Sam Altman has taken legal action over his acquisition of a $27 million mansion in San Francisco, citing construction flaws and misrepresentations within the property.
In a lawsuit filed in the San Francisco Superior Court and initially reported by the San Francisco Chronicle, Altman alleges that the developer, Troon Pacific, knowingly sold the mansion despite significant defects.
Altman, CEO of OpenAI, bought the mansion in Russian Hill in March 2020, and it now serves as the official address for Apollo Projects, the investment firm he runs with his brother Jack Altman to support tech startups.
Once listed as the most expensive property in San Francisco, the mansion features a wellness cottage, infinity pool, a Batcave-style garage, and a private garden.
Since the purchase through an LLC, maintaining the property reportedly has been a significant expense for Altman. The San Francisco Standard reported that pool issues caused flooding in the home last year.
The lawsuit highlights poorly installed sewage systems and waterproofing problems as major issues, which it claims both Troon Pacific and its CEO, Greg Malin, were aware of.
The lawsuit asserts that the property has “poor and substandard waterproofing design and installation,” ultimately leading to Altman purchasing a $27 million “lemon.”
Allegations suggest that Malin and his firm knew about these defects but did not disclose them to expedite the sale. The lawsuit seeks unspecified damages, including interest and legal fees.
In 2021, Troon Pacific shared various photos of the property on Instagram, spotlighting the garage they labeled a “bat cave.”
Altman owns properties across California and Hawaii, but mainly resides in San Francisco, the hub of the tech industry in the US and the headquarters of OpenAI and its partner companies.
This legal dispute is the latest challenge for Troon Pacific, which earlier this year was mandated to pay $48.1 million to investors due to fraudulent practices.