OpenAI-Ordeal: Elon Musk Loses High-Profile Case Against OpenAI
World’s richest man Elon Musk has suffered a major setback in the widely discussed Silicon Valley legal battle between OpenAI and himself. After nearly three weeks of hearings and witness testimonies, the court ruled against Musk. The jury board stated that OpenAI Chief Executive Officer Sam Altman and Greg Brockman are not legally liable in the case.
California Judge Yvonne Gonzalez Rogers dismissed Musk’s allegations of “breach of charitable trust agreement and unlawful enrichment,” primarily because the lawsuit was filed after the statutory deadline, or limitation period, had expired. The judge clearly stated that even if Musk appeals the verdict, it would be immediately dismissed. However, shortly after the ruling, Musk posted on X that he would appeal the decision in a higher court.
Background of the Case and Musk’s Frustration
In 2024, Elon Musk filed the lawsuit against OpenAI. He alleged that Altman and Brockman had “stolen” a non-profit charitable organization and transformed it into a profit-driven commercial company. Musk particularly argued that accepting a 13 billion dollar investment from Microsoft constituted a severe violation of the original agreement.
Reacting to the verdict on X, Musk wrote, “The judge and jury did not rule on the core issue of the case; they dismissed it on a technical calendar loophole. Anyone who has examined this case in detail has no doubt that Altman and Brockman stole a charity and became rich themselves. The only question now is when they did it!”
Courtroom Clashes Between Altman and Musk
During the hearings, Elon Musk’s lawyers attempted to portray Sam Altman as “a liar and fraudster.” An old statement by former OpenAI Chief Technology Officer Mira Murati was presented in court, where she described Altman as someone who “says one thing to one person and the exact opposite to another.”
When Altman was asked in court whether he considered himself honest, he initially hesitated and replied, “I believe so.” After pressure from Musk’s lawyer, Altman later corrected his response and directly answered, “Yes.”
Meanwhile, although Sam Altman appeared somewhat defensive in court, Elon Musk was reportedly aggressive and irritable. Responding to questions from OpenAI’s lawyers, Musk said, “Your questions are not simple; they are basically designed to trap me.” However, Musk was absent from court on the final day of the trial. Reports said he had traveled to China with U.S. President Donald Trump in defiance of the court’s instructions.
Relief for Microsoft and OpenAI
Following the verdict, a spokesperson for Microsoft said in a statement, “The facts and timeline of this case were clear from the beginning. We welcome the jury board’s decision to dismiss the case. We remain committed to working with OpenAI to expand AI technology for the benefit of people worldwide.”
Legal analysts said Musk’s chances of winning had already appeared slim before the trial began. Musk sought to overturn OpenAI’s commercial restructuring and remove Altman and Brockman from their positions. However, the court was unwilling to abruptly cancel a commercially approved restructuring endorsed by government authorities.
DBTech/BMT/OR
