Jury hands victory to Sam Altman and OpenAI in Elon Musk lawsuit

A federal jury in Oakland, California, found OpenAI CEO Sam Altman and President Greg Brockman not liable for unjust enrichment and breach of contract claims brought by Elon Musk, handing a decisive victory to the leaders of the artificial intelligence company in a bitter legal dispute that pitted the world’s richest person against a key figure in the AI boom.

The jury rejected Musk’s allegations that Altman and Brockman violated a founding agreement when OpenAI restructured from a nonprofit to a for-profit entity. The verdict, while non-binding, is expected to be adopted by U.S. District Judge Yvonne Gonzalez Rogers, who immediately indicated she would concur.

The verdict is a stark rebuke of Musk and his lawyer’s claims that Altman “stole a charity” through his leadership of OpenAI.

The jury’s decision is advisory, leaving the final ruling to Judge Yvonne Gonzalez Rogers, who said she would align with the jury’s findings.

The nine-person jury began deliberations Monday morning following a three-week trial that featured testimony from Silicon Valley’s most prominent executives, including Musk, Altman, Brockman and Microsoft CEO Satya Nadella. The witnesses faced combative cross-examinations in the Oakland courtroom.

The verdict caps one of the most closely watched trials in the technology industry, offering a behind-the-scenes look at OpenAI’s fractious history and the rivalry between two of the sector’s biggest names. Although a victory for Altman, the case exposed unflattering details and episodes involving both moguls.

Musk’s lawsuit sought $134bn to be redistributed from OpenAI’s for-profit arm to its nonprofit, and demanded the removal of Altman and Brockman from their roles at OpenAI, as well as the undoing of the firm’s for-profit restructuring.

At the core of the case was Musk’s allegation that Altman, Brockman and OpenAI broke a founding agreement when they restructured the company into a for-profit entity. Musk accused the defendants of breach of charitable trust and unjust enrichment, claiming that Altman swindled him into co-founding OpenAI in 2015 as a nonprofit to benefit humanity, then later twisted the mission for personal gain.

OpenAI rejected all of Musk’s claims and stated that he was always aware of plans to create a for-profit entity. Attorneys for the firm argued that Musk was motivated by jealousy after a failed attempt to take over OpenAI in 2018 and his departure shortly after. OpenAI repeatedly stated that it remains overseen by its nonprofit organization and dedicated to what it refers to as “the mission” of helping the world with its technology.

The trial brought in current and former OpenAI executives to testify on the company’s history, along with academic experts on nonprofit law and corporate governance. Lawyers on both sides presented stacks of private texts, emails and other internal documents to establish the timeline of OpenAI’s founding, particularly when the litigants became aware of for-profit plans.