A federal jury in California has rejected Elon Musk's claims that OpenAI, under the leadership of Sam Altman, abandoned its original nonprofit mission to benefit humanity by transitioning into a for-profit entity. The verdict, delivered on Monday in Oakland, concluded that Musk waited too long to bring the lawsuit, effectively dismissing his central arguments.
Background of the Case
The trial, which lasted nearly three weeks, centered on the bitter feud between Musk and Altman, who co-founded OpenAI in 2015. Since then, the startup has grown into one of the most valuable and influential artificial intelligence companies globally. Musk filed his complaint in 2024, alleging that Altman and OpenAI President Greg Brockman had betrayed the company's founding principles by prioritizing commercial profits over public benefit.
Jury's Decision
After approximately two hours of deliberations, the nine-member jury reached a unanimous verdict. U.S. District Judge Yvonne Gonzalez Rogers noted, “I think there is a substantial amount of evidence to support the jury’s findings.” The jury determined that Musk had sufficient knowledge of his claims years earlier and should have filed the lawsuit sooner. As a result, the panel did not address the core allegation that OpenAI had forsaken its humanitarian mission.
Reactions from Both Sides
OpenAI attorney William Savitt told reporters, “The finding of the jury confirmed that what this lawsuit was is a hypocrite’s hypocritical attempt to sabotage a competitor and to overcome a long history of very bad predictions about what OpenAI has been and will become.”
Musk's legal team, led by attorney Marc Toberoff, vowed to appeal. Toberoff stated, “This reminds me of key moments in this country’s history, the Siege of Charleston, the Battle of Bunker Hill. These were major losses for Americans, but who won the war? This one is not over.”
Broader Legal Context
While Musk has a strong track record in court, he has faced recent setbacks. In August, Tesla Inc. was ordered to pay $243 million in a fatal crash case, and in March, Musk faced up to $2.6 billion in damages after losing a trial brought by Twitter Inc. investors.
Trial Highlights
Jurors heard testimony from Musk, Altman, Brockman, and other key figures who witnessed the co-founders' falling out over the past decade. The evidence included hundreds of private messages, journal entries, and corporate documents that provided a rare glimpse into the internal struggles of OpenAI as it evolved from a small startup into a nearly trillion-dollar company.
Musk's legal team argued that Altman and Brockman “stole a charity” when they restructured OpenAI into a for-profit business. They also accused Microsoft Corp. of aiding this betrayal by investing $13 billion in OpenAI between 2019 and 2023.
In contrast, OpenAI portrayed the transformation as a natural and necessary evolution to secure funding and compete in the rapidly advancing AI industry. The company maintained that its commitment to developing AI for the benefit of humanity remained unchanged.
