Musk vows to appeal after losing case against OpenAI
Elon Musk said he plans to appeal a federal grand jury verdict in his dispute with OpenAI over whether CEO Sam Altman abandoned the company’s original nonprofit mission. Musk argued the jury didn’t weigh the case’s evidence, calling it instead a “calendar technicality,” and reiterated his claim that Altman and others enriched themselves by shifting OpenAI from a charity model to a for-profit structure, differing only on when the change occurred.
He described the appeal as aimed at preventing a precedent that would “loot charities,” saying openai was founded to benefit humanity. The trial drew heavy media attention, and Musk had sought massive damages (including from Microsoft) while also asking for changes to Altman’s role and OpenAI’s corporate status. The judge overseeing the case indicated there was ample evidence supporting the jury’s decision. Until the appeal, Altman is expected to remain in his role and OpenAI will continue as a for-profit company.
X owner Elon Musk vowed to appeal a federal grand jury’s verdict against his claim that OpenAI CEO Sam Altman was abandoning the company’s original nonprofit vision after it ruled it was not brought in a timely manner.
Musk said the jury did not rule on the evidence of the case, but rather a “calendar technicality,” and reiterated his claims that Altman transitioned OpenAI from a charity model to a for-profit business.
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“Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality,” Musk posted on X. “There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!”
The trial drew hordes of media coverage as artificial intelligence playmakers and media personnel waited to see how the results would affect the ever-growing industry.
Musk was seeking hundreds of billions of dollars in damages from the defendants, including Microsoft, a partner of OpenAI. He also asked for Altman’s removal from OpenAI’s board and the removal of its for-profit status.
“I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America,” Musk said. “OpenAI was founded to benefit all of humanity.”
Obama-appointed District Judge Yvonne Gonzalez Rogers in the Northern District of California oversaw the case and said there was a “substantial amount of evidence” to support the jury’s finding.
MUSK LOSES CASE AGAINST SAM ALTMAN OVER OPENAI MISSION
Until then, Altman will keep his role steering the AI company, and OpenAI will remain a for-profit institution.
Musk founded OpenAI with Altman, but he left the company in 2018 and founded an AI chatbot company of his own in 2023, xAI. Musk’s Grok and Altman’s ChatGPT are now top competitors in the AI chatbot industry. Musk’s xAI is also a for-profit company.
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