Elon Musk’s SpaceX acquired his artificial intelligence (“AI”) startup xAI on February 2, 2026. (Samantha Subin, CNBC). The merger deal was structured as a share exchange, which converted one share of xAI into 0.1433 shares of SpaceX stock. Id. xAI started out as a segment of X, after Musk acquired X. (Kali Hays & Lily Jamali, BBC). xAI’s main product is Grok, the generative AI chatbot primarily used on X. Id. Musk explained the main reason for the merger was to “better build orbital data centers,” while also aimed at providing more capital to xAI and its cash-intensive Grok chatbot. (Samantha Subin, CNBC). This post will discuss the strategic business motivations underlying the merger, the corporate governance issues it raises, and the implications for future mergers across sectors.
Read MoreSince the rise of artificial intelligence (“AI”), legislatures have grappled with its rapid advancement and potential risks it poses to consumers. In May 2024, Colorado Governor Jared Polis signed Senate Bill 24-205, the Colorado Artificial Intelligence Act (“CAIA”), making it “the first United States law to comprehensively regulate the development and use of high-risk AI systems.” (Tatiana Rice, Keir Lamont & Jordan Francis, FPF Legislation Policy Brief - The Colorado AI Act). CAIA is set to go into effect on June 30, 2026. (Hunton Andrews Kurth LLP). This post examines the impetus driving CAIA, the rebuttable presumption of reasonable care for developers and deployers adhering to recognized AI risk-management frameworks like NIST or ISO/IEC 42001, available exemptions, and the act’s broader implications on the tech industry and state-level legislation.
Read MoreA California jury recently delivered a landmark verdict in K.G.M. v. Meta Platforms, Inc., finding Meta Platforms, Inc. (“Meta”) and Alphabet Inc.’s Google LLC (“Google”) negligent for designing products that harmed a young user’s mental health. (Cecilia Kang, Ryan Mac, & Eli Tan, N.Y. Times). The case is especially significant because it was selected as one of three scheduled bellwether trials, a representative test case used in large-scale litigation to help courts and parties evaluate how juries may respond to the core legal and factual issues that appear across thousands of similar lawsuits. (Bobby Allyn, NPR; Simmons & Fletcher). K.G.M. was chosen from a pool of more than 1,600 plaintiffs, including over 350 families and 250 school districts, all alleging harm from social media platforms. (Quynh Hoang, The Conversation). As a representative case, the verdict may shape settlement strategy, litigation posture, and the trajectory of similar lawsuits nationwide. This post examines the arguments raised at trial that led to the verdict, considers the issues Meta and Google will likely raise on appeal, and explores how the verdict could reshape liability for social media companies going forward.
Read MoreLuxury counterfeit production has soared due to rising prices in the authentic luxury market. Now, luxury brands are fighting back and using the legal system to combat counterfeiters. An average 33% price increase occurred in the luxury market between 2019 and 2023, as consumer demand rose in the wake of the pandemic. (Reuters, Business of Fashion). The classic Chanel “quilted flap bag more than tripled [in price] between 2015 and 2024,” while the popular Louis Vuitton “Keepall travel bag more than doubled.” Id. Consequently, consumers struggled to keep up with rapid price increases, and the counterfeit industry worked to solidify its place in the market by mimicking luxury products. Id.; (Malique Morris, Business of Fashion). Luxury brands, in an effort to protect themselves and their customers, are targeting online retailers and luxury resale stores. Id. This post explores recent and ongoing trademark lawsuits directed at a variety of counterfeit and “dupe” markets, with luxury brands defending their reputations from purposeful copying and disguised counterfeit reselling.
Read MoreGoogle has become so popular that it is now a verb, holding a place in colloquial conversation no other search engine has. In 2017, Google controlled about eighty percent of the search engine market, and by 2020, it controlled ninety percent. (Forbes Agency Council, Forbes); (Daisuke Wakabayashi, The New York Times). Bing is second, controlling only six percent of the market. United States v. Google, LLC, 747 F. Supp. 3d 1, 38 (D.D.C. 2024). This colossal market control invoked questions of monopolistic behavior and antitrust law violations, ultimately leading to a lawsuit filed in 2020 by the Department of Justice (“DOJ”) and several states, including Colorado. (DOJ, Office of Public Affairs). In analyzing whether Google violated Section 2 of the Sherman Act by monopolizing key digital advertising technologies, a district court concluded in the affirmative on August 5, 2024, in a 188-page opinion, stating that Google was monopolistic and violated the Sherman Act. (DOJ, Office of Public Affairs); Google, 747 F. Supp. 3d at 32. While the court held that Google violated the Act, it failed to impose harsh remedies, such as isolating Google’s search engine from its advertising business. (Reuters); (Edward Longe, The James Madison Institute). The DOJ is currently appealing the court’s decision. (Reuters). This post explores how Google’s competitive strategy led to the case prior to appeal and further, focuses on how the emergence of new technology impacts Google’s future.
Read MoreOne of the most closely watched battles in the entertainment industry began on December 5, 2025, when Netflix announced a $72 billion deal to acquire Warner Bros. Discovery’s (“WBD”) film and television studios, including HBO, HBO Max, and the Warner Bros. content libraries. (Michelle Chapman, AP News). The announcement immediately drew regulatory scrutiny, with the chairman of the Senate Antitrust Subcommittee raising concerns about possible market dominance and the integrity of the merger review process. (Joe Flint, Wall Street Journal). The swift and widespread pushback highlights the increasingly restrictive regulatory environment surrounding major media mergers, setting the stage for aggressive strategic countermoves by competitors. Just three days later, on December 8th, Paramount responded by launching an all-cash competing bid for WBD and vowing to initiate a proxy fight, threatening to elect its own slate of directors and leverage shareholder influence to derail Netflix’s proposed acquisition. (Fintool; Una Hajdari, Euro News). This post examines the corporate governance and fiduciary implications of the proposed deal, as well as its broader consequences for shareholder value and media industry consolidation.
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