Musk Loses OpenAI Trial, Vows Appeal After Jury Finds Claims Filed Too Late
A federal jury in Oakland ruled Monday that Elon Musk waited too long to bring his case against OpenAI and its CEO Sam Altman, CNBC reported. The decision ended a closely watched three-week trial over Musk’s claims that OpenAI abandoned its founding charitable mission.
Jury Finds Claims Outside the Time Limit
The advisory jury reached its verdict in under two hours. District Court Judge Yvonne Gonzalez Rogers immediately adopted the finding. The court did not rule on whether Musk’s core allegations had merit. Instead, it determined the claims fell outside a three-year statute of limitations. Musk and his legal team said they would take the case to the 9th Circuit U.S. Court of Appeals.
Musk responded swiftly on his social network X. He called the outcome a “calendar technicality” and argued the only real question was when the alleged wrongdoing occurred, not whether it happened. Outside the courthouse, one of his attorneys framed the case as a fight to protect charitable institutions from exploitation.
OpenAI’s lead counsel pushed back sharply. He told reporters the decision was substantive, not procedural, arguing Musk held back his claims to use them as a competitive weapon rather than a genuine legal grievance. Attorneys for OpenAI and Microsoft celebrated visibly as they left the courtroom.
Background to the Musk-Altman Dispute
Musk co-founded OpenAI in 2015 alongside Altman and Greg Brockman, contributing roughly $38 million on the understanding the lab would develop artificial intelligence for broad public benefit. He departed the board in 2018. Relations between Musk and Altman deteriorated sharply over subsequent years as OpenAI expanded its commercial operations and deepened ties with Microsoft.
Musk filed suit in 2024, alleging OpenAI and its executives breached a charitable trust. He also named Microsoft as a defendant, claiming the tech giant helped facilitate that breach. The court dismissed the Microsoft claim alongside Musk’s other counts.
What Musk Sought and What Comes Next
Musk’s legal team had sought up to $180B in what they described as improperly gained assets. They also wanted Altman and Brockman removed from leadership and OpenAI’s 2025 for-profit restructuring reversed. Musk specified he wanted any recovered funds returned to the original nonprofit rather than paid to himself personally.
The judge signaled skepticism toward any immediate appeal effort, noting she was prepared to dismiss such a move outright. Microsoft issued a statement welcoming the verdict and reaffirming its commitment to its OpenAI partnership.
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