Musk vs Altman in Federal Court, Google Signs Pentagon Deal, an AI That Thinks It's 1930

Today we're covering the biggest AI stories of April 29th, 2026. Elon Musk took the stand in federal court as opening statements began in his $130 billion lawsuit against OpenAI — accusing Sam Altman of stealing a charity, while OpenAI's lawyers called it sour grapes from someone who didn't get his way, with four weeks of testimony and hundreds of private messages set to spill into the public record. Google finalized a classified AI deal with the Pentagon opening its models to any lawful government purpose, the same week over 600 employees sent CEO Sundar Pichai an open letter asking him to refuse — with Google's no-weapons pledge already scrubbed from its AI principles back in 2025. Plus, former Anthropic and OpenAI researchers unveiled Talkie, a 13-billion parameter AI trained exclusively on text from before 1931 — no internet, no modern data — and a community workflow from a man in Ontario who used AI to diagnose and fix his furnace on a cold night, saving himself a $300 service call and a freezing night indoors.