A California jury has dismissed a lawsuit filed by Elon Musk against OpenAI and its chief executive Sam Altman, stating that the legal claims were brought after the statute of limitations had expired.
The unanimous decision came after a three-week trial in Oakland, California, as Jurors reviewed internal company communications and heard testimony from Musk, Altman, and Satya Nadella before reaching a verdict in about two hours.
Musk argued that OpenAI violated its original non-profit mission after transitioning into a for-profit business model as he claimed Altman accepted his financial support, estimated at $38 million while later steering the company away from its founding purpose of developing artificial intelligence for the benefit of humanity.
“It’s actually very simple.It’s not OK to steal a charity… If it’s okay to loot a charity, the entire foundation of charitable giving will be destroyed” – Musk
Altman disputed the allegations and testified that Musk had previously supported the company’s commercial direction. According to Altman, Musk also sought long-term control of OpenAI.
“A particularly hair-raising moment was when my co-founders asked, If you have control, what happens when you die? He said something like, maybe it should pass to my children” – Altman
OpenAI was founded in 2015 as a non-profit artificial intelligence research organization by Musk, Altman, and other technology leaders. Musk left the company in 2018 after disagreements over leadership and strategic direction.
The lawsuit also included claims against Microsoft, which has invested heavily in OpenAI. Those claims were dismissed after the jury ruled in OpenAI’s favor.
OpenAI representatives described the ruling as a validation of the company’s position. Spokesman Sam Singer said the case was nothing but an effort by Musk to slow down a competitor, while William Savitt, a legal practitioner argued the lawsuit bears no relationship with reality.
The ruling ends a major legal dispute between two major figures in the artificial intelligence industry. However, tensions between Musk and OpenAI are likely to continue as competition over AI development, governance, and commercial influence grows worldwide.
