Jury dismisses Musk’s lawsuit against Altman and OpenAI over statute of limitations

A jury has dismissed Elon Musk’s lawsuit against Sam Altman and OpenAI, ruling that the legal claim was lodged after the statute of limitations had expired. The verdict concludes the trial, which ostensibly concerned the conversion of OpenAI from a nonprofit to a for-profit entity, although Musk has indicated he intends to pursue an appeal.

The case, described by The Verge as a personal vendetta by Musk against Altman, was characterised by chaotic courtroom proceedings. Coverage from The Verge’s Liz Lopatto noted daily protests and incidents involving individuals being ejected for recording proceedings, with the atmosphere likened to a zoo.

Evidence presented during the trial suggested Musk was aware of OpenAI’s conversion to a for-profit entity and its investment rounds well before the period known as the “blip,” when Altman was briefly removed and reinstated as chief executive. This timeline undermined Musk’s argument that he only recently discovered the alleged violation of charitable trust.

Testimony indicated that Musk’s donations to the OpenAI Foundation came with no specific strings attached, and financial records showed funds were spent on AI development costs. Former OpenAI board member Helen Toner’s ties to Anthropic were revealed, casting doubt on her reliability as a witness, while Microsoft was portrayed as a stable, albeit detached, participant.

The trial also highlighted significant personnel shifts in the artificial intelligence industry, with former OpenAI researcher Andrej Karpathy joining Anthropic. Meanwhile, Musk’s own AI project, xAI, appeared to be starting over after previously distilling other models, suggesting a lack of serious technical progress compared to competitors.