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'Judge Never Ruled On Merit Of Case': Elon Musk Slams Verdict After Losing Lawsuit Against OpenAI

Musk, a co-founder of OpenAI, alleged that chief executive Sam Altman and president Greg Brockman had betrayed the organisation's original charitable purpose by steering it towards commercial gain.

'Judge Never Ruled On Merit Of Case': Elon Musk Slams Verdict After Losing Lawsuit Against OpenAI
Musk accused OpenAI's leadership of misusing a charitable project.
Photo: PTI
  • Elon Musk's lawsuit against OpenAI and its leaders was dismissed due to statute of limitations
  • Musk claimed OpenAI's CEO and president betrayed its nonprofit mission for commercial gain
  • The jury's advisory verdict was accepted by Judge Yvonne Gonzalez Rogers, ending the case
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A federal court on Monday dismissed Elon Musk's claims against OpenAI and its top executives, ending a high-profile legal battle in which the billionaire accused the ChatGPT maker of abandoning its founding mission as a nonprofit devoted to developing artificial intelligence for humanity's benefit, The Associated Press reported.

Musk, a co-founder of OpenAI, alleged that chief executive Sam Altman and president Greg Brockman had betrayed the organisation's original charitable purpose by steering it towards commercial gain.

A nine-member jury in Oakland, California, found that Musk had waited too long to bring the case and had missed the deadline under the statute of limitations. The jury deliberated for around two hours before reaching its verdict. Although the panel served in an advisory capacity, US District Judge Yvonne Gonzalez Rogers accepted its finding and dismissed Musk's claims, reported The Associated Press.

ALSO READ: Elon Musk Loses OpenAI Lawsuit As US Court Rules In Favour Of Sam Altman's Startup

Musk later criticised the outcome, saying the judge had "never ruled on the merit of the case." His lawsuit had sought damages to be directed towards OpenAI's charitable arm and called for Altman's removal from the company's board. In a post on X (formerly Twitter), Musk worte, "Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality. There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!"

"I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America. OpenAI was founded to benefit all of humanity, Musk added.

The three-week trial offered a rare public look at the breakdown in relations between Musk and Altman, once allies in the race to develop artificial general intelligence. Musk had invested about $38 million in OpenAI during its early years before withdrawing support amid disagreements over its direction.

OpenAI rejected Musk's allegations, arguing there had never been a binding promise that the organisation would remain a nonprofit indefinitely. The company said Musk brought the lawsuit after failing to secure control over OpenAI and as part of an effort to undermine a competitor to his own AI firm, xAI.

During testimony, Musk accused OpenAI's leadership of misusing a charitable project. “It's not OK to steal a charity,” he told jurors, as per AP.

Altman, in turn, said he had once held Musk in high regard but felt abandoned when Musk stopped backing the company. He said OpenAI had been created partly because its founders believed powerful AI should not be controlled by any single individual.

The trial also featured testimony from Microsoft chief executive Satya Nadella, Brockman, and former OpenAI board members involved in Altman's brief ouster in 2023.

OpenAI, founded in 2015, has since become one of the world's most valuable technology companies.

ALSO READ: 'Scam Altman Stole A Charity': Elon Musk Slams OpenAI Chief As Legal Battle Heats Up

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