Musk Alleges OpenAI Diverted $38M Donations in Trial Week 1, Fuels AI Stock Jitters

WSJ's Week 1 recap of the Musk-OpenAI trial spotlights Musk's allegation that OpenAI diverted $38 million in nonprofit donations to its for-profit conversion, amplifying governance concerns as the company eyes an IPO despite missing revenue and user targets. This builds on Musk's May 1 testimony in Oakland, CA, where he detailed seven hours of evidence on recruiting talent like Ilya Sutskever, providing initial funding, securing Microsoft/Nvidia ties, slamming a $10 billion Microsoft deal as a 'bait and switch,' and warning of AI extinction risks amid judicial limits on testimony. Investor unease grows over big tech's multibillion-dollar AI data center and chip spending, pressuring AI-exposed stocks.