OpenAI dodges Musk lawsuit

Elon Musk lost his case against OpenAI on Monday after a federal jury in Oakland, California, found that he had sued too late over the company’s shift away from its original nonprofit structure. The verdict ended a three-week trial that centered on whether OpenAI and its executives had broken commitments made when the company was founded in 2015. Reuters and the Associated Press reported that the jury found OpenAI not liable on Musk’s claims and rejected his effort to stop the company’s current course. Musk said after the verdict that he would appeal. ### Why did the jury throw out Musk’s case? A nine-person jury found that Musk had missed the statute of limitations, according to AP and Reuters. That meant jurors did not accept his attempt to revive claims that OpenAI, Chief Executive Sam Altman and others had betrayed a shared plan to build artificial intelligence for the public good rather than for private gain. Reuters said the verdict was unanimous. (usnews.com) Monday’s decision followed less than two hours of deliberation, AP reported. The speed of the verdict underscored how central the timing issue was to the case after weeks of testimony about OpenAI’s founding, Musk’s early support and the company’s later partnership with Microsoft. ### What was Musk accusing OpenAI of doing? (apnews.com) Elon Musk had argued that OpenAI strayed from its founding mission and was transformed into a profit-seeking business with Microsoft’s backing, according to Reuters, AP and Business Insider’s account of the case. His suit targeted OpenAI, Altman, President Greg Brockman and Microsoft over what he said was a departure from promises tied to the company’s creation. (usnews.com) OpenAI had countered that Musk’s claims were untimely and unsupported, and the jury agreed with that defense. AP reported that Musk accused the company of abandoning a nonprofit vision dedicated to guiding AI development for humanity’s benefit. ### Who came out ahead besides OpenAI? Reuters reported that the ruling removed an obstacle to OpenAI’s commercial ambitions and prospective initial public offering. (usnews.com) That matters because Musk’s lawsuit had become one of the most visible legal risks hanging over the company as it pursued expansion, fundraising and a more conventional corporate structure. (apnews.com) The New York Times and Bloomberg both described the verdict as clearing the way for OpenAI to continue operating without the court-ordered overhaul Musk had sought. Bloomberg said Musk had tried to force changes to OpenAI’s direction, while the Times said the setback freed the company to continue competing in the AI race. ### What did Musk say after losing? (usnews.com) Musk said he would appeal the verdict. Business Insider reported that he dismissed the outcome as resting on “just on a calendar technicality” and said there was “no question” that Altman had enriched himself. Marc Toberoff, Musk’s lawyer, also indicated the fight was not finished, according to Forbes. (nytimes.com) Reuters, AP and Politico each reported that an appeal is expected after the jury’s decision in federal court. ### What happens next in court? An appeal would move the dispute out of the trial court in Oakland and into the federal appellate process. (msn.com) Reuters and AP reported only that Musk plans to challenge the verdict, not that any higher court has yet acted. The next formal step is likely to be a notice of appeal filed by Musk’s side after the May 18 verdict. (forbes.com) Any further review would focus on the legal rulings and trial record that produced the jury’s finding that he waited too long to sue. (usnews.com)