A federal jury in Oakland, California has cleared Sam Altman and OpenAI of Elon Musk's claims of unjust enrichment and breach of contract. The unanimous verdict came after less than two hours of deliberation.
Key Takeaways
A federal jury in Oakland found Sam Altman and OpenAI not liable for Elon Musk's claims of unjust enrichment and breach of contract, clearing the way for OpenAI's IPO. Nvidia continues to report record-breaking results, easing fears about a slowdown in AI growth but raising concerns over its heavy reliance on major tech companies.
The ruling allows OpenAI to proceed with its plans for a public offering at an estimated $1 trillion valuation. Musk had demanded Altman's removal as CEO and the transfer of about $150 billion from the for-profit arm to the nonprofit arm, which would have jeopardized OpenAI's IPO.
The trial did not address broader questions about AI safety, governance, and labor. Critics argue that the case was decided on a technicality related to the statute of limitations. Musk's lawyers have indicated they will appeal the decision, claiming they exposed Altman's deceptions during the trial.
Nvidia continues its record-breaking streak with another series of expectation-defying results, easing fears for now about a slowdown in AI growth. The company reported revenue reaching an all-time high of $81.6 billion in the three months to April, far outpacing Wall Street estimates and its own guidance.
Profits at Nvidia topped more than $58 billion, over three times as much as a year ago. As a key player in AI infrastructure, Nvidia's performance is seen as an important gauge of the health of AI growth. The company predicts revenue from its Blackwell and Rubin chips could reach $1 trillion by 2027.
Despite these positive results, there are concerns about Nvidia's heavy reliance on a few major tech companies like Google-owner Alphabet, Microsoft, Amazon, and Meta. Some observers worry about circular investment within the industry rather than genuine consumer demand.
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