Elon Musk loses lawsuit against Sam Altman and OpenAI
Original: Elon Musk has lost his lawsuit against Sam Altman and OpenAI
Why This Matters
Removes major legal threat to OpenAI ahead of reported IPO and validates its corporate structure
Nine California jurors unanimously ruled Elon Musk's lawsuit against OpenAI cofounders Sam Altman and Greg Brockman was filed too late. Musk accused them of stealing charity by creating for-profit affiliate, but jury found claims exceeded statute of limitations deadlines.
A California jury unanimously rejected Elon Musk's lawsuit against OpenAI cofounders Sam Altman and Greg Brockman, finding his claims were filed past legal deadlines. Musk accused Altman, Brockman, OpenAI and Microsoft of 'stealing a charity' by creating a for-profit affiliate of the AI lab. The jury determined any harms Musk suffered occurred before statutory deadlines ranging from August 2021 to November 2021. Judge Yvonne Gonzalez Rogers said there was substantial evidence supporting the verdict and was prepared to dismiss immediately. The ruling removes a major threat to OpenAI ahead of its reported IPO, eliminating potential restructuring requirements. Musk's lead counsel Marc Toberoff indicated plans to appeal the decision.