Musk Loses OpenAI Case, Chat Goes Goblinmode
CLOSING BELL
The market opened the week in the red, all signs pointing to caution as the war still rages, memory stocks turn around. The market is waiting for Nvidia earnings Wednesday night and Kevin Warsh to take the wheel as head of the FOMC on Friday.
Late in the session, the president said the U.S. was canceling planned strikes on Iran this week. The market started to climb as bonds sold off, as traders tried to price in whether fresh announcements changed the reality of rising oil prices, climbing inflation, and booming bonds.
On Stocktwits, the conversation split between AI supply chain stress, ServiceNow’s retail SaaS rebound, Musk’s OpenAI loss, and crypto policy chatter around Bitmine and the CLARITY Act.
Today’s Briefing:
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After the Bell: OpenAI beat Musk in court while memory stocks cracked on AI capacity stress
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Stocks: ServiceNow caught a retail bid as traders chased the SaaS comeback trade
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Macro News: Warsh inherits a Fed job the bond market may have already rewritten
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What’s On Deck: Home Depot, Target, CAVA, Fed Waller, and crude data line up for Tuesday
AFTER THE BELL
OpenAI Beats Musk ⚖️
SAN FRANCISCO, CALIFORNIA – MARCH 04: Elon Musk arrives at federal court on March 4, 2026 in San Francisco, California. (Photo by Josh Edelson/Getty Images)
Elon Musk lost his court fight against Sam Altman and OpenAI on Monday, after an Oakland jury rejected claims that the AI lab betrayed its nonprofit founding promise. The decision only took two hours, and the court agreed: the judge even said she was willing to dismiss the case “on the spot” but let the jury hear the evidence.
The jury was convinced by OpenAI’s lawyers that Musk waited too long to try the suit, and the claim had reached its statute of limitations. OpenAI’s counsel Bill Savitt said the decision went beyond that: the court saw a clear hypocritical attempt to sabotage a competitor company in the AI space.
The verdict landed just as Musk is expected to start pitching investors on SpaceX’s IPO.
The RIP: Jury deliberations lasted less than 2 hours. The trial lasted 3 weeks, and Musk sued in 2024 seeking as much as $134B. Musk testified he gave roughly $38M to OpenAI. OpenAI raised $122B in March at a valuation above $850B.
The contradiction: Musk framed the case as a fight to protect OpenAI’s founding mission, while OpenAI argued he had once pushed for a for-profit structure if he could control it.
Musk’s lawyers argued it was only after 2023 when a new funding round, led by a $10B sum from Microsoft, that he realized the firm was no longer a charity. It was long after OpenAI’s ChatGPT became a shockingly popular software, reaching 100M active monthly users in its first two months after launching in late 2022. It was also long before the LLM started talking about goblins all the time in outputs 🤣
For public markets, the cleanest exposure is $MSFT ( ▲ 0.38% ) , the mega-corp’s relationship with the LLM maker is still intact after the court also dismissed the claim against Microsoft. $TSLA still carries Musk headline risk, especially with xAI folded into the broader SpaceX story, while $GOOGL ( ▲ 0.04% ) stays in the background as the AI rival OpenAI said it needed capital to fight. ⚖️
Quite honestly, did anyone ever think the chat behemoth was a charity? 👿
Memory Hits the Wall 🧠
Seagate led a memory-stock selloff Monday in part after its CEO told investors the AI storage boom is running into a factory problem: adding capacity would take too long and could slow technology progress. The warning, given during a JPMorgan conference Monday, hit Micron, Western Digital, and SanDisk, just as Samsung faced a major labor fight in South Korea.
“If we took the teams off and started building new factories or bringing up new machines, that would just take too long,” CEO Dave Mosley said. “You would end up with more capacity, but then you’d slow the rate of growth on that technology.”
The RIP: $STX fell -8.13%, $SNDK dropped -7.79%, $MU ( ▼ 5.95% ) slid -7.33%, and $WDC fell -6.27%. Samsung faces a planned 18-day strike starting May 21, with more than 47,000 workers potentially joining. Samsung accounts for 12.5% of South Korea’s GDP.
AI demand is still the bull case, but Monday showed the nasty version of that trade: demand can be huge and still punish stocks if supply cannot flex fast enough. Samsung’s strike risk adds a second squeeze point, because any memory disruption would hit a company tied to 22.8% of South Korea’s exports. 🧠
Jump into $STX: shortage or ceiling →
ServiceNow Wants to have it All 🧩
ServiceNow, the enterprise software company that helps businesses automate workflows, jumped overnight as retail traders latched onto Trump’s disclosed stake and a possible rotation back into beaten-down software. The move turned a boring SaaS rebound into a political tape read, but retail was trying to make sense of the after-hours trade as it blew up over the weekend.
The RIP: $NOW rose +4% overnight. Shares closed Friday at $95.07 after gaining more than +9% over 2 sessions. Trump bought $1M to $5M of ServiceNow, Adobe, and Workday on Feb. 10. ServiceNow completed a $4B bond sale Friday.
What The Community Said: The $NOW ( ▲ 8.78% ) stream is extremely bullish, message volume is high, and 32.6k watchers are focused on whether the software rebound can clear the next chart levels.
Top Posts
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@AllMarketCaps: “$NOW breaks 105 goes to 120” Post
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@MoneyFairyBlessings: “$NOW Close to 30% short of float still. Get shares shorts will bid up and cover later!” Post
The real test is whether ServiceNow can reclaim $100 and make its 22% Q1 revenue growth matter more than the Armis margin drag. 🧩
Jump into $NOW: rebound or rotation →
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MACRO NEWS
Warsh Meets Vigilantes 🏦
UNITED STATES – APRIL 21: Kevin Warsh, nominee for chairman of the Federal Reserve, is sworn in to the Senate Tuesday, April 21, 2026. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
Kevin Warsh was picked to lead a lower-rate Fed, but the bond market may be handing him the opposite job before he even gets the chair, according to Ed Yardeni, head of Yardeni Research. With long yields still pressing higher, Wall Street is starting to ask whether the new Fed boss has to sound hawkish just to regain control of borrowing costs.
The RIP: Warsh will be sworn in Friday. The Fed funds target range is 3.5% to 3.75%. The 30-year Treasury yield was 5.138% Monday morning after topping 5% Friday. FedWatch pricing now implies a 42% chance of a hike by year-end, but only 4.2% odds for July.
“Warsh is going to be the odd man out. But he is the new Fed chair, and the bond market is reacting badly to his dovish stance,” Yardeni said.
The contradiction is the assignment: Trump chose Warsh expecting the post-Powell Fed to resume cutting, but Warsh may need to prove credibility by leaning tighter first.
“The Fed must catch up to the bond market to avoid losing control of borrowing costs and to appease the Bond Vigilantes,” Yardeni wrote Monday. “A surprise FFR rate hike might actually please them!”
Yardeni’s July hike call is outside consensus, but the market has already moved from cut debate to hike risk, which is the part that matters for stocks. Public-market exposure is clean: $TLT ( ▼ 0.12% ) takes the first hit if long yields keep rising, $IWM and $KRE hate tighter financing, homebuilders like $DHI and $LEN lose mortgage-rate oxygen, and $XLF gets the curve drama whether it asked for it or not. 🏦
TRENDING ON STOCKTWITS
Pops & Drops
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$TE ( ▲ 23.46% ) T1 Energy ⚡: ripped +27% after AI fund revealed new stake
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$ENHA ( ▲ 4.82% ) Enhanced ⚡: surged +20% after AI telehealth partnership with Rezolve
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$AGYS ( ▲ 4.25% ) Agilysys ⚡: popped +18% after Q4 profit beat Wall Street
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$D ( ▲ 9.44% ) Dominion Energy: soared +9% after NextEra Energy announced buy out
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$ZS ( ▲ 8.47% ) Zscaler: popped +8% after analyst upgraded stock to buy
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$VRT ( ▼ 8.41% ) Vertiv: fell -8% after soft Q2 EPS guidance disappointed
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$CTRA ( ▼ 8.62% ) Coterra Energy: slid -9% after Devon Energy acquisition approved
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$LITE ( ▼ 8.83% ) Lumentum: tumbled -9% after insider selling and valuation concerns
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$CRDO ( ▼ 9.24% ) Credo ⚡: tanked -9% after new AI products triggered selloff
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$REGN ( ▼ 9.82% ) Regeneron: cratered -10% after melanoma drug failed Phase 3
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WHAT’S ON DECK
Tomorrow’s Top Things 📋
Macro: Fed Waller Speech (1:00 PM ET), API Crude Oil Stock Change (8:30 PM ET). 📊
Pre-Market Earnings: $HD Home Depot Inc, $CAN Canaan Inc – ADR, $BILI Bilibili Inc., $CRNT Ceragon Networks Ltd, $ELTK Eltek Ltd. ☀️
After-Market Earnings: $CEIN Camber Energy Inc, $TOON Kartoon Studios Inc, $TGT Target Corp, $CRVO CervoMed Inc, $CAVA CAVA Group Inc, +12 more. 🌙
P.S. You can listen to all of these earnings calls on Stocktwits.
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