contract as a nonprofit. A jury found that he sued too late, meaning his claims are barred by statutes of limitations. But the verdict didn’t judge if OpenAI violated its nonprofit mission—only whether Musk brought the case in time.

The dispute centers on when OpenAI began shifting toward a for-profit structure. The company argued that signs of a shift were visible as early as 2017, while Musk said he only discovered the change in 2022.

Here’s a closer look at the timeline, why Musk lost, and why the fight over OpenAI’s structure may not be over.

—Michelle Kim

Join us later today for a subscriber-only Roundtables discussion about what happened in the courtroom and what the verdict means for OpenAI and the larger AI race. Register here.

Inside Anduril and Meta’s quest to make smart glasses for warfare

The defense-tech company Anduril has shared new details about the augmented-reality headset for the military it’s prototyping with Meta, including a vision for ordering drone strikes via eye-tracking and voice commands.

Quay Barnett, who leads the effort at Anduril following a career in the Army’s Special Operations Command, says he aims to optimize “the human as a weapons system.” Find out how he plans to do it—and what smart glasses could mean for warfare.

—James O'Donnell

What to expect at Google I/O this week

When Google opens its doors today for its annual developer conference, I/O, it will do so as a clear third place in the foundation model race. 

A foundation model’s reputation these days rests largely on its coding capabilities, and for months Google’s coding tools have been outgunned by Anthropic’s Claude Code and OpenAI’s Codex. But the company still shapes the cutting edge in areas such as AI for science. At I/O this week, it will try to prove it can compete on both fronts.

I’m going to be at Mountain View this week to see what goes down. Here are three things to keep a close eye on.

—Grace Huckins

This story is from The Algorithm, our weekly newsletter giving you the inside track on all things AI. Sign up to receive it in your inbox every Monday.

Can AI learn to understand the world?

As the limits of LLMs become clearer, researchers are developing a new kind of AI designed to understand the physical environment: world models. 

Recent developments from Google DeepMind, Fei-Fei Li’s World Labs, and Yann LeCun’s new startup have pushed these systems to the forefront of AI. At an upcoming virtual event, MIT Technology Review will examine the progress—and what comes next.

On Thursday, May 21, editor in chief Mat Honan, senior AI editor Will Douglas Heaven, and AI reporter Grace Huckins will take part in an exclusive Roundtables discussion on world models. Register here to join the session at 19:30 GMT / 2:30 PM ET / 11:30 AM PT.

World models are one of our 10 Things That Matter in AI Right Now, a new guide to the technologies and ideas shaping the future of AI.

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 OpenAI’s legal win over Elon Musk clears its path to a blockbuster IPO
The jury’s verdict was a critical moment for the company’s future. (Reuters $)
+ The trial spilled plenty of dirt about Silicon Valley. (MIT Technology Review)
+ And added to concerns about AI’s leadership. (The Verge)

2 Google and Blackstone are launching a new AI cloud company
The venture will use Google’s specialized chips. (Bloomberg $)
+ It aims to mount a challenge to Nvidia. (FT $)
+ Blackstone is investing $5 billion in the company. (WSJ $)

3 Meta is reshaping its workforce around AI while preparing deep layoffs
It’s reassigning 7,000 employees to four new AI-focused groups. (NYT $)
+ And plans to lay off 10% of its staff on Wednesday. (Reuters $)
+ More cuts are expected later this year. (CNBC)

4 The Iran conflict is straining the AI supply chain
TSMC, Foxconn, and Infineon have felt major disruption. (CNBC)
+ The war also threatens a vital water technology. (MIT Technology Review)

5 China’s AI-powered brain implants are moving to real-world use
Some devices will soon be sold to the public. (Nature)
+ BCIs now must be proven as products. (MIT Technology Review)

6 A US cybersecurity agency exposed its own digital keys on GitHub
A researcher said it’s the worst leak he’s ever seen. (Krebs on Security)
+ The culprit was the CISA, a relatively new branch of the DHS. (Gizmodo)

7 Supercharging immune cells may help control HIV long-term
CAR-T cell therapy is showing promise for managing HIV. (Wired $)

8 Filipino virtual assistants are powering “thought leadership” on LinkedIn
Low-paid workers use AI to write posts for Western executives. (Rest of World)

9 Big Four accounting firms have more job ads for AI staff than auditors
Accounting giants are rushing to adapt to technological disruption. (FT $)

10 Tech founders are being sent to etiquette school
In the AI era, soft skills may matter more than ever. (WSJ $)

Quote of the day

“Shit, I should have asked for more.”

—President Trump tells Fortune that he should have requested a greater share of Intel than the 10% stake that the US government received.

One More Thing

Think that your plastic is being recycled? Think again.

On a kayak trip through a Connecticut salt marsh, plastic waste appears almost immediately. There are bags in reeds, bottles in the water, and tiny pieces scattered everywhere. What looks like a pristine ecosystem is already saturated.

Plastic is produced at enormous scale but rarely recycled. Instead, it breaks apart into microplastics, which are now detected across the environment and in human bodies.