Musk: OpenAI Loss Sets A ‘Dangerous Precedent’

On Monday, Elon Musk lost his highly publicized $150 billion lawsuit against Sam Altman and OpenAI, ending the dramatic showdown between two of the AI industry’s most powerful players. A jury dismissed his claims that Altman and OpenAI had allegedly reneged on their promise of operating the company as a nonprofit when it transitioned to a profit-driven enterprise, saying Musk was too late in filing the lawsuit. Musk accused Altman of ”unjust enrichment” and “breach of charitable trust” and demanded that Altman and president and cofounder Greg Brockman be removed from the company.

Musk said the decision against him was based on a “calendar technicality” — all this happened about seven years ago — and that the jury never ruled on the merits of the case, adding that he plans to file an appeal. “I think this is a dangerous precedent to set,” Musk said in an exclusive interview with Forbes Chief Content Officer Randall Lane at the Forbes Innovation 250 celebration dinner in Palo Alto. “It means if somebody can take a nonprofit and convert it to a for-profit, that undermines all charitable giving in America.”

“The AI trial of the century ends with a whimper rather a bang,” writes AI critic Gary Marcus, echoing Musk’s statements that the jury didn’t weigh in on the question of whether OpenAI “stole a charity.” It’s a big win for OpenAI, which can finally put the trial behind as it prepares for an IPO later this year or in early 2027.

For Musk, who helms rival xAI, which was recently acquired by SpaceX for $250 billion, the ruling comes at a pivotal time. SpaceX is expected to debut on the Nasdaq as soon as June 12. The blockbuster IPO is targeting a valuation of $1.75 trillion for the rocket maker, which would make the offering the largest ever and could annoint Musk the world’s first ever trillionaire.

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