A California jury has tossed out Elon Musk's high-profile lawsuit against OpenAI and its boss Sam Altman.
In a unanimous verdict, the jury agreed that Musk had waited too long to file his lawsuit, leaving all of his claims essentially expired.
Musk had accused Altman of breaching a non-profit contract by shifting the ChatGPT-maker to a for-profit company after Musk donated $38 million (£28.5 million) early in OpenAI's history.
Musk claimed Altman had deceived him by accepting his money and then reneging on OpenAI's original non-profit mission to develop artificial intelligence (AI) technology for the benefit of humanity.
Jurors spent about two hours on Monday deliberating on the case, but they had spent three weeks viewing internal correspondence and hearing testimony from Musk, Altman, and other tech industry executives, including Microsoft's chief executive Satya Nadella.
Musk had accused Microsoft of aiding and abetting OpenAI in its allegedly improper transition to a more for-profit company.
Musk's other claims against Microsoft were dismissed as a matter of law given the jury's findings on the two claims against OpenAI.
A spokesperson for Microsoft said of the verdict: The facts and the timeline in this case have long been clear. The company added that it remained committed to its work with OpenAI.
The jury's decision adds to a string of recent losses and settlements for Musk in court.
Within hours of the verdict, Musk criticized the decision against him, writing on X that it created a free license to loot charities if you can keep the looting quiet for a few years! He accused the judge overseeing the case of being a terrible activist who used the jury as a fig leaf. Musk vowed to file an appeal, claiming the jury did not decide on the merits of the case and that the decision was based on a calendar technicality.
As the jury found that the statute of limitations had lapsed for Musk's claims of breach of charitable trust and unjust enrichment, they were not required to consider the merits of his claims. Carl Tobias, a law professor at the University of Richmond School of Law, said the jurors had made a very fact-based decision about the case.
On the trial's first day, Musk took the stand wearing a dark suit and tie and described the legal action, saying, It's actually very simple, it's not OK to steal a charity... If it's okay to loot a charity, the entire foundation of charitable giving will be destroyed. Altman told the jury during his testimony that Musk not only backed the for-profit shift but also vied for control of OpenAI.
Musk and Altman co-founded OpenAI in 2015, but Musk left in 2018 after being denied control. The lawsuit reflects the ongoing animosity between Musk and Altman following Musk's criticisms of OpenAI.
Following the verdict, Altman’s spokesman described it as a tremendous victory, emphasizing that it was an effort by Musk to slow down a competitor.
Outside court, Marc Toberoff, Musk's lawyer, indicated that the fight is not over, asserting there would be an appeal, suggesting an extended resolution of the case.
Nevertheless, legal experts suggest a high barrier for success in appeals regarding jury verdicts, especially given the jury's fact-specific decision.
