A jury took less than two hours to dismiss a lawsuit brought by Elon Musk, in which he claimed OpenAI founder Sam Altman effectively stole a not-for-profit. Having heard claims for 3 weeks, the jury determined that statutes of limitations bar the claim and that Musk took too long to file.
The decision paves the way for OpenAI to proceed with its planned IPO, although the world’s richest man has said he intends to appeal the decision.
AI is at the forefront of modern technology and is rapidly being adopted across a vast range of platforms and companies. Streaming services now work on AI-powered recommendations, and Spotify has adopted the ability to create personalised playlists based on AI prompts. Likely, this will only continue across other sectors, where choices are vast, like retail or gambling platforms, where casinos offer thousands of games, as well as providing opportunities to play bingo online and spin slots. On sites like these, personalised recommendations could take centre stage in years to come.
AI has already integrated into our daily lives. It sits at the top of search results, is used by streaming services and other sites to provide tailored recommendations. Chatbots quickly answer queries and provide useful information.
One of the AI agents at the forefront of the revolution is OpenAI. The company was founded in 2015 by a group of tech entrepreneurs, including Elon Musk and Sam Altman.
The group pledged $1bn to ensure the benefits of AI were available to all humanity. It was set up as a nonprofit, but this started to change in 2019.
A year after Musk’s departure from the company in 2018, the group had taken tentative steps towards structural change, and by 2025, it had completely transitioned to a for-profit corporation.
In 2024, Musk launched a lawsuit against OpenAI and Microsoft, who had entered into a strategic partnership with the group in 2019.
He claimed that he had fronted a substantial investment in the organisation, on the understanding that it would remain non-profit.
The billionaire, who is planning to take SpaceX public with a massive IPO that could potentially make him the world’s first trillionaire, was claiming $134bn. He also wanted the 2025 restructuring to be reversed.
Countering the claim, OpenAI’s lawyers said the claim was more concerned with business competition than with openness and fairness, with Musk having launched xAI, a direct OpenAI competitor.
However, the arguments and counterarguments didn’t matter in the end. After hearing three weeks of claims from both parties, the jury took less than two hours to find against Musk.
However, rather than basing their decision on the merits of the case, they determined that Musk’s claim came after the three-year statute of limitations.
Although Musk will appeal the decision, OpenAI is now expected to proceed with an IPO. Altman and the company are looking to raise around $60bn from its market debut. Commentators believe the company could be valued at more than $1tr, which would make it the 14th largest company in the world.