Musk argued that OpenAI had abandoned the non-profit ideals on which it was founded and instead shifted focus towards enriching investors and insiders. (Representational Image: AI Generated )

Elon Musk loses lawsuit against Sam Altman's OpenAI

Jurors in federal court in Oakland unanimously found that Elon Musk had filed the lawsuit too late. They rejected his claims that OpenAI had abandoned its original mission of developing artificial intelligence for the benefit of humanity rather than corporate profit.

by · India Today

In Short

  • California jury ruled against Elon Musk in lawsuit versus OpenAI
  • Musk accused OpenAI of abandoning non-profit mission for profit
  • OpenAI defended itself, citing competition and Musk's credibility issues

A California jury on Monday ruled against billionaire entrepreneur Elon Musk in his high-profile lawsuit against OpenAI, delivering a major legal victory for OpenAI in a closely watched courtroom battle over the future of artificial intelligence.

Jurors in federal court in Oakland unanimously found that Elon Musk had filed the lawsuit too late. They rejected his claims that OpenAI had abandoned its original mission of developing artificial intelligence for the benefit of humanity rather than corporate profit. The trial began on April 28.

Beyond the courtroom drama between Musk and OpenAI chief executive Sam Altman, the lawsuit also exposed growing tensions over who should control artificial intelligence and how rapidly the technology should expand. The verdict followed nearly two weeks of testimony that repeatedly placed both Musk's and Altman's credibility under scrutiny.

The trial often turned personal, with lawyers from both sides accusing the other of putting money and power ahead of public interest and AI safety.

Musk argued that OpenAI had abandoned the non-profit ideals on which it was founded and instead shifted focus towards enriching investors and insiders. He also accused the company of failing to place enough emphasis on safety as artificial intelligence rapidly expands into everyday life. The lawsuit further claimed that Microsoft -- OpenAI's biggest commercial backer -- knew the organisation had increasingly become driven by commercial interests rather than its original mission.

During closing arguments, Musk's lawyer, Steven Molo, directly challenged the credibility of OpenAI chief Sam Altman, telling jurors that multiple witnesses had questioned whether Altman had been truthful during the trial.

"Sam Altman's credibility is directly at issue," Molo said. "If you don't believe him, they cannot win."

OpenAI strongly rejected Musk's allegations and argued that the billionaire himself had become motivated by growing competition in the fast-moving AI industry.

"Mr. Musk may have the Midas touch in some areas, but not in AI," OpenAI lawyer William Savitt told jurors. The company also maintained that Musk had filed the lawsuit too late under California law -- an argument the jury ultimately accepted.

AI RACE INTENSIFIES

The courtroom battle unfolded as competition in artificial intelligence continues to intensify across the technology sector.

OpenAI has become one of the world's most influential AI companies following the success of ChatGPT and other generative AI tools. The company is reportedly preparing for a possible stock market debut that could value it at nearly $1 trillion. During the trial, testimony revealed that Microsoft had invested more than $100 billion into its partnership with OpenAI.

Musk, meanwhile, has expanded his own AI ambitions through xAI, which now operates alongside SpaceX as part of a wider technology push. SpaceX is also preparing for a future IPO that could potentially rival OpenAI's expected valuation.

- Ends
With inputs from agencies