Musk loses lawsuit against OpenAI after jury finds he filed his claim too late

A US jury on Monday ruled ​against Elon Musk in his lawsuit against OpenAI, finding the artificial intelligence company not liable to the world's richest person for having allegedly strayed from its original mission to benefit humanity.

In a unanimous verdict, the jury in Oakland, California federal court said Musk had brought his case too ​late.

The jury deliberated ‌less than two hours.

The trial had widely been seen as a critical moment for the future ⁠of OpenAI and artificial intelligence generally, both in how it should be used and who should benefit from it.

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The outcome spares OpenAI from a potentially existential legal threat.

Had Musk prevailed, he was seeking to force the company to revert to its nonprofit structure – a move that would have derailed its planned IPO and unwound ties to major investors including Microsoft, Amazon and SoftBank, who have poured billions into the company amid the global AI race.

Following the verdict, Musk's lawyer said he reserved the right to appeal, but the ‌judge suggested he may have an uphill battle because whether the statute of limitations ran out before Musk sued ⁠was a factual issue.

"There's a substantial amount of evidence to support the jury's finding, which is why I was prepared to dismiss on the spot," US District Judge Yvonne Gonzalez Rogers said.

In his 2024 lawsuit, Musk accused OpenAI, its ​chief executive Sam Altman and its president Greg Brockman of manipulating him into giving $38 million, then going behind ‌his back by attaching a for-profit business to its original nonprofit and accepting tens of billions of dollars from Microsoft and other investors.

Musk called the OpenAI defendants' conduct "stealing a charity".

OpenAI was founded by Altman, Musk and several others in 2015. Musk left its board in 2018, and OpenAI set ‌up a for-profit business the next year.

Many people have begun using AI for as a digital aid for education, facial recognition, financial advice, journalism, legal research, medical diagnoses and producing harmful deep-fakes.

Many more express deep distrust of the technology ​and worry it could be used to displace people from their jobs.

The verdict followed 11 days of testimony and arguments where Musk's and Altman's credibility came under repeated attack.

Each side accused the other of being more interested in money than serving the public.

In his closing argument, Musk's lawyer ​Steven Molo reminded jurors that several witnesses questioned Altman's candor or branded him a liar, and that Altman did not give an ​unqualified yes when asked during the trial if he was completely trustworthy.

"Sam Altman's credibility is directly at ​issue," Molo said. "If you don't believe him, they cannot win."

Musk accused OpenAI of wrongfully trying to enrich investors and insiders at the nonprofit's expense, and failing to prioritise AI's safety. He also ​contended that Microsoft knew all along that OpenAI cared more about money than being altruistic.

OpenAI countered that Musk was the one driven by profit, and that the billionaire had waited too long to claim OpenAI breached its founding agreement to build safe artificial intelligence to benefit humanity.

Watch moreMusk vs. OpenAI trial: Shivon Zilis testifies Musk wanted Tesla to take over OpenAI

"Mr. Musk may have the Midas touch in some areas, but not in AI," William Savitt, a lawyer for OpenAI, said in his closing argument.

OpenAI competes with AI companies ⁠such as Anthropic and xAI, and is preparing for  a possible initial public offering  that could value the business at $1 trillion.

Microsoft has spent more than $100 billion on its partnership with OpenAI, ⁠a Microsoft executive testified.

Musk's ​xAI is now part of his space and rocket company SpaceX, which is preparing a IPO that could exceed OpenAI's in size.

(FRANCE 24 with Reuters and AFP)