HomeElon Musk Loses Lawsuit Against Sam Altman and OpenAI
Elon Musk's assertion that OpenAI's co-founders wronged him collapsed when nine California jurors unanimously ruled that his lawsuits were filed too late.
Musk alleged that Sam Altman, Greg Brockman, OpenAI, and Microsoft "stole a charity" by establishing a for-profit arm of the advanced AI lab. However, jurors determined that any damages Musk might have incurred occurred before the legal deadline for filing his claims.
Although the trial explored the dramatic history of OpenAI in depth and featured testimony from prominent Silicon Valley figures, it ultimately hinged on relatively narrow legal questions. The proceedings centered on whether and when Altman and the other defendants made—and subsequently broke—promises to Musk, but his arguments failed to persuade jurors that his claim had merit.
Specifically, OpenAI raised a statute of limitations defense, arguing that any harms Musk intended to litigate occurred before 2021. (The exact cutoff dates varied by charge: before August 5, 2021 for the first count; August 5, 2022 for the second; and November 14, 2021 for the third.) Ultimately, the jury found this reasoning convincing, leading to a brief deliberation.
"There was substantial evidence supporting the jury's verdict, which is why I was ready to dismiss the case immediately," Judge Yvonne Gonzalez Rogers stated after the verdict was announced.
With the case concluded, one significant threat to OpenAI—a possible restructuring—has been removed ahead of its reported IPO.
Microsoft, which Musk had sued for allegedly aiding OpenAI's breach of charitable trust, welcomed the verdict. A company spokesperson said it "remains committed to working with OpenAI to advance and scale AI for people and organizations worldwide."
The verdict was delivered during a hearing to determine potential damages Musk could have received if the outcome had been different. Although that discussion is now moot, the judge seemed unpersuaded by the analogy Musk's lawyers drew between his charitable donations and investments in a for-profit startup.
"Your analysis appears disconnected from the underlying facts," she told Dr. C. Paul Wazzan, the expert who calculated Musk's estimated wrongful gains by OpenAI and Microsoft at his expense—ranging from $78.8 billion to $135 billion.
When contacted by TechCrunch, Musk's lead attorney Marc Toberoff said, "One word: Appeal."
This is a developing story and will be updated.
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Elon Musk's assertion that OpenAI's co-founders wronged him collapsed when nine California jurors unanimously ruled that his lawsuits were filed too late.
Musk alleged that Sam Altman, Greg Brockman, OpenAI, and Microsoft "stole a charity" by establishing a for-profit arm of the advanced AI lab. However, jurors determined that any damages Musk might have incurred occurred before the legal deadline for filing his claims.
Although the trial explored the dramatic history of OpenAI in depth and featured testimony from prominent Silicon Valley figures, it ultimately hinged on relatively narrow legal questions. The proceedings centered on whether and when Altman and the other defendants made—and subsequently broke—promises to Musk, but his arguments failed to persuade jurors that his claim had merit.
Specifically, OpenAI raised a statute of limitations defense, arguing that any harms Musk intended to litigate occurred before 2021. (The exact cutoff dates varied by charge: before August 5, 2021 for the first count; August 5, 2022 for the second; and November 14, 2021 for the third.) Ultimately, the jury found this reasoning convincing, leading to a brief deliberation.
"There was substantial evidence supporting the jury's verdict, which is why I was ready to dismiss the case immediately," Judge Yvonne Gonzalez Rogers stated after the verdict was announced.
With the case concluded, one significant threat to OpenAI—a possible restructuring—has been removed ahead of its reported IPO.
Microsoft, which Musk had sued for allegedly aiding OpenAI's breach of charitable trust, welcomed the verdict. A company spokesperson said it "remains committed to working with OpenAI to advance and scale AI for people and organizations worldwide."
The verdict was delivered during a hearing to determine potential damages Musk could have received if the outcome had been different. Although that discussion is now moot, the judge seemed unpersuaded by the analogy Musk's lawyers drew between his charitable donations and investments in a for-profit startup.
"Your analysis appears disconnected from the underlying facts," she told Dr. C. Paul Wazzan, the expert who calculated Musk's estimated wrongful gains by OpenAI and Microsoft at his expense—ranging from $78.8 billion to $135 billion.
When contacted by TechCrunch, Musk's lead attorney Marc Toberoff said, "One word: Appeal."
This is a developing story and will be updated.
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