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Judge denies Elon Musk’s request to block OpenAI for-profit conversion but welcomes trial

Judge denies Elon Musk’s request to block OpenAI for-profit conversion but welcomes trial

By MATT O’BRIEN and BARBARA ORTUTAY, Associated Press Technology Writers

OAKLAND, Calif. (AP) — A federal judge has denied Elon Musk’s request for a court order blocking OpenAI from converting itself to a for-profit company but said she could expedite a trial to consider Musk’s claims against the ChatGPT maker and its CEO.

U.S. District Judge Yvonne Gonzalez Rogers ruled late Tuesday that “Musk has not demonstrated likelihood of success on the merits” in his request for a preliminary injunction. She offered to hold a trial in her California courtroom as soon as this fall, “given the public interest at stake and potential for harm if a conversion contrary to law occurred.”

Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker and CEO Sam Altman a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit.

He escalated the legal dispute late last year, adding new claims and defendants, including Microsoft, and asking for a court order that would stop OpenAI’s plans to convert itself into a for-profit business. Musk also added his own AI company, xAI, as a plaintiff, claiming that OpenAI was unfairly stifling business competition. read more

CFPB drops lawsuit against Bank of America, JPMorgan Chase and Wells Fargo over Zelle fraud

CFPB drops lawsuit against Bank of America, JPMorgan Chase and Wells Fargo over Zelle fraud

By MICHELLE CHAPMAN, AP Business Writer

The Consumer Financial Protection Bureau is dropping its lawsuit against the company that runs the Zelle payment platform and three U.S. banks as federal agencies continue to pull back on previous enforcement actions now that President Donald Trump is back in office.

Businesses scramble to contain fallout from Trump’s tariffs on Canada, China and Mexico

Businesses scramble to contain fallout from Trump’s tariffs on Canada, China and Mexico

By PAUL WISEMAN, Associated Press Economics Writer

A Minnesota farmer worries about the price of fertilizer. A San Diego entrepreneur deals with an unexpected cost increase of remodeling a restaurant. A Midwestern sheet metal fabricator bemoans the prospect of higher aluminum prices.

Businesses knew that Trump’s import taxes — tariffs — on America’s biggest trading partners were scheduled to take effect Tuesday. But many of them assumed they’d get a reprieve. After all, the unpredictable president had delayed the tariffs on Canada and Mexico for 30 days right before they were originally supposed to kick in on Feb. 4.

No such luck this time.

At midnight Tuesday, the United States imposed 25% tariffs on goods from Canada and Mexico, starting a trade war with its closest neighbors and allies. Trump also doubled his 10% levies on Chinese imports in a series of moves that took U.S. tariffs to the highest level since the 1940s. Canadian energy was shown some mercy, getting taxed at a lower 10%. read more

What to know about Trump’s tariffs and their impact on businesses and shoppers

What to know about Trump’s tariffs and their impact on businesses and shoppers

By WYATTE GRANTHAM-PHILIPS, Associated Press

NEW YORK (AP) — U.S. President Donald Trump’s long-threatened tariffs are here, plunging the country into an escalating trade war with China, Canada and Mexico.

Trump’s 25% tariffs on imports from Canada and Mexico went into effect Tuesday, along with a heightened 20% levy on Chinese goods. In response, all three countries announced retaliatory measures.

Experts say consumers and businesses will be the hardest hit. Companies big and small will face higher costs on the goods they buy from other countries — and could have little recourse but to hike prices themselves. For consumers, that will likely mean more expensive price tags on everything from cars, appliances and other big-ticket items to smaller, everyday purchases including electronics, gasoline and groceries.

How are Canada, Mexico and China responding?

Canada, Mexico and China all declared on Tuesday that they would impose retaliatory taxes on many U.S. products.

China is imposing tariffs of up to 15% on a wide array of key U.S. farm exports, including American-grown chicken, pork, soy and beef. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen. read more

Groceries around the country remain expensive. That’s why more states want to stop taxing them

Groceries around the country remain expensive. That’s why more states want to stop taxing them

By ANDREW DeMILLO, Associated Press

LITTLE ROCK, Ark. (AP) — The number of states imposing sales taxes on groceries has shrunk over the years, and the number may decrease further in the coming months as lawmakers hear complaints about high prices for eggs and other household staples.

Arkansas Gov. Sarah Huckabee Sanders on Tuesday unveiled the details of her proposal to eradicate the remaining 1/8th of a cent sales tax the state levies on groceries. Lawmakers in Tennessee, Mississippi and Alabama and are also calling for grocery-tax reductions.

The efforts come as states face uncertainty about their budgets because of cuts in Medicaid and other federal programs being eyed by Republicans in Washington. But supporters of the tax cuts are citing headlines about soaring egg prices as the reason they are needed now.

“We’re getting rid of Arkansas’ most regressive tax and giving a helping hand to those who need it the most,” Sanders, a Republican, said at a news conference to discuss the proposal. read more