Elon Musk has lost his lawsuit against Sam Altman and OpenAI
Source: Hacker News
Background
Elon Musk’s claim that he was mistreated by his OpenAI co‑founders failed after nine California jurors delivered a unanimous verdict that his lawsuits had been filed too late. Musk had sued Sam Altman, Greg Brockman, OpenAI and Microsoft, alleging they “stole a charity” by creating a for‑profit affiliate to the frontier AI lab.
Trial Details
The trial examined the melodramatic history of OpenAI and featured testimony from leading figures in Silicon Valley, but it ultimately turned on fairly narrow questions of the law. The focus was on whether and when Altman and the other defendants had made and broken promises to Musk.
OpenAI advanced a statute of limitations defense (source), arguing that any harms Musk sought to litigate occurred before 2021. The specific deadlines were:
- First count: before August 5, 2021
- Second count: before August 5, 2022
- Third count: before November 14, 2021
The jury found this argument persuasive, leading to a brief deliberation.
Verdict
“There was a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss it on the spot,” Judge Yvonne Gonzalez Rogers said after the verdict was delivered.
The decision means that one major threat to OpenAI—a potential restructuring— is now off the table ahead of its reported IPO.
Future Implications
The verdict was rendered during a hearing that would have determined potential damages to Musk had the outcome been different. With the case dismissed, that discussion is moot. The judge appeared unconvinced by the analogy Musk’s lawyers drew between his charitable contributions and investments in a for‑profit startup.
Reached for comment by TechCrunch, Musk’s lead counsel Marc Toberoff said, “One word: Appeal.”
This is a developing story and will be updated.