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Elon Musk vs OpenAI Lawsuit: Judge Questions Damages Claim but Allows Case to Proceed

Elon Musk was one of the founders of OpenAI in 2015, when it was founded as a non-profit.

Tesla CEO Elon Musk openAI

Elon Musk – Wikipedia

A federal judge delivered a dramatic twist Tuesday in Elon Musk’s legal battle against OpenAI, hinting that key parts of his lawsuit could head to trial—forcing the billionaire himself to take the stand, despite saying Musk’s charges were a “stretch.” Musk, who is waging war against the Sam Altman-led AI powerhouse, sought an injunction in a high-stakes federal case in Oakland, accusing OpenAI and tech titan Microsoft of orchestrating an illegal power grab to monopolize the artificial intelligence market. With allegations of antitrust violations and a fight over the very future of AI, the courtroom showdown is set to escalate into a battle of industry titans.

U.S. District Judge Yvonne Gonzalez Rogers said, “I don’t know what happened, but I certainly am not throwing something out on a motion to dismiss when it is plausible that what Mr. Musk is saying is true. We’ll find out, he’ll sit on the stand, he’ll present it to a jury. A jury will decide who is right. So, something’s going to trial.”

Elon Musk sued Sam Altman’s OPenAI last March for breach of contract charging that the company has failed to live up to its founding principle of working, “for the benefit of humanity broadly.” Sam Altman is also named in the lawsuit that alleges he reneged on the original plan for OpenAI to be a non-profit, open-source mission.

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The 35 page lawsuit was filed in Superior Court in San Francisco.

Elon Musk was one of the founders of OpenAI in 2015, when it was founded as a non-profit. He left the company’s board of directors in 2018. In 2019, after OpenAI restructured to offer “capped” profits to investors, Microsoft invested $1 billion in the firm.

OpenAI issued a statement on the lawsuit at the time saying, “The mission of OpenAI is to ensure AGI benefits all of humanity, which means both building safe and beneficial AGI and helping create broadly distributed benefits. We are now sharing what we’ve learned about achieving our mission, and some facts about our relationship with Elon. We intend to move to dismiss all of Elon’s claims.”

Sam Altman has been named one of the 100 most influential people in the world by Time magazine and one of the “Best Young Entrepreneurs in Technology” by Businessweek. He is also the founder of the Long Term Future Fund, a venture capital fund that invests in companies working to solve long-term problems like climate change and pandemics.

OpenAI is an artificial intelligence (AI) research and implementation organization based in the United States. It was founded in 2015 by Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman and several others. OpenAI’s mission is to ensure that artificial general intelligence (AGI) benefits all humanity.

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