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Musk suffers setback in US suit against OpenAI, Microsoft over for-profit transition

By Mike Swift ( August 13, 2025, 22:21 GMT | Insight) -- A federal judge in California has dismissed Elon Musk’s racketeering claims against OpenAI and Microsoft, blocking those amended allegations about their handling of OpenAI’s for-profit transition. The ruling preserves OpenAI’s counterclaims that Musk violated California’s Unfair Competition Law and engaged in tortious interference by publicly sharing a $97 billion letter of intent to purchase OpenAI's nonprofit assets, which the company described as a "sham" tactic to inflate its valuation.Elon Musk’s combative and wide-ranging litigation against OpenAI over its move to for-profit status received a blow last night when a federal judge scuttled Musk’s racketeering claims but allowed OpenAI’s counterclaims against Musk to move forward.  ...

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