OpenAI wins Musk $150B lawsuit

A federal jury in Oakland, California, ruled on May 18 that Elon Musk waited too long to sue OpenAI, ending a closely watched trial over whether the company abandoned its founding mission. The nine-member jury found OpenAI, Chief Executive Sam Altman and other defendants not liable on Musk’s claims, according to court coverage by Reuters, The New York Times and other outlets. Musk had sought roughly $150 billion and argued that OpenAI’s shift toward a for-profit structure betrayed the original nonprofit vision he said he helped finance. His lawyers said after the verdict that they would appeal. ### Why did the jury throw out Musk’s case? The verdict turned on timing. Jurors found that Musk’s claims were barred by the statute of limitations, concluding he had sued too late after the events he said showed OpenAI had changed course. The New York Times reported that the jury’s decision was unanimous and came after less than two hours of deliberation. Reuters reported that the verdict was delivered in federal court in Oakland after a three-week trial over Musk’s allegations that OpenAI strayed from its mission to benefit humanity. ### What was Musk accusing OpenAI of doing? Musk sued OpenAI, Altman and others over the company’s evolution from a nonprofit research lab into a business that built a commercial partnership with Microsoft and pursued a more conventional corporate structure. He argued that the company’s leaders had broken commitments tied to OpenAI’s founding and to his early support. Reuters reported that Musk claimed OpenAI had strayed from its original mission, while Bloomberg and the Times described the case as a fight over whether Altman and other leaders converted a public-interest project into a for-profit enterprise. OpenAI denied wrongdoing and argued that Musk had long known the direction the company was taking. ### How big was the case for OpenAI? The number attached to the case was about $150 billion. That made it one of the most consequential legal threats hanging over OpenAI as it expands its business and weighs future capital-raising options. Reuters said the verdict removed an obstacle to a possible initial public offering. The Times reported that the ruling frees OpenAI to continue competing in artificial intelligence without the immediate risk that Musk’s lawsuit could force a restructuring or large damages award. ### Who else was pulled into the fight? Sam Altman was a central defendant because the case focused on decisions made by OpenAI’s leadership after Musk’s departure from the company. Greg Brockman and Microsoft were also drawn into reporting on the case as Musk argued that OpenAI’s alliance with Microsoft showed the company had abandoned its original purpose. NBC News and GeekWire reported that the jury found Altman, Brockman, OpenAI and Microsoft not liable on all claims. The reporting described the dispute as the latest chapter in a long-running feud between Musk and Altman, who worked together to launch OpenAI in 2015 before Musk left its board in 2018. ### What happens next? Marc Toberoff, a lawyer for Musk, said after the verdict that Musk planned to appeal. That means the case is not finished, even though the trial ended in a clear win for OpenAI. The next formal step is expected to be a notice of appeal filed in federal court after entry of judgment. Reuters, the Times and Ars Technica reported Musk’s stated plan to challenge the verdict, while OpenAI leaves court with the jury’s decision intact and no damages award against it.