Elon Musk Sued by OpenAI, Loses Lawsuit in Court

Musk Loses Lawsuit Against OpenAI

A U.S. jury delivered a verdict against Elon Musk in his lawsuit against OpenAI, finding that the artificial intelligence firm was not liable for allegedly straying from its original mission of benefiting humanity.

The unanimous verdict was delivered in federal court in Oakland, California, on Monday, with the jury ruling that Musk had filed the case too late. The trial, which began on April 28, was widely viewed as a key moment for the future direction of artificial intelligence and the growing debate over who should benefit financially from the technology.

The trial saw 11 days of testimony and arguments, with lawyers for both sides repeatedly attacking the credibility and motivations of Musk and OpenAI CEO Sam Altman. Musk had accused OpenAI of trying to enrich investors and insiders at the expense of its nonprofit mission while failing to prioritise AI safety. He also argued that Microsoft knew OpenAI was focused more on profits than altruism.

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OpenAI, however, argued that Musk himself was motivated by financial interests and had waited too long to claim the company violated its founding agreement to build safe AI for humanity. The company currently competes with AI firms such as Anthropic and xAI, and is reportedly preparing for a potential IPO that could value the company at nearly $1 trillion.

A Microsoft executive testified during the trial that the company has invested $100 billion into its partnership with OpenAI. Meanwhile, Musk's xAI is now part of SpaceX, which is also preparing for an IPO that could surpass OpenAI in size, according to Reuters.

Note: The comparison between Microsoft's investment in OpenAI and the potential IPO value of OpenAI is presented in the table above.

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