News-May-02-2026

May 2, 2026 — Daily digest of AI law developments.

Contents

1. Musk v Altman Trial Day 5: Judge Rebukes Toberoff
2. Amazon Sued Over AI Shopping Assistant Rufus
3. Building Trades Unions Join Forces With Tech Giants
4. Meta Stares Down New Mexico Bench Trial
5. Oscars: Academy Issues First AI Rules
6. Chinese Court Rules AI Cannot Replace Human Workers
7. OpenAI Employees Sound Alarm on ChatGPT Violence Reporting

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Musk v Altman Trial Day 5: Judge Rebukes Toberoff, New Exhibits Released

The federal judge overseeing Musk v Altman et al sharply criticized Elon Musk's lead attorney Marc Toberoff on May 1, 2026, admonishing him not to "throw young lawyers under the bus" after eliciting what the judge called "waste of time" trial testimony about Musk's $97.4 billion OpenAI acquisition bid. No courtroom session was held May 1, but new evidence exhibits — including 2015 founding emails, Tesla Model 3 receipts, and correspondence with Gabe Newell and Hideo Kojima — were publicly released. The bench trial with advisory jury is expected to resume Friday, May 2.

See full article: Musk v Altman Trial Day 5 — Judge Rebukes Toberoff

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Amazon Sued Over AI Shopping Assistant Rufus in Product-Safety Lawsuit

A proposed class action filed May 1, 2026 in Washington federal court alleges that children's sunscreens sold on Amazon's platform contain lead and other heavy metals, and that Amazon's Rufus AI shopping assistant fails to disclose product safety information. The case is one of the first to target an AI shopping assistant for product safety disclosure failures, raising novel questions about AI product liability and the duties of AI recommendation systems.

See full article: Amazon Sued Over AI Rufus Shopping Assistant

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Building Trades Unions Join Forces With Tech Giants on AI Data Centers

Building trades unions announced May 2, 2026 an unprecedented partnership with major technology companies to accelerate U.S. AI data center construction. The labor-tech alliance comes as AI infrastructure demand strains supply chains — Apple discontinued its entry-level Mac mini this week citing AI-driven memory shortages, while Meta increased its capital spending forecast. The partnership raises significant questions about workforce development, energy policy, and whether union labor standards will extend across the AI infrastructure buildout.

See full article: Unions Partner With Tech on AI Data Centers

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Meta Stares Down New Mexico Bench Trial on Shutdown Threat

Following New Mexico's $375 million jury verdict against Meta Platforms Inc. for teen mental health harms, the state's attorney general now faces a remedies phase bench trial in May 2026. Meta has warned it may withdraw Facebook and Instagram from New Mexico if the court orders sweeping child safety features, arguing the remedies would force "a different Instagram to exist in New Mexico." The trial will determine whether court-ordered product changes are an appropriate remedy for the jury's liability finding.

See case page: New Mexico v Meta Platforms Inc | News: Meta Threatens NM Shutdown

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Oscars: Academy Issues First AI Rules for Award Eligibility

The Academy of Motion Picture Arts and Sciences issued May 1, 2026 its first-ever rules addressing AI in Oscar eligibility. Under the new rules for the 99th Academy Awards (airing 2027), only roles "demonstrably performed by humans with their consent" will be eligible for acting awards, and screenplays eligible for writing awards must be "human-authored." The Academy also reserved the right to "request more information about the nature of the use and human authorship" if questions arise about generative AI use in a film.

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Chinese Court Rules AI Cannot Replace Human Workers

A Chinese court ruled on May 2, 2026 that companies cannot terminate employees solely to replace them with artificial intelligence systems, following a similar precedent set by another Chinese court in December 2025. The ruling reinforces existing labor protections in the face of rapid AI deployment across Chinese industries, where automation has become a central economic policy goal. The decision signals that courts are drawing a line against wholesale workforce displacement by AI — employers must demonstrate just cause beyond simply adopting new technology.

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OpenAI Employees Sound Alarm on ChatGPT Violence Reporting Failures

OpenAI employees have raised internal alarms over failures to alert law enforcement when users describe plans for real-world violence to ChatGPT, sources reported on May 2, 2026. The internal concerns center on whether OpenAI's policies and technical systems adequately identify and escalate imminent threats shared through its AI platform. Unlike social media platforms with established legal frameworks for reporting violent threats, AI chatbot platforms operate in a less-defined regulatory space, raising significant questions about AI platform liability and mandatory reporting obligations.