OpenAI CEO Sam Altman has taken legal action against the developers of his $27 million mansion.
Altman alleges that the developers and contractors engaged in a cost-cutting scheme "plagues by shoddy construction."
The mansion, built in 2018, spans 9,500 square feet across four stories.
Four years after purchasing what was dubbed the most expensive home listing in San Francisco history, billionaire and OpenAI CEO Sam Altman has taken legal action against the developers of his $27 million mansion. Altman alleges that the developers and contractors engaged in a cost-cutting scheme “plagues by shoddy construction.”
The lawsuit, filed by 950 Lombard LLC—a limited liability company linked to Altman—in San Francisco County Superior Court, accuses the developers and contractors of conspiring to rush the property to market while misrepresenting its condition (via Forbes). According to the plaintiffs, the developers and contractors colluded to cover up financial mismanagement through poor construction practices.
Also read: OpenAI’s GPT-5 will evolve with you, says Sam Altman
Specifically, the lawsuit claims that the developers cut corners by hiring unqualified personnel, including a first-time construction manager, and failed to pay contractors on time. This led to retaliatory actions by the contractors, who allegedly engaged in a “campaign of sabotage.” The suit lists several issues, including a faulty waterproofing system, widespread defective construction, and poor irrigation and drainage systems. One of the most severe problems mentioned is raw sewage being dumped in a hard-to-access area next to the house.
The plaintiffs have sued the developers for negligence, breach of contract, breach of good faith, breach of implied warranty, negligent misrepresentation, unfair competition, and fraudulent inducement.
Details of property
The mansion, built in 2018, spans 9,500 square feet across four stories. It features floor-to-ceiling glass doors, an open patio, an interior elevator, historic olive trees, and a hillside infinity pool with breathtaking views from downtown San Francisco to Alcatraz. The property includes 15 rooms, six bedrooms, and seven bathrooms, all on a third of an acre overlooking the city and San Francisco Bay. The parcel, which includes addresses at 948 Lombard Street and 841 Chestnut Street, has an assessed land value of nearly $19.3 million and an additional structure value of over $9.64 million, according to San Francisco’s assessor records.
City records show that the property was last sold in March 2020 for $27 million, the same time the plaintiffs claim it was purchased.
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Ayushi Jain
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