A federal jury has unanimously dismissed Elon Musk's lawsuit against OpenAI and its CEO Sam Altman, ruling that the claims were filed beyond the legal time limit. The jury's advisory verdict, delivered after less than two hours of deliberation, found that Musk waited too long to bring his allegations, thereby barring any relief against the defendants. U.S. District Judge Yvonne Gonzalez Rogers immediately accepted the jury's conclusion, dismissing the case on these grounds.
Musk, a co-founder of OpenAI, had sued the artificial intelligence company in 2024, alleging that it had betrayed its founding mission to develop AI for the benefit of humanity by prioritizing profits and forging a partnership with Microsoft. His lawsuit sought the removal of CEO Sam Altman and President Greg Brockman, as well as over $150 billion in damages that he intended to donate to OpenAI's nonprofit entity. Musk's legal team argued that OpenAI had breached its charitable trust and that Altman and Brockman had unjustly enriched themselves.
OpenAI and Altman, however, contended that there was never a permanent promise to keep the company nonprofit. They argued that Musk himself had explored the possibility of a for-profit entity before his departure from the company's board in 2018. OpenAI's defense suggested the lawsuit was a tactic to undermine their company and bolster Musk's own AI startup, xAI. The company also noted that a commercial structure was unavoidable given the need to compete with entities like Google's DeepMind.
The trial, which lasted three weeks, featured testimony from key figures including Sam Altman, Greg Brockman, Microsoft CEO Satya Nadella, and Elon Musk himself. Musk testified that his approximately $38 million in donations were made with the expectation that OpenAI would serve humanity broadly. He stated during his testimony, "It's not OK to steal a charity". OpenAI's legal team countered that the lawsuit was a "hypocritical attempt to sabotage a competitor".
The jury's decision hinged on the statute of limitations, a legal principle that sets a deadline for filing lawsuits. OpenAI argued that Musk waited too long to file his claims, suggesting that any alleged harm occurred before August 2021, which would fall outside the typical three-year window for such claims. The jury's finding that Musk missed this window meant that the court did not need to rule on the merits of his allegations.
Following the verdict, Musk stated on his social media platform X that he intended to appeal the decision, characterizing the outcome as a "calendar technicality" and asserting that the judge and jury did not weigh the substance of his case. His lawyer, Marc Toboreff, suggested the legal battle was far from over, comparing the verdict to early setbacks in historical conflicts. OpenAI's lawyer, William Savitt, expressed satisfaction with the verdict, calling the lawsuit a "travesty". Microsoft, a defendant in the suit and a significant investor in OpenAI, also welcomed the decision, stating its commitment to its work with OpenAI.
The dismissal of Musk's lawsuit removes a significant legal hurdle for OpenAI, which is now valued at approximately $852 billion and is reportedly moving toward a potential initial public offering. The trial had brought to light internal disputes and the complex history of the artificial intelligence company and its prominent figures.