3 – Breaking News & Latest Updates 2026
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Openai Archive

Archives for May 2026

Elizabeth Lopatto
Elizabeth Lopatto
Tesla AI is evidence of Musk’s failure, Eddy says.

Musk doesn’t want to admit that trying to build an AGI lab in Tesla was a failure — whether that was by acquiring OpenAI or trying to poach all its talent, maybe even putting Altman on the board. Eddy suggests this case is revenge on OpenAI for succeeding.

Elizabeth Lopatto
Elizabeth Lopatto
“The documents tell the truth here,” Eddy says.

That’s kind of where I’ve landed! The idea of the “adjunct” for-profit (Eddy says this is a moving target, and though Musk used it twice in testimony, when Savitt used it, Molo objected and accused him of making up a term) doesn’t show up in any of the brainstorming structure documents. We do see parallel for-profits, and the idea of a conversion to a for-profit and shutting down the nonprofit. Jared Birchall also testified that he filed to register a company for this.

Elizabeth Lopatto
Elizabeth Lopatto
Eddy suggests that Musk’s donated Teslas were, effectively, bribes.

They went to Ilya Sutskever and Greg Brockman, among others, right before he proposed that he get 62.5 percent of a for-profit company. We are now looking at tax forms and letters — neither of which show any specific purpose. Jared Birchall also testified that there was no specific purpose for the donations. Shivon Zilis doesn’t remember it. Sam Teller doesn’t remember it. This is like watching the Warriors play a team of 6-year-olds.

Elizabeth Lopatto
Elizabeth Lopatto
Eddy is, wisely, leaning hard on chronology in explaining their defense.

Chronology and documents. Musk’s performance on the stand does give credence to the suggestion from Eddy that Musk “took his marbles and went home” when he couldn’t get his way.

Elizabeth Lopatto
Elizabeth Lopatto
Sarah Eddy is giving the closing argument for OpenAI.

She opens with a banger. Musk has said he made donations with strings attached. “Even the mother of his children can’t back his story.”

Elizabeth Lopatto
Elizabeth Lopatto
Molo is done presenting Musk’s closing argument.

I do wonder how this would have played in the hands of a better lawyer. Molo’s book report did not overwhelm me with confidence in his case, particularly because a lot of his point-blank assertions were profoundly arguable.

Elizabeth Lopatto
Elizabeth Lopatto
For all of the very irritating testimony about “the blip,” Molo hasn’t convincingly connected it to his case.

In all that chaos, Microsoft did suggest board members. But OpenAI didn’t take those suggestions — except one, well after the crisis. I don’t know man, I don’t really understand how this goes to the Microsoft case. It might be a suggestion the nonprofit board doesn’t really control the for-profit — but Helen Toner’s and Tasha McCauley kind of came off as amateurs in their approach, not least because there was no investigation before the firing.

Elizabeth Lopatto
Elizabeth Lopatto
Molo is now attempting to make a case against Microsoft.

So far he’s got “they’re a for-profit corporation,” “they know Musk was a co-founder,” and “they read the announcement OpenAI existed.” This is easily the thinnest part of a very thin case — on the OpenAI part, there’s at least Brockman’s diaries.

Elizabeth Lopatto
Elizabeth Lopatto
During our break, the jurors were out of the room, and the lawyers were beefing again.

During his speech, Molo told the jury he wasn’t asking for money. That is in fact not true — otherwise I wouldn’t be sitting through phase 2 of the trial next week. “You slipped it in nicely,” YGR says. But Molo needs to retract that statement.

Elizabeth Lopatto
Elizabeth Lopatto
We are back on the millions and billions of OpenAI equity that employees have interest in.

I am just going to break from telling you what Molo is saying to say what my personal impression was from sitting here all these weeks: Everyone was improvising. There was no plan. This is especially true of “the blip.” I do wonder if there’s a way to incorporate that into Musk’s case. Anyway, Molo just referenced an exhibit he didn’t have handy, asked for an exhibit number, and then said he’d get it for the jury late.r I have to say, I know Musk’s team is smaller than OpenAI’s, but this might have been a moment to call in another lawyer to handle the close. Someone who could have prepped better, perhaps. Marc Toberoff, who’s theoretically a key figure on this team, hasn’t stood up to do a single thing. Maybe this could have been his moment, I don’t know!

Jay Peters
Jay Peters
OpenAI’s deal with Apple isn’t working out as planned.

OpenAI thought it would get more subscribers from how ChatGPT was baked into Apple’s operating systems and that there would be deeper integration, according to Bloomberg’s Mark Gurman.

The company is considering taking legal action against Apple, which could include “sending the iPhone maker a notice alleging breach of contract without necessarily filing a full lawsuit at the outset,” Gurman reports.

Elizabeth Lopatto
Elizabeth Lopatto
This is kind of choppy.

Molo keeps interrupting himself to restate things or say things like “remember the residuals?” It’s really important in closing to tell a straightforward, easy-to-follow story here, because this is where you put together all the testimony into your case. I know Molo’s got an uphill battle on the facts here, but this could be smoother. He did also just call Greg Brockman “Greg Altman.”

Elizabeth Lopatto
Elizabeth Lopatto
Molo is now suggesting that the “crown jewels” of OpenAI are its IP.

And that the “important constraints” of the capped-profit structure in the first two Microsoft investments did not breach the charitable trust. However, the 2023 investment”changed the world. Altman, Brockman, and OpenAI breached the charitable trust created by Elon” by enriching investors and insiders at the expense of the nonprofit and not open-sourcing the technology.

Elizabeth Lopatto
Elizabeth Lopatto
Musk’s early money meant “a great, great deal,” Molo says. Inarguable!

That money grew OpenAI “so the defendants could do these things that they’re doing now, that they shouldn’t do.” Sam Altman, seated in the courtroom, looks confused by this.

Elizabeth Lopatto
Elizabeth Lopatto
Molo calls Shivon Zilis, mother of Musk’s children, “the most even-keeled, even-tempered witness at the trial.”

I disagree! I think that’s Ilya Sutskever, frankly. Those two did the least amount of beefing on the cross-exam, it’s true. But I am against the Sutskever erasure here — not least because he impressed a number of us in the peanut gallery. I’m sorry I keep bickering with Molo in these updates but a lot of what he’s saying is profoundly arguable. Sir, I was here the whole time!