A jury in the U.S. has ruled against Elon Musk in his legal battle with OpenAI, determining that the artificial intelligence organization is not responsible to the billionaire for allegedly deviating from its original objective of serving humanity.
The unanimous decision was reached swiftly at a federal court in Oakland, California, with the jury concluding that Musk’s lawsuit was filed too late. The trial was considered a pivotal moment for the future application and beneficiaries of artificial intelligence, which serves various purposes such as education, facial recognition, financial guidance, journalism, legal studies, medical assessments, and the creation of misleading deepfakes.
Following the verdict, Musk expressed disappointment, labeling the ruling as a “negative precedent” and announcing plans to appeal. He emphasized that the judgment was solely based on a technicality related to timing and did not address the substance of the case. However, the judge hinted that Musk might face challenges in his appeal due to factual issues related to the statute of limitations.
In the lawsuit filed in 2024, Musk accused OpenAI, along with its CEO Sam Altman and President Greg Brockman, of deceiving him into providing $38 million US, and later transitioning from a non-profit to a for-profit entity without his knowledge. Musk likened the defendants’ actions to “charity theft.”
Founded in 2015 by Altman, Musk, and others, OpenAI witnessed Musk’s departure from its board in 2018, followed by the establishment of a for-profit division the subsequent year.
The trial spanned over 11 days and involved intense scrutiny of the credibility of Musk and Altman. Both parties accused each other of prioritizing financial gains over public welfare. Musk’s legal team highlighted doubts raised about Altman’s honesty and trustworthiness during the proceedings.
Musk alleged that OpenAI aimed to benefit insiders and investors at the expense of its non-profit mission, neglecting the safety aspects of artificial intelligence. On the other hand, OpenAI argued that Musk was primarily driven by monetary interests and failed to raise concerns about the organization’s deviation from its original goals in a timely manner.
The legal battle sheds light on the growing concerns surrounding the ethical use and regulation of artificial intelligence, with OpenAI positioned against competitors like Anthropic and xAI. OpenAI is reportedly gearing up for a potential IPO valued at $1 trillion US, backed by significant investments from Microsoft exceeding $100 billion US.
Meanwhile, Musk’s xAI venture is integrated into his aerospace company SpaceX, which is also gearing up for an IPO that could surpass the scale of OpenAI’s offering.
