Jury rules in favour of OpenAI and Sam Altman in Elon Musk lawsuit

A federal jury in California ruled in favour of OpenAI, Sam Altman, and Greg Brockman in a lawsuit brought by Elon Musk over the company’s restructuring and shift towards a for-profit model. Judge Yvonne Gonzalez Rogers dismissed the claims after concluding the case had been filed outside the applicable legal time limit.

Publishers claim OpenAI used copyrighted articles without permission to train its models.

A federal jury in Oakland, California, ruled in favour of Sam Altman, OpenAI and its president, Greg Brockman, in a lawsuit brought by Elon Musk. Musk alleged that OpenAI’s leadership departed from the organisation’s original non-profit mission.

Judge Yvonne Gonzalez Rogers dismissed Musk’s claims after the jury delivered its advisory verdict. The court concluded that the claims were filed outside the applicable legal time limit, accepting OpenAI’s argument that Musk had been aware of discussions about a for-profit structure several years earlier.

Musk argued that OpenAI had shifted away from its original non-profit structure after establishing a for-profit entity. OpenAI denied the allegations throughout the case, arguing that Musk understood and supported discussions about restructuring before leaving the company in 2018.

Musk alleged that Sam Altman and the other defendants violated the organisation’s charitable purpose and financially benefited from it unfairly, arguing that OpenAI had originally been established in 2015 as a non-profit focused on benefiting humanity before later shifting towards private profit.

OpenAI rejected all of Musk’s claims and stated that he was always aware of plans to create a for-profit entity.

Musk later announced plans to appeal, claiming the ruling was based on procedural timing rather than the substance of the allegations. The ruling may reduce legal uncertainty for OpenAI as the company continues expanding its commercial operations.

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