Elon Musk loses lawsuit against OpenAI | Elon Musk News
Jury Rules Against Musk in Lawsuit Against OpenAI
OAKLAND, Calif. — A federal jury has ruled against Elon Musk in his lawsuit against OpenAI, finding the artificial intelligence company not liable for allegations that it deviated from its original mission to benefit humanity. The jury delivered its unanimous verdict on Monday, concluding that Musk’s case was filed too late.
Musk, who co-founded OpenAI in 2015, claimed that the company shifted towards profit-maximizing strategies without his knowledge. The jury deliberated for less than two hours before reaching their decision.
The trial has been regarded as a significant moment for both OpenAI and the future of artificial intelligence. Following the verdict, Musk’s attorney indicated a potential appeal, although U.S. District Judge Yvonne Gonzalez Rogers noted the challenges ahead regarding the statute of limitations.
“There’s a substantial amount of evidence to support the jury’s finding,” she said, dismissing Musk’s request shortly after the ruling.
Musk invested $38 million in OpenAI in its early years but later accused OpenAI CEO Sam Altman and his executive team of betrayal. The lawsuit claimed OpenAI’s transformation into a profit-driven entity undermined its foundational goals. Musk’s withdrawal of funding contributed to a notable rift between him and Altman, who was briefly ousted as CEO in 2023.
During testimony, both parties faced scrutiny regarding their credibility. Each accused the other of prioritizing financial interests over public service.
In his closing argument, Musk’s attorney Steven Molo emphasized concerns about Altman’s credibility, suggesting that disbelief in Altman could lead to a ruling in favor of Musk. He referenced witness testimonies that questioned Altman’s honesty and noted Musk’s measured responses regarding his own trustworthiness.
Musk argued that OpenAI sought to enrich its investors at the expense of its mission and that Microsoft was aware of the company’s shift toward profit. In contrast, OpenAI contended that Musk had ulterior financial motives and delayed his claims regarding a breach of their founding agreement.
William Savitt, representing OpenAI, remarked in his closing argument that while Musk may succeed in other ventures, that success had not translated to effective stewardship of artificial intelligence.
OpenAI continues to compete in a rapidly growing AI market, facing rivals such as Anthropic and Musk’s own xAI, which operates under his SpaceX company. Meanwhile, Microsoft has heavily invested in its partnership with OpenAI, which is preparing for a potential initial public offering that could rival those of other major tech firms.
