Elon Musk has been unsuccessful in his claim against OpenAI and its owner, Sam Altman, following a unanimous verdict by a California jury.
Musk claimed that there had been a breach of charitable trust and unjust enrichment, alleging that Altman breached a non-profit contract when OpenAI was moved from a charity to a for-profit company after he donated $38 million in the AI company’s early days. Musk believes he was deceived on the basis that his generous donation was made to aid the original mission of the company which was to develop AI for the benefit of humanity, rather than commercial gain. Musk was on the board of OpenAI in 2015, though left the board just three years later after allegedly being denied control by its co-founders.
Musk has openly criticised OpenAI, stating that the company has failed to prioritise AI safety and has instead sought only to enrich investors. Since leaving OpenAI, Musk has started his own AI startup called xAI. In court, both sides argued that the motive of the other side was financial, not in the interest of humanity.
Musk’s claim failed as the jury concluded that he had brought his claim too late. The claim was initially brought in August 2024, several years after Musk became aware that OpenAI had plans to become a for-profit business, and was therefore outside of the three-year limitation period in which to file his claim. Musk has expressed his intention to appeal the decision, claiming that his claim has failed solely based on a technicality.
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