California Jury Dismisses Elon Musk's Lawsuit Against OpenAI Over Contract Breach
A California jury has unanimously dismissed Elon Musk's legal challenge against OpenAI and its chief executive, Sam Altman. The verdict concluded that Musk had waited an excessive period before initiating his lawsuit, thereby invalidating his claims.
Musk's legal action contended that Altman had breached a non-profit contract by converting OpenAI into a for-profit company. This transition, he argued, occurred after his significant donation of $38 million in the early stages of the organisation's development.
Musk asserted he was deceived, claiming Altman accepted his funding while abandoning OpenAI's foundational non-profit objective to advance artificial intelligence for collective human benefit. Jurors deliberated for approximately two hours following a three-week trial that featured testimony from Musk, Altman, and other prominent technology figures, including Microsoft CEO Satya Nadella. Musk had also accused Microsoft of complicity in OpenAI's shift to a for-profit model, though these claims were subsequently dismissed.
OpenAI spokesperson Sam Singer described the verdict as a "tremendous victory," asserting outside the Oakland courthouse that Musk's lawsuit was "nothing but an effort by Mr Musk to slow down a competitor." OpenAI's legal representative, William Savitt, maintained that Musk's suit "bears no relationship with reality" and praised the jury's swift decision.
Despite the ruling, Steven Molo, Musk's lead attorney, indicated his client's intention to "preserve my client's right to appeal." Marc Toberoff, another lawyer for Musk, declared, "This war is not over, and I'd sum it up in one word, appeal." However, legal experts suggest an appeal is unlikely to succeed, given the fact-specific nature of the jury's decision.
