Good morning. Elon Musk took the stand Tuesday in a landmark trial that could potentially upend OpenAI’s future.

• Bait and switch? Musk has accused OpenAI and its Chief Executive Sam Altman of manipulating him into thinking he was donating tens of millions of dollars to help launch a nonprofit to develop artificial intelligence for the benefit of humanity, only to turn it into a for-profit venture.
   
• ‘It’s actually very simple’: “I think they’re gonna try to make this lawsuit very complicated but it’s actually very simple,” Musk said as soon as he took the stand, staring directly at the jurors. “It’s not OK to steal a charity.” The billionaire invoked a cause greater than himself, stating that if he were to lose this case, the country could risk “losing every charity in America.”
   
• Underdog: The remedies that Musk is asking for include the removal of Altman and OpenAI President Greg Brockman from their leadership roles at the AI company, damages worth more than $180 billion to be paid from OpenAI’s for-profit arm to its nonprofit parent, and unwinding the company’s recent conversion to a more traditional governance structure. Legal experts have said Musk is an underdog in the case.

U.S. soldier pleads not guilty to using classified information for Maduro bets.

A U.S. Special Forces soldier pleaded not guilty Tuesday to using classified information to profit from prediction-market bets on the ouster of former Venezuelan leader Nicolás Maduro.

Gannon Ken Van Dyke, 38 years old, entered the plea during a hearing in Manhattan federal court, where he is charged with offenses including commodities fraud and unlawful use of confidential government information. Van Dyke sat at the defense table and occasionally consulted with his lawyers.

U.S. lost $107 billion from tariff evasion in 2025, report says.

The U.S. missed out on an estimated $107 billion in tariff revenue last year due to importers evading duties, Risk Journal reports (free link).

Some shipments with goods made in China showed signs that they were illegally routed through countries such as Vietnam, Mexico or India that were subject to lower duties in a practice known as transshipment. That tactic cost the U.S. an estimated $38 billion in 2025, Altana said.

• The U.S. Justice Department sued software company Cloudera for allegedly favoring non-U.S. citizens for certain jobs.
   
• Federal Communications Commission Chairman Brendan Carr is launched an early review of Disney’s broadcast television licenses, the regulatory agency said Tuesday.
   
• The U.S. warned financial institutions they could face sanctions exposure if they facilitate transactions for independent Chinese oil refineries importing Iranian oil.
   
• A crypto venture linked to men the U.S. had sanctioned partnered with the Trump family firm.
   
• Paramount is seeking approval from the Federal Communications Commission for Persian Gulf sovereign-wealth funds to take a substantial equity stake in the company.
   
• A U.S. financial regulator moved to block an Illinois law that would prohibit credit- and debit-card issuers from charging fees on the taxes and tips attached to transactions.
   
• The European Union said Meta Platforms might be in breach of the bloc’s digital laws for not doing enough to prevent minors under the age of 13 from using Instagram and Facebook.

U.A.E.’s OPEC exit deals major blow to cartel amid Middle East oil squeeze.

The United Arab Emirates said it would leave OPEC, dealing a heavy blow to the oil cartel as the war in Iran scrambles alliances and investment priorities among the world’s top oil producers.

The sudden departure of OPEC’s third-biggest producer further weakens a bloc that despite producing up to four out of every 10 barrels of oil pumped worldwide has been hobbled by internal disunity and the rise of American oil output.

The war in Iran has piled on more pressure by exacerbating rifts among the Arab countries at the core of the group.

• The Global Energy Order Is Breaking Down
• Iran Is Flooded With So Much Unsold Oil That It’s Stashing It in Derelict Tanks
• Iran-Linked Hackers Target U.S. Troops in Middle East
• Iranians Feel the Pain as Their Economy Descends Into a Death Spiral
• Trump Tells Aides to Prepare for Extended Blockade of Iran

China’s ban on Meta-Manus deal shows strains in U.S.-China business ties.

China’s move to force Meta Platforms to unwind its acquisition of AI startup Manus is the latest sign of Beijing’s willingness to use powerful economic weapons to safeguard key interests—a development likely to send a chill through foreign companies looking to do business in China and Chinese companies seeking foreign capital.

On Monday, China banned Meta’s $2.5-billion acquisition of Manus on national-security grounds. The decision jolted Chinese and foreign investors because it came months after Manus—which was originally established in China—moved its operations to Singapore and closed the deal with Meta. Meta had already begun integrating Manus’s technology into its systems.

• The old home-insurance rules are being upended. For decades, coastal states with hurricanes bore the brunt of rate increases, while inland states enjoyed cheap coverage. Now, hailstorms, wildfires and wind damage are hammering places once thought to be shielded from the worst rate hikes, a Wall Street Journal analysis of premiums and natural disasters nationwide found.
   
• King Charles III issued a veiled plea for President Trump not to turn his back on the trans-Atlantic alliance between the U.K. and its former colony during a rare address to Congress to mark 250 years of American independence.
   
• Fertilizer prices have risen sharply during the war in Iran, according to a new dashboard from the United Nations that tracks how the tensions in the Strait of Hormuz are impacting commodity prices.
   
• The death of two CIA officials in Mexico during a counternarcotics operation has highlighted tensions in U.S.-Mexico relations.
   
• Australia’s consumer prices jumped in the first quarter, hitting the highest level since September 2023, as the impact of the energy shock fed into the data.

The Dow Jones Risk Journal Summit London on May 7 will convene senior business professionals for discussions on a range of corporate risks including supply chains, artificial intelligence, geopolitics and financial crime. Speakers include: Kathy Wengel, EVP, Chief Technical Operations and Risk Officer, Johnson & Johnson; Nish Imthiyaz, Global Privacy and Responsible AI Counsel, Vodafone; and Will Mayes, Chief Executive, Cyber Monitoring Centre.

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• The Justice Department on Tuesday secured an indictment against James Comey in connection with a photo he posted on social media showing seashells arranged in a formation that prosecutors said could be interpreted as a threat to kill President Trump.
   
• The U.S. Food and Drug Administration seeks to accelerate clinical trials of new medicines by using artificial intelligence to streamline the laborious process of collecting and submitting study data.
   
• Kevin Warsh declined to tell senators whether he would step aside as Federal Reserve chair if the president asked him to resign, highlighting a tension likely to cost Warsh support from Democrats when the Senate Banking Committee votes Wednesday on his nomination.
   
• A trio of executives who worked at Alphabet’s Google and Meta has developed a new server designed to solve the problem of how to run artificial intelligence models that are increasingly large and complex.
   
• Americans are drawing the line on some price increases.

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