Musk Loses OpenAI Trial After Jury Rejects His Claims as Too Late

CNBC reported Monday that a California jury handed Elon Musk a decisive courtroom defeat in his lawsuit against OpenAI CEO Sam Altman, ending a three-week legal battle in Oakland that drew some of Silicon Valley’s biggest names to the witness stand.

The jury deliberated for fewer than two hours before finding that Musk’s claims were invalid. The central reason was timing. Jurors concluded that Musk had a three-year window to file suit and failed to do so within that period.

Verdict Delivered Swiftly in Oakland

U.S. District Judge Yvonne Gonzalez Rogers aligned with the advisory jury’s conclusion that Altman and OpenAI bore no liability. She dismissed charges of breach of charitable trust and unjust enrichment as time-barred, saying she was ready to throw out the claims immediately. The suit against Microsoft, which was named as a co-defendant for allegedly enabling OpenAI’s structural shift, was also dismissed. Musk’s legal team reserved the right to appeal.

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Background: A Founding Friendship That Curdled

Musk co-founded OpenAI in 2015 alongside Altman and others, contributing roughly $38 million under the belief the lab would pursue AI development as a public good. He departed the board in 2018. When OpenAI began building out a for-profit structure, Musk filed suit in 2024, arguing the organisation’s leadership had effectively “stolen a charity” by enriching themselves at the expense of its founding mission. He sought up to $134 billion in forfeited gains and demanded the removal of Altman and OpenAI President Greg Brockman. OpenAI’s defence countered that Musk’s donations carried no legal restrictions. Lawyers also revealed he had previously proposed a for-profit arrangement himself, contingent on his own control, and had at one point suggested folding OpenAI into Tesla.

Also Read: How Elon Musk and Sam Altman Went From Allies to Rivals

What Comes Next for Both Camps

The ruling arrives at a consequential moment for both men. OpenAI closed a $122 billion fundraising round in late March at a valuation exceeding $850 billion, and continues racing to extend its lead in consumer and enterprise AI. Musk, meanwhile, faces the imminent public disclosure of a SpaceX IPO prospectus. His AI venture xAI, now folded into SpaceX, positions him as a direct competitor to the company he helped build. Monday’s verdict removes one legal distraction, but the commercial rivalry between the two figures shows no signs of cooling.

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