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Court dismisses Elon Musk’s case against Sam Altman and OpenAI

OpenAI CEO Sam Altman arrives to court at the Ronald V. Dellums Federal Building on May 12, 2026 in Oakland, California. (Photo by Benjamin Fanjoy/Getty Images)

(NEW YORK) — A jury on Monday found that Elon Musk waited too long to bring claims accusing OpenAI, under Sam Altman’s leadership, of abandoning its public-benefit mission as it moved toward a for-profit structure.

The nine-person advisory jury determined that the claims against OpenAI and Altman were barred due to the statute of limitations. Judge Yvonne Gonzalez Rogers accepted the determination and dismissed the claims.

The three-week trial at a federal courthouse in Oakland, California, featured testimony from Musk and Altman, as well as Microsoft CEO Satya Nadella.

When Musk sued OpenAI and Altman two years ago, he claimed that the company abandoned its mission of benefiting humanity.

Musk, a co-founder of OpenAI, said he reached an agreement with the company’s leaders on the nonprofit course of the firm when it launched in 2015.

Musk accused the company of later breaching agreement when it made ChatGPT-4 available for use by Microsoft — meaning the tech giant got access to the then-most powerful version of its popular chatbot under an exclusive licensing agreement. Microsoft and OpenAI have renegotiated the exclusive licensing agreement, allowing OpenAI to strike deals with other tech firms.

OpenAI rebuked the charges, calling them “baseless.” Microsoft also denied any wrongdoing. Musk, the world’s richest person, counts $803 billion in wealth, according to Forbes. He was seeking $150 billion in damages from the tech companies, as well as the removal of Altman from OpenAI’s board of directors.

Musk also sought a legal order that requires OpenAI to abide by its alleged founding mission of aiding humanity and retaining its nonprofit form

OpenAI, which is not publicly traded, valued itself at $852 billion after a round of funding in March. Microsoft’s value — as measured by market capitalization — stands at about $3.1 trillion.

Musk pleaded two claims against OpenAI: unjust enrichment and breach of charitable trust.

Lawyers for Altman argued that Musk was motivated by a pursuit of control over OpenAI, rather than an effort to safeguard its non-profit status. In fact, Musk sought to fold OpenAI into Tesla — a move that would have absorbed the venture into a for-profit entity, lawyers for Altman said in a legal filing.

In 2018, Musk told a former OpenAI employee that financial support from Tesla would help OpenAI compete with tech giant Google, the filing said.

“Tesla [was] the only path that could even hope to hold a candle to Google,” Musk said, according to the legal filing.

For his part, Musk said in the lawsuit that the agreement on OpenAI’s non-profit status was memorialized in a legal filing when OpenAI was incorporated.

In the lawsuit, Musk alleged that Altman and OpenAI President Greg Brockman reaffirmed the founding agreement in written messages over the ensuing years.

“[I] remain enthusiastic about the non-profit structure!” Altman wrote to Musk in 2017, according to the lawsuit.

Musk, who helped bankroll OpenAI, launched a rival for-profit AI company in 2023 called xAI, which built a chatbot that competes with ChatGPT.

Acknowledging his previous criticism of the pace and ambitions of AI development, Musk said in a conference call on X in July 2023 that he entered the industry reluctantly.

Copyright © 2026, ABC Audio. All rights reserved.

AI isn’t the biggest cybersecurity problem. People are

By CNN
(CNN) — Cases of AI escaping the lab, infiltrating other companies and trying to deceive people have all made headlines in recent weeks. And in one case, AI models even worked together to break free from their test environments.Does this mean the machines are taking over? Not quite.AI isn’t the mastermind behind today’s most widespread cyber threats; it’s people who can use AI nefariously – and for nefarious purposes. AI has given bad actors massive power, allowing them to create malicious software, research targets, create convincing schemes and automate attacks at an unprecedented pace.One in four data breaches were driven by AI from February 2025 to March 2026, according to an IBM report. And Americans lost more than $893 million to AI-related scams last year, the FBI says.But experts say real-world threat actors – that is, people – are still the ones pulling the strings. AI agents have only perpetuated existing attack methods, like phishing and malware scams, rather than creating wholly new ones.“It’s the humans that we need to watch out for,” said Oren Etzioni, professor emeritus at the University of Washington and former CEO of the Allen Institute for Artificial Intelligence. “AI is just the tool.”AI going rogueSome recent incidents have shown what AI is capable of in the real world, not just in theory, igniting fears about whether the technology is advancing too quickly.In July, OpenAI test models escaped their constraints and hacked into other companies’ systems during an internal evaluation.Days later, Anthropic said it discovered its AI models had breached three companies during testing.In a separate test, Anthropic’s most advanced model used fake identities to try to deceive real people, researchers at Britain’s AI Security Institute said Tuesday.One of Meta’s AI models also broke into an external company, the social media giant said Wednesday.Those breaches also show how unpredictable AI can be when interpreting instructions. OpenAI’s models, for example, were trying to pass a cybersecurity test when they broke out of their test environment and breached another company, even though they weren’t told to do so.Patrick Fussell, global head of adversary simulation at IBM, compared AI to a genie.“You want to ask it a wish, but you have to be very, very specific about the details of your wish,” he told CNN. “Or it could sort of go awry.”But these instances also happened under very specific circumstances.OpenAI turned off restrictions that would have prevented its model from “pursuing high risk cyber activity.” Anthropic ran its tests without the standard safety safeguards in models that are generally available to the public. The AI Security Institute also turned off certain tools that could have “reduced the scope” of what the models were capable of.Researchers typically do this to fully evaluate a model’s capabilities.“I couldn’t go into ChatGPT or Claude or something like that, and it accidentally breaks into the FBI. That’s not going to happen,” said Adam Meyers, head of counter adversary operations at cybersecurity firm CrowdStrike. “So what we’re seeing is these are done in specific test conditions where they’re monitoring to see, ‘Does this thing do something that it’s not expected to do?”How hackers are using AIAI isn’t acting autonomously to come up with new attacks, experts say. Instead, it’s helping cyber criminals implement existing techniques much faster while being more efficient and effective.That can include things like using AI to analyze a company’s website to figure out who to target or deploying an AI agent to handle initial negotiation talks with a cyber extortion victim. AI agents can mimic human conversations through both text and even specific voices. Hackers with little expertise can now leverage AI to pull off advanced schemes.“They’re using (AI) to enhance the cyberattack methodology, essentially, in all the different stages, but it’s still kind of being run by the human,” said Jud Dressler, head of the risk operations center at cyber insurance firm Resilience.Bad actors used to hastily scrap together basic scripts – instructions for automating tasks – to achieve their goals, according to Meyers. But now they’re able to churn out higher quality work that looks like it would have taken three times as long to produce.They’re also using AI for behind-the-scenes work like generating the infrastructure needed to put up malicious websites.“With AI, they could automate that buildout, and so the cost of rebuilding became very small and that changes the game,” said Rob Lefferts, corporate vice president of threat protection at Microsoft.The bigger threatFor Etzioni, the recent incidents are a “canary in the coal mine” moment for AI and cybersecurity. And he’s not alone; Nobel prize-winning computer scientist Geoffrey Hinton, known popularly as the “godfather of AI,” recently warned that more rogue AI attacks are likely to come.The rogue AI reports underscore the importance of implementing strong cybersecurity practices, such as patching vulnerabilities, monitoring AI agents in the workplace and being wary of social engineering and phishing scams, experts say.But as advanced as AI is becoming, it’s still a program being orchestrated by a human. And those humans are the bigger concern because they’re the ones making the decisions, like conducting espionage or scamming users out of huge sums of cash, says Meyers.Tech giants are racing to make AI as intelligent as humans, a theoretical milestone known as “artificial general intelligence.” The recent incidents, however, have heightened calls for a slowdown.More than 1,200 workers at top AI companies, including Anthropic CEO Dario Amodei, recently signed an open letter calling for the government to help pace AI development. The White House met with major AI companies last week to discuss a framework that would allow the government to review certain AI models before they’re released.Cybersecurity researchers have likely considered the threats of AGI because those in the field tend to be paranoid, said IBM’s Fussell. But we’re still far from a reality in which AI agents are as smart as humans, he says.“It’s like asking someone, ‘What would it be like to live on a different planet?’” he said. “You can sort of imagine, but it’s so beyond our ability to really make a plan for.”The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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