Blockbuster AI Trial Ends With Elon Musk Loss Against OpenAI

Summary

WSJ What’s News – PM Edition

Episode Title: Blockbuster AI Trial Ends With Elon Musk Loss Against OpenAI
Date: May 18, 2026
Host: Alex Osola

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Episode Overview

This episode dives into the dramatic conclusion of Elon Musk's lawsuit against OpenAI, examines the implications of a massive energy merger driven by AI data-center demand, and explores a controversial Trump administration settlement fund. The show also touches on shifting priorities in federal prosecutions, Fed appointments, and the changing value of graduate degrees for young workers.

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1. Blockbuster AI Trial: Elon Musk vs. OpenAI

Main Theme: The tech world watched as Elon Musk’s high-profile suit against OpenAI ended in defeat, closing a chapter on questions about the company's transformation and the fortunes of its key figures.

Key Discussion Points

• Trial Outcome and Context

  • The jury in Oakland, CA, took less than two hours to dismiss Musk’s lawsuit against OpenAI on a statute of limitations technicality ([01:07]-[01:56]).
  • Musk alleged that OpenAI "stole a charity when it converted into a for-profit company" ([01:12]).
  • Musk's attorney indicated a possible appeal.

• Expert Insight: Bradley Olson, WSJ Deputy Tech Bureau Chief

  • Predicted outcome: "We did a story before the trial basically saying that Musk was an underdog in the case...this was the outcome that was expected." ([02:03])
  • The trial revealed new details about Sam Altman’s and Greg Brockman’s personal investments:
    • “Greg Brockman...holds a stake in OpenAI that's worth about $30 billion.” ([02:36])
    • Extensive financial disclosures gave the public a glimpse into the fortunes at the heart of the AI boom.
  • Olson reflects: “I think we will look back on it as something that litigated the foundational moments of the AI boom.” ([02:53])

• Potential Stakes for OpenAI

  • Remedies Musk sought: unwinding the for-profit conversion, possibly ousting Sam Altman, and transferring up to $180 billion to the nonprofit, which would have severely impacted OpenAI’s future ([03:15]).

• Aftermath

  • The verdict removes a major hurdle for a potential OpenAI IPO ([03:37]).

Memorable Quotes

• Bradley Olson:

  “A lot of kind of disclosure and detail about their personal finances came out, and I think we’ll look back on it as something that litigated the foundational moments of the AI boom.” ([02:46])

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2. AI-Driven Power Merger: NextEra to Buy Dominion Energy

Main Theme: The scramble to power AI’s data centers is fueling historic utility mergers and new regulatory concerns.

Key Discussion Points

• Deal Details ([03:37]-[06:05])

  • NextEra Energy, the largest U.S. utility, will acquire Dominion Energy for $67 billion, creating a powerhouse across four states and reaching 10 million customers.

• The AI Connection

  • Massive increase in electricity demand from AI data centers, especially in “Data Center Alley” in Northern Virginia.

• Customer and Political Impacts

  • Rising electricity costs have become a flashpoint issue; even governors (e.g., New Jersey’s at [05:13]) have declared emergency actions on utility costs.
  • Regulators will require proof of customer savings; the companies are offering over $2 billion in credits to mitigate concerns ([05:29]).

Notable Moments

• Jennifer Hiller, WSJ Power Industry Reporter:

  “They [NextEra and Dominion] serve basically the world's biggest data center market in Data Center Alley in Northern Virginia.” ([04:46])

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3. Trump Administration’s $1.776 Billion ‘Anti-Weaponization’ Fund

Main Theme: A controversial new fund aims to compensate those claiming harm from federal investigations, sparking debate over its legality and intent.

Key Discussion Points

• Fund Origins and Operation ([07:09]-[11:03])

  • Announced after President Trump dropped lawsuits against the IRS and federal investigations into himself.
  • The fund, set at $1.776 billion (symbolizing 1776), is to settle claims of victimization by the Justice Department.

• Legal and Ethical Controversies

  • The administration claims precedent from Obama-era (but much smaller) settlement funds; legal experts question the move as unprecedented and question its transparency ([08:13]).
  • Critics suggest the fund could serve as a “political slush fund” for Trump’s allies ([09:32]).
  • Democratic lawmakers (e.g. Rep. Jamie Raskin) are attempting to challenge the fund’s legitimacy in court.

• Political Symbolism

  • The “1776” figure ties to the upcoming 250th U.S. anniversary, with suggestions Trump may issue 250 pardons as a symbolic act ([10:23]).

Notable Quotes

• Ryan Barber, WSJ Justice Department Reporter:

  "You have a number of legal experts out there saying that this is a one of a kind scenario to potentially reward a number of Trump's allies..." ([08:16])

• Rep. Jamie Raskin (quoted by Bradley Olson):

  “Donald Trump is setting up a $1.7 billion political slush fund for the Proud Boys and the Oath Keepers and his other political lieutenants and hangers on. That's an absolute violation of congressional spending power.” ([09:32])

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4. Other Noteworthy Stories

Adani Group Prosecution Update ([11:08])

• Federal prosecutors dropped the fraud case against Indian billionaire Gautam Adani, reflecting the administration’s changed enforcement priorities.
• Adani’s conglomerate will pay $275 million to resolve sanctions allegations and related SEC civil charges (without admitting wrongdoing).

Federal Reserve Chair Appointment ([12:10])

• Trump will host the swearing-in of new Fed Chair Kevin Warsh at the White House—a show of unusual presidential involvement.

Value of Graduate Degrees ([12:31])

• New findings show that unemployment for under-35s with master's degrees is at a two-decade high, while those with PhDs/law/medical degrees are doing better.
• The proliferation of master’s degrees may be diluting their signaling power in the job market.

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Timestamps for Key Segments

• Elon Musk v. OpenAI Trial Recap: [01:07] – [03:37]
• Energy Merger and Impact of AI: [03:37] – [06:05]
• Trump’s ‘Anti-Weaponization’ Fund: [07:09] – [11:03]
• Adani Case and Agency Priorities: [11:08] – [12:10]
• Federal Reserve and Grad Degree Value: [12:10] – [13:09]

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Overall Tone and Takeaways

The episode takes a brisk, fact-rich walk through some of the highest-stakes legal, technological, and political stories shaping the business world. The hosts and guests deliver insights in a measured, analytical style, balancing news-making revelations (about OpenAI’s founders, Trump’s settlement fund) with big-picture context on sectors from AI to energy to education.

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Notable Closing Quote:

"With more master's degrees than ever, that signal loses value when so many people have one." — Alex Osola ([12:51])

Transcript

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[Alex Osola]

Elon Musk loses his case in the high profile Silicon Valley trial between him and OpenAI. Plus a new $1.776 billion Trump administration fund will pay people who say they were hurt by the legal system and it's getting pushed back.

[Ryan Barber]

The Justice Department is saying that there is precedent for this, but you have a number of legal experts out there saying that this is creating that apparatus to potentially reward a number of Trump's allies who've received some scrutiny from federal investigators or prosecutors in recent years, and

[Alex Osola]

why a deal between two of the largest US Electricity providers is likely to face scrutiny from regulators. It's Monday, May 18th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. We begin tonight's show in Oakland, California where a three week trial that fixated the tech world has reached a verdict. The jury there has rejected Elon Musk's claims against OpenAI. He has alleged that OpenAI, quote, stole a charity when it converted into a for profit company. The jury took less than two hours to return the verdict and they dismissed the case on a technicality. They found that Musk brought his lawsuit against OpenAI and its CEO Sam Altman after the statute of limitations expired. Musk's attorney said in court that his side will reserve its right to appeal. Deputy Tech Bureau Chief Bradley Olson told our Tech News Briefing podcast that the outcome wasn't a surprise.

[Bradley Olson]

We did a story before the trial basically saying that Musk was an underdog in the case and we even looked at prediction markets which had kind of found that to be true too. And so yes, this was the outcome that was expected. However, one of the most interesting things that came out, we've done some reporting at the Journal about Sam Altman's personal investments and examples when there were overlap in deals that OpenAI did with outside companies and Sam having personal investments in those companies. And so there were a lot of details and specifics about those holdings that came out. It was also revealed that Greg Brockman OpenAI's president holds a stake in OpenAI that's worth about $30 billion. A lot of kind of disclosure and detail about their personal finances came out and I think we will look back on it as something that litigated the foundational moments of the AI boom. And then I think it also brought us a new perspective and new information about some of these figures that are at the heart of this new technological revolution. So I think it'll be remembered for that.

[Alex Osola]

If nothing else, a decision against OpenAI could have created big problems for the company.

[Bradley Olson]

The potential remedies would have unwound the conversion into a for profit company. It could have ousted Sam Altman as CEO of OpenAI, and it could have required the for profit company to fork over as much as like $180 billion to the nonprofit. And so it would have really drastically affected their ability to operate.

[Alex Osola]

So for now, the trial's conclusion removes a hurdle in OpenAI's path to an IPO. And we should note that News Corp, owner of the Wall Street Journal, has a content licensing partnership with OpenAI. And now onto one of the biggest deals of the year. It's Florida based NextEra Energy, the owner of Florida Power and Light, which has agreed to buy Virginia utility Dominion Energy. The $67 billion tie up would create an east coast energy titan. Utilities are seeing a massive upswing in demand because of the build out of AI data centers. And the industry plans to spend tens of billions of dollars to build new sources of power generation and transmission. For more on the deal, Jennifer Hiller, who covers the power industry for the Journal, joins me now. Jennifer, tell us more about the companies involved in this deal.

[Jennifer Hiller]

Nextera is the biggest utility in the country and Dominion is one of the biggest. You're talking about a lot of customers, 10 million across four states. NextEra is a humongous developer of renewable energy resources. They have a lot of wind, solar and battery across the country. They own a lot of transmission lines. Dominion, its main business is in Virginia and the Carolinas. They serve basically the world's biggest data center market in Data Center Alley in Northern Virginia.

[Alex Osola]

Speaking of those data centers, they become a political issue around rising electricity costs with concerns that residents are footing the bill as data centers multiply. Electricity costs came up in New Jersey Governor Mikey Sherrill's inauguration speech earlier this year.

[Jennifer Hiller]

I'm going to sign my first in a series of executive orders to declare a state of emergency on utility costs.

[Alex Osola]

Jennifer, how do you think these concerns about electricity costs are going to affect regulators thinking on this deal.

[Jennifer Hiller]

So they are going to have to get the approval of state utility regulators in Virginia, North Carolina, and South Carolina. They're going to want to see obvious customer savings here. The company will have to go in and argue that the combined Nextera and Dominion will be able to deliver customer benefits. One of the things that they are offering is a little more than $2 billion in customer credits. And so that is their effort to try to head off some of the concern about costs.

[Alex Osola]

That was WSJ reporter Jennifer Hiller. Thanks, Jennifer.

[Jennifer Hiller]

Thank you.

[Alex Osola]

Markets closed mixed today with the indexes making relatively small moves. The dow closed up 0.3% while the S&P was down 0.1% and the Nasdaq fell half a percent. Coming up, the latest moves from the Trump administration, including a controversial new settlement fund. And will going back to grad school actually give you a leg up in your career? We look at what the data say after the break.

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[Alex Osola]

Today, President Trump withdrew a lawsuit he had filed that sought billions of dollars from the irs. He's also dropping two other claims against the government over the search of his Mar a Lago estate and about the investigation into Russian interference in the 2016 election. That comes alongside the announcement for an unusual settlement fund. The government's, quote, anti weaponization fund will receive nearly $1.8 billion, specifically 1.776 billion. The money is for compensating people who claim they were victimized by the Justice Department. I'm joined now by our Ryan Barber who covers the Justice Department. Ryan, what do we know about how this fund will work and who's eligible for a payout Right now?

[Ryan Barber]

There are just so many questions that are looming over this fund and the actual execution of it. What we do have so far is a memo that is a little bit over a page long that certainly talks about the size, that talks about a commission of people who will be deciding who is worthy of one of these payouts. But we don't know how transparent this will be in how readily any payouts will be released.

[Alex Osola]

What's unusual about the creation of this fund?

[Ryan Barber]

To get into what's unusual about this fund, you, you really actually have to go back to the lawsuit that put us in motion. Trump filed a lawsuit against the IRS seeking more than $10 billion based upon when he was included in a leak of tax return information involving several of the wealthiest people in America. The lawsuit itself immediately raised ethics concerns because you have the head of a government in his own personal capacity suing the government he leads. The judge overseeing the case herself raised questions about whether there were, in fact, adverse parties necessary for the existence of the lawsuit in the first place. On the heels of a lot of that commotion, we have this settlement. Certainly what the Justice Department is saying is that there is precedent for this. They point to some funds that were created, albeit in much smaller size, as recently as under the Obama administration. But you have a number of legal experts out there saying that this is a one of a kind scenario to potentially reward a number of Trump's allies who've received some scrutiny from federal investigators or prosecutors in recent years.

[Alex Osola]

It's also Democratic lawmakers who have condemned the program. Maryland Representative Jamie Raskin today called it fraudulent and dangerous.

[Bradley Olson]

Donald Trump is setting up a $1.7 billion political slush fund for the Proud Boys and the Oath Keepers and his other political lieutenants and hangers on. That's an absolute violation of congressional spending power. Congress never voted for $1.7 billion for him to give away to his friends.

[Alex Osola]

Is there any action that these lawmakers could take to counteract the fund?

[Ryan Barber]

Add that to the list of questions. So what the 93 House Democrats, including Representative Raskin, did today in Trump's IRS suit is they joined the ranks of those who were filing amicus briefs. The brief filed by someone who's not a direct party in a lawsuit. And among the points they made was that any settlement is one that the Justice Department lacks authority to make.

[Alex Osola]

And why is the fund set at $1.776 billion?

[Ryan Barber]

So 1.776 billion. If you take out billion, it's 1776. Trump has thrown himself into this year's 250th birthday for the United States. Trump is looking to the celebration itself as a possible moment for addressing what he sees as wrongs committed by the justice system. We understand that White House officials are considering a plan in which he would issue 250 pardons to mark the 250th anniversary. So we see this somewhat as an extension of this idea of mercy or compensating those who've been aggrieved by past prosecutions.

[Alex Osola]

That was WSJ reporter Ryan Barber. Thanks, Ryan.

[Ryan Barber]

Thanks for having me.

[Alex Osola]

In other news out of the Justice Department Federal prosecutors are dropping their criminal fraud case against Indian billionaire Gautam Adani. It's the latest effort by the Trump administration to abandon cases brought by the prior administration as its enforcement priorities shift, as well as to resolve pending matters against Adani. The Treasury Department, meanwhile, said today that a unit of Adani's conglomerate, Adani group, will pay $275 million to settle an investig into alleged violations of Iran sanctions. Last week, the SEC reached an agreement with Adani and his nephew to settle related civil charges. The Adani's didn't admit wrongdoing. A spokesman for Adani's conglomerate today declined to comment. Separately. In Washington, President Trump will host a swearing in ceremony for incoming Federal Reserve Chair Kevin Warsh at the White House on Friday. The ceremony is a reflection of Trump's personal interest in the appointment. Most recent ceremonies have been held at the Fed, and the last time a president attended was 2006. And finally, going back to grad school has long been Plan B for young professionals. But these days, getting a master's degree isn't the job guarantee it used to be. A new analysis from labor market think tank Burning Glass Institute found that the unemployment rate for workers under 35 with a master's degree has rarely been higher in the past 20 years. However, the unemployment rate for those younger workers with a PhD law or medical degree has rarely been lower. One potential reason, according to Burning Glass's chief economist, while law and medical school degrees amount to a license to practice, master's degrees are more of a signal of a worker's value. And with more master's degrees than ever, that signal loses value when so many people have one. And that's what's news for this Monday afternoon. Today's show is produced by Pierre Bienname and Danny Lewis, with supervising producer Tali Arbel. I'm Alex Osolev for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

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