A federal jury in Oakland, California, has found Sam Altman, OpenAI, and its president Greg Brockman not liable for claims brought by Elon Musk that they broke a founding contract and unjustly enriched themselves. The verdict, delivered after less than two hours of deliberation, represents a significant setback for Musk, who had accused Altman of “stealing a charity” through his leadership of the AI firm.
The jury’s decision is non-binding, but Judge Yvonne Gonzalez Rogers immediately stated she would agree with the finding and dismissed Musk’s claims. She noted there was substantial evidence to support the jury’s conclusion. The case centred on whether Musk’s lawsuit, filed in 2024, fell within the statute of limitations. OpenAI argued Musk was aware of its plans to adopt a for-profit structure as early as 2017, making his claims time-barred.
Following the verdict, OpenAI’s lead attorney William Savitt described Musk’s case as a “hypocritical attempt to sabotage a competitor”. He said the jury had considered hundreds of pieces of evidence and weeks of testimony, ultimately concluding that Musk’s allegations were “stories, not facts”. Musk’s lawyers, Steven Molo and Marc Toberoff, framed the outcome as a technical decision and indicated plans to appeal to the Ninth Circuit.
The trial, which spanned three weeks, featured testimony from Silicon Valley executives including Musk, Altman, Brockman, and Microsoft CEO Satya Nadella. Microsoft, accused by Musk of aiding Altman, was also cleared. A Microsoft spokesperson welcomed the jury’s decision, stating the facts had long been clear. None of the main parties were present in court for the verdict.
The case had sought $134bn in damages and demanded the removal of Altman and Brockman from OpenAI, as well as the reversal of the company’s for-profit restructuring. The verdict removes a major legal hurdle for OpenAI, which is reportedly planning to go public later this year at a valuation of around $1tn.
