02/05/2026

BIZ & FINANCE SATURDAY | MAY 2, 2026

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Musk grilled on AI profits at OpenAI trial OAKLAND: Elon Musk sparred with lawyers for a third day on Thursday at his California trial against OpenAI, struggling to explain why his own for-profit AI empire differs from the one he is trying to take down. “Few answers are going to be complete, especially when you cut me off all the time,“ the visibly irritated multi-billionaire said as he resumed his duel on Thursday morning with the defence attorney for OpenAI. Federal judge Yvonne Gonzalez Rogers, who must decide whether OpenAI – the creator of ChatGPT – betrayed its original nonprofit mission, had to intervene several times to compel the world’s richest man to answer questions. After the judge accused him of playing lawyer by complaining that opposing counsel’s questions were “leading”, the tech mogul conceded: “I am not a lawyer.” “Well, technically I did take Law 101 in school,“ he added, drawing laughter from the courtroom. A benefactor to OpenAI’s co-founders – to whom he gave US$38 million during the project’s early days from 2015 to 2017 – Musk accuses CEO Sam Altman and his partner Greg Brockman of betraying the startup’s charitable mission by transforming it into a commercial company valued at more than US$850 billion and poised to go public. He is seeking to have OpenAI – which rivals Anthropic and Google at the top of the global AI race – return to nonprofit status, in a trial whose outcome could reshape the question of who controls AI innovation in the United States. OpenAI’s attorney William Savitt sought to demonstrate that Musk is a mirror image of what he denounces: all of his companies – Tesla, Neuralink, X and his own AI firm xAI, recently absorbed into SpaceX – are for-profit, and the entrepreneur himself presents them as beneficial to humanity. “There’s nothing wrong with having a for-profit organisation,“ Musk answered, repeating his mantra “you just can’t steal a charity” – meaning OpenAI should simply have started as a normal company from the outset. “The worst-case situation would be that AI kills us all, I suppose,“ Musk declared with a smile, seizing an opening from his own attorney to invoke the climactic scenario from the film Terminator. The judge had sought to bar such digressions, telling Musk’s attorney at the start of the hearing: “I think it’s ironic that your client, despite these risks, is creating a company that’s in the exact same space.” Musk’s testimony concluded on Thursday, his third day on the stand, although he could be called back before mid-May. Altman, his former protégé turned adversary, was present for Thursday’s exchanges and left the courthouse shortly after Musk finished. Altman’s testimony is expected next week or the week after. OpenAI President Brockman, another early co-founder, will precede him on the witness stand. A ruling on the merits is expected in mid-May. – AFP

Apple reports earnings beat on iPhone 17 demand

SAN FRANCISCO: Apple said on Thursday it had its best-ever start to the year when it came to earnings, with iPhone demand and digital service sales helping it beat expectations. The pioneering Silicon Valley firm reported profit of US$29.6 billion on revenue of US$111.2 billion in the recently ended quarter. “Today Apple is proud to report our best March quarter ever,” chief executive Tim Cook said in an earnings call, noting revenue hit a record high for the three-month period. Apple shares dipped slightly after the release but rose nearly 4% on optimism expressed on the earnings call. During the quarter, iPhone sales grew by double digits in just about every country where it does business, and its services unit reached an all-time high, according to Cook. The earnings come as Apple prepares for a changing of the guard, with Cook to step down as chief executive late this year. o ‘Best March quarter ever’ comes as firm prepares for changing of the guard

cult-like following, long after the company’s humble beginnings on April 1, 1976 in Jobs’s garage in Cupertino, California. One concern haunting investors is that Apple appears to be easing into generative AI while rivals Google, Microsoft and OpenAI race ahead. A promised upgrade to its Siri digital assistant was delayed in what analysts called a rare stumble for the company. And rather than relying on its own engineers to overhaul Siri, Apple has turned to Google for AI capability. But whether built in-house or outsourced, Apple’s obsession with user privacy and its premium hardware could position it to drive widespread adoption of personalised AI – and make it profitable, a goal that has proved elusive for much of the AI industry. Apple delivered a “standout quarter” even though iPhone revenue came in just shy of expectations, according to Emarketer senior tech analyst Jacob Bourne. “The question is whether incoming CEO John Ternus can translate this momentum into a credible AI strategy,” Bourne said. “Investors will be watching for clues about how Ternus plans to balance Apple’s cautious AI posture with the pressure to define the next consumer device for the AI era.” – AFP

The future of Apple is being entrusted to a company veteran said to combine hardware brilliance with “the soul of an innovator”. John Ternus, 50, will take over as Apple chief executive in September, with Cook becoming executive chairman of the iPhone maker’s board of directors. “This is the most exciting time in my 25-year career at Apple,” Ternus said on the earnings call, declining to disclose details of the company’s roadmap. “There are so many opportunities before us, and I couldn’t be more optimistic about what’s to come.” A big question will be whether Ternus has “the appetite for the kind of bold, occasionally uncomfortable decisions” that defining an Apple AI platform will require, said IDC analyst Francisco Jeronimo. Legendary Apple co-founder Steve Jobs was known for brutal honesty and unyielding perfectionism that led to culture-changing devices. Apple celebrates its 50th anniversary this year as artificial intelligence challenges the legendary company to prove it can deliver yet another must-have innovation. The brand’s hit products – the Mac, iPhone, Apple Watch and iPad – command a

An Apple store is seen in the Barton Creek Square mall in Austin, Texas. – AFPPIC

Blockbuster EU-Mercosur trade deal enters into force BRUSSELS: The European Union’s mammoth trade deal with South American bloc Mercosur provisionally enters into force yesterday, despite a pending court ruling on its legality. The agreement to create one of the world’s biggest free-trade zones was sealed in January after more than 25 years of intermittent negotiations. opposition over concerns some of its farmers will be left worse off. But – backed by a majority of EU countries – Brussels ploughed ahead as it pushes to diversify trade in the face of challenges from the United States and China. Commission chief Ursula von der Leyen. “From day one, tariffs are reduced and new market opportunities are opened.” To mark the day, EU chiefs von der Leyen and Antonio Costa held online talks with leaders from the Mercosur nations, which include Argentina and Brazil.

cheaper goods from agricultural powerhouse Brazil and its neighbours. The staunch French opposition to the pact caused a public rift with Germany, pitting the EU’s two biggest countries against one another. At the same time as it has looked to wrap up the Mercosur deal, the EU has also ploughed on with other agreements to get closer to other important markets such as India, Australia and Indonesia. – AFP

The agreement favours European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe. The application of the deal comes after the European Parliament referred it to the EU’s top court in January, instead of giving it the green light. France unsuccessfully attempted to block the deal over worries for its farmers, who fear being undercut by

“A lot of work went into getting this landmark deal over the line; now it’s time to invest the same effort into making sure our citizens and businesses reap its benefits immediately,“ said European

The deal, which eliminates tariffs on more than 90% of trade between the two sides, has proven divisive in Europe, with France leading

Together, the EU and Mercosur account for 30% of global GDP and more than 700 million consumers.