Federal court rejects Elon Musk’s claims against OpenAI, saying he filed his lawsuit too late

0

 


A federal jury didn't need long. Less than two hours of deliberation after a three-week trial was enough: Elon Musk waited too long to sue OpenAI.

Judge Yvonne Gonzalez Rogers adopted the advisory verdict on Monday and dismissed Musk's claims. The world's richest man—and OpenAI co-founder—vowed to appeal, calling the ruling a "calendar technicality" that ignored the case's substance.

> "There is no question... Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!" Musk posted on X.

 The Stakes

- **Musk's claim**: OpenAI betrayed its 2015 nonprofit mission to safely develop AI for humanity. He invested $38 million early on, then accused CEO Sam Altman and co-founder Greg Brockman of pivoting to profit behind his back.

- **OpenAI's defense**: No promise was made to remain a nonprofit forever. The lawsuit, they argued, was a strategic strike by a rival—Musk launched competitor xAI in 2023.

- **The prize**: OpenAI is now valued at ~$852 billion and eyeing a historic IPO. Brockman testified his personal stake is worth roughly $30 billion.

 Inside the Clash

The trial laid bare a Silicon Valley fallout:

- Altman testified he feared Musk sought unilateral control over artificial general intelligence (AGI) development. "Part of the reason we started OpenAI is we didn't think AGI could be under the control of any one person," he said.

- Musk fired back: "It's not OK to steal a charity."

- Witnesses recounted OpenAI's 2023 board turmoil—Altman's brief ouster and swift reinstatement—with former board members citing concerns about his truthfulness.

- Microsoft CEO Satya Nadella also testified; Microsoft, an OpenAI investor and co-defendant, welcomed Monday's decision.

What's Next

Musk sought damages for OpenAI's charitable arm and Altman's removal from the board. He got neither—but the fight isn't over.

His lawyer, Steven Molo, framed the loss as a tactical setback, not a strategic defeat: "Major losses for Americans, but who won the war?"

OpenAI's William Savitt called the suit an "after-the-fact contrivance" aimed at sabotaging a competitor and rewriting history.

For now, the court's message is procedural: file on time, or lose your shot. The deeper battle over AI's soul—and who controls it—rages on.

NextEra isn't buying Dominion Energy. It's buying a Data Center, Alley.

The reported $400 billion combination of NextEra Energy and Dominion would be the largest utility transaction in history.

But the deal logic has nothing to do with traditional utility consolidation.

Northern Virginia hosts the densest concentration of data centers on the planet.

Every major hyperscaler — Amazon, Google, Microsoft, Meta — operates critical AI infrastructure inside Dominion's service territory.

AI data centers require continuous, uninterruptible power at a scale the existing grid was never designed to deliver.

Electricity demand from data centers is projected to grow 300% over the next decade.

The acquirer who locks up generation and transmission capacity in the right geography doesn't just own a utility.

They own the energy supply chain underneath the AI era.

This deal follows a pattern that is accelerating:

Step 1 — Demand lock-in.

Hyperscalers sign long-term power purchase agreements that guarantee revenue floors for decades.

Step 2 — Supply scarcity.

New generation capacity takes 5-10 years to permit and build, creating structural supply constraints.

Step 3 — Private capital mandate.

Energy assets repriced as AI infrastructure plays attract private capital at valuations legacy utilities never commanded.

NextEra already operates the largest renewable energy portfolio in the world
and is adding 15 gigawatts of new generation capacity this decade.

Combined with Dominion's nuclear fleet and Virginia grid access, the merged entity would control both sides of the AI power equation — generation and delivery.

The AI infrastructure race was a chip story in 2024.

A capex story in 2025.

In 2026, it's an energy story.

The company that controls the grid controls the era.

The disco ball is an almost universal symbol for a fun time – but not for Spotify. The streaming giant is changing its logo back to the familiar green circle after taking serious heat for turning it into a glittering green disco ball. The "beyond awful" update, meant to celebrate Spotify's 20th birthday, was only temporary, the company now says. It's not the only major brand to face unexpected backlash for a makeover: Cracker Barrel's business actually took a hit when the chain updated its logo last year.

Trump Launches $1.8B Fund to Compensate Victims of Political Prosecution

The Trump administration announced a $1.776 billion “Anti-Weaponization Fund” on Monday as part of a settlement resolving President Trump’s lawsuit against the IRS over the illegal leak of his tax returns. The fund creates a process for Americans who claim they were targeted by politicized investigations—particularly under the Biden DOJ—to apply for compensation and formal redress.

Acting Attorney General Todd Blanche described it as a “lawful process for victims of lawfare” to be heard, stating the goal is to correct past abuses and prevent future ones: “The machinery of government should never be weaponized against any American.”

 Key Details

- The fund stems directly from Trump’s suit over the IRS leaks, handled by contractor Charles Littlejohn, who was later imprisoned.

- A five-member commission will review claims. Officials say there are **no partisan requirements**—anyone believing they were unfairly targeted can apply.

- Trump also agreed to drop related administrative claims tied to the Mar-a-Lago probe and the Russia investigation.

- The move follows Trump’s Day One pardons/commutations for January 6 defendants and other efforts to reverse what his allies call selective prosecution.

Pushback

Democrats and watchdog groups immediately condemned the fund as a “slush fund” for Trump allies. Nearly 100 House Democrats filed a brief opposing the settlement. Rep. Jamie Raskin called it a “racket” for “insurrectionists, rioters, and white supremacists.” CREW’s Donald Sherman labeled it “one of the single most corrupt acts in American history.”

Critics highlighted the optics: Trump’s DOJ has pursued cases against his political opponents while now offering payouts to his supporters. Judge Kathleen Williams dismissed the underlying tax leak case but questioned the transparency of the settlement.

 Context and Precedent

Trump has long argued the Biden-era DOJ was weaponized against him—citing two impeachments, the Russia probe, classified documents charges, and election-related cases that were later dropped or slowed. His current Justice Department points to precedents like the Obama administration’s payouts to Native American farmers alleging discrimination, though that fund wasn’t aimed at reversing high-profile political investigations.

The White House noted decisions will rest with the commission. Trump said the fund aims to reimburse people “horribly treated,” adding it depends on the review of individual claims.

This is the latest flashpoint in the ongoing battle over whether federal law enforcement has been politicized—claims both parties now level at different moments in time.

What if you could clear airport security before you even arrive at the airport? The Transportation Security Administration is testing a new way to do just that. Starting next month, some Delta and JetBlue passengers will be able to drop off their bags and go through security at a remote screening location in Framingham, Mass., about 25 miles away from Boston Logan International Airport. Once they're through the process, travelers will be bused to the airport and dropped off past the security checkpoints.

Sony plans to raise the prices of one-month and three-month PlayStation Plus subscriptions for new customers in the U.S. and other regions, starting May 20. In the U.S., the one-month tier will increase by $1 to $10.99, and the three-month tier will increase by $3 to $27.99. The news follows similar price hikes for PlayStation 5 consoles, and comes as memory prices jump dramatically due to AI infrastructure demand. Separately, Sony is facing a class-action lawsuit alleging it retained a "substantial windfall" tied to unlawful tariffs.

 The Japanese economy grew at an annualized rate of 2.1% in the January-March quarter, the government said Tuesday, showing its resilience despite rising energy prices because of the war in Iran.

Japan’s real gross domestic product, or GDP, the sum value of a nation’s goods and services, grew at a seasonally adjusted 0.5% from the previous quarter. It was the second straight quarter of growth. The annualized number shows what the growth, or contraction, would have been if the quarterly rate continued for a year.

Increased spending by consumers and businesses helped contribute to the stronger-than-expected results. Higher government spending also supported the expansion.

Private consumption rose 0.3% quarter-on-quarter, or at an annualized rate of 1.1%, according to the preliminary data from the Cabinet Office. Public demand rose 0.3% from the previous quarter.

Japan’s economy contracted in July-September last year, then eked out moderate growth in October-December of 0.2% on-quarter.

A big challenge for resource-poor Japan is soaring oil prices. Brent crude, trading at levels of about $70 a barrel before the war, has recently cost nearly $110 a barrel.

The Strait of Hormuz, a vital transport route for oil exports from the Persian Gulf to Asia, has been effectively blocked due to the war, pushing prices higher. Japan has released some oil reserves and is working on alternative routes.

For the latest quarter, Japan’s overall imports grew 0.5%, while exports increased 1.7%.

A shortage of an oil-related product called naphtha, used in everything from bathtubs to plastics, has been grabbing headlines in Japan.

Prime Minister Sanae Takaichi has promised to work on ensuring ample supplies to keep growth going. That would likely require considerable government spending.

Analysts at the Japan Center for Economic Research said in a recent report that Japan will likely manage moderate levels of growth, helped by increased spending on artificial intelligence technology and defense.

“The breadth of demand showed a high-quality growth picture, which may add evidence that inflation is broadening,” said Amova Asset Management Chief Global Strategist Naomi Fink.

Higher costs for energy are helping to push prices higher, and the stronger growth in the first quarter of the year may tilt Japan’s central bank toward raising interest rates as it shifts away from years of keeping rates near or below zero.

Japan’s inflation rate is lower than that in the U.S., but wages for workers still lag behind increasing prices.

Tokyo’s benchmark Nikkei 225, which has been trading at record highs lately, declined 0.6% in Tuesday morning trading.

Otis is experiencing a significant demand for elevator mechanics, having increased its workforce by 12.5% since 2020. CEO Judy Marks says "demand is high," while the risk of workers being replaced by automation is low: "This is truly a craft skill." Elevator and escalator installers and repairers earn an average salary of $109,820, and the role is projected to grow by 5% through 2034. Marks says many mechanics also remain in the profession for life: "We don't have this kind of 'silver cliff' that's coming."

Lululemon took the fight with activist founder Chip Wilson to shareholders Monday, asserting in a letter that he had "outdated" and "misguided" perspectives about running the company, reported CNBC. Wilson has been leading a proxy battle to remake the board of directors at next month's annual meeting, amid a downturn in the athleticwear brand's business. The company counters that incoming CEO Heidi O'Neill and the current board are best positioned to spark a turnaround and that acquiescing to Wilson's demands risks "derailing our progress. "

Meta is starting its latest round of layoffs this week, letting go of 8,000 employees starting Wednesday. The tech giant has also abandoned plans to fill 6,000 open positions. There’s an "emerging sense of dread" internally as more cuts are expected, CNBC reports, citing anonymous sources. Employees have also been frustrated by a new mouse-tracking tool that logs their activity to train AI, which some have called "dystopian." According to an internal memo viewed by Bloomberg, Meta is reassigning 7,000 workers to AI roles before the cuts.

A master's degree is no longer the career boost it once was, The Wall Street Journal reports. Unemployment among workers under 35 with a master's degree is near a 20-year high, while Ph.D., law, and medical degree holders in the same age group are faring better than ever, according to new data from the Burning Glass Institute. Experts say it may be because a proliferation of master's programs — up 69% between 2005 and 2021 — has flooded the market, diminishing the degree's meaning to employers.

Amazon has unveiled a new feature from its AI-powered voice assistant, Alexa+: podcasts. Generated by user requests, the feature creates tailored audio content on demand and is available for free to Amazon Prime users or for $19.99 a month for non-subscribers. Amazon says its partnerships with news outlets, including the Associated Press and Reuters, will help ensure the accuracy of its AI-generated podcasts. "This is just the beginning of a whole new way to learn, stay informed, and consume content that fits into your life," Amazon says.

Post a Comment

Previous Post Next Post