Elon Musk may have just gotten some much-needed help in his legal fight against Twitter.

Driving the news: Twitter's former security chief, Peiter "Mudge" Zatko, last month filed a 200-page whistleblower report with Congress and various federal agencies, as first reported by CNN and the Washington Post.

• Zatko's claims relate to security vulnerabilities, user data retention and bot calculations.

Why it matters: Musk's primary legal argument is that Twitter's securities filings include material misstatements about bot prevalence, and that he wouldn't have agreed to buy the company for $44 billion had he known the truth.

• Zatko doesn't exactly verify what Musk believes about bot number manipulation, nor does he claim anything about financial materiality. Instead, he claims (per reports) that "Twitter executives don't have the resources to fully understand the true number of bots on the platform, and were not motivated to." But obviously it's better for Musk than it is for Twitter.
• More important might be the security vulnerability and user data claims, since they'd possibly prompt Musk to make a new argument that Twitter isn't abiding by a 2011 settlement with the DOJ and FTC, counter to its public representations (he'd still have to subsequently prove materiality).

What Twitter is saying, via an emailed statement: "Mr. Zatko was fired from his senior executive role at Twitter in January 2022 for ineffective leadership and poor performance. What we've seen so far is a false narrative about Twitter and our privacy and data security practices that is riddled with inconsistencies and inaccuracies and lacks important context. Mr. Zatko's allegations and opportunistic timing appear designed to capture attention and inflict harm on Twitter, its customers and its shareholders. Security and privacy have long been company-wide priorities at Twitter and will continue to be."

What Musk is saying: Nothing. Yet.

• But his lawyers have been busy, yesterday adding former Jack Dorsey to their long list of subpoena recipients. Dorsey, while still Twitter's CEO, hired Zatko as a direct report.

More on Zatko from Axios Codebook author Sam Sabin: "He's seminal figure in world of cybersecurity, cofounder of legendary 'Cult of the Dead Cow' hacker collective and early researcher into buffer overflow. Zatko has built a reputation in the last three decades as not being afraid to publicly disclose security flaws in high-profile companies' technology, is a former Pentagon official and has testified to Congress on cyber issues."

The bottom line: Musk remains a legal underdog as this dispute slogs toward an October trial in Delaware. But these new developments give him at least a glint of silver lining.

Volkswagen plans to buy stakes in Canadian mines and mine operators, per a company director, and has signed a related MOU with the Canadian government.

Why it's the BFD: This would help the German automaker ensure access to raw materials for battery production, including nickel, cobalt and lithium. It also would help VW sidestep new U.S. tariffs imposed by the Inflation Reduction Act.

Context: Fiat Chrysler parent company Stellantis in June bought into a lithium production group, while Chinese EV maker BYD reportedly was in talks to buy six African lithium mines. Tesla Motors in May floated the idea of buying a mining operation.

The bottom line: "As automakers and policymakers plan for the EV transition and boost investments, the ability to source supplies is becoming an intense geopolitical competition and a logistical knot." — Ben Geman, Axios

• Celonis, a Munich-based execution management company, raised $400m in new Series D funding (round total now $1.4b) at nearly a $13b valuation. Qatar Investment Authority led, and was joined by Activant Capital, Commonfund Capital and insiders Arena Holdings, T. Rowe Price, Franklin Templeton, Durable Capital Partners, TCV, 83North, Accel Partners and Sator Grove. The company also secured a new $600m credit facility. www.celonis.com

⚡ Fervo Energy, a Houston-based geothermal energy developer, raised $138m in Series C funding, as first reported by Axios Pro. DCVC led, and was joined by CPPIB, Liberty Energy, Macquarie, Grantham Foundation, Impact Science Ventures, Prelude Ventures and insiders Capricorn, Breakthrough Energy Ventures, Congruent Ventures, Helmerich & Payne, 3x5 Partners and Elemental Excelerator. https://axios.link/3dEz3kU

🚑 Digital Diagnostics, a Coralville, Iowa-based point-of-care disease diagnostics startup, raised $75m in Series B funding, as first reported by Axios Pro. KKR led, and was joined by Cedar Pine, Kinderhook, 8VC, Optum Ventures, OSF Ventures, Gundersen Lutheran, Edward-Elmhurst Health VC and the University of Iowa. https://axios.link/3T7yosD

• Ready Player Me, an Estonian developer of metaverse avatars, raised $56m in Series B funding led by Andreessen Horowitz. https://axios.link/3dMlNuE

• Inworld AI, an SF-based platform for developing virtual characters, raised $50m in Series A funding. Section 32 and Intel Capital co-led, and were joined by Founders Fund, Accelerator Investments, First Spark Ventures, Kleiner Perkins, BITKRAFT Ventures, CRV, M12, Micron Ventures, LG Technology Ventures, SK Telecom VC, NTT Docomo Ventures and The Venture Reality Fund. www.inworld.ai

• SmartMoving, a Dallas-based provider of business management software for the moving market, raised $41.5m from Mainsail Partners. www.smartmoving.com

• Oliver Space, an SF-based furniture resale startup, raised $36m in Series B funding. Union Grove Venture Partners led, and was joined by Mayfield, USVP, Expa Capital and LG Technologies. https://axios.link/3dPo20l

• Hazeltree, a provider of treasury and liquidity management software for the alt assets and investment management markets, raised $14m. Fintop Capital led, and was joined by Hamilton Lane. www.hazeltree.com

🌎 Worldfavor, a Swedish business sustainability platform, raised €10.2m in Series A funding. SEB Private Equity led, and was joined by Brightly Ventures and Spintop Ventures. www.worldfavor.com

• ModernLoop, an SF-based recruiting operations platform, raised $9m in Series A funding. Accel led, and was joined by Web Investment, Quiet Capital and the CEOs of Slack and Zoom. www.modernloop.io

• The Good Face Project, a chemistry informatics startup serving the beauty industry, raised $5.7m in seed funding led by VMG Catalyst, as first reported by Axios Pro. https://axios.link/3T8paMK

• Violet Labs, an SF-based software integration platform for hardware engineering, raised $4m in seed funding. Space Capital led, and was joined by MaC VC, Felicis Ventures and V1.vc. www.violetlabs.com

• Zywa, a Dubai-based neobank for Gen Z users, raised $3m in seed funding from Goodwater Capital, Dubai Future District Fund, Rebel Fund, Trampoline Venture Partners and Zemu VC. https://axios.link/3R23obI

🌎 Mantel, a Boston-based carbon capture startup, raised $2m. The Engine led, and was joined by New Climate Ventures. www.mantelcapture.com

• FinAccel, the parent of Indonesian credit app Kredivo, is seeking to raise about $100m at a $1.5b valuation, per Bloomberg. https://axios.link/3cjaTMq

• Arsenal Capital Partners acquired Innovative Products & Equipment, a Hudson, N.H.-based automation solutions provider that will be combined with existing portfolio company Eckhart. www.ipeinc.com

• Bain Capital is the frontrunner to buy the microscope unit of Olympus Corp. (Tokyo: 7733), per Reuters. The deal could be worth more than $2.2b, with Carlyle and KKR also submitting bids. https://axios.link/3KcBGqm

• Centerbridge Partners and Bridgeport agreed to buy Computer Services (OTC: CSVI), a Paducah, Ky.-based fintech and regtech company, for $1.6b, or $58 per share. https://axios.link/3T8nPp5

⚡ EnergyCAP, a Boalsburg, Pa.-based portfolio company of Resurgens Capital Partners, acquired Wattics, an Irish provider of energy management analytics and monitoring software. www.energycap.com

• Guidehouse, a McLean, Va.-based portfolio company of Veritas Capital, agreed to buy the public sector advisory practice of Grant Thornton. https://axios.link/3Kh2CoM

• Kinderhook Industries agreed to buy Tank and Pump, a Baytown, Texas-based provider of liquid and solid industrial waste containment solutions, for around $323m from WillScot Mobile Mini (Nasdaq: WSC). www.mobilemini.com

• OpenGate Capital entered into exclusive talks to buy Spanish aluminum parts maker Extol from MCH. www.extol.es

⚡ KKR led a structured investment in Glendale, Calif.-based renewable energy developer Arevia Power, with GCM Grosvenor also participating. www.areviapower.com

• Pacific Equity Partners bought a majority stake in Altus Traffic, an Australian traffic management firm. www.altustraffic.com.au

🚑 Zur Rose Group, a listed Swiss online pharmacy with around a $715m market cap, is exploring options that could include a sale or PIPE, per Bloomberg. Suitors include KKR and Hellman & Freidman. https://axios.link/3wntGNo

• Betagro, a Thai meat producer, will seek to raise around $554m in its IPO, per Bloomberg. https://axios.link/3TcrKRK

• China Tourism Group Duty Free, a traveler retailer, raised around US$2.1b in the year's largest Hong Kong IPO. https://axios.link/3R8iDjn

🚑 Akili Interactive, a Boston-based maker of video games for cognitive therapy, completed its merger with Social Capital Suvretta Holdings 1, and now trades on the Nasdaq (AKLI). Akili had raised around $280m from firms like Jazz Venture Partners, PureTech Health, Neuberger Berman, M Ventures, Amgen, Shionogi & Co., Ladera Ventures, Evidity Health Capital, Omidyar Technology Ventures, Fearless Ventures, Polaris Partners, Mirae Asset Wealth Management, New Leaf Venture, Temasek and Baillie Gifford. https://axios.link/3dS589a

• New Beginnings Acquisition II, a SPAC led by insurance and real estate development execs, withdrew registration for a $100m IPO. https://axios.link/3QI3S76

• CVC Capital Partners is in talks to sell its 20% stake in Indonesian snack food maker GarudaFood, per Reuters. https://axios.link/3Kfh3tx

⚽ Deutsche Fussball Liga, Germany's pro soccer league, hired Deutsche Bank and Nomura to lead a possible media rights sale, per Bloomberg. https://axios.link/3QLB2m9

• DigitalOcean (NYSE: DOCN) agreed to buy Cloudways, a Malta-based web hosting firm, for $350m in cash. https://axios.link/3dQbYM5

• Noon, an e-commerce company backed by Mohamed Alabbar and Saudi Arabia's Public Investment Fund, agreed to buy e-commerce venture Namshi from Dubai's Emaar Properties for $335.2m. https://axios.link/3pycKAj

⚡ Phoenix Motor (Nasdaq: PEV) acquired hydrogen fuel cell manufacturing assets from Folsom, Calif.-based Altergy Systems. https://axios.link/3AEkdUz

• Singapore Telecom is seeking a buyer for Trustwave, a Chicago-based cybersecurity unit that could fetch between $200m and $300m, per Bloomberg. Singtel paid $770m to buy Trustwave in 2015. https://axios.link/3PDbypT

• Peter Munzig joined TPG as a partner and head of business services for the firm's PE group. He previously led the Palo Alto office of General Atlantic. www.tpg.com

• Molly Welch joined the investment team of Radical Ventures. She most recently was with Playground Global, and previously worked in public policy at both Lyft and Google. www.radical.vc