AI News Roundup – Trump administration postpones AI executive order, Elon Musk loses suit against Sam Altman and OpenAI, Google announces new Gemini model and AI product integrations, and more

To help you stay on top of the latest news, our AI practice group has compiled a roundup of the developments we are following. 

• The Trump administration has postponed the signing of a planned executive order that would overhaul AI regulation in the U.S., according to the Financial Times. The decision came hours before the scheduled signing ceremony at the White House, causing several prominent tech executives who were due to attend to change their plans. The planned executive order, which this AI Roundup covered earlier this month and which POLITICO obtained a draft of, would set up a process for AI model developers to voluntarily share their frontier models with the federal government 90 days before public release, as well as directing the Department of Justice to more stringently enforce crimes such as fraud in situations where the perpetrators use AI. The postponement comes after President Trump expressed concerns that vetting models for national security and cyber risks could hinder U.S. competitiveness against China, and follows weeks of administration infighting. Kevin Hassett, director of the National Economic Council, suggested that frontier models should be proven safe through an FDA-style formal approval process, drawing fierce opposition from AI founders and investors who argued it would stymie innovation. Prominent in the opposition camp was former Trump administration AI czar David Sacks, who resigned from the role this past March. According to POLITICO, Sacks raised concerns that voluntary reviews could eventually turn into mandatory ones. It is unclear if the executive order, if eventually signed, would effect much drastic change in the AI industry, as earlier this month the U.S. Center for AI Standards and Innovation (a component of the National Institute of Standards and Technology, which is in turn part of the U.S. Department of Commerce) announced agreements with Google, Microsoft, and Elon Musk’s xAI for the center to review AI models before public release. The order was inspired by tests of Anthropic’s Mythos cybersecurity model, which sparked concerns among officials that such models could cause drastic harm if used with ill intent. The White House did not indicate if and when the signing of the executive order would go forward.

• The Wall Street Journal reports that a jury has unanimously ruled against Elon Musk in his suit against Sam Altman and OpenAI. After deliberating for less than two hours, the nine-person panel rejected Musk’s claims of unjust enrichment and breach of charitable trust on procedural grounds, concluding that the statute of limitations had expired. Musk’s lawsuit sought the removal of Altman and President Greg Brockman, the unwinding of the company’s conversion into a for-profit entity, and over $180 billion in damages to be paid to the OpenAI non-profit, arguing that the founders “stole a charity.” During the trial, OpenAI’s attorneys introduced evidence including historical emails and text messages that showed that Musk had supported a for-profit transition as early as 2017 and had even requested up to 90 percent equity control before leaving to start xAI, undermining his claim that he only became aware of the for-profit plans in 2024. As the statute of limitations for unjust enrichment is two years, and that for breach of charitable trust is three years, the jury found that the time limit had expired, and U.S. District Judge Yvonne Gonzalez Rogers accordingly dismissed Musk’s claims. Musk railed against the ruling on his social network X, stating that the ruling set a “destructive” precedent and that he planned to file an appeal. The verdict comes as OpenAI, Musk’s SpaceX (which owns xAI), and rival AI lab Anthropic race to complete their initial public offerings (IPOs) in the coming months and gain access to public stock markets to raise funds. SpaceX released its IPO prospectus earlier this week, claiming $28.5 trillion in “largest actionable total addressable market” value, which would make the IPO by far the largest in history. OpenAI itself plans to go public as soon as September, with Anthropic targeting fall 2026 as well.

• Google hosted its annual I/O developer conference this past week and made several major announcements related to its AI products, according to WIRED. Google CEO Sundar Pichai highlighted a period of “hyper progress,” outlining Google’s plan to deploy AI agents across several of its primary web services including Google Search, Gmail, Google Docs, and YouTube. Google released the first of the Gemini 3.5 family of AI models, Gemini 3.5 Flash, alongside Gemini Omni, a high-fidelity AI video generator that can also incorporate real video footage. For search, Google introduced the “intelligent search box” featuring Generative UI, which dynamically formats search results in a conversational structure. The company also announced Gemini Spark, a cloud-based personal assistant capable of running background tasks like shopping and planning, and a universal shopping cart that allows users to purchase items from multiple online retailers, both powered by AI agents. The company also revealed Android XR-powered “intelligent eyewear” eyeglass products developed with Warby Parker, Gentle Monster, and Samsung; audio-only frames will launch this fall to act as a Gemini interface, while display-capable translation glasses remain in development. Pichai stated in his briefing at the event that consumers “want to see real value in the products they use on a day-to-day basis,” and that integrating AI agents into Google’s ecosystem would accomplish this goal.

• The Associated Press reports on growing backlash from college graduates against commencement speakers who boost AI as they enter an uncertain job market. Prominent figures, including former Google CEO Eric Schmidt at the University of Arizona, real estate executive Gloria Caulfield at the University of Central Florida, and music executive Scott Borchetta at Middle Tennessee State University, were met with boos and jeers when discussing the inevitability of AI and the importance for students to learn to use it in their careers. Several graduates interviewed by the AP criticized these speeches as self-serving advertisements and highlighted a double standard, noting that universities often penalize students for academic AI use while inviting speakers to champion the technology. The anger is likely reflective of anxieties among graduates about the state of the job market and ongoing concerns about AI replacing white-collar jobs. A 2025 Harvard Institute of Politics poll showed that 70 percent of college students view AI as a threat to their careers, and a recent Gallup poll indicated declining excitement and growing negative attitudes toward AI among Generation Z, demonstrating a rising backlash against the technology that has been so aggressively pushed forward in the business and technology spheres in recent years.

• A recent winner of a prestigious literary award has come under scrutiny as many believe that the entry was AI-generated, according to The New York Times. The controversy centers on “The Serpent in the Grove” by Jamir Nazir, one of five regional winners out of 7,800 entries for the Commonwealth Short Story Prize and which was published online by the British literary journal Granta. Readers on social media highlighted suspected AI writing tics in the text, such as excessive metaphors and negative parallelism, and researchers like Ethan Mollick ran the story through an AI detector program, which reportedly labeled it 100 percent AI-generated. Sigrid Rausing, Granta’s publisher, stated that their query to Claude concluded the story was “almost certainly not produced unaided by a human,” prompting Granta to post a disclaimer distancing its editors from the selection process. AI detector programs, however, have been known to be unreliable, and other observers did not believe that the story was AI-generated. The incident follows other recent controversies in the literary space surrounding the use of AI, including Hachette halting publication of Mia Ballard’s novel “Shy Girl” due to allegations that Ballard heavily relied on AI to write the book’s text, and Steven Rosenbaum admitting to using AI-generated false quotes in his nonfiction book on AI entitled “The Future of Truth.”