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Court Denies Musk’s Bid to Dismiss OpenAI Harassment Claims

A federal judge has rejected Elon Musk’s attempt to dismiss OpenAI’s claims that he conducted a “years-long harassment campaign” against the AI startup he co-founded in 2015. U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk must face allegations that he sought to harm OpenAI through press statements, social media posts, legal claims, and a “sham bid” for the company’s assets.

Musk originally sued OpenAI and CEO Sam Altman over the company’s shift to a for-profit model, claiming it strayed from its mission of developing AI for humanity’s benefit. OpenAI countersued in April, alleging fraudulent business practices under California law. The judge found the countersuit legally sufficient to proceed. A jury trial is scheduled for spring 2026.

AI Startup Clay Valued at $3.1 Billion in Latest Fundraise Amid AI Investment Boom

AI startup Clay’s valuation more than doubled in roughly three months, reaching $3.1 billion in its latest funding round as investor appetite for artificial intelligence companies remains strong.

Clay offers an AI-driven platform designed to automate sales and marketing operations, with notable clients including Google and Reddit. The company raised $100 million in this round, led by CapitalG, Alphabet’s (GOOGL.O) independent growth fund. Around three months ago, Clay’s valuation stood at $1.5 billion, based on an employee tender offer.

The surge in Clay’s valuation coincides with a broader surge in dealmaking, with investment activity in AI hitting its highest level since the pandemic-era peak in 2021. Big Tech’s recent earnings reports highlighted AI as a key growth driver across internet search, digital advertising, and cloud services.

Clay plans to use the new funding to accelerate product development. Co-founder Kareem Amin told Reuters that upcoming tools will enable clients to analyze data such as sales tickets and video calls with potential customers. The company is also developing a “signals” product aimed at providing sales representatives with insights on the optimal timing to contact potential leads.

Existing investors including Sequoia, Meritech Capital, and First Round Capital also participated in the round.

Columbia Alumni’s AI Startup “August” Secures $7M to Serve Midsize Law Firms

New York-based AI startup August, founded in 2023 by Columbia University graduates Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, has raised $7 million in seed funding to expand its legal technology solutions for midsize law firms. The round was led by NEA and Pear VC, with additional backing from notable angel investors, including Gokul Rajaram, Ramp’s VP of product Geoff Charles, OpenAI’s head of engineering David Azose, and Bain Capital Ventures partner Kevin Zhang.

August’s AI platform automates document-heavy and repetitive legal tasks, such as processing case law, contracts, and filings. By streamlining paperwork, the technology allows lawyers to focus on higher-value activities like client engagement and strategic planning—an especially valuable advantage for midsize firms that lack the resources of larger competitors.

Currently operating with a 12-person team, August plans to grow its workforce to 25–30 employees by the end of 2025. CEO Rutvik Rau emphasized that AI should act as a “strategic partner” to lawyers, boosting productivity while enhancing client service.

August enters a competitive legal AI market dominated by players like Harvey, an OpenAI-backed startup serving top-tier firms and large professional services organizations. Despite this, August is positioning itself as the go-to solution for mid-market legal practices seeking affordable and efficient AI-driven tools.