Elon Musk has lost a key stage of his lawsuit against OpenAI after a federal jury in Oakland, California, found that his claims against the artificial intelligence company, Chief Executive Sam Altman, and President Greg Brockman were filed too late. The jury rejected Musk’s case on Monday after less than two hours of deliberation. The decision did not decide whether OpenAI violated its founding mission. Instead, jurors found that Musk brought the lawsuit after the three-year statute of limitations had expired. Musk had accused OpenAI, Altman, and Brockman of moving the company away from its original nonprofit purpose and toward commercial gain. His lawsuit alleged that OpenAI’s leaders breached a founding agreement and unjustly benefited from attaching a for-profit business to the nonprofit structure. Jury Finds Musk Filed After Legal Deadline The central issue for jurors was timing. Musk filed the lawsuit in 2024, but OpenAI argued that he had known about the company’s for-profit plans years earlier. The jury found that Musk was aware of the conduct at the center of his complaint as far back as 2021, placing the case outside the three-year legal window. Judge Yvonne Gonzalez Rogers said there was enough evidence to support the jury’s finding and dismissed Musk’s claims. The verdict was advisory, but the judge said she would follow the jury’s decision. The ruling means OpenAI, Altman, and Brockman were not held liable on Musk’s breach of charitable trust and unjust enrichment claims. Microsoft, which was also named as a defendant, was also found not liable in connection with those allegations. Musk had sought a large financial remedy and changes to OpenAI’s leadership and corporate structure. His lawyers had asked for damages and wanted Altman removed from OpenAI’s board. The lawsuit also sought to unwind OpenAI’s move toward a for-profit model ahead of a possible public offering. OpenAI Says Verdict Clears Key Claims OpenAI denied Musk’s allegations throughout the case. The company said Musk knew about plans for a for-profit structure and argued that he later challenged the company after leaving OpenAI. The defense also said OpenAI remains controlled by its nonprofit parent and continues to operate under its stated mission. After the ruling, OpenAI’s legal team welcomed the result outside the courthouse. William Savitt, lead counsel for OpenAI, said the company was confident in its case. Microsoft also welcomed the jury’s decision. The company said the facts and timeline had been clear and that the claims were dismissed as untimely. The trial included testimony from several prominent technology executives, including Musk, Altman, Brockman, and Microsoft Chief Executive Satya Nadella. Lawyers also presented emails, text messages, and internal documents about OpenAI’s formation, governance, and later restructuring. Elon Musk Plans Appeal as Antitrust Claims Remain Musk’s legal team said it plans to appeal the verdict. Steven Molo, his lead counsel, informed the judge of that intention after the decision. Attorney Marc Toberoff also told reporters that an appeal was planned but did not give details on the legal basis. Some parts of Musk’s lawsuit remain unresolved. The case also includes antitrust claims against OpenAI and Microsoft, which had been set for a possible second stage of trial. Judge Gonzalez Rogers said those claims were “not very good claims,” citing strong competition in the artificial intelligence market, but she has not dismissed them. The verdict removes one legal challenge that could have affected OpenAI’s corporate plans. The company is reportedly preparing for a possible initial public offering and is also pursuing large-scale data center expansion.
