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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?

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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.

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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.

“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.

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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.

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.

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Elon Musk

Tesla reveals major info about the Semi as it heads toward ‘mass production’

Some information, like trim levels and their specs were not revealed by Tesla, but now that the Semi is headed toward mass production this year, the company finally revealed those specifics.

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Credit: Tesla

Tesla has revealed some major information about the all-electric Semi as it heads toward “mass production,” according to CEO Elon Musk.

The Semi has been working toward a wider production phase after several years of development, pilot programs, and the construction of a dedicated production facility that is specifically catered to the manufacturing of the vehicle.

However, some information, like trim levels and their specs were not revealed by Tesla, but now that the Semi is headed toward mass production this year, the company finally revealed those specifics.

Tesla Semi undergoes major redesign as dedicated factory preps for deliveries

Tesla plans to build a Standard Range and Long Range Trim level of the Semi, and while the range is noted in the company’s newly-released spec list, there is no indication of what battery size will be equipped by them. However, there is a notable weight difference between the two of roughly 3,000 lbs, and the Long Range configuration has a lightning-fast peak charging speed of 1.2 MW.

This information is not available for the Standard Range quite yet.

The spec list is as follows:

  • Standard Range:
    • 325 miles of range (at 82,000 lbs gross combination weight
    • Curb Weight: <20,000
    •  Energy Consumption: 1.7 kWh per mile
    • Powertrain: 3 independent motors on rear axles
    • Charging: Up to 60% of range in 30 minutes
    • Charge Type: MCS 3.2
    • Drive Power: Up to 800 kW
    • ePTO (Electric Power Take Off): Up to 25 kW
  • Long Range:
    • Range: 500 miles (at 82,000 lbs gross combination weight)
    • Curb Weight: 23,000 lbs
    • Energy Consumption: 1.7 kWh per mile
    • Powertrain: 3 independent motors on rear axles
    • Charging: Up to 60% of range in 30 minutes
    • Charge Type: MCS 3.2
    • Peak charging speed: 1.2MW (1,200kW)
    • Drive Power: Up to 800 kW
    • ePTO (Electric Power Take Off): Up to 25 kW

It is important to keep in mind that the Semi is currently spec’d for local runs, and Tesla has not yet released or developed a sleeper cabin that would be more suitable for longer trips, cross-country hauls, and overnight travel.

Tesla Semi sleeper section and large side storage teased in new video

Instead, the vehicle will be initially used for regional deliveries, as it has in the pilot programs for Pepsi Co. and Frito-Lay for the past several years.

It will enter mass production this year, Musk confirmed on X over the weekend.

Now that the company’s dedicated Semi production facility in Sparks, Nevada, is standing, the timeline seems much more realistic as the vehicle has had its mass manufacturing date adjusted on several occasions.

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Elon Musk pivots SpaceX plans to Moon base before Mars

The shift, Musk explained, is driven by launch cadence and the urgency of securing humanity’s long-term survival beyond Earth, among others.

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Credit: @SecWar/X

Elon Musk has clarified that SpaceX is prioritizing the Moon over Mars as the fastest path to establishing a self-growing off-world civilization. 

The shift, Musk explained, is driven by launch cadence and the urgency of securing humanity’s long-term survival beyond Earth, among others.

Why the Moon is now SpaceX’s priority

In a series of posts on X, Elon Musk stated that SpaceX is focusing on building a self-growing city on the Moon because it can be achieved significantly faster than a comparable settlement on Mars. As per Musk, a Moon city could possibly be completed in under 10 years, while a similar settlement on Mars would likely require more than 20.

“For those unaware, SpaceX has already shifted focus to building a self-growing city on the Moon, as we can potentially achieve that in less than 10 years, whereas Mars would take 20+ years. The mission of SpaceX remains the same: extend consciousness and life as we know it to the stars,” Musk wrote in a post on X.

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Musk highlighted that launch windows to Mars only open roughly every 26 months, with a six-month transit time, whereas missions to the Moon can launch approximately every 10 days and arrive in about two days. That difference, Musk stated, allows SpaceX to iterate far more rapidly on infrastructure, logistics, and survival systems.

“The critical path to a self-growing Moon city is faster,” Musk noted in a follow-up post.

Mars still matters, but runs in parallel

Despite the pivot to the Moon, Musk stressed that SpaceX has not abandoned Mars. Instead, Mars development is expected to begin in about five to seven years and proceed alongside the company’s lunar efforts.

Musk explained that SpaceX would continue launching directly from Earth to Mars when possible, rather than routing missions through the Moon, citing limited fuel availability on the lunar surface. The Moon’s role, he stated, is not as a staging point for Mars, but as the fastest achievable location for a self-sustaining off-world civilization.

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“The Moon would establish a foothold beyond Earth quickly, to protect life against risk of a natural or manmade disaster on Earth,” Musk wrote.

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SpaceX strengthens manufacturing base with Hexagon Purus aerospace deal

The deal adds composite pressure vessel expertise to SpaceX’s growing in-house supply chain.

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Credit: SpaceX

SpaceX has acquired an aerospace business from Hexagon Purus ASA in a deal worth up to $15 million. The deal adds composite pressure vessel expertise to SpaceX’s growing in-house supply chain.

As per Hexagon Purus ASA in a press release, SpaceX has agreed to purchase its wholly owned subsidiary, Hexagon Masterworks Inc. The subsidiary supplies high-pressure composite storage cylinders for aerospace and space launch applications, as well as hydrogen mobility applications. Masterworks’ hydrogen business is not part of the deal. 

The transaction covers the sale of 100% of Masterworks’ shares and values the business at approximately $15 million. The deal includes $12.5 million in cash payable at closing and up to $2.5 million in contingent earn-out payments, subject to customary conditions and adjustments.

Hexagon Purus stated that its aerospace unit has reached a stage where ownership by a company with a dedicated aerospace focus would best support its next phase of growth, a role SpaceX is expected to fill by integrating Masterworks into its long-term supply chain.

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The divestment is also part of Hexagon Purus’ broader portfolio review. The company stated that it does not expect hydrogen mobility in North America to represent a meaningful growth opportunity in the near to medium term, and that the transaction will strengthen its financial position and extend its liquidity runway.

“I am pleased that we have found a new home for Masterworks with an owner that views our composite cylinder expertise as world-class and intends to integrate the business into its supply chain to support its long-term growth,” Morten Holum, CEO of Hexagon Purus, stated.

“I want to sincerely thank the Masterworks team for their dedication and hard work in developing the business to this point. While it is never easy to part with a business that has performed well, this transaction strengthens Hexagon Purus’ financial position and allows us to focus on our core strategic priorities.”

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