A US jury on Monday found Elon Musk not liable to OpenAI in his lawsuit accusing the AI company of straying from its mission to benefit humanity. The trial had wide-ranging implications for AI and its future use and benefit. The ruling is also expected to impact Musk's private AI company XAI, which is preparing to go public.
Jury rejects billionaire’s claims that ChatGPT maker abandoned humanity-first founding principlesShare current article via TwitterOakland, California — A US jury on Monday ruled against Elon Musk in his lawsuit against OpenAI, finding the AI company not liable to the world’s richest person for having allegedly strayed from its original mission to benefit humanity.
In a unanimous verdict, the jury in Oakland, California, federal court said Musk had brought his case too late. The trial had widely been seen as a critical moment for the future of OpenAI and AI generally, both in how it should be used and who should benefit from it.
Following the verdict, Musk’s lawyer said he reserved the right to appeal, but the judge suggested he may have an uphill battle because whether the statute of limitations ran out before Musk sued was a factual issue.
“There’s a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” US district judge Yvonne Gonzalez Rogers said. In his 2024 lawsuit, Musk accused OpenAI, its CEO Sam Altman and its president Greg Brockman of manipulating him into giving $38m, then going behind his back by attaching a for-profit business to its original non-profit and accepting tens of billions of dollars from Microsoft and other investors.
OpenAI was founded by Altman, Musk and several others in 2015. Musk left its board in 2018, and OpenAI set up a for-profit business the next year. People use AI for myriad purposes such as education, facial recognition, financial advice, journalism, legal research, medical diagnoses and harmful deepfakes. The verdict followed 11 days of testimony and arguments where Musk’s and Altman’s credibility came under repeated attack.
In his closing argument, Musk’s lawyer Steven Molo reminded jurors that several witnesses questioned Altman’s candour or branded him a liar and that Altman did not give an unqualified yes when asked during the trial if he was completely trustworthy.
“Sam Altman’s credibility is directly at issue,” Molo said. “If you don’t believe him, they cannot win. ” Musk accused OpenAI of wrongfully trying to enrich investors and insiders at the nonprofit’s expense and failing to prioritise AI’s safety. He also contended that Microsoft knew all along that OpenAI cared more about money than being altruistic.
OpenAI countered that it was Musk who saw dollar signs and that he waited too long to claim OpenAI breached its founding agreement to build safe AI to benefit humanity.
“Mr Musk may have the Midas touch in some areas, but not in AI,” William Savitt, a lawyer for OpenAI, said in his closing argument. OpenAI competes with AI companies such as Anthropic and xAI and is preparing for a possible initial public offering that could value the business at $1-trillion. Microsoft has spent more than $100bn on its partnership with OpenAI, a Microsoft executive testified.
Musk’s xAI is now part of his space and rocket company SpaceX, which is preparing an IPO that could exceed OpenAI’s in size.
US Jury Elon Musk Openai AI Company XAI Spacex IPO
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jury to decide fate of Musk's blockbuster suit against OpenAIDeliberations begin on Monday in the blockbuster trial pitting Elon Musk against AI giant OpenAI and its CEO Sam Altman, whom Musk accuses of abandoning the company's founding mission.
Read more »
Rwanda: What You Should Know About New VAT Rules On Digital ServicesThe government has introduced new regulations expanding Value Added Tax (VAT) obligations to a wide range of digital services and products.
Read more »
ConCourt rules on controversial certificate key to NHIThe court declared the sections invalid and ordered the health minister and director-general to pay the applicants' costs.
Read more »
Starlink: South Africa can make better choicesSouth Africa’s Starlink battle is intensifying as government pushes to relax BEE ownership rules. Critics warn Elon Musk’s satellite network poses serious sovereignty, privacy and national-security risks for Mzansi.
Read more »