On Monday, a nine-member federal jury in Oakland, California took less than two hours to dismiss Elon Musk’s lawsuit against OpenAI and its chief executive Sam Altman.

Crucially, the jury did not rule on the core claims of the case. These included whether OpenAI, the company behind the popular artificial intelligence (AI) chatbot ChatGPT, strayed from its founding mission and whether Altman and OpenAI’s co-founder Greg Brockman enriched themselves at the expense of a charitable purpose.

It decided only that Musk had waited too long to sue in relation to his core claims about breaches of a founding contract or breach of charitable trust.

A victory for Musk could have neutered OpenAI, which in turn would have probably sent shockwaves through the entire AI sector given the company’s dominant position developing the technology.

Now, however, OpenAI has a clear path to take its next big step in the AI race, even though the key question at the core of the case remains unanswered: is OpenAI a nonprofit dedicated to humanity or a corporation dedicated to its shareholders?

How it all started

OpenAI was founded in December 2015 as a nonprofit entity – an AI research lab.

Musk and a group of prominent entrepreneurs pledged US$1 billion to develop AI for the benefit of humanity, free of commercial pressure. Alongside Musk, the founding group included Altman, Brockman and computer scientist Ilya Sutskever.

The organisation’s charter committed to two key principles. First, developing artificial general intelligence safely and for the benefit of all of humanity.

Second, developing the technology openly, meaning it would be open source. This would allow others to use their underlying models, code, and research freely.

This was the deal Musk says he signed up for. And OpenAI claims it continues to honour this deal even today, despite more than US$20 billion in revenue in 2025.

Since 2015, a lot has happened. And understanding these events is key to interpreting the jury’s verdict.

A very different deal

By 2019, the original deal looked different. Given that training frontier AI models was extraordinarily expensive, Altman started to seek more cash.

OpenAI created a capped-profit subsidiary where investors could earn up to 100 times their initial investment, with any extra money flowing back to the nonprofit parent.

One of the first investors was Microsoft, which initially invested US$1 billion and more than US$13 billion over time. The nonprofit retained formal governance, the usual nonprofit rules applied, but the commercial subsidiary became the decision-maker.

That same year, OpenAI released GPT-2. The model was released partially, in stages, rather than published as open source. This was the moment the “open” in OpenAI began to read differently.

GPT-3 followed in 2020, and it was available only via a paid subscription. The inner workings of the model also remained secret. ChatGPT launched in November 2022, and reached 100 million users in a few days.

Twelve months later, OpenAI’s nonprofit board fired Sam Altman, citing a loss of confidence in his candour. This was what the governance structure was meant for: to protect the organisation’s humanity-first mission, the board had the power to remove the chief executive.

Yet, within five days, after pressure from Microsoft and the employees, Altman was back and the board was out. A new board that aligned with the commercially-driven enterprise took their seats.

The mechanism built to keep OpenAI accountable to its charter was the one that lost. Whatever the “humanity claim” of the founding mission was supposed to mean, commercial interests prevailed.

A sweeping reorganisation

In October 2025, after nearly a year of negotiation with the attorneys general of California (where OpenAI is headquartered) and Delaware (where it is incorporated), the organisation completed a sweeping reorganisation.

The nonprofit became the OpenAI Foundation, with the same mission: “to ensure artificial general intelligence benefits all of humanity”. The for-profit became a public benefit corporation, called OpenAI Group PBC. Unlike a conventional corporation, it is required to advance its stated mission and consider the broader interests of all stakeholders.

The OpenAI Foundation holds a 26% stake in the new public benefit corporation and retains some contractual and special shareholder governance rights. Microsoft owns 27% and the remaining 47% is owned by other investors and employees.

Thus the Foundation controls the public benefit corporation in form. Yet in practice, OpenAI is now a profit-seeking enterprise with a charitable shareholder. So while a number of nonprofit governance guardrails are in place, significant deficiencies remain.

The unanswered question

OpenAI is now openly preparing for a public listing at the end of 2026, at an expected valuation at up to US$1 trillion, even as it defends dozens of pending lawsuits, ranging from intellectual property infringement and consumer protection claims to a wrongful death suit.

This is the part the jury did not address.

A verdict on a statute of limitations is a statement about timing, not purpose. It tells us when a complaint can be heard. It does not tell us whether the complaint was right. And in this particular case, it demonstrates the difficulty in relying on private individuals to enforce non-profit governance norms.

Musk has said he will appeal the verdict. The appeal court will almost certainly limit itself to a narrow legal question – perhaps when a reasonable plaintiff should have understood OpenAI had changed.

The larger question about whether OpenAI is a nonprofit dedicated to humanity or a corporation dedicated to its shareholders, has now been deferred indefinitely – at least in a legal context.

The public, however, will no doubt make up its own mind about a company now worth hundreds of billions of dollars.

Alexandra Andhov is the director of ALTeR (Center for Advancing Law and Technology Responsibly) at the University of Auckland. She received funding from the Independent Research Fund Denmark for the "PROFIT" Project (Gaps and Opportunities in Corporate Governance of Big Tech Companies) to research big tech companies.

Ian Murray is a Professor of Law at the University of Western Australia, Director of the Charity Law Association of Australia and New Zealand and also a member of the Law Council of Australia’s Charity and Not-for-profits Sub-committee.

The US state of Florida has filed a lawsuit against OpenAI and Sam Altman, alleging the tech giant and its CEO put profit over public safety with its flagship artificial intelligence (AI) product, ChatGPT.

The lawsuit, filed in Florida state court on Monday local time by Florida’s attorney general James Uthmeier, is one of the most significant enforcement actions brought by a state attorney against an AI company to date.

It comes as OpenAI and other big tech companies are embroiled in a growing number of legal cases related to the alleged harm their products have caused.

Six key elements

The complaint opens with a screenshot of OpenAI’s own parental-control page, which states that ChatGPT was “built with safety in mind”. Then, in a standalone paragraph, the State answers with two words: “Not so”.

This signals the central allegation of the case: that OpenAI sold ChatGPT to the public as safe and reliable, while knowing it could cause serious harm

More specifically, there are six key themes to Florida’s case against OpenAI. The first is that the company engaged in deceptive safety marketing, assuring parents the platform is safe for teenage use, while not clearly disclosing that ChatGPT can be wrong.

Second, despite OpenAI’s marketing, ChatGPT is unreliable. A 2025 study, for example, found AI assistants, such as ChatGPT, misrepresent the news roughly 45% of the time. Similarly, despite marketing suggesting ChatGPT can handle financial affairs, ChatGPT has failed in meeting basic accounting standards and provided incorrect tax advice to users.

The third element of the case is the public safety threat. The danger to young people in particular is illustrated by the tragic story of Adam Raine, a 16-year-old who died by suicide in April 2025 after engaging in long conversations with ChatGPT. When Adam expressed suicidal thoughts, ChatGPT responded that it “won’t try to talk you out of your feelings”. It helped Adam plan a “beautiful suicide” and even offered to write his suicide note for him.

Why would a product behave this way? Because, Uthmeier argues, it was built to.

OpenAI designed ChatGPT to be highly agreeable, to say “yes” roughly ten times as often as “no”, according to a Washington Post review of 47,000 conversations. This forms the fourth element of the case – commercial exploitation through sycophancy. In other words, ChatGPT optimistically parrots back users’ responses in order to to manipulate them into deeper conversations, regardless of truth or safety.

But according to the lawsuit, even ordinary use carries a cost: it weakens people’s brain activity and critical thinking skills (also known as cognitive atrophy). This is the fifth element of the case.

The sixth and final element is knowledge – specifically, the knowledge of Samuel Altman. According to Uthmeier, since at least 2023, OpenAI’s own documents warned that the model could coach people on committing crimes, but Altman overruled the safety staff.

These six elements paint a picture of a product marketed as safe, engineered to be addictive, and known by its own makers to be dangerous – yet sold to us, anyway.

Altman is at the centre of that picture. The complaint reconstructs his career and reaches for an April 2026 New Yorker investigation and testimony from the recent legal battle between Elon Musk and OpenAI to depict a man, who in Uthmeier’s telling, repeatedly chose speed over safety.

That is why Uthmeier is asking the court to hold Altman personally liable for “his utter disregard for the risk to human life”.

Pay for past harms

Uthmeier is asking the court to declare that OpenAI broke the law, then to order the company to stop – permanently – its unlawful practices.

He wants the company barred from collecting children’s data without parental consent and the safeguards that should come with it, and barred from misrepresenting or staying silent about ChatGPT’s risks.

On top of the injunctions, the state is seeking civil penalties of up to US$10,000 per violation for OpenAI’s alleged wilful violation of the the Florida Deceptive and Unfair Trade Practices Act. Uthmeier said penalties could total billions of dollars.

In other words: pay for the past harms and change the product going forward.

In a statement to The Conversation, an OpenAI spokesperson pointed to the company’s “industry leading protections and policies” regarding user safety.

In particular we built safety for minors directly into our products, including a more protective experience specifically for minors, an age prediction tool, defaulting users whose age we are not confident into our more protective experience, and giving parents tools to monitor their kids use of AI.

Adding to a growing pile

This lawsuit is a significant development, but it has not arrived in a vacuum.

Across the US, the courts are filling with cases accusing tech companies of harming young people. In April, for example, Uthmeier launched a criminal investigation into OpenAI over the chatbot’s alleged role in a shooting at Florida State University.

Some juries have started to side with the plaintiffs.

In March 2026, for example, a New Mexico jury hit Meta with a US$375 million penalty in a child safety case. Days later, a jury in Los Angeles found Meta and Google liable in a landmark trial over social media addiction.

This case rides the same current. But it broadens the scope by alleging Altman himself should be personally responsible.

Uthmeier is demanding a trial by jury.

Alexandra Andhov is the director of ALTeR (Center for Advancing Law and Technology Responsibly) at the University of Auckland. She received funding from the Independent Research Fund Denmark for the "PROFIT" Project (Gaps and Opportunities in Corporate Governance of Big Tech Companies) to research big tech companies.

The US state of Florida has filed a lawsuit against OpenAI and Sam Altman, alleging the tech giant and its CEO put profit over public safety with its flagship artificial intelligence (AI) product, ChatGPT.

The lawsuit, filed in Florida state court on Monday local time by Florida’s attorney general James Uthmeier, is one of the most significant enforcement actions brought by a state attorney against an AI company to date.

It comes as OpenAI and other big tech companies are embroiled in a growing number of legal cases related to the alleged harm their products have caused.

Six key elements

The complaint opens with a screenshot of OpenAI’s own parental-control page, which states that ChatGPT was “built with safety in mind”. Then, in a standalone paragraph, the State answers with two words: “Not so”.

This signals the central allegation of the case: that OpenAI sold ChatGPT to the public as safe and reliable, while knowing it could cause serious harm

More specifically, there are six key themes to Florida’s case against OpenAI. The first is that the company engaged in deceptive safety marketing, assuring parents the platform is safe for teenage use, while not clearly disclosing that ChatGPT can be wrong.

Second, despite OpenAI’s marketing, ChatGPT is unreliable. A 2025 study, for example, found AI assistants, such as ChatGPT, misrepresent the news roughly 45% of the time. Similarly, despite marketing suggesting ChatGPT can handle financial affairs, ChatGPT has failed in meeting basic accounting standards and provided incorrect tax advice to users.

The third element of the case is the public safety threat. The danger to young people in particular is illustrated by the tragic story of Adam Raine, a 16-year-old who died by suicide in April 2025 after engaging in long conversations with ChatGPT. When Adam expressed suicidal thoughts, ChatGPT responded that it “won’t try to talk you out of your feelings”. It helped Adam plan a “beautiful suicide” and even offered to write his suicide note for him.

Why would a product behave this way? Because, Uthmeier argues, it was built to.

OpenAI designed ChatGPT to be highly agreeable, to say “yes” roughly ten times as often as “no”, according to a Washington Post review of 47,000 conversations. This forms the fourth element of the case – commercial exploitation through sycophancy. In other words, ChatGPT optimistically parrots back users’ responses in order to to manipulate them into deeper conversations, regardless of truth or safety.

But according to the lawsuit, even ordinary use carries a cost: it weakens people’s brain activity and critical thinking skills (also known as cognitive atrophy). This is the fifth element of the case.

The sixth and final element is knowledge – specifically, the knowledge of Samuel Altman. According to Uthmeier, since at least 2023, OpenAI’s own documents warned that the model could coach people on committing crimes, but Altman overruled the safety staff.

These six elements paint a picture of a product marketed as safe, engineered to be addictive, and known by its own makers to be dangerous – yet sold to us, anyway.

Altman is at the centre of that picture. The complaint reconstructs his career and reaches for an April 2026 New Yorker investigation and testimony from the recent legal battle between Elon Musk and OpenAI to depict a man, who in Uthmeier’s telling, repeatedly chose speed over safety.

That is why Uthmeier is asking the court to hold Altman personally liable for “his utter disregard for the risk to human life”.

Pay for past harms

Uthmeier is asking the court to declare that OpenAI broke the law, then to order the company to stop – permanently – its unlawful practices.

He wants the company barred from collecting children’s data without parental consent and the safeguards that should come with it, and barred from misrepresenting or staying silent about ChatGPT’s risks.

On top of the injunctions, the state is seeking civil penalties of up to US$10,000 per violation for OpenAI’s alleged wilful violation of the the Florida Deceptive and Unfair Trade Practices Act. Uthmeier said penalties could total billions of dollars.

In other words: pay for the past harms and change the product going forward.

In a statement to The Conversation, an OpenAI spokesperson pointed to the company’s “industry leading protections and policies” regarding user safety.

In particular we built safety for minors directly into our products, including a more protective experience specifically for minors, an age prediction tool, defaulting users whose age we are not confident into our more protective experience, and giving parents tools to monitor their kids use of AI.

Adding to a growing pile

This lawsuit is a significant development, but it has not arrived in a vacuum.

Across the US, the courts are filling with cases accusing tech companies of harming young people. In April, for example, Uthmeier launched a criminal investigation into OpenAI over the chatbot’s alleged role in a shooting at Florida State University.

Some juries have started to side with the plaintiffs.

In March 2026, for example, a New Mexico jury hit Meta with a US$375 million penalty in a child safety case. Days later, a jury in Los Angeles found Meta and Google liable in a landmark trial over social media addiction.

This case rides the same current. But it broadens the scope by alleging Altman himself should be personally responsible.

Uthmeier is demanding a trial by jury.

Alexandra Andhov is the director of ALTeR (Center for Advancing Law and Technology Responsibly) at the University of Auckland. She received funding from the Independent Research Fund Denmark for the "PROFIT" Project (Gaps and Opportunities in Corporate Governance of Big Tech Companies) to research big tech companies.