Musk loses case against OpenAI
By Hadas Gold, Samantha Delouya, CNN
(CNN) — Elon Musk waited too long to sue OpenAI and its leaders, a jury in Oakland, California, decided on Monday. A lawsuit he filed was barred by the statute of limitations, the jury found after about 90 minutes of deliberation.
Musk helped cofound and fund OpenAI, giving $38 million in its early years. He sued CEO Sam Altman, company president Greg Brockman, and OpenAI in February 2024, alleging that they “stole a charity” when they shifted to a structure that includes a for-profit arm.
Microsoft was named as a codefendant for “aiding and abetting” the claims through its investments in OpenAI. Musk left OpenAI in 2018 and started his own AI company, xAI, in 2023.
“I was a fool,” he told the court earlier this month. “I gave them free funding to create a startup.”
The jury in this case served in an advisory capacity, rather than having the final say. However, Judge Yvonne Gonzalez Rogers indicated that her decision would align with the jury’s.
“I think that there’s a substantial amount of evidence to support the jury’s finding,” she said to Musk’s attorney on Monday.
Musk’s case threatened to derail the ChatGPT maker as it planned what could be a blockbuster IPO. The jury’s decision is a win for OpenAI and its founders, Altman and Brockman.
OpenAI, for its part, claimed that Musk waited to file the suit until he founded his own competing artificial intelligence company. The jury agreed, finding that Musk was aware of the behavior discussed in the lawsuit as early as 2021.
This is a developing story and will be updated.
The-CNN-Wire
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