Round 6 of Musk v. Altman just turned into a legal bloodbath, and neither side may walk away clean. Elon Musk's own testimony appears to have handed OpenAI a potentially fatal statute-of-limitations defense, complete with admissions that he suspected something was wrong as far back as 2017 and never bothered to read the "fine print" on a critical $10 billion OpenAI term sheet. But OpenAI's apparent courtroom dominance may come with a hidden cost. Aggressive pretrial rulings and an unusual advisory jury structure could leave the company vulnerable to a future appellate reversal that detonates years from now. Then came the moment that may outlive the trial itself: Musk openly acknowledged that AI model distillation is "standard practice," exposing what this analysis describes as the hidden plumbing of the entire AI industry. This episode of The Valley Current® unpacks a courtroom war where every victory may already contain the seeds of defeat.

Jack Russo

Managing Partner

[email protected]

www.computerlaw.com

https://www.linkedin.com/in/jackrusso

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