The Trump administration is trying to help Elon Musk's xAI Corp. beat a Clean Air Act lawsuit filed by the National Association for the Advancement of Colored People (NAACP). The US said the NAACP lawsuit threatens an xAI data center that powers Grok systems needed by the military.

The NAACP sued xAI and subsidiary MZX Tech in April, alleging that they violated the Clean Air Act by operating 27 gas turbines without an air permit in Southaven, Mississippi. The number of unpermitted turbines rose to 57 by mid-May and there were plans to install two more, the NAACP said in a June 12 filing.

"Defendants’ Colossus Gas Plant powers xAI’s nearby Colossus 2 data center, which in turn powers the chatbot 'Grok,'" the lawsuit said. The gas turbines have fueled both health concerns and noise complaints.

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SpaceX will acquire AI coding tool Cursor for $60 billion in an all-stock transaction, the companies announced today. The deal is expected to close in the third quarter.

It comes just two days after SpaceX's unprecedented IPO and a few months after the merger of SpaceX and xAI, which brought a significant restructuring of xAI.

Cursor was one of the first tools to fully bake features that leverage large language models into an IDE. It's a branch of Visual Studio Code with heavy AI integration. However, incumbent platforms and bigger AI companies have since rolled out comparable features.

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Critics hope to keep Elon Musk from escaping a strict data-privacy order imposed by the Federal Trade Commission (FTC) shortly before he took over Twitter.

The FTC order placed restrictions on X's data use for 20 years, while requiring regular independent audits and granting the agency authority to request documents as needed to ensure compliance.

The FTC’s action came after Twitter voluntarily disclosed that between May 2013 and September 2019, a coding error accidentally allowed phone numbers and email addresses that users shared for two-factor authentication purposes to be used for targeted advertising aimed at those same users. In a settlement that came just months before Musk's 2022 takeover, Twitter agreed to pay $150 million and to allow the FTC to monitor the platform's data-handling practices until 2042 in order to protect user privacy.

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