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Musk says he missed OpenAI for-profit details

Elon Musk testified in court that he did not read the “fine print” of a 2017 term sheet discussing OpenAI’s potential shift toward a for-profit structure, during ongoing litigation over the company’s evolution.

Under cross-examination, Musk said he focused only on headline-level information and believed assurances from Sam Altman and others that OpenAI would remain fundamentally nonprofit. OpenAI’s legal team presented emails suggesting Musk had earlier exposure to internal discussions around commercialization.

Musk’s lawsuit seeks governance changes, a return to nonprofit principles and $150 billion in damages, arguing OpenAI abandoned its founding mission. OpenAI counters that restructuring was necessary to secure capital for computing power and talent.

The trial could significantly influence OpenAI’s governance, public perception and future IPO trajectory.

Sam Altman’s sister loses legal team in abuse case

The two law firms representing Annie Altman in her sexual abuse lawsuit against OpenAI CEO Sam Altman have filed to withdraw from the case, citing a breakdown in the attorney-client relationship.

Court filings say the firms consider continued representation impracticable due to confidential and professional concerns. Annie Altman is now seeking new legal counsel, pending court approval.

Sam Altman has denied allegations that he sexually abused his sister during their childhood and has filed a defamation countersuit, arguing the claims are false and financially motivated.

The case is separate from ongoing corporate litigation involving Elon Musk and OpenAI. As this remains an active legal matter with disputed allegations, no court ruling has established liability.

OpenAI misses growth targets before IPO push

OpenAI has reportedly fallen short of internal revenue and user growth goals as it prepares for a potential IPO, according to the Wall Street Journal.

The report says ChatGPT user growth slowed late last year, missing a target of 1 billion weekly active users, while revenue also underperformed projections amid stronger competition from Anthropic in coding and enterprise AI markets.

CFO Sarah Friar reportedly raised concerns internally about whether slower growth could challenge OpenAI’s ability to sustain massive future data-center and computing commitments. Subscriber churn has also reportedly increased.

CEO Sam Altman and Friar publicly rejected suggestions of internal misalignment, stating the company remains focused on securing compute capacity and expanding aggressively.