Elon Musk loses high-profile court battle against ChatGPT creator OpenAI
Musk had accused the company of breaching a non-profit contract after he donated $38 million (£28.5 million).
A jury has thrown out Elon Musk's lawsuit against ChatGPT creator OpenAI and its boss Sam Altman.
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The California jury reached a unanimous verdict in the trial in a humiliating blow for the tech billionaire.
Musk had accused Altman of breaching a non-profit contract by switching the AI firm to a for-profit company after Musk donated $38million (£28.5million).
He claimed that Altman tricked him by accepting his cash before going back on OpenAI's original non-profit aim to develop AI technology for positive purposes.
In a unanimous verdict, the jury in Oakland, California federal court said Musk had brought his case too late.
The trial had widely been seen as a critical moment for the future of OpenAI and artificial intelligence in general, both in the way in which it is used and who should reap the benefits.
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The jury deliberated less than two hours before throwing out the case - but it followed 11 days of testimony and arguments where Musk's and Altman's credibility came under repeated attack.
Each side accused the other of being more interested in money than serving the public.
In his closing argument, Musk's lawyer Steven Molo reminded jurors that several witnesses questioned Altman's candor or branded him a liar, and that Musk did not give an unqualified yes when asked during the trial if he was completely trustworthy.
"Sam Altman's credibility is directly at issue," Molo said. "If you don't believe him, they cannot win." Musk accused OpenAI of wrongfully trying to enrich investors and insiders at the nonprofit's expense, and failing to prioritize AI's safety.
He also contended that Microsoft knew all along that OpenAI cared more about money than being altruistic.
OpenAI countered that it was Musk who saw dollar signs, and that he waited too long to claim OpenAI breached its founding agreement to build safe artificial intelligence to benefit humanity.
"Mr. Musk may have the Midas touch in some areas, but not in AI," William Savitt, a lawyer for OpenAI, said in his closing argument.
OpenAI competes with AI companies such as Anthropic and xAI, and is preparing for a possible initial public offering that could value the business at $1 trillion.
Microsoft has spent more than $100 billion on its partnership with OpenAI, a Microsoft executive testified. Musk's xAI is now part of his space and rocket company SpaceX, which is preparing a IPO that could exceed OpenAI's in size.
Musk's lawyer said following the verdict he reserved the right to appeal, but the judge argued he may have an uphill battle because whether the statute of limitations ran out before Musk sued was a factual issue.
"There's a substantial amount of evidence to support the jury's finding, which is why I was prepared to dismiss on the spot," U.S. District Judge Yvonne Gonzalez Rogers said.