- A federal jury unanimously sided with OpenAI and Sam Altman, dismissing Elon Musk‘s lawsuit on a procedural technicality after deliberating for less than two hours.
- Musk declared he will appeal to the Ninth Circuit, claiming the ruling ignored the core allegations and sets a dangerous precedent for charitable giving.
- Musk had accused Altman and OpenAI President Greg Brockman of improperly converting the nonprofit into a for-profit entity for personal enrichment.
A federal jury in Oakland, California, delivered a swift verdict on Monday, siding unanimously with OpenAI and CEO Sam Altman in the high-profile lawsuit brought by co-founder Elon Musk. The jury deliberated for less than two hours before finding Musk’s claims were filed too late under the statute of limitations, according to a report by The Wall Street Journal.
Musk immediately declared he would appeal the decision. “Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality,” he posted on X. He said he intends to file an appeal with the Ninth Circuit, warning that the ruling sets a dangerous precedent that is “incredibly destructive to charitable giving in America.”
Outside the courthouse, Musk’s attorney Marc Toberoff offered a terse one-word reaction: “Appeal.” Musk had accused Altman and Brockman of betraying OpenAI‘s original charitable purpose for personal enrichment. Consequently, U.S. District Judge Yvonne Gonzalez Rogers accepted the jury’s advisory verdict and dismissed the case.
The outcome represents a major legal victory for OpenAI as it pursues commercial ambitions like a potential IPO. Meanwhile, retail sentiment around OpenAI on Stocktwits remained ‘bearish’ with ‘low’ message volume. Conversely, sentiment around Musk’s Tesla stayed within ‘bullish’ territory with normal chatter levels.
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