A California jury has unanimously dismissed Elon Musk’s lawsuit against OpenAI, CEO Sam Altman and Microsoft. The jury determined that Musk waited too long to bring claims, resulting in the expiration of the statute of limitations on both the breach of charitable trust and unjust enrichment claims against OpenAI.
As a result, Microsoft’s remaining claims were dismissed under the law following the jury’s verdict on the OpenAI claims. The jury reached its verdict in about two hours after a three-week trial that included testimony from Musk, Altman, Microsoft CEO Satya Nadella and others in the tech industry.
What’s actually claimed in Elon Musk’s lawsuit
Musk claimed that Altman violated OpenAI’s original non-profit agreement by shifting ChatGPT developers toward a for-profit structure after Musk donated $38 million in the company’s early days.
He argued that this change was misleading because the initial goal of OpenAI was to create AI for the benefit of humanity, not for profit. However, the jury decided that the statute of limitations had expired, so it was not necessary to assess the validity of any claims.
How Musk, OpenAI and Microsoft reacted to the decision
Musk responded to He also criticized the judge, calling him a “terrible activist” who was using the jury “like a fig leaf.”
Later that post was removed. In a follow-up message, Musk said he planned to appeal, claiming that the jury did not make the decision “on the merits of the case” and that the outcome was based on a “calendar technicality.”
OpenAI spokesman Sam Singer called the ruling “a tremendous victory” and suggested the lawsuit was “an attempt by Mr. Musk to slow down a competitor.” OpenAI attorney William Savitt said the jury found that Musk lied during his testimony about the company’s origins.
Microsoft, which was also named in claims related to aiding and abetting OpenAI’s transition, said: “The facts and timeline in this matter have long been clear,” and reaffirmed its commitment to working with OpenAI.
Appeal prospects and the origins of OpenAI
Legal experts cited in the reporting expressed skepticism about Musk’s chances on appeal. Carl Tobias, a law professor at the University of Richmond, said the jury’s decision was very fact-based and pointed out that appellate courts rarely overturn jury verdicts in this manner.
Appellate lawyer Raffi Melkonian said it is usually very difficult to win an appeal of a jury verdict. Musk’s attorney, Mark Toberoff, told reporters outside court, “This war is not over, and I would like to sum it up in one word: appeal.”
OpenAI was founded in 2015 as a non-profit research organization by Musk, Altman and others. Musk resigned from the board in 2018 after his co-founders rejected his attempt to gain control of the company. Altman testified that Musk supported the move to the for-profit model but wanted control over the new entity, reportedly suggesting at one point that control could be passed to his children after his death.
The ruling concludes one of the most high-profile legal disputes in the AI ​​industry to date, although a planned appeal means the case could drag on longer.
