A federal jury in Oakland, California, has determined that Elon Musk was too late in filing his lawsuit against OpenAI and its leadership, barring him from pursuing claims connected to the company’s transition from nonprofit to for-profit. The decision removes a potential obstacle for OpenAI’s future plans, including a possible $1 trillion initial public offering.
After less than two hours of deliberations, the jury unanimously found that Musk’s case, brought in early 2024, fell outside the applicable statute of limitations. The ruling follows a three-week trial that highlighted long-standing disputes over OpenAI’s evolution, governance, and mission, as well as broader questions about the future of artificial intelligence.
Musk, a co-founder and early supporter of OpenAI with contributions totaling $38 million, alleged that Chief Executive Sam Altman and President Greg Brockman altered OpenAI’s original nonprofit mission to serve their own interests after affiliating a for-profit business and securing significant investment from Microsoft and others. OpenAI was established in 2015 and introduced a for-profit arm in 2019, one year after Musk departed its board.
Throughout the proceedings, OpenAI countered that no binding agreement compelled the company to remain a nonprofit and argued that Musk delayed legal action until after founding his own rival venture, xAI, in 2023. Testimony also addressed Musk’s efforts to retain control of OpenAI’s direction and the company’s continued oversight by a nonprofit board. Key figures, including Microsoft CEO Satya Nadella and multiple former OpenAI board members, testified during the trial.
The decision is consistent with U.S. District Judge Yvonne Gonzalez Rogers’s assessment. The judge noted in court that substantial evidence supported the jury’s conclusion and indicated that Musk’s prospects in an appeal may be limited, given the factual basis of the statute of limitations issue.
Musk’s lawsuit sought over $130 billion in damages for OpenAI’s nonprofit entity, the removal of Altman and Brockman as leaders, and a reversal of OpenAI’s corporate structure changes. OpenAI described Musk’s claims as an attempt to hinder a competitor’s progress and maintained that its mission remains focused on safe and beneficial artificial intelligence.
The trial brought scrutiny on OpenAI’s strategy and Altman’s leadership, with former board members also testifying about the company’s internal tensions, including Altman’s brief removal as CEO in 2023 before being reinstated days later.
Musk intends to appeal the verdict, although legal experts and the presiding judge suggested the grounds for overturning the decision may be narrow due to the jury’s findings on statutory timing.
