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Court dismisses high-profile lawsuit by Elon Musk against OpenAI and its CEO Sam Altman

A jury in California unanimously dismissed the case, as Musk filed the lawsuit after the statute of limitations for such claims had expired, reports the BBC.

Photo: Benjamin Fanjoy/Getty Images

Musk accused Altman of violating a non-profit agreement because he turned OpenAI into a commercial company after Musk had donated 38 million dollars.

According to Musk, Altman deceived him: he accepted the donation and then abandoned OpenAI's original non-profit mission – to develop artificial intelligence technologies for the benefit of humanity.

OpenAI claimed that the transformation into a commercial structure was necessary for the company to generate funds for further development of artificial intelligence.

Jurors spent three weeks examining internal correspondence and hearing testimonies. The verdict was delivered after approximately two hours of deliberation.

Musk and Altman themselves testified in the case, as did Microsoft CEO Satya Nadella, whom Musk accused of complicity in the scheme.

On the first day of court, Musk appeared in a dark suit and tie. One of his lawyers asked about the essence of the lawsuit.

"It's actually very simple," Musk said. "You cannot steal a charitable organization... If you allow the theft of a charitable organization, then the entire foundation of charity will be destroyed."

However, Altman stated in his testimony that Musk not only supported the idea of transforming OpenAI into a commercial company but also wanted to control it in the long term.

"A particularly troubling moment was when my co-founders asked [Musk]: 'If you are in control, what happens after your death?' He replied something like: 'Perhaps control should pass to my children,'" Altman recounted.

Other lawsuits by Musk, including against Microsoft, were also dismissed in accordance with the law after the jury's decision on the two lawsuits against OpenAI.

OpenAI was founded by Musk and Altman in 2015 as a non-profit organization. In February 2018, relations between the co-founders deteriorated, and Elon Musk left OpenAI's board of directors.

OpenAI representative Sam Sinner, answering journalists' questions outside the courthouse, called the verdict "a huge victory."

"This was just an attempt by Mr. Musk to slow down a competitor," he stated, adding that it was a victory "for the justice system too."

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