Elon Musk vs. OpenAI: Court Rejects Lawsuit

A federal court has rejected Elon Musk's claims against OpenAI. The court stated that Musk filed his lawsuit too late. A jury in Oakland, California, reached a verdict on Monday morning, siding with OpenAI. Lawyers for both sides made their final arguments on Thursday. Musk, who co-founded OpenAI in 2015, accused CEO Sam Altman and his deputy of betraying a plan to keep the company a nonprofit. He claimed they shifted it into a moneymaking venture behind his back. OpenAI is now valued at $852 billion. Musk has stated he will appeal the decision, claiming the judge and jury focused only on a "calendar technicality." OpenAI argued there was no promise to remain a nonprofit forever. They also suggested the lawsuit was a business rivalry tactic to boost Musk's own AI firm, xAI, launched in 2023. This outcome impacts the balance of power in the rapidly evolving AI industry.