Getty Images, Stability AI face off in court

Getty Images is facing off against artificial intelligence company Stability AI in a London courtroom for the first major copyright trial of the generative AI industry.

Opening arguments before a judge at the British High Court began on Monday. The trial could last for three weeks followed by a written decision from the judge expected at a later date.

Stability, based in London, owns a widely used AI image-making tool that sparked enthusiasm for the instant creation of AI artwork and photorealistic images upon its release in August 2022. OpenAI introduced its surprise hit chatbot ChatGPT three months later.

Seattle-based Getty has argued that the development of the AI image maker, called Stable Diffusion, involved “brazen infringement” of Getty’s photography collection “on a staggering scale.”

Tech companies have long argued that “fair use” or “fair dealing” legal doctrines in the United States and United Kingdom allow them to train their AI systems on large troves of writings or images.

Sunnova Energy files for bankruptcy

Sunnova Energy International, one of the largest U.S. rooftop solar companies, filed for bankruptcy following struggles with mounting debt and diminishing sales prospects.

Sunnova filed for Chapter 11 protection in the Southern District of Texas, listing liabilities of $10 billion to $50 billion, according to a filing. The shares slumped by more than 30% in early trading in New York, before the stock was halted.

The Houston-based firm plans to sell “all or substantially all” of its assets and kick off an orderly wind-down of its estates, according to court filings. Sunnova’s entities that have filed for bankruptcy hold around $13.5 million in cash and the firm has around $8.9 billion in funded debt.

The U.S. residential solar industry has been reeling from rising tariffs on imported equipment and reduced state incentives in California, the nation’s biggest rooftop market. Republicans in the U.S. House have advanced a tax and spending bill that would end tax credits for companies that lease rooftop systems as well as homeowners who buy them. If those provisions become law, it would devastate the sector, analysts say.

Obesity startup shares rise on results

Metsera Inc.’s shares jumped after the obesity startup shared better-than-expected data on a weight-loss shot that would allow patients to go from weekly to monthly dosing.

In a small, early-stage trial, Metsera’s drug called MET-233i helped patients shed up to 8.4% of their weight in 36 days, the company said. The drug also stayed around in the body longer, meaning it has the potential to be taken less frequently than shots made by Novo Nordisk A/S and Eli Lilly Co.

Going from weekly dosing to monthly dosing “is a really big deal in this category,” Chief Executive Officer Whit Bernard said in an interview. “It helps with convenience, also with scalability given the number of people we need to reach with obesity medicines.”

Metsera’s shares rose as much as 11% in early trading. They were up almost 53% this year.

Compiled from AP and Bloomberg reports.