Headlines say Elon Musk suffered a loss in his lawsuit against OpenAI this week. But buried in the judge's ruling is a bombshell that could derail OpenAI's entire restructuring plan — and potentially force it to return $6.6 billion to investors. Here's what everyone missed 🧵
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"This is a big win for Musk," says legal expert Michael Dorff.
https://garrisonlovely.substack.com/p/what-the-headlines-miss-about-the
Unlike Musk, the Attorneys General of California and Delaware unquestionably have standing to intervene — a fact the judge repeatedly emphasized. The ruling essentially invites them to take action, something they were already exploring.
Changing a nonprofit's purpose is only permitted when the original purpose is defunct — which isn't the case here. "It's hard to imagine a good argument for why they should be allowed to change their purpose," Dorff says.
(This could potentially be to the tune of billions!)