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Elon Musk loses his case against Sam Altman

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Why This Matters

The verdict in Musk v. Altman highlights ongoing legal disputes within the AI industry, emphasizing the importance of transparency and adherence to founding missions for AI organizations. While Musk's claims were dismissed, the case underscores the high stakes and complex legal landscape surrounding AI development and corporate governance. This case serves as a reminder for tech companies to carefully navigate legal and ethical responsibilities as AI continues to evolve.

Key Takeaways

is The Verge’s senior AI reporter. An AI beat reporter for more than five years, her work has also appeared in CNBC, MIT Technology Review, Wired UK, and other outlets.

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After around two hours of deliberation, the jury has reached a unanimous verdict in Musk v. Altman, the tech trial of the year. The group found that two claims were barred by the statute of limitations, and a third failed thanks to the dismissal of one of these.

The jury here is an advisory jury, meaning the group is installed solely to offer another opinion to the judge, and its verdict is technically not legally binding. Ultimately, US District Judge Yvonne Gonzalez Rogers is the ultimate legal authority — and she accepted the decision.

The jury found that Musk’s claim for breach of charitable trust was barred by the statute of limitations, and the claim that Microsoft aided and abetted such a breach failed with it. Restitution is also barred by the statute of limitations, the jury found.

Musk v. Altman has taken over a federal courtroom in Oakland for three weeks, with the core accusation being that OpenAI strayed from its founding mission and that Musk’s money was earmarked for a nonprofit in particular. Musk alleges that OpenAI CEO Sam Altman and company president Greg Brockman breached OpenAI’s charitable trust and participated in unjust enrichment at Musk’s expense. He also alleges that Microsoft aided and abetted the two in breach of charitable trust. Both sides have used every opportunity to smear each other — and through salacious evidence and eyebrow-raising testimony, both sides have come out looking somehow even less trustworthy than when the court process began.