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Hey ZipLawyer! Here's how this week's news impact law firms.

✂️ Why Big Tech cut ties with OpenAI
💧 Thames Water drama is back
🚪 Private Equity managers are leaving the UK
🚫 Ban on North Sea Oil Drilling

The Headlines

🌏 Boeing's Legal Drama: Boeing will plead guilty to misleading regulators about its 737 Max before two fatal crashes. The move scraps a 2021 settlement, as Boeing faces criticism for non-compliance and numerous safety incidents this year.

🔋 Carbon Capture Deal: Occidental will sell 500,000 tonnes of carbon-dioxide removal credits to Microsoft over six years. This deal helps Microsoft offset emissions from its energy-intensive AI and data centres by storing carbon underground.

💊 BYD's Expansion: Chinese carmaker BYD will build an EV factory in Turkey, producing 150,000 vehicles annually by late 2026. This move avoids EU tariffs on imported Chinese EVs, leveraging Turkey's EU customs union membership.

⚖️ Archegos Collapse: Bill Hwang, founder of Archegos Capital Management, was found guilty of inflating stock values. Archegos' 2021 collapse caused significant losses for banks like Credit Suisse.

🎬 Paramount and Skydance: Paramount Global and Skydance Media agreed to merge after a lengthy process. Skydance, behind hits like "Top Gun: Maverick," will take over the Redstone family company that controls Paramount, ending a months-long saga.

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What’s going on?

Microsoft and Apple are stepping away from board roles at OpenAI amid rising regulatory scrutiny.

What does it mean?

Microsoft, after investing $13 billion in OpenAI, is saying goodbye to its observer role on the board. Apple, slated to join as an observer, will now refrain from taking up the position. This move responds to regulatory concerns in the US and Europe about Big Tech’s influence over AI. Despite these changes, Microsoft's deep integration of OpenAI services into its platforms continues, which means regulators aren't likely to ease up on their scrutiny. Other cloud providers like AWS or Google might emerge as preferred partners for OpenAI as the regulatory landscape tightens. In short, this is a strategic move by Microsoft and Apple to chill out regulators while maintaining their substantial influence over AI advancements.

How does this impact Law Firms?