US Jury Tosses Elon Musk's Lawsuit Against OpenAI

A US jury on Monday ruled against billionaire Elon Musk in his lawsuit against OpenAI, concluding the artificial intelligence company is not liable to the world's richest man for allegedly abandoning its original mission to serve humanity.

The unanimous verdict, delivered at a federal court in Oakland, California, found that Musk filed his lawsuit too late. The jury deliberated for less than two hours.

The trial was seen as a pivotal moment for the future of OpenAI and AI more broadly, both in how the technology is used and who benefits from it.

After the verdict, Musk's lawyer said he has a right to appeal, but the judge noted that an appeal could face difficulties because the statute of limitations had expired as a matter of fact. Judge Yvonne Gonzalez Rogers said: 'There is a lot of evidence supporting the jury's verdict, which is why I was ready to dismiss it immediately.'

Musk was a co-founder of OpenAI, which launched in 2015 and later created ChatGPT. After investing $38 million in the early years, Musk in 2024 accused CEO Sam Altman and his deputies of shifting to a profit-making model behind his back.

The trial, which began on April 27, shed light on the deep rift between two leading Silicon Valley figures and the origins of OpenAI, now valued at $852 billion and heading toward one of the largest initial public offerings in history.

Altman and OpenAI argued they never committed to keeping OpenAI a nonprofit forever. They contended Musk knew this and sued because he could not gain unilateral control over the fast-growing AI company.

Musk sought damages for OpenAI's charitable efforts and demanded Altman's removal from the board. Musk's decision to stop funding contributed to the sharp split among former allies. Musk said he was reacting to deceptive behavior the board uncovered when it ousted Altman in 2023, before he was reinstated days later.

The verdict came after 11 days of questioning and debate, during which the credibility of both Musk and Altman was repeatedly challenged. Each side accused the other of being more interested in money than serving the public.

In his closing argument, Musk's lawyer Steven Molo reminded the jury that some witnesses had questioned Altman's honesty or called him a liar, and that Musk failed to answer 'yes' definitively when asked in court if he was entirely truthful. Molo said: 'Sam Altman's credibility is directly at issue. If you don't believe him, they cannot win.'

Musk accused OpenAI of deliberately enriching investors and insiders at the expense of the nonprofit and not prioritizing AI safety. He also said Microsoft knew OpenAI cared more about money than altruism.

OpenAI countered that Musk was the one focused on money and waited too long to sue when he alleged OpenAI violated its founding agreement to build safe AI for the benefit of humanity. OpenAI lawyer William Savitt said in closing: 'Mr. Musk may have a Midas touch in some areas, but not in AI.'

OpenAI competes with AI companies like Anthropic and xAI. A Microsoft executive testified that Microsoft has spent more than $100 billion on the partnership with OpenAI. Musk's xAI is now part of SpaceX, which is preparing an IPO that could surpass OpenAI's size.