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Elon Musk loses mega lawsuit against OpenAI

OpenAI board rejects Elon Musk-led buyout offer
This combination of pictures created on February 11, 2025 shows (L-R) Elon Musk in Los Angeles, on February 3, 2024 and OpenAI CEO Sam Altman in Tel Aviv on June 5, 2023. A consortium led by Elon Musk, a Trump ally and the world's richest man, has made a near $100 billion bid to buy ChatGPT maker OpenAI, the Wall Street Journal reported. Altman, the OpenAI chief who was to speak in Paris on February 11, 2025, responded with a dry "no thank you" on X, while senior executive Chris Lehane said OpenAI was "not for sale." (Photo by LISA O'CONNOR and JACK GUEZ / AFP)

Elon Musk’s claim that he was mistreated by his OpenAI co-founders was dismissed after nine California jurors unanimously ruled that his lawsuit had been filed too late.

Musk had accused Sam Altman, Greg Brockman, OpenAI, and Microsoft of “stealing a charity” by turning the AI research lab into a for-profit affiliate.

However, the jury found that any harm Musk alleged occurred before the legal deadline for bringing the case.

Although the trial explored the dramatic history of OpenAI and included testimony from prominent Silicon Valley figures, it ultimately hinged on narrow legal questions.

Central to the case was whether Altman and the other defendants had made and later broken promises to Musk, but jurors were not persuaded that Musk’s claims were legally valid.

OpenAI also relied on a statute of limitations defence, arguing that any alleged harm Musk was seeking to litigate occurred before 2021 and was therefore filed too late under the law.

“There was a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss it on the spot,” Judge Yvonne Gonzalez Rogers said after the verdict was delivered.

The conclusion of the case removes a significant legal challenge for OpenAI, effectively eliminating a potential obstacle to its reported plans for a corporate restructuring and eventual initial public offering.

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