The $134 Billion Betrayal: Inside Elon Musk’s Explosive Lawsuit With OpenAI

Elon Musk’s lawsuit against OpenAI and Microsoft has evolved into a high-stakes dispute over whether OpenAI stayed true to the mission it was founded on or quietly outgrew it while relying on that original promise.

Musk is seeking between $79 billion and $134 billion in damages, a figure derived from an expert valuation that treats his early funding and contributions as foundational to what OpenAI later became. While the number is enormous, the heart of the case is simpler: Musk argues he helped create and fund a nonprofit dedicated to AI for the public good, and that OpenAI later abandoned that commitment in a way that amounted to fraud.

According to Musk’s filings, his roughly $38 million in early funding was not just a donation but the financial backbone of OpenAI’s formative years, supplemented by recruiting help, strategic guidance, and credibility. His damages theory, prepared by financial economist C. Paul Wazzan, ties those early inputs to OpenAI’s current valuation of around $500 billion.

The claim is framed as disgorgement rather than repayment, with Musk arguing that the vast gains realized by OpenAI and Microsoft flowed from a nonprofit story that attracted support and trust, only to be discarded once the company reached scale, according to TechCrunch. 

Much of the public attention has centered on internal documents uncovered during discovery, particularly private notes from OpenAI co-founder Greg Brockman in 2017.

One line has become central to Musk’s argument: “I cannot believe that we committed to non-profit if three months later we’re doing b-corp then it was a lie.”

They openly discuss their conspiracy to commit fraud and steal the charity https://t.co/AI6oFll2yV

— Elon Musk (@elonmusk) January 16, 2026

Musk’s legal team treats this as evidence that OpenAI’s leadership understood the nonprofit commitment was being undermined and worried about how that would look to Musk, the organization’s biggest early backer. In Musk’s telling, OpenAI used the nonprofit identity to get off the ground, then pivoted toward for-profit structures and a deep partnership with Microsoft that fundamentally changed who the company served.

The scale of the damages also feeds Musk’s narrative. Given his immense personal wealth, OpenAI has argued that the lawsuit is about money. Musk counters, implicitly, that the size of the claim reflects the size of what was built on the original promise, not personal need. OpenAI, for its part, has characterized the case as part of an “ongoing pattern of harassment” and a tactic to slow a competitor while Musk builds his own AI company.

Sam Altman had indirect stake in OpenAI through YC fund

Board later learned he also secretly owned OpenAI Startup Fund

All while serving as “independent director” of the non-profit he ran as CEO pic.twitter.com/mzEkycUJqK

— NIK (@ns123abc) January 16, 2026

OpenAI’s response disputes both the facts and the framing. In a blog post responding to Musk’s filings, the company said, “In his latest court filing, Elon cherry-picks and publishes snippets from Greg Brockman’s private journal entries … which, when read with the surrounding context, tell a very different story from what Elon claims.” OpenAI argues that as early as 2017, it was openly discussed that developing advanced AI would require far more capital than a nonprofit could realistically raise, and that Musk was involved in those conversations.

According to OpenAI, Musk agreed that some form of for-profit structure would be necessary, as long as the nonprofit mission continued in some form, OpenAI said in a blog post responding to the lawsuit.

OpenAI also says the relationship unraveled over control, not deception. As the company puts it, “The truth is that we and Elon agreed in 2017 that a for-profit structure would be the next phase for OpenAI; negotiations ended when we refused to give him full control; we rejected his offer to merge OpenAI into Tesla; we tried to find another path to achieve the mission together; and then he quit OpenAI.” From this perspective, Musk left because he could not dictate OpenAI’s future, not because he was misled about it. OpenAI has gone further, calling the lawsuit Musk’s “fourth attempt” at similar claims and “part of a broader strategy of harassment.”

At trial, the fight will hinge on how a jury interprets those internal notes and conversations. Musk says they reveal leaders who knew the nonprofit promise could not survive and worried about admitting it. OpenAI says they show a team struggling honestly with how to fund an ambitious mission without surrendering it, while resisting Musk’s demand for dominance.

The outcome will shape not just who wins or loses billions, but how far Silicon Valley founders can stretch lofty missions before courts decide they crossed the line from evolution into deception.

Tyler Durden Sun, 01/18/2026 - 09:56

Ahead Of Mass Adoption Cycle: A Full Supply-Chain Breakdown Of Smart Glasses

Smart glasses took center stage at CES 2026 in Las Vegas last week, highlighting a new generation of AI-enabled eyewear integrated with real-time assistants.

In Meta's case, the push is clearly toward affordability and mass adoption, positioning these glasses as everyday consumer electronics rather than super expensive niche hardware for elites.

A lesson for smart glasses manufacturers is not to repeat Apple's misstep with the prohibitively priced Vision Pro, which crushed any chance of widespread adoption and eventually led to the exodus of developers.

Before affordable smart glasses hit the consumer market this year and next, Goldman analyst Jerry Shen published a clear, straightforward view of the AI and AR glasses supply chain, breaking it down by the companies that supply the critical components behind these devices.

We suspect demand will accelerate this year after a Bloomberg report earlier this week revealed that Meta has asked its smart-glasses manufacturing partner, EssilorLuxottica, to double production capacity for AI-powered smart glasses by year-end.

Tyler Durden Sun, 01/18/2026 - 09:55

Macy's Closing Two Fulfillment Centers, Laying Off 1,000 Workers

Macy’s will close its two fulfillment centers in Cheshire later this year, a move that will affect nearly 1,000 employees, according to a company notice released Tuesday and reported by WFSB. 

The facilities on Knotter Drive and West Johnson Avenue will shut down. A small group of maintenance workers will remain through spring 2027 to assist with the closure, but most employees are expected to lose their jobs this year.

Cheshire’s town manager said the community was notified and is working with state and regional agencies to help displaced workers. In a statement, the town said:

“The Town of Cheshire is deeply saddened by Macy’s decision to close its Logistics Fulfillment Center, resulting in the elimination of nearly 1,000 jobs. Macy’s has been a valued member of our community since 1986 and has consistently been one of Cheshire’s top ten employers, making this a significant loss for our town.

Our thoughts are with the employees and families impacted by this decision. The Town has been in contact with Macy’s management, the Northwest Regional Workforce Board, and the Connecticut Department of Labor to coordinate assistance for affected workers, including plans for a job fair and access to employment and transition resources.

Cheshire remains committed to supporting impacted employees and will continue working with our regional and state partners during this transition.”

The announcement follows the October decision to close Macy’s South Windsor distribution center in early 2026. Layoffs there include warehouse workers, equipment operators and supervisors, with job eliminations occurring between December 28, 2025, and January 10, 2026.

Macy’s said the changes are part of a broader effort to streamline operations. “Macy’s, Inc. is continuing to simplify and modernize our supply chain to better serve customers and operate more efficiently. As part of this work, we are concluding Backstage operations at our South Windsor, CT facility and centralizing them at our dedicated off-price facility in Columbus, OH. Other operations at South Windsor will continue. We’re committed to supporting our colleagues through this transition,” the company said.

Tyler Durden Sun, 01/18/2026 - 08:45

Macy's Closing Two Fulfillment Centers, Laying Off 1,000 Workers

Macy’s will close its two fulfillment centers in Cheshire later this year, a move that will affect nearly 1,000 employees, according to a company notice released Tuesday and reported by WFSB. 

The facilities on Knotter Drive and West Johnson Avenue will shut down. A small group of maintenance workers will remain through spring 2027 to assist with the closure, but most employees are expected to lose their jobs this year.

Cheshire’s town manager said the community was notified and is working with state and regional agencies to help displaced workers. In a statement, the town said:

“The Town of Cheshire is deeply saddened by Macy’s decision to close its Logistics Fulfillment Center, resulting in the elimination of nearly 1,000 jobs. Macy’s has been a valued member of our community since 1986 and has consistently been one of Cheshire’s top ten employers, making this a significant loss for our town.

Our thoughts are with the employees and families impacted by this decision. The Town has been in contact with Macy’s management, the Northwest Regional Workforce Board, and the Connecticut Department of Labor to coordinate assistance for affected workers, including plans for a job fair and access to employment and transition resources.

Cheshire remains committed to supporting impacted employees and will continue working with our regional and state partners during this transition.”

The announcement follows the October decision to close Macy’s South Windsor distribution center in early 2026. Layoffs there include warehouse workers, equipment operators and supervisors, with job eliminations occurring between December 28, 2025, and January 10, 2026.

Macy’s said the changes are part of a broader effort to streamline operations. “Macy’s, Inc. is continuing to simplify and modernize our supply chain to better serve customers and operate more efficiently. As part of this work, we are concluding Backstage operations at our South Windsor, CT facility and centralizing them at our dedicated off-price facility in Columbus, OH. Other operations at South Windsor will continue. We’re committed to supporting our colleagues through this transition,” the company said.

Tyler Durden Sun, 01/18/2026 - 08:45

The Nascent 'Islamic NATO' Might Soon Set Its Sights On Somaliland

Authored by Andrew Korybko,

The Somali Defense Minister’s request for Saudi Arabia to replicate its South Yemeni campaign in Somaliland coupled with reports about those two’s and Egypt’s impending alliance that would thus de facto include their Eritrean ally strongly suggest that something big might soon be afoot.

Reports have recently circulated about three separate but complementary military pacts in which Saudi Arabia might soon participate, which could form the core of an “Islamic NATO”. 

Bloomberg got the ball rolling by reporting that Turkiye wants to join September’s “Strategic Mutual Defense Agreement” between Pakistan and Saudi Arabia. Former Qatari Prime Minister Sheikh Hamad bin Jassim bin Jaber Al Thani, who’s still influential, then proposed including Egypt and presumably his own country too.

Bloomberg reported right after that Saudi Arabia is finalizing a military pact with Turkish-allied Somalia and Egypt for curtailing the UAE’s influence in Africa, the concept of which was analyzed here regarding how those three, Pakistan, and Turkiye could jointly advance this goal. On that note, it’s relevant to add that Pakistan clinched its own security pact with Somalia over the summer and then its top military official visited Egypt to discuss regional security, thus signaling Pakistan’s growing role in Africa.

The members of this emerging Saudi-centric coalition all oppose Somaliland’s 1991 redeclaration of independence, which was recently recognized by Israel. Somaliland also has close ties with the UAE and Ethiopia, and all three of its top partners are close with one another too. Ethiopia’s MoU with Somaliland on 1 January 2024 for recognizing its redeclaration of independence in exchange for access to the sea was exploited by its historic Egyptian rival to assemble a containment coalition with Somalia and Eritrea.

Although this nascent “Islamic NATO” might first aim to defeat the allegedly UAE-backed “Rapid Support Forces” in Sudan, they’re much more heavily armed and battle-hardened than the Somaliland Armed Forces, the latter of which might be perceived as so-called “low-hanging fruit”.

Moreover, South Yemen’s “Southern Transitional Council” was just steamrolled by Saudi air support and local Yemeni forces, which might have emboldened Riyadh and its partners to consider replicating that campaign in Somaliland.

It would take time to position Saudi (and possibly Egyptian, Pakistani, and/or Turkish) warplanes in the region (likely based in reoccupied South Yemen if this comes to pass) and for its emerging coalition to train the Somali National Army so this probably won’t happen anytime soon.

Additionally, UAE-aligned Puntland between Somaliland and rump Somalia must first return to the federal fold for enabling an invasion of Somaliland, unless Djibouti joins the coalition and allows its territory to be used for this.

Israel’s recent recognition of Somaliland’s 1991 redeclaration of independence and the possibility of it basing troops there as well as entering into their own mutual defense pact might deter them, however, as could Ethiopia doing the same (whether in coordination with Israel or independently thereof). On that note, it should be pointed out that Israeli, Emirati, and Ethiopian interests converge in Somaliland, which is where the nascent “Islamic NATO’s” do too but for the opposite reasons. This spikes the risk of conflict.

The Somali Defense Minister’s request for Saudi Arabia to replicate its South Yemeni campaign in Somaliland coupled with reports about those two’s and Egypt’s impending alliance that would thus de facto include their Eritrean ally strongly suggest that something big might soon be afoot. Time is therefore of the essence, and if Somaliland’s top partners don’t soon act in meaningful ways to deter the emerging Saudi-centric coalition, then it might not be able to defend itself from this existential threat.

Tyler Durden Sun, 01/18/2026 - 08:10

The Nascent 'Islamic NATO' Might Soon Set Its Sights On Somaliland

Authored by Andrew Korybko,

The Somali Defense Minister’s request for Saudi Arabia to replicate its South Yemeni campaign in Somaliland coupled with reports about those two’s and Egypt’s impending alliance that would thus de facto include their Eritrean ally strongly suggest that something big might soon be afoot.

Reports have recently circulated about three separate but complementary military pacts in which Saudi Arabia might soon participate, which could form the core of an “Islamic NATO”. 

Bloomberg got the ball rolling by reporting that Turkiye wants to join September’s “Strategic Mutual Defense Agreement” between Pakistan and Saudi Arabia. Former Qatari Prime Minister Sheikh Hamad bin Jassim bin Jaber Al Thani, who’s still influential, then proposed including Egypt and presumably his own country too.

Bloomberg reported right after that Saudi Arabia is finalizing a military pact with Turkish-allied Somalia and Egypt for curtailing the UAE’s influence in Africa, the concept of which was analyzed here regarding how those three, Pakistan, and Turkiye could jointly advance this goal. On that note, it’s relevant to add that Pakistan clinched its own security pact with Somalia over the summer and then its top military official visited Egypt to discuss regional security, thus signaling Pakistan’s growing role in Africa.

The members of this emerging Saudi-centric coalition all oppose Somaliland’s 1991 redeclaration of independence, which was recently recognized by Israel. Somaliland also has close ties with the UAE and Ethiopia, and all three of its top partners are close with one another too. Ethiopia’s MoU with Somaliland on 1 January 2024 for recognizing its redeclaration of independence in exchange for access to the sea was exploited by its historic Egyptian rival to assemble a containment coalition with Somalia and Eritrea.

Although this nascent “Islamic NATO” might first aim to defeat the allegedly UAE-backed “Rapid Support Forces” in Sudan, they’re much more heavily armed and battle-hardened than the Somaliland Armed Forces, the latter of which might be perceived as so-called “low-hanging fruit”.

Moreover, South Yemen’s “Southern Transitional Council” was just steamrolled by Saudi air support and local Yemeni forces, which might have emboldened Riyadh and its partners to consider replicating that campaign in Somaliland.

It would take time to position Saudi (and possibly Egyptian, Pakistani, and/or Turkish) warplanes in the region (likely based in reoccupied South Yemen if this comes to pass) and for its emerging coalition to train the Somali National Army so this probably won’t happen anytime soon.

Additionally, UAE-aligned Puntland between Somaliland and rump Somalia must first return to the federal fold for enabling an invasion of Somaliland, unless Djibouti joins the coalition and allows its territory to be used for this.

Israel’s recent recognition of Somaliland’s 1991 redeclaration of independence and the possibility of it basing troops there as well as entering into their own mutual defense pact might deter them, however, as could Ethiopia doing the same (whether in coordination with Israel or independently thereof). On that note, it should be pointed out that Israeli, Emirati, and Ethiopian interests converge in Somaliland, which is where the nascent “Islamic NATO’s” do too but for the opposite reasons. This spikes the risk of conflict.

The Somali Defense Minister’s request for Saudi Arabia to replicate its South Yemeni campaign in Somaliland coupled with reports about those two’s and Egypt’s impending alliance that would thus de facto include their Eritrean ally strongly suggest that something big might soon be afoot. Time is therefore of the essence, and if Somaliland’s top partners don’t soon act in meaningful ways to deter the emerging Saudi-centric coalition, then it might not be able to defend itself from this existential threat.

Tyler Durden Sun, 01/18/2026 - 08:10

Rape Ensues After Dutch Students Forced To Live With 125 Refugees In Woke 'Integration' Experiment

Dutch students forced to live side-by-side with 125 refugees in a woke government plan to aid the refugees' 'integration' were subjected to years of sexual assault and violence, according to an investigation. 

The experiment - held at Stek Oost located in the Watergraafsmeer district of Amsterdam - placed a total of 125 students and 125 refugees together, where they were encouraged to 'buddy up' so that the migrants would quickly assimilate into life in the Netherlands.

Instead, the refugees started raping. 

Students told the Dutch investigative documentary program Zembla that they faced frequent sexual assault, harassment, violence, stalking, and gang rape.

One woman said she regularly saw "fights in the hallway and then again in the shared living room," while a man told the investigators that a refugee threatened him with an eight-inch kitchen knife. 

In another case fro 2019, a female student said she was raped by a Syrian refugee after he invited her to his room to watch a film, and then refused to let her leave. 

"He wanted to learn Dutch, to get an education. I wanted to help him," said the woman, who identified only as Amanda. She described how he asked her several times to come to his room. After she eventually agreed, she became extremely uncomfortable being alone with him and asked to leave, only for him to trap her in his room and rape her.

The students - including Amanda - said that authorities ignored multiple reports. 

Six months after Amanda reported her rape, which authorities dropped for lack of evidence, another woman living in Stek Oost reported the same Syrian, telling the housing association that runs the complex that she was concerned for her safety and the safety of other women living there. 

According to the Zembla documentary, the local authority claimed it was impossible to evict the man. 

In March, 2022 he was formally arrested after having left the housing complex and was later convicted of raping Amanda and another resident, for which he received just three years in prison in 2024. 

"You see unacceptable behaviour, and people get scared," said Carolien de Heer, district chair of the East district of Amsterdam. "But legally, that's often not enough to remove someone from their home or impose mandatory care. You keep running into the same obstacles."

The firm that runs the complex, Stadgenoot, suspected that a 2023 gang rape took place. 

Since opening in 2018, Stek Oost has faced multiple similar allegations. In 2022, Dutch TV station AT5 reported that a refugee had been accused of six sex attacks between 2018 and 2021.

He was involved in a protracted legal battle with local authorities, who fought to force him to leave Stek Oost.

For its part, Stadgenoot wanted to shut the complex down as early as 2023, but the local authority refused.

It will, however, be shut down by 2028 after the contract to run the site expires. -Daily Mail

The staff at Stek Oost, meanwhile, are reportedly exhausted from their experience living and working there. 

"We were completely overwhelmed. We no longer wanted to be responsible for the safety of the complex," said Mariëlle Foppen, who works for Stadgenoot. "It was just too intense. As the manager of these colleagues, I would say: "If I can't guarantee their safety, I'm going to have a really bad night's sleep."

When will liberals stop feeding their daughters to monsters?

Tyler Durden Sun, 01/18/2026 - 07:35

Rape Ensues After Dutch Students Forced To Live With 125 Refugees In Woke 'Integration' Experiment

Dutch students forced to live side-by-side with 125 refugees in a woke government plan to aid the refugees' 'integration' were subjected to years of sexual assault and violence, according to an investigation. 

The experiment - held at Stek Oost located in the Watergraafsmeer district of Amsterdam - placed a total of 125 students and 125 refugees together, where they were encouraged to 'buddy up' so that the migrants would quickly assimilate into life in the Netherlands.

Instead, the refugees started raping. 

Students told the Dutch investigative documentary program Zembla that they faced frequent sexual assault, harassment, violence, stalking, and gang rape.

One woman said she regularly saw "fights in the hallway and then again in the shared living room," while a man told the investigators that a refugee threatened him with an eight-inch kitchen knife. 

In another case fro 2019, a female student said she was raped by a Syrian refugee after he invited her to his room to watch a film, and then refused to let her leave. 

"He wanted to learn Dutch, to get an education. I wanted to help him," said the woman, who identified only as Amanda. She described how he asked her several times to come to his room. After she eventually agreed, she became extremely uncomfortable being alone with him and asked to leave, only for him to trap her in his room and rape her.

The students - including Amanda - said that authorities ignored multiple reports. 

Six months after Amanda reported her rape, which authorities dropped for lack of evidence, another woman living in Stek Oost reported the same Syrian, telling the housing association that runs the complex that she was concerned for her safety and the safety of other women living there. 

According to the Zembla documentary, the local authority claimed it was impossible to evict the man. 

In March, 2022 he was formally arrested after having left the housing complex and was later convicted of raping Amanda and another resident, for which he received just three years in prison in 2024. 

"You see unacceptable behaviour, and people get scared," said Carolien de Heer, district chair of the East district of Amsterdam. "But legally, that's often not enough to remove someone from their home or impose mandatory care. You keep running into the same obstacles."

The firm that runs the complex, Stadgenoot, suspected that a 2023 gang rape took place. 

Since opening in 2018, Stek Oost has faced multiple similar allegations. In 2022, Dutch TV station AT5 reported that a refugee had been accused of six sex attacks between 2018 and 2021.

He was involved in a protracted legal battle with local authorities, who fought to force him to leave Stek Oost.

For its part, Stadgenoot wanted to shut the complex down as early as 2023, but the local authority refused.

It will, however, be shut down by 2028 after the contract to run the site expires. -Daily Mail

The staff at Stek Oost, meanwhile, are reportedly exhausted from their experience living and working there. 

"We were completely overwhelmed. We no longer wanted to be responsible for the safety of the complex," said Mariëlle Foppen, who works for Stadgenoot. "It was just too intense. As the manager of these colleagues, I would say: "If I can't guarantee their safety, I'm going to have a really bad night's sleep."

When will liberals stop feeding their daughters to monsters?

Tyler Durden Sun, 01/18/2026 - 07:35