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Musk Loses OpenAI Lawsuit, Clearing Path to IPO

Wall Street Journal US Business •
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A nine-person jury delivered its verdict in under two hours, rejecting Elon Musk's claims against OpenAI. Musk had argued he was manipulated into believing his tens of millions in donations would fund a nonprofit, only to watch the organization morph into a for-profit venture. OpenAI countered that the timing of the lawsuit was suspicious, suggesting Musk's real motive was bolstering his rival AI company, xAI.

Musk's attorney vowed to appeal, while Musk himself called the ruling a terrible precedent on X, accusing the judge of using the jury as a fig leaf. For OpenAI, the verdict removes a major legal obstacle and clears the way for what many expect to be a highly anticipated initial public offering.

The swift conclusion bolsters investor confidence in OpenAI's corporate structure. With the Musk dispute behind it, the company can focus on commercializing its AI products. OpenAI's path to going public just got considerably less complicated.