A California jury has rejected Elon Musk's OpenAI lawsuit, ruling he filed the claims too late. An appeal is expected.
Elon Musk has suffered a major legal setback against OpenAI. A nine-person jury in California has unanimously thrown out his lawsuit. The reason? He simply waited too long to file it.
Musk had accused Sam Altman, Greg Brockman, and Microsoft of stealing a charity. He argued they turned the original non-profit AI lab into a profit-driven business. But the jury agreed with OpenAI's defense. They found that whatever harm Musk suffered happened before the legal deadline to sue.
Judge Yvonne Gonzalez Rogers strongly backed the jury's decision. She stated there was enough evidence to dismiss the case on the spot. The judge also rejected Musk's massive damage estimate. His expert had claimed up to 135 billion dollars in losses, but the judge said the calculation had no connection to the facts.
This ruling clears a major hurdle for OpenAI. The company can now push forward with its planned public listing without the threat of a forced restructuring.
OpenAI's legal team did not hold back after the verdict. Lead attorney Bill Savitt called the lawsuit an after-the-fact contrivance and a hypocritical move to sabotage a competitor. Microsoft also welcomed the decision, pledging to continue its partnership with the AI firm.
Despite the loss, Musk is refusing to give up. He took to social media to claim a moral victory, insisting the charity was indeed stolen. His lawyer, Marc Toberoff, has confirmed they are heading to the Ninth Circuit Court of Appeals.
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