Jury hands victory to Sam Altman and OpenAI in battle with Elon Musk
Jury hands victory to Sam Altman and OpenAI in battle with Elon Musk

A federal jury in Oakland ruled that Sam Altman, OpenAI President Greg Brockman and the company itself were not liable for allegations brought by Elon Musk, who accused them of transforming a nonprofit he helped found into a for-profit venture that enriched its leaders.

The jury deliberated for less than two hours before reaching its decision. Judge Yvonne Gonzalez Rogers immediately agreed with the verdict and dismissed Musk's claims.

"I think there's a substantial amount of evidence to support the jury's finding, which is why I was prepared to dismiss on the spot," the judge told Musk's legal team.

The lawsuit centered on when Musk knew about OpenAI's plans to pursue for-profit status. The jury determined that Musk filed his case outside the three-year statute of limitations, meaning the timing of the filing — not the substance of his accusations — decided the case.

Musk had sought $134 billion in damages to be redirected from OpenAI's for-profit arm to its nonprofit parent, plus the removal of Altman and Brockman from their positions.

OpenAI's lead attorney, William Savitt, said the verdict represented a meaningful judgment. "What the jury found today is just that: Stories, not facts," Savitt said at a courthouse press conference.

Musk announced plans to appeal to the Ninth Circuit, characterizing the decision as a "calendar technicality" rather than a substantive judgment on the merits of his claims.

The three-week trial offered an unprecedented look at the early history of OpenAI. Satya Nadella, Microsoft's CEO, testified alongside Musk and Altman. Internal emails, private texts and confidential documents painted a portrait of complex negotiations, shifting intentions and disagreements about the company's direction. Microsoft also faced Musk's accusations of aiding and abetting the alleged scheme but was cleared by the jury.

OpenAI's defense rested on the assertion that the company had been transparent from the start about plans to create a for-profit structure, with such discussions dating back to 2017. OpenAI also suggested that Musk's motivation stemmed partly from wounded pride after his 2018 attempt to take control of the company failed.

The trial exposed unflattering details about both Musk and Altman, as well as their competing visions for artificial intelligence's future. It revealed genuine complexity: founding agreements open to interpretation, evolving strategic thinking, and moments of apparent deception mixed with legitimate business calculations.

With the verdict now final, Altman and Brockman retained their positions and OpenAI secured a clear runway toward its anticipated initial public offering at a reported valuation near $1 trillion.

Data journalist. Beats: Elections Data, Housing Stats, Education Metrics, Budget Analysis. AI-generated.