Skip to content
  • Facebook
  • X
  • Linkedin
  • WhatsApp
  • YouTube
  • Associate Journalism
  • About Us
  • Privacy Policy
  • 033-46046046
  • editor@artifex.news
Artifex.News

Artifex.News

Stay Connected. Stay Informed.

  • Breaking News
  • World
  • Nation
  • Sports
  • Business
  • Science
  • Entertainment
  • Lifestyle
  • Toggle search form
  • Lebanon’s sectarian balance on the line as Hezbollah-Israeli conflict drags on
    Lebanon’s sectarian balance on the line as Hezbollah-Israeli conflict drags on World
  • WHO Chief On Escaping Israel Strike On Yemen
    WHO Chief On Escaping Israel Strike On Yemen World
  • Dummy Candidate Appeared For 2 Women In Rajasthan Police Exam: Cops
    Dummy Candidate Appeared For 2 Women In Rajasthan Police Exam: Cops Nation
  • Access Denied
    Access Denied Nation
  • Access Denied World
  • Mines Explode During Forest Fire Along Line of Control In J&K’s Poonch
    Mines Explode During Forest Fire Along Line of Control In J&K’s Poonch Nation
  • 40 Schoolchildren Injured As Speeding Bus Overturns In Haryana’s Panchkula
    40 Schoolchildren Injured As Speeding Bus Overturns In Haryana’s Panchkula Nation
  • Updated World Test Championship Points Table After Sri Lanka Stun New Zealand In 1st Test
    Updated World Test Championship Points Table After Sri Lanka Stun New Zealand In 1st Test Sports
Decoding the Musk vs. Altman verdict

Decoding the Musk vs. Altman verdict

Posted on May 20, 2026 By admin


In 2015, a small group of researchers and technology entrepreneurs gathered in San Francisco to create what they described as a gift to humanity, eventually to turn into enemies defining the future of artificial intelligence (AI) in a courtroom.

Elon Musk loses blockbuster OpenAI suit as jury says too late

OpenAI was founded on the premise that if artificial general intelligence (AGI) was coming regardless, it was better to have safety and ethics-conscious researchers build it. AGI is the kind of AI that can match or surpass human cognition. The group decided to create the initiative as a nonprofit and if the technology ever arrived, it would belong to everyone, as open source. OpenAI’s CEO Sam Altman even went as far as to design the company’s board such that it could fire him too if he ever came in the way of its core mission. That founding promise, to build ethical AGI, years later brought Elon Musk and Mr. Altman to a federal courthouse in California.

Eleven years since the founding, no longer friends and both pursuing their own paths to AGI, Mr. Musk and Mr. Altman are both convinced that the other has betrayed everything they had vowed to build together.

Mr. Musk brought forward the lawsuit against Mr. Altman, accusing him, OpenAI president Greg Brockman, and Microsoft, of manipulating him into donating to a public-interest organisation only for it to later attach a for-profit subsidiary and accept billions from Microsoft.

On May 18, a nine-person jury took less than two hours to throw out Mr. Musk’s case against Mr. Altman. The verdict did not settle the question of whether OpenAI broke faith with its founding mission but instead, it was settled on a procedural issue – that Mr. Musk had waited too long to sue. In the American legal system, civil claims must be filed within a fixed window of time, crossing which the claim becomes invalid. The jury said Mr. Musk’s claim fell outside the statute of limitations. The judge concurred, but Mr. Musk’s lawyers have signalled that they might appeal. The merits of the case were never discussed.

The nonprofit debate

Trial testimony and evidence showed OpenAI’s leadership had anxiously tracked Google’s acquisition of another AI research giant DeepMind in 2014.

OpenAI’s executives argued that the nonprofit structure was not sufficient to compete with bigshots like Google.

Mr. Musk was the company’s biggest early donor, contributing around $38 million. But, the economics of building AGI turned out to be brutal. Training large models requires computing infrastructure that costs billions of dollars. By 2019, a year after Mr. Musk’s departure from the OpenAI board, the company decided it could not remain competitive as a pure nonprofit. It attached a for-profit subsidiary to the existing organisation, with the nonprofit retaining oversight and a capped return structure for investors.

Microsoft came in with an initial investment that year, and kept coming, eventually investing more than $135 billion and holding a significant share in OpenAI. This is the transformation Mr. Musk’s lawsuit sought to attack, from nonprofit to a commercially driven AI laboratory he had set out to oppose.

Claims that did not make it to trial

The bit that went to trial eventually was a much smaller subsect of the original claims Mr. Musk had filed in 2024. Several of his claims were dropped or narrowed before the trial even began.

Mr. Musk claimed that Microsoft’s investment in OpenAI had aided it to breach its charitable mission. But, despite a Microsoft executive testifying that the company had invested billions in OpenAI, the jury dismissed the claim.

Mr. Musk also filed an antitrust claim against OpenAI and Microsoft, alleging that the two companies were colluding to dominate the AI market. This claim has not reached the jury yet. Judge Gonzalez Rogers heard arguments and signalled she was sceptical, noting the aggressive competition already playing out across the AI industry. She has not ruled on it, meaning that particular thread remains unresolved. OpenAI on its part filed a countersuit accusing Mr. Musk of running a years-long harassment campaign against the company. A judge ruled in August 2025 that those claims were legally sufficient to go forward. That case is separate and still ongoing.

Key takeaways from the proceedings

The legal question the jury resolved was procedural. But the three weeks of testimony preceding the verdict were pure Silicon Valley tech theatre.

Mr. Musk’s lawyers assembled a long roster of witnesses who testified that Mr. Altman is not trustworthy. Mira Murati, who served as OpenAI’s chief technology officer, told the court that Mr. Altman had lied about a safety review in the past. Ilya Sutskever, one of the company’s founding researchers, had spent more than a year building a case for Mr. Altman’s removal from the company, assembling a 52-page memo that described a pattern of dishonesty and internal manipulation – a case widely covered in media.

In November 2023, OpenAI’s board briefly fired Mr. Altman and reversed course within days, primarily under pressure from Microsoft. Mr. Altman returned and Mr. Sutskever eventually left the company.

OpenAI’s lawyers demonstrated that while still on the board in 2017, Mr. Musk himself had pushed to restructure OpenAI as a for-profit entity, including an attempt to fold it into Tesla under his control.

Mr. Musk’s argument that he had always opposed commercialisation now sat awkwardly alongside evidence that he had sought to commercialise the company himself, especially on the condition that he be in charge. Musk’s own xAI, founded in 2023 and now part of SpaceX, is a for-profit company.

The larger question

The immediate winner from the latest verdict is OpenAI. The lawsuit had cast a shadow over the company’s plans for its upcoming IPO that could value it at close to a trillion dollars. Mr. Musk has said he will appeal.

There is a larger question the verdict leaves entirely unanswered. The trial showed how OpenAI’s founding principles were abandoned in pursuit of competition. The nonprofit structure still exists, and the OpenAI nonprofit now controls assets of more than $200 billion. But what that oversight means in practice was not explored in court.

Published – May 20, 2026 07:30 am IST



Source link

World Tags:ChatGPT, Elon Musk, elon musk open ai, open ai elon musk, Sam Altman

Post navigation

Previous Post: Indian diplomat found dead inside mission in Bangladesh’s Chattogram
Next Post: Tambaram residents miffed with ‘silent’ water charges hike and deposit burden

Related Posts

  • The Story Behind Rebels’ Flag That May Soon Officially Symbolise Syria
    The Story Behind Rebels’ Flag That May Soon Officially Symbolise Syria World
  • President-Elect Donald Trump On Mystery Drone Sightings Across US
    President-Elect Donald Trump On Mystery Drone Sightings Across US World
  • Pro-Khalistan Slogans Raised In Presence Of Canada PM Justin Trudeau On Khalsa Day Event
    Pro-Khalistan Slogans Raised In Presence Of Canada PM Justin Trudeau On Khalsa Day Event World
  • Iran Slams Argentina’s Bid To Arrest Minister Over 1994 Bombing Attack
    Iran Slams Argentina’s Bid To Arrest Minister Over 1994 Bombing Attack World
  • Access Denied World
  • Israel Summons Russian Ambassador To Protest At Moscow’s Hosting Of Hamas
    Israel Summons Russian Ambassador To Protest At Moscow’s Hosting Of Hamas World

More Related Articles

Trump says agreement with Iran ‘largely negotiated,’ includes opening strait Trump says agreement with Iran ‘largely negotiated,’ includes opening strait World
Food Piles Up At Gaza Crossing As Aid Agencies Say Unable To Work Food Piles Up At Gaza Crossing As Aid Agencies Say Unable To Work World
Zelensky meets top military leaders in Germany as the U.S. announces additional aid to Ukraine Zelensky meets top military leaders in Germany as the U.S. announces additional aid to Ukraine World
Trump is disqualified from Illinois ballot, judge rules Trump is disqualified from Illinois ballot, judge rules World
White House restricts access for journalists to Press Secretary’s office White House restricts access for journalists to Press Secretary’s office World
Russia claims the capture of Tsukuryne in eastern Ukraine Russia claims the capture of Tsukuryne in eastern Ukraine World
SiteLock

Archives

  • October 2026
  • September 2026
  • August 2026
  • July 2026
  • June 2026
  • May 2026
  • April 2026
  • March 2026
  • February 2026
  • January 2026
  • December 2025
  • November 2025
  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022

Categories

  • Business
  • Nation
  • Science
  • Sports
  • World

Recent Posts

  • Ranji Trophy: Bengal picks up Delhi’s gauntlet to win by nine wickets
  • Stock markets close lower amid elevated crude oil, rising inflation
  • C.Ve. Shanmugam wants AIADMK leadership to consult with functionaries over party’s bypoll loss
  • Activists allege tender for beach pathway for persons with disabilities is incomplete
  • BOXING | Battle between BFI chief and general secretary intensifies

Recent Comments

  1. RobertTes on UP Teacher Who Asked Students To Slap Muslim Classmate
  2. Manuelret on UP Teacher Who Asked Students To Slap Muslim Classmate
  3. RobertTes on UP Teacher Who Asked Students To Slap Muslim Classmate
  4. RobertTes on UP Teacher Who Asked Students To Slap Muslim Classmate
  5. BrentWes on UP Teacher Who Asked Students To Slap Muslim Classmate
  • President Trump will not attend U.S. team’s World Cup opener
    President Trump will not attend U.S. team’s World Cup opener World
  • India vs Sri Lanka Tests: Coach Gambhir says focus is on winning 2nd Test, not on WTC
    India vs Sri Lanka Tests: Coach Gambhir says focus is on winning 2nd Test, not on WTC Sports
  • 200 Bangladeshis abducted during Hasina regime still missing: inquiry
    200 Bangladeshis abducted during Hasina regime still missing: inquiry World
  • Shanghai cancels 1,300 flights as China prepares for Typhoon Dolphin
    Shanghai cancels 1,300 flights as China prepares for Typhoon Dolphin World
  • Digital Citizen Summit: Speakers flag deep barriers keeping women out of digital world
    Digital Citizen Summit: Speakers flag deep barriers keeping women out of digital world World
  • Key Seats To Watch Out For Tomorrow
    Key Seats To Watch Out For Tomorrow Nation
  • Access Denied
    Access Denied Nation
  • Arjun Tendulkar Achieves Key Career Milestone During Vijay Hazare Trophy
    Arjun Tendulkar Achieves Key Career Milestone During Vijay Hazare Trophy Sports

Editor-in-Chief:
Mohammad Ariff,
MSW, MAJMC, BSW, DTL, CTS, CNM, CCR, CAL, RSL, ASOC.
editor@artifex.news

Associate Editors:
1. Zenellis R. Tuba,
zenelis@artifex.news
2. Haris Daniyel
daniyel@artifex.news

Photograher:
Rohan Das
rohan@artifex.news

Associate Journalists
1. Subrata Paul - AN/2020/01
2. Quamruz Zaman - AN/2021/22
3. Ahmed Sha - AN/2021/035
4. Ajay Kumar Shaw - AN/2021/39
5. Tahqiqul Hoda - AN/2021/21

Artifex.News offers Online Paid Internships to college students from India and Abroad. Interns will get a PRESS CARD and other online offers.
Send your CV (Subjectline: Paid Internship) to internship@artifex.news

Links:
Associate Journalism
About Us
Privacy Policy

News Links:
Breaking News
World
Nation
Sports
Business
Entertainment
Lifestyle

Registered Office:
72/A, Elliot Road, Kolkata - 700016
Tel: 033-22277777, 033-22172217
Email: office@artifex.news

Editorial Office / News Desk:
No. 13, Mezzanine Floor, Esplanade Metro Rail Station,
12 J. L. Nehru Road, Kolkata - 700069.
(Entry from Gate No. 5)
Tel: 033-46011099, 033-46046046
Email: editor@artifex.news

Copyright © 2023 Artifex.News Newsportal designed by Artifex Infotech.