In a significant legal setback for Elon Musk, a jury unanimously ruled in the case of Musk v. Altman that he had filed his lawsuit against OpenAI too late, thereby barring his claims based on the applicable statutes of limitations. The ruling, accepted by US District Judge Yvonne Gonzalez Rogers, means Musk’s allegations will not proceed to trial. Following the verdict, Musk announced via X that he intends to appeal the decision, emphasizing that the jury’s ruling focused solely on procedural issues, not the substantive merits of his claims.
Musk’s lawsuit stemmed from his role as a cofounder of OpenAI, which was established as a nonprofit organization aimed at developing artificial intelligence for the benefit of humanity. He initially contributed millions to the organization with the expectation that it would remain committed to its nonprofit mission. Musk’s claims against OpenAI included allegations of breach of charitable trust, arguing that OpenAI’s CEO Sam Altman and President Greg Brockman violated their promise by creating a for-profit subsidiary that expanded significantly over time. He also asserted that they unjustly enriched themselves at his expense.
The court found that Musk’s claims were time-barred, with the statute of limitations for breach of charitable trust set at three years and unjust enrichment at two years. Musk argued that he only became aware of the alleged breach in 2021, but OpenAI contended that he should have recognized the issues much earlier. Throughout the trial, Musk described his evolving perceptions of OpenAI, indicating a shift from initial support to skepticism and ultimately to a belief that the organization had strayed from its original mission. The jury ultimately sided with OpenAI, concluding that Musk had sufficient reason to suspect wrongdoing before the legal time limit expired.
Source: Here’s why Elon Musk lost his suit against OpenAI via MIT Technology Review