Musk Loses OpenAI Lawsuit as Jury Rules Claims Expired

A California jury has unanimously thrown out the Musk OpenAI lawsuit, BBC Business reported Monday. The panel found that Elon Musk had waited too long to bring his claims, rendering them legally expired.

Jury Deliberates Quickly After Three-Week Trial

The verdict came after just two hours of deliberation. Jurors had spent three weeks hearing internal documents and live testimony from Musk, OpenAI chief executive Sam Altman, and Microsoft CEO Satya Nadella, among others. The swift conclusion stood in sharp contrast to the trial’s lengthy proceedings.

Musk had accused Altman of breaching a founding non-profit agreement. His core argument was that Altman accepted his $38 million donation under charitable pretenses, then pivoted OpenAI toward a for-profit structure. Musk framed the shift as theft from a public interest organization. His claims against Microsoft, which he accused of facilitating that transition, were also dismissed following the jury’s findings on the primary OpenAI counts.

Background: A Feud Years in the Making

Musk and Altman co-founded OpenAI in 2015. Musk departed in 2018 after fellow co-founders declined to hand him operational control. Relations between the two deteriorated steadily in the years that followed, accelerating after ChatGPT’s breakout success made Altman one of tech’s most prominent figures. OpenAI felt compelled in 2024 to publish a detailed public rebuttal to Musk’s online accusations, laying out a competing account of the company’s origins.

At trial, Altman testified that Musk had not only accepted the for-profit idea but had sought lasting personal control over the organization. Musk, for his part, testified that the lawsuit was fundamentally about preventing charitable assets from being looted.

OpenAI Celebrates, Musk Eyes Appeal

OpenAI’s legal team called the outcome a complete vindication. Lead trial attorney William Savitt said the jury concluded Musk’s account of events bore no resemblance to the facts, and that the verdict was reached quickly for that reason. A company spokesman described the result as a win for the justice system as well as for OpenAI.

Musk’s lawyers signaled they intend to appeal. University of Richmond law professor Carl Tobias told BBC Business the jury made a grounded, fact-specific call, and noted that appellate courts rarely overturn such decisions. The case, if appealed, could drag on for some time. This outcome adds to a recent run of courtroom setbacks for Musk across multiple legal fronts.

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