Federal Jury and Judge Side With OpenAI, Dismissing Elon Musk's Case About Company's Nonprofit Mission
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Federal Jury and Judge Side With OpenAI, Dismissing Elon Musk's Case About Company's Nonprofit Mission
"On Monday, following closing arguments late last week, the jury in that case returned a verdict siding with OpenAI, as the Associated Press reports. And while the jury served only an advisory role, the judge, Judge Yvonne Gonzalez Rogers, accepted the jury's verdict and dismissed the case. The jury ruled on statute-of-limitations grounds, telling Musk that, as OpenAI's lawyers argued, he waited too long to file his suit."
"As NBC News reports, the jury also dismissed Musk's claim on the same grounds that Microsoft aided and abetted OpenAI in the breach of its nonprofit mission when it became a primary investor in the company. Musk's lead counsel, Steven Molo, told reporters outside the court that he is prepping an appeal, as the New York Times reports, insisting that OpenAI committed a "breach of charitable trust.""
"One portion of the case remains unresolved, which is a question of whether OpenAI and Microsoft violated antitrust law when they raised money for the company. The month-long, blockbuster court proceeding captured international headlines because of the players involved. Musk filed his suit against OpenAI, with which he is now a competitor with his xAI, back in March 2024, arguing that the company had illegally converted into a for-profit enterprise in the years after he left the board of the company due to a conflict of interest."
A federal jury returned a verdict favoring OpenAI and Sam Altman in a lawsuit brought by Elon Musk. The jury served an advisory role, but the judge accepted the verdict and dismissed the case. The jury ruled that Musk waited too long to file his suit, leading to dismissal on statute-of-limitations grounds. The jury also dismissed Musk’s claim that Microsoft aided and abetted OpenAI’s breach of its nonprofit mission when Microsoft became a primary investor. Musk’s lead counsel said an appeal is being prepared, asserting a breach of charitable trust. A separate issue remains unresolved regarding whether OpenAI and Microsoft violated antitrust law when raising money for the company.
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