Jury tosses Musk OpenAI lawsuit, saves Sam Altman

Source: Mashable Tech

Background

Elon Musk’s $150 billion lawsuit against his fellow OpenAI founders died a quick and unceremonious death Monday. After more than three weeks of testimony—including statements from Musk, OpenAI CEO Sam Altman, and Microsoft CEO Satya Nadella—the nine‑member Oakland jury took just two hours to decide that Musk’s case had no merit, basing its decision entirely on timing.

Musk was seeking damages over OpenAI’s conversion from a nonprofit to a for‑profit enterprise run by a nonprofit board. He claimed that a $10 billion Microsoft investment in 2023 was the moment he realized the ChatGPT maker was straying from the original terms of its charitable foundation.

Much of the courtroom drama turned on whether his lawsuit fell within the statute of limitations. Musk’s team struggled to prove that he wasn’t worried about Microsoft “capturing” OpenAI before 2023—despite a 2020 tweet from Musk that said exactly that, to take just one example.

Musk’s lawyers at the courthouse Monday told reporters they will appeal the verdict.

Trial and Verdict

In theory, the jury’s decision was advisory, meaning federal judge Yvonne Gonzalez Rogers could still have ruled in Musk’s favor if she disagreed. However, Rogers concurred and tossed the lawsuit.

Rogers showed herself to be no great friend to Musk during the trial, reminding the billionaire that he was “not a lawyer” despite having taken Law 101 in college.

Musk also didn’t help his case by absconding to China last week after the judge required him to stay nearby in case he needed to testify again. Counsel for Altman and the other co‑founders highlighted this fact in their closing arguments, noting that their clients had actually shown up.

The jury seemed sympathetic to OpenAI’s attorney, and the speed of their verdict confirmed that sympathy.

Aftermath

OpenAI emerges unscathed. The company will continue its march toward a potential $1 trillion IPO—one of the most anticipated public offerings of the decade.

Altman has cause to celebrate, despite Musk’s counsel painting him as fundamentally untrustworthy (echoing a recent New Yorker investigation). Altman confirmed for the first time that he does have an equity stake in OpenAI.

Musk hasn’t tweeted since the trial verdict came in. Altman, meanwhile, merely congratulated the ChatGPT team on its latest build.