A California jury of nine delivered a unanimous verdict against Elon Musk’s lawsuit targeting OpenAI, Sam Altman, Greg Brockman, and Microsoft, finding that any harms Musk may have suffered predated the legal deadlines for filing his claims. The verdict ends one of the most high-profile legal challenges in AI history and removes a significant restructuring threat to OpenAI ahead of its anticipated IPO.
Musk had alleged that Altman and Brockman betrayed OpenAI’s charitable founding mission by creating a for-profit subsidiary, framing it as the theft of a charity. The jury, however, found OpenAI’s statute of limitations defence persuasive, concluding that the relevant events occurred too early for Musk’s claims to be actionable. Judge Yvonne Gonzalez Rogers noted there was substantial evidence to support the finding.
Microsoft, named for allegedly aiding OpenAI’s actions, welcomed the outcome and reaffirmed its commitment to advancing AI through its OpenAI partnership. OpenAI’s lead attorney Bill Savitt described the lawsuit as a hypocritical attempt to sabotage a competitor.
Musk vowed to appeal to the Ninth Circuit, arguing the case established a damaging precedent around charitable organisations. His lead counsel Marc Toberoff offered a single-word response to the verdict: appeal.
Featured image: Credit: Gage Skidmore, Wikipedia