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Elon Musk loses lawsuit against Sam Altman's OpenAI; US court says case brought ‘too late’
The jury at a California federal court reportedly observed in a unanimous verdict that Elon Musk brought his case too late.
TeslTesla CEO Elon Musk lost his lawsuit against Sam Altman's OpenAI on Monday, with a US jury observing that he brought his case "too late".
A California federal court, citing the jury's unanimous verdict, found that Altman's company was not liable to the world's richest person for allegedly straying from its original motto for humanity's sake, Reuters reported.
The trial, which began on April 28, was seen as a critical moment for OpenAI's future and that of artificial intelligence in general.
The future of AI was being examined in terms of how it should be used and who it should benefit, also financially.
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AI is used for a wide range of purposes, including education, facial recognition, financial advice, legal research, medical diagnosis, and creation of harmful deepfakes, among others.
The US court's verdict came after 11 days of arguments and testimony, during which both Musk and Altman's credibility was targeted repeatedly.
Musk and Altman's sides accused each other of being more interested in money than public service.
Money or public service?
In his closing argument, Steven Molo, Musk's lawyer, reminded jurors that several witnesses described Altman as a liar. He added that Elon Musk did not give an unqualified agreement when asked during the trial if Altman was completely trustworthy.
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"Sam Altman's credibility is directly at issue," Molo said, adding that “if you don't believe him, they cannot win.”
Musk accused OpenAI of wrongfully trying to improve investors and insiders at the nonprofit's expense, and failing to prioritise the safety of artificial intelligence.
Musk also argued that Microsoft had always been aware of OpenAI's priority towards money over altruism.
Altman's team countered that it was Musk who was more focused on money, and waited too long to claim that OpenAI breached its founding mission to build safe AI to benefit humanity.
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William Savitt, OpenAI's lawyer, said in his closing argument, "Mr Musk may have the Midas touch in some areas, but not in AI."
Musk and Altman have been locking horns for a long time. OpenAI competes with leading AI companies such as Anthropic and xAI, and is preparing for a possible initial public offering (IPO) that could value its business at $1 trillion.
Microsoft has spent over $100 billion on its partnership with OpenAI, a company executive reportedly testified in court.
Meanwhile, Musk's xAI has now become a part of his space and rocket company SpaceX, and is also preparing an IPO that could exceed OpenAI in size.
