Musk Loses OpenAI Trial, Vows to Appeal
CNBC reported Monday that a federal jury in Oakland, California, ruled against Elon Musk in the OpenAI trial, finding his lawsuit against OpenAI CEO Sam Altman was filed too late under a three-year statute of limitations.
The advisory jury reached its decision in under two hours. District Court Judge Yvonne Gonzalez Rogers immediately adopted the finding. The court did not weigh the underlying merits of Musk’s claims. It ruled solely that those claims arrived outside the legal window.
The Verdict and Musk’s Immediate Response
Musk wasted no time dismissing the outcome. Writing on his social platform X, he called the ruling a “calendar technicality.” He argued the core question of whether OpenAI President Greg Brockman and Altman personally profited by abandoning a charitable mission was never properly examined. His legal team told the judge they would take the case to the 9th Circuit U.S. Court of Appeals.
Judge Gonzalez Rogers signaled scepticism toward that path. She noted from the bench that evidence supporting the jury’s finding was substantial. She indicated she was prepared to dismiss a direct appeal immediately.
Background on the Lawsuit
Musk originally sued Altman and OpenAI in 2024. His central allegation was that OpenAI’s leadership abandoned the company’s founding nonprofit mission in favour of personal financial gain. Musk was among OpenAI’s original co-founders in 2015 but departed its board three years later. He claimed he contributed roughly $38 million to the organisation on the assumption it would pursue AI development for broad public benefit.
Microsoft, an early OpenAI investor, was also named as a defendant. Musk alleged the tech giant aided OpenAI’s alleged breach of charitable trust. The court dismissed that claim as well. Musk’s legal team had sought up to $180 billion in disgorgement of what they called ill-gotten gains. They also sought the removal of Altman and Brockman from leadership and a reversal of OpenAI’s 2025 restructuring into a more commercial entity.
OpenAI and Microsoft Celebrate Outside Court
OpenAI’s lead attorney William Savitt was pointed in his post-verdict remarks. He told reporters the ruling was substantive, not procedural. He said Musk had sat on his claims deliberately, using them as a competitive tool rather than a genuine legal grievance. Attorneys for both OpenAI and Microsoft exchanged hugs and handshakes as they left the Oakland courthouse. Microsoft issued a written statement welcoming the dismissal and reaffirming its partnership with OpenAI.
Musk’s attorney Marc Toberoff maintained outside court that the case was ultimately about protecting charitable organisations from exploitation. The appeal to the 9th Circuit is expected to follow.
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