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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’s Sam Altman Urges U.S. to Expand Chips Act Tax Credit for AI Development

OpenAI CEO Sam Altman on Friday called for the United States to broaden eligibility under the Chips Act’s Advanced Manufacturing Investment Credit (AMIC), arguing that expanding the incentive to include AI data centers, server production, and grid infrastructure is essential for maintaining U.S. leadership in artificial intelligence.

Altman’s comments follow a letter sent by OpenAI’s Chief Global Affairs Officer Chris Lehane on October 27 to White House Office of Science and Technology Policy Director Michael Kratsios, formally requesting that the AMIC cover AI infrastructure beyond semiconductor fabrication.

“The U.S. needs re-industrialization across the entire stack — fabs, turbines, transformers, steel, and much more,” Altman said on X (formerly Twitter). “That will help everyone in our industry, and other industries, including us.”

Altman emphasized that the request was “very different from loan guarantees to OpenAI,” clarifying that the company is not seeking direct federal funding for its operations. Earlier this week, he confirmed that OpenAI had discussed potential federal loan guarantees for chip factory construction, but not for data centers.

OpenAI has pledged to invest $1.4 trillion over the next eight years to expand its computational infrastructure, reflecting the skyrocketing demand for AI models and chips that power applications like ChatGPT.

As AI becomes a cornerstone of global technology competition, the Biden administration faces growing pressure to balance industrial policy and fiscal discipline. White House AI and crypto czar David Sacks recently reiterated that there will be no federal bailout for AI companies, underscoring Washington’s cautious stance despite mounting private-sector investment.