Elon Musk’s lawsuit against ChatGPT owner OpenAI can head to trial
Billionaire Elon Musk Wins Right to Jury Trial Against OpenAI
Elon Musk, the billionaire entrepreneur, successfully convinced a judge to allow a jury trial in his case against OpenAI, the maker of ChatGPT. Musk alleges that OpenAI violated its original mission during a restructuring to become a for-profit entity.
Musk was one of the co-founders of OpenAI in 2015 but left in 2018 to run his own AI company that competes with OpenAI.
US District Judge Yvonne Gonzalez Rogers in Oakland, Calif., stated during a hearing that there was substantial evidence indicating that OpenAI had promised to maintain its nonprofit structure.
Judge Rogers decided to let a jury consider the claims in a trial set for March, rather than ruling on the issues herself. A written order addressing OpenAI’s attempt to dismiss the case will be issued after the hearing.
This legal battle is part of a larger struggle for dominance in the generative artificial intelligence market. Musk’s xAI and its chatbot Grok are competing directly with OpenAI and other technology developers.
Musk is seeking unspecified monetary damages from what he believes are “ill-gotten gains” by OpenAI.
OpenAI and Musk’s AI startup xAI have not yet provided comments on the matter.
Musk claims that he contributed around $38 million, which was approximately 60% of OpenAI’s initial funding, along with strategic guidance, under the assumption that the organization would remain a nonprofit focused on public benefit.
The lawsuit accuses OpenAI co-founders Sam Altman and Greg Brockman of orchestrating a switch to a for-profit structure to enrich themselves, leading to lucrative deals with Microsoft and recent restructuring.
OpenAI, Altman, and Brockman have denied the allegations, referring to Musk as “a frustrated commercial competitor trying to hinder a mission-driven market leader.”
Microsoft has urged Judge Rogers to dismiss Musk’s claims against the company, stating that there is no evidence of Microsoft aiding OpenAI.
Microsoft has not responded to requests for comments on the matter.
During the hearing, OpenAI’s lawyers asked Judge Rogers to rule in their favor, arguing that Musk had not provided enough evidence to support his claims of fraud and breach of contract.
OpenAI also claims that Musk did not file his allegations in a timely manner. Judge Rogers mentioned that the jury would need to determine if the lawsuit was filed within the statute of limitations.
