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Welcome to The Prompt by Kuro House, your daily AI update. Today, we’re diving into some major moves shaking up the AI world. From legal battles to new funding and powerful product updates, let’s get right into it.

First up, the high-stakes trial between Elon Musk and Sam Altman over OpenAI’s future is about to unfold in Oakland. According to Wired, Musk accuses OpenAI of breaking its nonprofit mission by secretly turning for-profit and enriching insiders, including Microsoft. This lawsuit could impact OpenAI’s planned IPO and reshape how AI giants balance profit with public benefit. Key figures like Altman, Brockman, and even Microsoft’s CEO are expected to testify, revealing behind-the-scenes tensions. It’s a rare glimpse into the power struggles defining AI’s next chapter.

Meanwhile, across the pond, the UK government just launched a $675 million Sovereign AI fund to boost homegrown AI startups. Wired reports this fund aims to reduce reliance on foreign tech by investing in areas like model development and drug discovery. Startups get access to supercomputers, free visas for talent, and government procurement opportunities. The goal is to position the UK as an AI maker, not just a taker, despite the dominance of US and Asian players. This fund could be a game changer for British AI innovation and economic security.

On the product front, OpenAI just rolled out a major update to Codex, its AI coding assistant, taking direct aim at Anthropic’s Claude Code. The Verge highlights that Codex can now operate desktop apps on your Mac in the background, running multiple agents without disrupting your work. It also gained image generation, new plug-ins for popular tools, and a memory feature to remember user preferences and past tasks. This makes Codex a far more powerful and personalized coding partner, especially for developers testing apps or iterating frontend changes. The update starts with macOS users and will expand soon.

Google is also enhancing its AI Mode in Chrome with a slick new feature that lets you open source links side-by-side with your chat window. The Verge explains that this means you can follow up on AI-generated answers by browsing the source directly, without losing context. Plus, you can now select specific tabs for AI Mode to search through, making your queries smarter and more precise. This update is live in the US now, with a global rollout coming soon. It’s a neat step toward more integrated and interactive AI-assisted browsing.

Back to OpenAI, TechCrunch reports an even deeper dive into Codex’s new capabilities, revealing it can now control your desktop cursor to execute tasks autonomously. This means Codex can open apps, click, type, and perform background work while you focus on other projects. It’s designed to be a multitasking coding buddy, handling auxiliary tasks like testing and frontend tweaks. The update also includes 111 new plug-in integrations, letting Codex organize your work life across tools like Slack and Google Calendar. Plus, a new pay-as-you-go pricing option aims to give businesses more flexibility.

So, we see AI shaping up not just as a technology, but as a battlefield of legal, economic, and competitive forces. From courtrooms to government coffers and desktop apps, the AI landscape is evolving rapidly. Stay tuned as these stories develop and continue to impact how we work and innovate with AI.