OpenAI’s Chief Executive Officer, Sam Altman, delivers a speech at the Microsoft Build gathering, held at the Seattle Convention Center Summit Building in Seattle, Washington on May 21, 2024. | Elon Musk is seen listening during a session at the Hyatt Regency on Capitol Hill on November 13, 2024 in Washington, DC.Jason Redmond/AFP | Andrew Harnik/Getty Images
On Monday, a jury determined that Elon Musk waited too long to file his accusations against OpenAI, led by Sam Altman, asserting it had strayed from its original mission of public benefit as it transitioned toward a profit-driven business model.
The advisory panel, comprising nine individuals, concluded that the allegations lodged against OpenAI and Altman were invalidated due to the expiration of the statute of limitations. Judge Yvonne Gonzalez Rogers concurred with the determination and dismissed the claims.
The proceedings, spanning three weeks at a federal courthouse located in Oakland, California, included testimonies from Musk and Altman, in addition to Microsoft CEO Satya Nadella.
When Musk initiated legal action against OpenAI and Altman two years prior, he contended that the organization had abandoned its intended objective of benefiting mankind.
Musk, one of the initial founders of OpenAI, asserted that he reached an accord with the company’s executives concerning the firm’s non-profit trajectory when it commenced operations in 2015.
Musk further accused the company of subsequently violating their agreement when they granted Microsoft the right to use ChatGPT-4 — implying that the technology conglomerate obtained entry to the then-most advanced iteration of their widely used chatbot via an exclusive licensing arrangement. Microsoft and OpenAI have since revised this licensing arrangement, enabling OpenAI to negotiate agreements with additional tech entities.
OpenAI’s Chief Executive Officer, Sam Altman, arrives at the federal courthouse, as the trial regarding Elon Musk’s litigation over OpenAI’s shift to a for-profit model carries on, in Oakland, California, May 14, 2026.Manuel Orbegozo/Reuters
OpenAI refuted the allegations, branding them as "groundless." Microsoft also rejected any suggestion of wrongdoing. Musk, known as the wealthiest individual on the planet, possesses a net worth of $803 billion, according to Forbes. He was pursuing $150 billion in compensation from the technology corporations, in addition to the ousting of Altman from OpenAI's board.
Musk also sought a court order mandating that OpenAI adhere to its purported founding objective of assisting humanity and preserving its non-profit structure.
OpenAI, a privately held entity, estimated its worth at $852 billion following a fundraising effort in March. Microsoft's valuation — gauged by market capitalization — is approximately $3.1 trillion.
Musk asserted two accusations against OpenAI: unjust enrichment and breach of fiduciary duty to charity.
Attorneys speaking for Altman contended that Musk was impelled by a desire to exert authority over OpenAI, rather than a legitimate concern to preserve its non-profit standing. In actuality, Musk aimed to integrate OpenAI into Tesla — an action that would have incorporated the venture into a for-profit organization, attorneys representing Altman declared in legal documents.
In 2018, Musk communicated to a former OpenAI employee that monetary aid from Tesla would allow OpenAI to challenge the technology titan Google, according to the filing.
"Tesla [was] the singular avenue capable of even coming close to competing with Google," Musk stated, as indicated in the legal document.
For his part, Musk maintained in the litigation that the agreement pertaining to OpenAI's non-profit nature was formally recorded in a legal filing upon OpenAI's incorporation.
Within the lawsuit, Musk asserted that Altman and OpenAI President Greg Brockman reaffirmed the founding agreement in written communications across the ensuing years.
"[I] continue to be enthusiastic regarding the non-profit composition!" Altman wrote to Musk in 2017, according to the lawsuit.
Musk, who played a role in financing OpenAI, established a rival for-profit AI venture in 2023 under the name xAI, which engineered a chatbot designed to challenge ChatGPT.
Acknowledging his prior grievances concerning the tempo and ambitions of AI advancement, Musk stated during a conference discussion on X in July 2023 that he entered the field reluctantly.
Sourse: abcnews.go.com