Connect with us

Elon Musk

Elon Musk’s OpenAI lawsuit clears hurdle as trial looms

Elon Musk says OpenAI betrayed its nonprofit mission. Who should steer AI’s future—visionaries or shareholders?

Published

on

MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk’s lawsuit against OpenAI and CEO Sam Altman has cleared a major hurdle. Judge Yvonne Gonzalez Rogers of the Northern District of California recently rejected OpenAI’s bid to dismiss the case, setting the stage for a high-stakes trial over the AI giant’s for-profit conversion. The ruling intensifies the rivalry between two tech titans vying for dominance in artificial intelligence (AI).

Elon Musk is an OpenAI co-founder who provided significant early funding. In the lawsuit, Musk alleged that OpenAI’s shift from a non-profit to a for-profit entity violates contractual obligations and constitutes fraud. Last year, The lawsuit was filed against Altman, OpenAI, and its key investor, Microsoft, aiming to block the conversion to a for-profit company.

In March, a ruling denied Musk’s request for a preliminary injunction. However, Judge Rogers recently expedited the trial and set it for March 2026. On Thursday, she dismissed some claims but upheld key allegations, allowing the case to proceed.

“Musk adequately alleges that the defendants promised to maintain OpenAI’s non-profit status and structure in order to obtain his contributions and that they intended to do so in order to obtain the capital needed to create a for-profit venture to enrich themselves,” Gonzalez Rogers wrote.

She also rejected OpenAI’s attempt to dismiss Musk’s claim of an implied contract. “Although there is no express contract, Musk adequately pleads in the alternative that there is an implied-in-fact contract,” the California judge noted.

Advertisement
-->

“In the world of litigation, this is a big win,” said a person close to Musk, highlighting the retention of “big-ticket items” like the fraud allegation.

OpenAI, which can appeal the decision, countersued Musk last month. It claims Musk’s lawsuit is a “bad-faith” effort to hinder its progress and benefit his AI venture, xAI.

OpenAI’s push to become a for-profit public benefit corporation aims to streamline fundraising but has sparked a backlash from AI experts like Geoffrey Hinton. Former employees warn that OpenAI’s change of direction could prioritize profits over its mission to advance AI for humanity’s benefit.

Financial Times attempted to contact OpenAI and its biggest investor, Microsoft. OpenAI declined to comment, and Microsoft did not respond.

As Elon Musk and OpenAI head toward trial, the outcome could reshape the AI landscape, with implications for governance, innovation, and the balance between profit and public good.

Advertisement
-->

Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

Advertisement
Comments

Elon Musk

SpaceX Starship Version 3 booster crumples in early testing

Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.

Published

on

Credit: SpaceX/X

SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory. 

Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired. 

Booster test failure

SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.

Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.

Tight deadlines

SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.

Advertisement
-->

While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.

Continue Reading

Elon Musk

Elon Musk’s xAI gains first access to Saudi supercluster with 600k Nvidia GPUs

The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.

Published

on

A Saudi-backed developer is moving forward with one of the world’s largest AI data centers, and Elon Musk’s xAI will be its first customer. The project, unveiled at the U.S.–Saudi Investment Forum in Washington, D.C., is being built by Humain, a company supported by Saudi Arabia’s Public Investment Fund. 

The facility will deploy roughly 600,000 Nvidia GPUs, making it one of the world’s most notable superclusters.

xAI secures priority access

Nvidia CEO Jensen Huang stated that the planned data center marks a major leap not just for the region but for the global AI ecosystem as a whole. Huang joked about the sheer capacity of the build, emphasizing how unusual it is for a startup to receive infrastructure of such magnitude. The facility is designed to deliver 500 megawatts of Nvidia GPU power, placing it among the world’s largest AI-focused installations, as noted in a Benzinga report.

“We worked together to get this company started and off the ground and just got an incredible customer with Elon. Could you imagine a startup company, approximately $0 billion in revenues, now going to build a data center for Elon? 500 megawatts is gigantic. This company is off the charts right away,” Huang said.

Global Chipmakers Join Multi-Vendor Buildout To Enhance Compute Diversity

While Nvidia GPUs serve as the backbone of the first phase, Humain is preparing a diversified hardware stack. AMD will supply its Instinct MI450 accelerators, which could draw up to 1 gigawatt of power by 2030 as deployments ramp. Qualcomm will also contribute AI200 and AI250 data center processors, accounting for an additional 200 megawatts of compute capacity. Cisco will support the networking and infrastructure layer, helping knit the multi-chip architecture together.

Advertisement
-->

Apart from confirming that xAI will be the upcoming supercluster’s first customer, Musk also joked about the rapid scaling needed to train increasingly large AI models. He joked that a theoretical expansion one thousand times larger of the upcoming supercluster “would be 8 bazillion, trillion dollars,” highlighting the playful exaggeration he often brings to discussions around extreme compute demand.

Continue Reading

Elon Musk

Elon Musk debunks pay package and lip reader claims in double takedown

Musk’s quick debunks highlighted once more that X is an ideal platform for directly countering misinformation.

Published

on

Elon Musk recently took to X to debunk some misinformation about his 2025 CEO performance award, as well as some comments he made during Donald Trump’s banquet in honor of Saudi Prince Mohammed bin Salman. 

Musk’s quick debunks highlighted once more that X is an ideal platform for directly countering misinformation.

Musk’s pay package

Elon Musk’s 2025 CEO performance award was created as a path for him to gain a 25% stake in Tesla. It would also make him a trillionaire, provided that he manages to meet all of the performance award’s aggressive targets. This has not stopped critics from running with the apparent narrative that Musk will be getting the $1 trillion with utmost certainty, however. 

This included the More Perfect Union account on X, which noted that “Elon Musk is set to make more than every U.S. elementary school teacher combined, according to the Washington Post.”

Musk responded to the pro-union amount’s post, highlighting that he has not earned any of his $2025 performance award so far. Musk also noted that those who believe he will be getting $1 trillion should invest in TSLA stock, as his compensation is tied to the company’s performance and growth. Investors who hold their TSLA until Musk achieves his full pay package would likely get notable returns.

Advertisement
-->

Lip reader fail

Musk also debunked claims from the Daily Mail, which claimed that he made an “explosive” remark at Trump’s banquet for Saudi Prince Mohammed bin Salman. Citing observations from lip reader Nicola Hickling, the Mail claimed that Musk asked Pfizer CEO Albert Bourla, “What is your opinion, is he a terrorist?” The publication also posted a video of Musk allegedly making the risqué comment on X.

Musk proceeded to correct the publication, stating that the lip reader’s observations were fake. Instead of asking the Pfizer CEO if the Saudi Prince was a terrorist, Musk noted that he was asking the executive about cancer medicine. “False, I was asking about upcoming cancer drugs,” Musk wrote in a response on X. 

Musk’s comments resulted in numerous critical responses to the Mail’s video, with some X users joking that the lip reader who analyzed the clip should probably get a visual acuity test, or a better training course on lip reading at least.

Continue Reading