Musk Loses OpenAI Lawsuit as Jury Rules Claims Expired
A California jury has unanimously rejected Elon Musk’s lawsuit against OpenAI and chief executive Sam Altman, BBC Business reported Monday. The jury found that Musk had waited too long to bring his claims, rendering them legally expired before the trial even began.
What the Case Was About
Musk had contributed roughly $38 million to OpenAI during its earliest days as a nonprofit. He alleged that Altman and the company’s leadership later betrayed that founding mission by engineering a shift toward a for-profit structure. Musk framed the lawsuit as a fight to protect charitable giving. He told the court on its opening day that permitting such conduct would “destroy the entire foundation of charitable giving.”
Altman pushed back sharply during his own testimony. He told the jury that Musk had not only supported the idea of a commercial structure but had actively sought long-term control of the company. Altman recalled a particularly tense exchange in which Musk was asked by co-founders what would happen to his control stake after his death. Altman said Musk suggested the stake might pass to his children.
Background on the Musk-Altman Rift
The two men co-founded OpenAI in 2015. Musk departed three years later after his fellow founders declined to hand him operational control. Relations deteriorated sharply after ChatGPT’s commercial breakthrough made Altman one of the most prominent figures in technology. OpenAI felt compelled in 2024 to publish a detailed public rebuttal addressing Musk’s public claims about the company’s history. Musk separately founded his own AI venture, xAI, which competes directly with OpenAI.
Microsoft Cleared, Musk Reacts Angrily
Musk had also named Microsoft as a defendant, accusing the tech giant of facilitating OpenAI’s structural changes. Those claims were dismissed following the jury’s findings on the core OpenAI counts. A Microsoft spokesperson said the facts and timeline had “long been clear” and reaffirmed the company’s commitment to its OpenAI partnership.
Deliberations lasted roughly two hours. OpenAI spokesperson Sam Singer called the outcome a victory for the justice system and accused Musk of attempting to slow down a competitor. Musk responded on X by claiming the verdict created a blueprint for looting nonprofits and attacked the presiding judge as a “terrible activist.”
Appeal Likely, Analysts Skeptical
Musk’s legal team immediately signaled plans to challenge the ruling. Lead counsel Marc Toberoff said outside the courthouse that “this war is not over.” University of Richmond law professor Carl Tobias told BBC Business the jury made a sound, fact-based decision. He added that an appeals court would face a high bar to overturn such a unanimous finding.
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