AI Evening Wrap — May 12, 2026

📖 2 min read

The US business day brought receipts, lawsuits, and one very awkward Microsoft moment. Here’s the wrap on what actually moved the needle this evening.

Sutskever’s $7B Reveal Steals the Musk-Altman Trial

OpenAI co-founder Ilya Sutskever testified Monday that his stake in OpenAI is worth roughly $7 billion — up from $5B last November — making him one of the largest individual shareholders in the company he helped boot Sam Altman from in 2023. He also said he spent a year quietly gathering evidence of alleged Altman dishonesty before the failed coup.

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The trial is technically Musk vs. OpenAI, but it’s quickly becoming the most expensive AI deposition in history. Two new OpenAI billionaires revealed in two days, and we’re only on day three. Grab popcorn.

Microsoft Got Caught Faking Copilot Co-Authorship

Developers noticed something weird in VS Code: Microsoft had silently enabled Copilot “co-authoring” on commits — including code humans wrote entirely themselves. After a loud backlash on GitHub and X, Microsoft reversed course and killed the auto-attribution.

It’s a small UX bug with massive trust implications. If your AI-assisted IDE is overstating AI involvement to pad usage stats, every “X% of code written by AI” claim from a vendor deserves a side-eye. Picking the right coding assistant just got harder — AiToolCrush.com keeps a running honest-comparison of Copilot, Cursor, and Claude Code.

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SoftBank Trims Its $10B OpenAI-Backed Loan

Bloomberg reports SoftBank has downsized plans for a $10 billion margin loan backed by its OpenAI stake after some creditors got cold feet. Translation: even with OpenAI’s valuation rocketing past $500B, lenders aren’t thrilled about underwriting that much risk on a single private equity position.

This is the first real “wait, maybe trees don’t grow to the sky” signal we’ve seen in the AI capital cycle this year. Worth watching.

Hot Take from r/ChatGPT: “Memory Is Quietly Killing My Workflow”

A trending r/ChatGPT thread today blew up around the new persistent memory feature — but not in a good way. Power users are complaining that ChatGPT now drags context from old, unrelated chats into new prompts, polluting outputs and wrecking deterministic workflows. Top comment: “I want a coworker, not a stalker with a notebook.”

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OpenAI hasn’t responded yet, but the fix is buried: Settings → Personalization → Memory → toggle off. If you’re using ChatGPT for anything reproducible (code, research, betting models), turn it off now. Speaking of betting models — BetOnAI.net has a guide on which AI tools handle clean, memory-free analysis best for sports prediction.

That’s the wrap. Sleep well — tomorrow’s already loading.

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