Elon Musk’s OpenAI Lawsuit Gets Tossed In Under 2 Hours — He Calls It a ‘Dangerous Precedent’

• Musk said he intends to file an appeal with the Ninth Circuit, warning that the ruling sets a dangerous precedent that is “incredibly destructive to charitable giving in America.”
• Outside the courthouse in Oakland, California, Musk’s attorney Marc Toberoff offered a terse one-word response when asked for his reaction: “Appeal.”
• Musk had accused Sam Altman and OpenAI President Greg Brockman of improperly converting the organization from a nonprofit into a for-profit entity.

Elon Musk declared Monday that he will appeal a federal jury verdict that dismissed his high-profile lawsuit against OpenAI and CEO Sam Altman, asserting that the court failed to address the core allegations and ruled only on a procedural technicality.

“Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality,” Musk posted on X shortly after the decision. “There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!”

Musk said he intends to file an appeal with the Ninth Circuit, warning that the ruling sets a dangerous precedent that is “incredibly destructive to charitable giving in America.” He reiterated that OpenAI was founded “to benefit all of humanity.”

Outside the courthouse in Oakland, California, Musk’s attorney Marc Toberoff offered a terse one-word response when asked for his reaction: “Appeal.”

A federal jury sided unanimously with OpenAI and Altman earlier on Monday after deliberating for less than two hours. The verdict found that Musk’s claims — which accused Altman and OpenAI President Greg Brockman of improperly converting the organization from a nonprofit into a for-profit entity — were filed too late under the statute of limitations, according to a report by The Wall Street Journal. U.S. District Judge Yvonne Gonzalez Rogers accepted the jury’s advisory verdict Monday and dismissed the case.

Musk co-founded OpenAI in 2015 with the mission of developing artificial intelligence to benefit all of humanity. He left the organization in 2018. His lawsuit alleged that Altman and Brockman had betrayed that original charitable purpose for personal enrichment.

The outcome represents a major legal victory for OpenAI as the company pushes forward with its commercial ambitions, including a potential initial public offering.

How Did Retail Traders React?

On Stocktwits, retail sentiment around OpenAI remained within the ‘bearish’ territory, coupled with ‘low’ message volume.

Meanwhile, sentiment around Musk’s Tesla stayed within the ‘bullish’ territory, accompanied by ‘normal’ levels of retail chatter. 

Read More: WVE Stock Edges Up After Positive Early Data For Rare Disease Drug

For updates and corrections, email newsroom[at]stocktwits[dot]com.