EU lawmakers back blockbuster long-term budget

Following high-profile testimony from billionaire Elon Musk last week, one of OpenAI's co-founders will testify Monday in the California lawsuit brought by the world's richest man against the creators of ChatGPT.

Musk is seeking to force his rivals in artificial intelligence (AI) development to revert to a non-profit foundation.

Greg Brockman, co-founder and president of OpenAI, will face questioning from Musk's lawyers on Monday in the Oakland courthouse.

OpenAI CEO and co-founder Sam Altman, who in 10 years has gone from being Musk's protege to a bitter rival, is not expected to take the stand until the week of May 11.

The outcome of the case could shape the future of OpenAI, the fast-rising generative AI giant now valued at over $850 billion and preparing for an IPO.

Microsoft CEO Satya Nadella, whose company is accused of illegally funding OpenAI's commercial transformation, may also testify this week. 

Over three days of testimony last week, Musk portrayed himself as a selfless early supporter of OpenAI, saying he contributed $38 million between 2016 and 2020 before being sidelined.

The head of SpaceX and Tesla argued that he wanted to counterbalance Google's dominance and ensure that transformative AI technology -- which he has warned poses risks to humanity -- remain free from profit-driven pressures.

-- Global competition --

OpenAI's current structure, while highly lucrative, still operates under a nonprofit parent entity.

Last week, Altman and Brockman sat in the front row for almost the entire hearing, and made no statements inside or outside the courtroom. The trial has drawn intense media attention, with dozens of journalists covering the hearings daily.

OpenAI's legal team has pushed back, questioning Musk's own financial motives. 

The billionaire recently folded his AI venture, xAI -- maker of the chatbot Grok -- into SpaceX, which is reportedly valued at about $1.25 trillion and may also pursue a public offering.

The stakes are high. If Judge Yvonne Gonzalez Rogers ultimately rules in favor of Musk, OpenAI's IPO could be jeopardized.

That could reshape the global AI landscape, where major players like Google and Chinese tech firms are competing aggressively.

OpenAI is also facing growing competition from Anthropic and its Claude model. 

While the sector is already generating tens of billions in annual revenue, those figures still fall short of the massive investments required for talent, advanced processors and the construction of energy-intensive data centers powering the AI revolution.

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Vote counting in key Indian state elections was underway Monday under tight security, with the focus on West Bengal, where Prime Minister Narendra Modi's party is hoping for crucial gains.

Elections in five states and territories took place in April and May, and Modi's Bharatiya Janata Party (BJP), the ruling party in the national parliament, is hoping to make inroads into opposition-held states.

In West Bengal, the Hindu-nationalist BJP waged an aggressive bid to dislodge Chief Minister Mamata Banerjee, the firebrand leader of the All India Trinamool Congress (TMC), in power in the state of 100 million people since 2011.

Exit polls last week predicted the BJP has a slight edge over TMC, although exit polls have a patchy record in India.

"The entire country has its eyes on this state's election results," political analyst Biswanath Chakraborty told AFP, in the main city Kolkata. "The contest can tilt the balance of power."

The campaign this time was marked by protests over the removal of millions of names from voter rolls, billed as removing ineligible voters, but which critics said was skewed against marginalised and minority communities.

Banerjee, speaking ahead of the count, insisted her TMC would win. 

"The BJP is not coming, take my word for it," she said. "Be patient till the last."

But West Bengal's BJP chief Samik Bhattacharya told AFP he was confident of a win.

"It was an election of rejection," he said. "People of the state want change. The ruling Trinamool Congress will be defeated."

Past elections have resulted in violence in the state.

In the southern state of Tamil Nadu, a key industrial hub with more than 80 million people, the ruling Dravida Munnetra Kazhagam (DMK) under Chief Minister MK Stalin is widely expected to be re-elected.

Votes are also being counted in Assam, an eastern state of more than 31 million which the BJP is widely expected to maintain control of, and the small coastal territory of Puducherry, where the BJP is part of a ruling coalition.

In Kerala, the tightly contested race in the southern state of approximately 36 million, exit polls suggest the Congress party-led alliance is tipped to oust the Communist party.

Wins in the state elections would put Modi on a stronger footing while battling a series of economic and foreign policy challenges, including high unemployment rate and a pending US trade deal.

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A global oil supply squeeze is inflicting an "enormous impact" on the Asia-Pacific region, Japan Prime Minister Sanae Takaichi said Monday.

Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, she said the two countries would respond urgently to secure stable energy supplies.

Roughly one-fifth of the world's oil normally flows through the Strait of Hormuz, where shipping has been throttled by Iran since it was attacked by the United States and Israel.

Eighty percent of that oil is destined for Asia, according to the International Energy Agency.

"The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific," the Japanese leader told journalists.

"We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency."

The two countries aim to strengthen autonomy and  resilience to secure stable supplies of energy, Takaichi said.

Australia is the biggest supplier of liquefied natural gas to Japan, which in turn is a source for about seven percent of Australia's diesel.

- 'Global shocks' -

The two countries issued a string of statements vowing to work together on energy, the economy, defence, and critical minerals.

"These agreements are to the benefit of both of our people," Albanese said.

"For Australians, it will mean we are less vulnerable to global shocks like we are seeing right now because of conflict in the Middle East."

Japan's government has said it is also keen to ensure a stable supply of critical minerals, essential for semiconductors, electric vehicle batteries and weapons systems.

Australia has touted its abundant critical minerals as a way to loosen China's grip over global supplies of rare earths.

Australia and Japan have strengthened their defence ties, too, striking a Aus$10 billion (US$6 billion) deal last year for Japan to to provide Mogami-class stealth warships to the Australian navy.

In a foreign policy address delivered in Vietnam at the weekend, Takaichi promised to do more to ensure a "free and open Indo-Pacific" -- a strategy that has rankled China.

Japan aimed to build its resilience, she said, notably strengthening its supply chains for energy and critical minerals, and enhancing security cooperation.

First articulated a decade ago by Takaichi's mentor Shinzo Abe, the idea of a "free and open" Indo-Pacific has since been embraced by multiple US partners and allies seeking to curb China's influence in the region.

bur-djw/abs

A North Korean women's football club will become the first sports team from the country to play in South Korea since 2018 when they visit this month, Seoul's unification ministry said Monday.

The neighbours remain technically at war after their 1950–53 conflict ended in an armistice rather than a peace treaty, and sporting and cultural exchanges between them are very rare.

Naegohyang Women's FC will play the South's Suwon FC Women on May 20 in the semi-finals of the Asian Champions League.

The visiting delegation will include 27 players and 12 club staff, the ministry said. South Korea's football association told AFP that the team would arrive on May 17.

They will fly into Incheon airport on an Air China flight from Beijing, a unification ministry official told reporters.

The winner of the match at Suwon Sports Complex, south of the capital Seoul, will play the final of Asia's top women's club competition against either Australia's Melbourne City or Japan's Tokyo Verdy Beleza on May 23.

"The losing team in the semi-final will return home on Thursday, May 21, with no third-place playoff scheduled," the ministry said in a press release.

The match will be the first time a North Korean sports team has played in the South since shooting, youth football and table tennis delegations travelled there in 2018.

The last time Pyongyang sent a women's football team to the South was in 2014, when the North Korean national team took part at the Asian Games in Incheon.

Founded in 2012 and based in the North Korean capital, much of Naegohyang's squad is "made up of national team-level players", the ministry said.

North Korea's national team is one of the dominant forces in Asian women's football, winning multiple international titles in recent years, especially at youth level.

The most recent one came in November last year, when they defeated the Netherlands 3-0 in the final of the U-17 Women's World Cup.

- Peace overtures -

The announcement comes as Seoul seeks a rapprochement with Pyongyang after years of bad blood.

South Korea's dovish President Lee Jae Myung has called for talks with the North without any preconditions, saying the countries are destined "to make the flowers of peace bloom".

The North has not responded to the Lee administration's overtures and has repeatedly labelled the South its "most hostile" adversary.

For Seoul, the match is an opportunity to establish "at least a basic communication channel between North and South Korea", Lim Eul-chul, a North Korea expert at the South's Kyungnam University, said.

"It could become a chance to test peaceful coexistence," he told AFP.

North Korean leader Kim Jong Un has vowed to boost his nuclear forces, and Pyongyang conducted four missile tests in April, the most in a single month for over two years.

Pyongyang has also drawn closer to Russia, sending troops and artillery shells to support its invasion of Ukraine.

Observers say Pyongyang is receiving military technology assistance from Moscow in return.

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Tech firms led a rally across most Asian markets Monday following another healthy day on Wall Street fuelled by more strong earnings, while investors were also cheered by news that Iran had submitted fresh proposals to end its war with the United States.

While the Middle East crisis continued to rumble along, with the Strait of Hormuz still effectively choked off, dealers turned their focus on the corporate world as they jumped back into the AI trade that has propelled several markets to record highs.

Forecast-beating reports from Apple, Google, Microsoft and Samsung have reawakened interest in the artificial intelligence sector after the market tumult caused by the US-Israel strikes on Iran at the end of February.

Companies in the S&P 500 are on track to report earnings growth of 27.1 percent, the highest rate in more than four years, according to Factset.

Investors have been playing a waiting game since a ceasefire was agreed at the start of April, with just one round of talks taking place that came to nothing.

In the meantime, the United States maintains a blockade of Iranian ports and Tehran is keeping the strait -- through which a fifth of global oil and gas usually passes -- closed.

Optimism was given a boost Friday after an Iranian report that Tehran had delivered the text of a new proposal to mediator Pakistan the night before.

The offer was said by the Tasnim News Agency as calling for a complete end to the conflict within 30 days along with guarantees against renewed strikes.

It also reiterated previous demands that include the withdrawal of US forces from near Iran, the blockade to be lifted and sanctions removed.

Iran's foreign ministry said Tehran had submitted a 14-point plan "focused on ending the war" and that Washington had already responded to it in a message to Pakistani mediators, which Iran was reviewing.

Oil prices fluctuated Monday after dropping on Friday.

Donald Trump said Sunday that "very positive discussions" were underway and that US forces will soon start escorting ships out of the Strait of Hormuz in a a "humanitarian gesture" dubbed "Project Freedom".

In a post on Truth Social, the US president said many of the marooned ships "were running low on food", but offered few details on how the mission would work.

US Central Command said on X that its forces would begin supporting Project Freedom with guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms and 15,000 service members.

However, a senior Iranian official warned Monday that Tehran would consider any US attempt to interfere in the Strait of Hormuz a breach of the ongoing ceasefire.

"Whether this will lead to sustained weakness in oil remains to be seen," wrote Fawad Razaqzada at Forex.com.

"In my view, as long as the Strait of Hormuz situation remains unresolved, these types of headlines are likely to provide only temporary pressure on prices rather than drive a prolonged move lower."

Equities started the month on a broadly positive note, following all-time highs for the S&P 500 and Nasdaq in New York on Friday.

Seoul and Taipei jumped more than four percent to hit fresh records.

South Korean chip giant SK hynix was the standout, piling on more than 10 percent, while rival Samsung was up around four percent. Taiwanese counterpart TSMC was almost seven percent up.

Hong Kong also saw strong gains thanks to a surge in Chinese tech firms including Alibaba, while Singapore, Manila and Jakarta were also up.

Tokyo and Shanghai were closed for holidays.

However, Chris Weston at Pepperstone said: "After a strong April for risk assets, we need to remain open-minded about what May will bring.

"This week should provide early signals, but with risk assets pricing in a lot of good news, and rightly so, the time for that to be validated may now be here."

On currency markets, the yen was holding its own against the dollar after a rally on Thursday was said to have come on the back of Japanese intervention.

Officials were said to have spent at least $32 billion in the foreign exchange market, according to multiple reports, in its first such move to prop up the yen since 2024.

- Key figures at around 0300 GMT -

Hong Kong - Hang Seng Index: UP 1.9 percent at 26,268.77

Tokyo - Nikkei 225: Closed for a holiday

Shanghai - Composite: Closed for a holiday

West Texas Intermediate: DOWN 0.1 percent at $101.82 a barrel

Brent North Sea Crude: UP 0.1 percent to $108.29 a barrel

Dollar/yen: UP at 157.19 yen from 157.06 yen on Friday

Euro/dollar: UP at $1.1726 from $1.1720

Pound/dollar: UP at $1.3586 from $1.3578

Euro/pound: DOWN at 86.31 pence from 86.32 pence

New York - Dow: DOWN 0.3 percent at 49,499.27 (close)

London - FTSE 100: DOWN 0.1 percent at 10,363.93 (close)

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An Australian inquiry opened public hearings Monday into an antisemitic shooting that killed 15 people at a Jewish festival on Sydney's Bondi Beach.

The federal royal commission -- the highest level of government inquiry -- was called to probe factors leading to the attack by two gunmen on Jewish families at Australia's most famous beach in December.

Public hearings began with members of Sydney's Jewish community talking about their experience of antisemitism.

"The sharp spike of antisemitism that we have witnessed in Australia has been mirrored in other Western countries and seems clearly linked to events in the Middle East," inquiry chief Virginia Bell said in opening remarks.

"It's important that people understand how quickly those events can prompt ugly displays of hostility towards Jewish Australians simply because they are Jews."

- 'Oldest hatreds' -

The inquiry has received thousands of submissions about the impact of "one of society's oldest hatreds", said the counsel assisting the inquiry, Zelie Hegen.

Sheina Gutnick, whose father Reuven Morrison was killed in the Bondi attack, told the inquiry there had been a shift in antisemitism since 2023, when the Gaza war began.

"Antisemitism was allowed to come into the open," she said.

Her refugee parents had met at Bondi Beach, a scene of many happy childhood memories for her.

"Now Bondi holds a really, really heavy weight in our community's heart," she said.

The inquiry heard from witnesses, granted pseudonyms because of their fear of reprisals, about the impact on the Jewish community of antisemitic chants during a protest against the war in Gaza outside Sydney's Opera House in October 2023, shortly after the Hamas attack on Israel.

Jewish community groups recorded 2,062 antisemitic incidents the following year.

- 'An un-Australian thing' -

A "summer of terror" saw a string of arson and graffiti attacks against synagogues and Jewish businesses in Sydney and Melbourne, the inquiry was told.

A woman who works with a Jewish security group recounted having to escort people to safety from a Melbourne synagogue in November 2023 on the anniversary of the Nazi Kristallnacht pogrom as a "mob" of around 30 people dressed in black, their faces masked, appeared.

A Jewish woman whose grandparents were Holocaust survivors, and grew up at Bondi, told the inquiry she was "shocked to see flags being burnt at the Opera House -- it was such an un-Australian thing".

She was "incredibly disappointed that police hadn't stepped in before things got as bad as they did", she said.

In her experience, many Australians she worked with had never previously met a Jewish person, and she asked the community to listen when Jewish people "feel like history is repeating itself".

Sajid Akram and son Naveed are accused of opening fire as Jewish families thronged Bondi Beach for a Hanukkah celebration in December, carrying out Australia's deadliest mass shooting for 30 years.

Alleged gunman Sajid Akram, 50, was shot and killed by police during the assault. 

His 24-year-old son Naveed, an Australian-born citizen who remains in prison, has been charged with terrorism and 15 murders.

kln/djw/abs

Boeing is scheduled to return to court Monday to face its latest lawsuit over a deadly 737 MAX crash in Ethiopia, brought by the family of a young American NGO worker.

Barring a last-minute settlement, the case will go before a federal court in Chicago, with jury selection expected Monday and Tuesday and opening statements Wednesday.

Samya Stumo was killed in the March 2019 Ethiopian Airlines crash, when she was en route to Kenya for her first assignment with ThinkWell, a public health NGO that aimed to increase access to health care in Africa and Asia.

But the plane went down shortly after taking off from Addis Ababa, killing everyone aboard. The Ethiopian crash followed a Lion Air crash about four and a half months earlier in Indonesia.

The two crashes claimed 346 lives in total.

Boeing acknowledged that anti-stall software was implicated in both accidents.

The plane maker initially faced 155 civil cases alleging wrongful death and negligence, among other claims, but it has settled the vast majority of claims.

The few cases that have gone to trial, including Stumo's, are not intended to determine criminal liability but rather to determine the financial compensation due to the victims' relatives.

The disasters led to congressional hearings, with irate lawmakers demanding answers, and to leadership shake-ups at the aviation company.

The 737 MAX crashes marked the start of a long downturn at Boeing that resulted in annual losses each year between 2018 and 2024. However, the company has shown signs of improvement under CEO Kelly Ortberg, who has said more work must be done to win back credibility.

In November, a Chicago jury awarded $28.45 million to the widower of Shikha Garg of New Delhi, who died in the Ethiopian crash.

A second trial that got underway in January ended with an out-of-court settlement that was not made public.

Stumo's parents have emerged as vocal critics of Boeing and have advocated for tougher government aviation safety oversight.

Her mother, Nadia Milleron, a niece of consumer advocate and former presidential candidate Ralph Nader, is running for Congress as an independent. 

Stumo's father, Michael Stumo, works on economic policy for the Office of Management and Budget after previously leading the Coalition for a Prosperous America, an advocacy group representing US manufacturers and producers.

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In the western Spanish village of Almaraz, the uncertain future of the country's biggest nuclear power plant casts a pall over daily life.

The Almaraz plant, which contributes around seven percent of Spain's electricity production, is slated to close in 2028 as part of the leftist government's plan to shut all nuclear reactors by 2035.

But last year's nationwide blackout and recent fuel supply disruptions linked to the war in the Middle East have rekindled debate over the phase-out, mirroring a wider reassessment of nuclear power across Europe.

"It's sad that they want to shut it down," said Jose Antonio Morgado, a 59-year-old mechanic who has worked seasonal refuelling operations at the plant since 1989.

Each year, during the complex process of replacing nuclear fuel in the reactors, Morgado joins hundreds of temporary workers brought in to support the facility's roughly 800 permanent employees.

The work can pay up to 6,000 euros (about $7,000) a month -- a substantial income in one of Spain's poorest regions.

Those wages will disappear if Spain follows through on plans announced by Socialist Prime Minister Pedro Sanchez in 2019 to close the plant's first reactor in 2027, and the second in 2028, as part of a transition to renewable energy.

The three Spanish energy companies that own the site initially agreed to that timetable. But they now argue that keeping the reactors online until 2030 would strengthen energy security and help stabilise electricity prices. 

The government is expected to decide by the end of October.

- 'Desert' -

In the centre of Almaraz, a village of about 1,500 people surrounded by gently rolling countryside, businesses are increasingly worried.

"It would be a desert here" if the site closes, said David Martin, 32, who runs a restaurant in Almaraz that his parents opened in the 1980s at the same time as the plant.

During refuelling periods, Martin serves up to 260 meals a day. In quieter periods, that falls to around 80.

Without the nuclear plant, he estimates business would drop by nearly half, forcing him to lay off half of his 12 employees.

The economic stakes have mobilised local residents.

Last year, supporters of the plant formed a grassroots campaign group called "Si a Almaraz, Si al Futuro" (Yes to Almaraz, Yes to the Future) to pressure the government to reconsider the closure schedule.

The group's leader, Fernando Sanchez Castilla, a long-time plant employee who also serves as mayor of a nearby village, warns that shutting the facility would devastate dozens of surrounding communities.

"This is the region's main industry," he said, estimating the plant accounts for roughly five percent of the economic output of the western region of Extremadura and supports about 4,000 direct and indirect jobs.

- 'Be brave' -

The Almaraz plant, with its two large white domes rising above the countryside, could continue operating for several more years, said Patricia Rubio Oviedo, head of the site's technical operations office.

"Nuclear energy is essential in the energy mix," she said, arguing it provides stable electricity, unlike renewable sources such as wind and solar, whose output can fluctuate.

The European Commission has urged member states to avoid prematurely shutting existing nuclear facilities as part of efforts to reduce reliance on fossil fuels and strengthen energy independence.

Sanchez's government, however, remains firmly committed to its green energy agenda.

Drawing on Spain's sunny plains, windy hillsides and fast-flowing rivers, the country aims to increase the share of electricity generated by renewables to 81 percent by 2030, up from around 60 percent today.

"The government has to be brave. It cannot change its mind because its credibility is at stake," said Francisco del Pozo Campos, a spokesman for Greenpeace Spain.

Extending the plant's operation until 2030 would raise costs for consumers and lead to an estimated 26 billion euros loss in renewable energy investment, he added.

Spain's ecological transition ministry said it was preparing support measures for workers, including retraining programmes linked to a planned electric vehicle battery factory set to open nearby by a Chinese industrial group.

This is little comfort to local residents.

"If these families leave, what will be left for us?" asked Martin, as he scanned his nearly full restaurant.

rbj/ds/imm/giv/lga

Japan's Prime Minister Sanae Takaichi opened talks in Australia on Monday as the two countries seek to navigate a global oil supply squeeze.

Australia is a major supplier of coal and liquefied natural gas to Japan, which in turn is a source for about seven percent of Australia's diesel.

Takaichi held talks with Prime Minister Anthony Albanese before jointly addressing the media, with energy, critical minerals and defence expected to be on the agenda.

"Gas plays a role in all our discussions because it fundamentally underpins the shared energy security between our countries," Foreign Minister Penny Wong told journalists in Canberra before the talks.

"Our export partners have always put to us they want reliability," she said.

Roughly one-fifth of the world's oil normally flows through the Strait of Hormuz, where shipping has been throttled by Iran since it was attacked by the United States and Israel.

Japan's government has said it is also keen to ensure a stable supply of critical minerals, essential for semiconductors, electric vehicle batteries and weapons systems.

Australia has touted its abundant critical minerals as a way to loosen China's grip over global supplies of rare earths.

"We want to make sure that we're resilient in a time where we see a lot of economic and global disruption," Wong said.

"Critical minerals are necessary for our economy."

Australia and Japan have strengthened their defence ties, too, striking a Aus$10 billion (US$6 billion) deal last year for Japan to to provide Mogami-class stealth warships to the Australian navy.

In a foreign policy address delivered in Vietnam at the weekend, Takaichi promised to do more to ensure a "free and open Indo-Pacific" -- a strategy that has rankled China.

Japan aimed to build its resilience, she said, notably strengthening its supply chains for energy and critical minerals, and enhancing security cooperation.

First articulated a decade ago by Takaichi's mentor Shinzo Abe, the idea of a "free and open" Indo-Pacific has since been embraced by multiple US partners and allies seeking to curb China's influence in the region.

djw/abs

US video game retailer GameStop made a takeover bid on Sunday to buy eBay for about $55.5 billion in an attempt to turn the online marketplace into a competitor to e-commerce giant Amazon.

Gamestop is offering $125 per share in a combination of stock and cash, a 46 percent premium over the average stock price since it began acquiring shares in eBay on February 4, it said in a release.

"EBay should be worth — and will be worth — a lot more money," GameStop CEO Ryan Cohen said in an interview with the Wall Street Journal published Sunday.

"I’m thinking about turning eBay into something worth hundreds of billions of dollars," he said.

“It could be a legit competitor to Amazon."

GameStop confirmed it had received a letter of commitment from TD Bank, an American subsidiary of the Canadian TD Bank Group, for approximately $20 billion in financing through a debt issuance. 

In the press release, the company also said it had about $9.4 billion in cash reserves as of January 31.

It stated it could generate $2 billion in annualized cost reductions within 12 months of the transaction's completion. 

These cost reductions alone would boost eBay's comparable-store earnings per share from $4.26 to $7.79 in the first year, the release said.

But if eBay's management is not receptive to his offer, Cohen told the Journal he will not hesitate to approach shareholders.

EBay's next annual general meeting is scheduled for June, but the deadline for submitting resolutions has passed, the WSJ pointed out. 

At Friday's close, GameStop's market capitalization reached $11.89 billion, while eBay's stood at $46.21 billion.

elm/mjf/sla