A U.S. jury on Monday ruled against Elon Musk in his lawsuit against OpenAI, determining that the artificial intelligence company is not liable to the world's richest person for allegedly deviating from its original mission to benefit humanity. The unanimous verdict, delivered in Oakland, California federal court, stated that Musk had brought his case too late.
Trial Details and Significance
The trial, which began on April 28, was widely seen as a critical moment for the future of OpenAI and artificial intelligence generally. It raised questions about how AI should be used and who should benefit from it, including financially. AI is employed for myriad purposes such as education, facial recognition, financial advice, journalism, legal research, medical diagnoses, and even harmful deepfakes. Many people express distrust of the technology and worry it could displace workers from their jobs.
Testimony and Arguments
The verdict followed 11 days of testimony and arguments where the credibility of both Musk and OpenAI CEO Sam Altman 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. Molo also noted that Musk 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 prioritize AI's safety. He also contended that Microsoft knew all along that OpenAI cared more about money than being altruistic. OpenAI countered that it was Musk who saw dollar signs, and that he waited too long to claim OpenAI breached its founding agreement to build safe artificial intelligence to benefit humanity. "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.
Market Context
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 an IPO that could exceed OpenAI's in size.
