Homepage AI Elon Musk loses major OpenAI court battle

Elon Musk loses major OpenAI court battle

Elon Musk loses major OpenAI court battle
Algi Febri Sugita/shutterstock.com

Elon Musk has lost his high-profile lawsuit against OpenAI after a U.S. jury ruled the billionaire brought the case too late.

Elon Musk has lost his high-profile lawsuit against OpenAI after a U.S. jury ruled the billionaire brought the case too late.

The decision marks a major victory for OpenAI and CEO Sam Altman in one of the most closely watched legal fights in the AI industry.

Jury rejects case

According to Al Jazeera a federal jury in Oakland, California, unanimously ruled in favour of OpenAI after less than two hours of deliberation.

Musk had accused the company of abandoning its original nonprofit mission in pursuit of massive profits.

The Tesla and SpaceX CEO argued OpenAI shifted away from building AI “for humanity” behind his back.

Jurors ultimately decided the lawsuit had been filed too late to proceed.

Musk reacts

Musk immediately attacked the verdict and vowed to appeal the decision.

On X, the platform he owns, Musk accused Sam Altman and Greg Brockman of “stealing a charity.”

“Creating a precedent to loot charities is incredibly destructive to charitable giving in America,” Musk posted.

The billionaire had sought damages and also pushed for Altman’s removal from OpenAI’s board.

OpenAI under spotlight

The trial exposed years of tension between Musk and OpenAI leadership.

Musk co-founded OpenAI in 2015 and reportedly invested around $38 million during its early years.

Since then, OpenAI has exploded into one of the world’s most valuable AI companies following the success of ChatGPT.

The company is now reportedly valued at around $852 billion ahead of a potential future IPO.

AI rivalry grows

Lawyers for OpenAI argued Musk’s lawsuit was motivated by business competition rather than public interest.

OpenAI’s legal team claimed Musk became hostile after losing influence over the rapidly growing company.

The case also highlighted the escalating rivalry between OpenAI and Musk’s own AI venture, xAI.

Microsoft’s massive financial backing of OpenAI also became a major focus during testimony.

Bigger battle ahead

Legal experts say Musk could face a difficult appeal after the jury’s unanimous verdict.

The judge overseeing the case said substantial evidence supported the outcome reached by jurors.

The lawsuit has become one of the clearest signs yet of how fiercely contested the future of artificial intelligence has become.

As the AI race intensifies, tensions between Silicon Valley’s biggest players appear far from over.

Sources: Al Jazeera, Reuters, AP

Ads by MGDK