Tech billionaire Elon Musk has lost his lawsuit against OpenAI, co-founder Sam Altman, and others after a California jury rejected his claims.
The verdict marks a major legal win for OpenAI amid ongoing tensions between Musk and the AI company he helped co-found.
A panel of nine California jurors unanimously ruled that Musk’s lawsuits were filed after the legal deadline had expired.
Musk had accused Sam Altman, Greg Brockman, OpenAI, and Microsoft of transforming a nonprofit AI research organization into a profit-driven business venture.
However, jurors concluded that any alleged harm suffered by Musk occurred years earlier and outside the allowed filing period under California law.
Case focused on OpenAI’s transformation
The trial explored the history of OpenAI and its shift from a nonprofit structure to a for-profit affiliate model.
Musk argued that promises made during OpenAI’s founding were broken after the company partnered closely with Microsoft and pursued commercial expansion.
The defense countered that Musk’s complaints related to events that took place before 2021, making the claims legally invalid due to statute of limitations rules.
Judge Yvonne Gonzalez Rogers said there was substantial evidence supporting the jury’s conclusion.
OpenAI’s lead attorney, Bill Savitt, described the lawsuit as an attempt to undermine a competitor after the verdict was delivered.
Microsoft also welcomed the outcome, saying it remains committed to advancing AI technologies through its partnership with OpenAI.
Potential impact on OpenAI
The ruling removes a major legal threat hanging over OpenAI, particularly concerns related to possible restructuring ahead of a reported future IPO.
During the proceedings, Musk’s legal team had argued that OpenAI and Microsoft wrongfully benefited from what they claimed was a charitable initiative originally backed by Musk.
The estimated financial damages discussed in court reportedly ranged between $78.8 billion and $135 billion.
Following the verdict, Elon Musk signaled he would continue the legal fight through an appeal.
In a post on social media, he argued that the issue was not whether OpenAI leaders enriched themselves, but when the alleged actions occurred.
Musk’s lawyer Marc Toberoff also confirmed that an appeal would be filed with the Ninth Circuit Court.
