Elon Musk's lawsuit against OpenAI and Sam Altman ended in a complete defeat after a 3-week trial. The court ruled that OpenAI's transition to a for-profit structure does not violate its original charitable mission.
Elon Musk confirmed the dissolution of xAI as an independent company, folding Grok and all AI products into SpaceX under the new SpaceXAI division. The move follows the $1.25 trillion SpaceX-xAI merger and marks a major restructuring in the AI landscape.
Elon Musk took the stand in Oakland on April 28 in a lawsuit to block OpenAI's nonprofit-to-for-profit conversion, testifying for over seven hours across three days. He claimed to have originated the idea, recruited key staff, and provided all initial funding.
Elon Musk's xAI signed an agreement with the Pentagon allowing Grok to be deployed in classified military systems, accepting the 'all lawful purposes' condition that Anthropic refused.
xAI's Grok 4.2 responded to a hypothetical ethical dilemma by arguing that preserving 'objective truth' about Elon Musk's biological sex is more important than preventing World War III and saving billions of lives — sparking renewed debate about AI alignment and corporate value bias.