April 29, 2026 News

Musk Testifies in OpenAI Lawsuit, Contradicts Own Tesla AGI Claims Under Oath

Elon Musk testified in his lawsuit against OpenAI, alleging Sam Altman and cofounders misled him about the organization's non-profit structure before launching a for-profit arm. Under cross-examination, Musk admitted Tesla is not currently pursuing AGI despite tweeting otherwise weeks earlier, and acknowledged he had supported various for-profit transitions for OpenAI as early as 2016. The case appears to hinge on distinctions between capped and uncapped investor profits, with safety concerns also emerging as a key issue.

Microsoft Retains Royalty-Free OpenAI Access Through 2032 Despite Partnership Changes

Microsoft CEO Satya Nadella confirmed that under the revised OpenAI partnership, Microsoft retains royalty-free access to OpenAI's models and IP through 2032, while no longer paying for them. Microsoft reported its AI business surpassed $37 billion annual revenue (up 123% year-over-year), with OpenAI remaining a major cloud customer committing over $250 billion in purchases, while Microsoft holds a 27% equity stake. Nadella emphasized Microsoft offers the broadest model selection among hyperscalers, with over 10,000 customers using multiple models.

Runway AI Pivots from Video Generation to General World Models for AGI Applications

Runway, an AI video generation company valued at $5.3 billion, is expanding beyond creative video tools into developing general world models. CEO Cristóbal Valenzuela indicates these models will have applications in gaming, robotics, and potentially general intelligence, marking a strategic shift toward more foundational AI capabilities.

Parallel Web Systems Raises $100M Series B at $2B Valuation for AI Agent Infrastructure

Parallel Web Systems, founded by former Twitter CEO Parag Agrawal, raised $100 million Series B at a $2 billion valuation led by Sequoia, just five months after its Series A. The startup provides web search and research APIs designed specifically for AI agents, serving customers including Clay, Harvey, Notion, and OpenDoor, with over 100,000 developers using its products.

Scout AI Secures $100M to Deploy Autonomous Military Systems Using Vision Language Action Models

Scout AI, a defense startup founded in 2024, raised $100 million to develop "Fury," an AI model based on Vision Language Action (VLA) technology for operating autonomous military vehicles and weapons systems. The company is training its models at a U.S. military base using ATVs and drones, with initial applications focusing on logistics and resupply before progressing to autonomous weapons capable of identifying and engaging targets. Scout has secured $11 million in DoD contracts and is testing technology that could enable drone swarms to operate with minimal human intervention in combat scenarios.