I’m not a lawyer, but it looks like Elon Musk’s legal team has hit a snag.
Today, Jared Birchall, Musk’s finance chief, took the stand. Most of his testimony was routine, focused on reading documents. However, something noteworthy happened at the end. During questioning, a note was passed to Birchall, asking if he knew about a bid by xAI for OpenAI’s assets.
Birchall mentioned that he believed the bid was influenced by Sam Altman, who represented both sides—OpenAI’s non-profit and for-profit entities. Birchall stated, “Sam Altman was on both sides of the table.” He explained that their intention was to ensure a fair valuation of OpenAI’s nonprofit side during its transition to a for-profit model.
To add some context, a coalition led by Musk made a $97.4 billion bid for OpenAI’s nonprofit branch in February 2025. This bid coincided with OpenAI’s restructuring process to prepare for an initial public offering. Birchall claimed that they felt Altman might undervalue the nonprofit’s assets during this transition.
However, things became complicated. The opposing counsel objected, and the court struck Birchall’s remarks from the record. During cross-examination, OpenAI’s lawyer, Bradley Wilson, questioned Birchall’s source of knowledge about the bid. Birchall struggled to separate what he knew from what he had heard from lawyers, raising concerns about the validity of his statements.
Birchall then faced questions from Judge Yvonne Gonzalez Rogers herself, which visibly unsettled him. He indicated he couldn’t recall discussing the bid directly with Musk or other key figures in Musk’s circle. The judge seemed skeptical, asking, “How can you have conversations about raising $97.5 billion but not remember specific details?”
While Birchall asserted that most discussions happened with other members of the bidding consortium, the judge pushed him on the credibility of his testimony. She even suggested he looked less convincing during this line of questioning.
Interestingly, Birchall revealed that the $97.4 billion figure hadn’t originated from Musk but rather from their legal team. This introduces a potential legal gray area: Was this business transaction intertwined with litigation? Birchall insisted it was strictly a business deal, revealing the complexities of navigating business and legal waters.
The judge struck down previous blocks on discussing the xAI bid, which could lead to deeper scrutiny of Musk’s intentions and actions. This might not bode well for Musk, especially if it unearths any antitrust issues.
As the courtroom drama continues, social media buzzes with speculation about Musk and Altman’s next moves. Some users are raising questions on platforms like Twitter, debating whether this will lead to more legal troubles for Musk or stronger market positions for xAI.
In summary, this courtroom saga offers a fascinating glimpse into the intersection of tech, business, and law, especially as it relates to valuation and negotiation strategies. As this legal battle unfolds, both the tech industry and Musk’s followers will be watching closely.
For an in-depth analysis of these issues, you can refer to NPR and other trusted news sources.
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AI,Elon Musk,OpenAI,Tech
