Federal court rejects Elon Musk's claims against OpenAI, saying he filed his lawsuit too late

A federal court in Oakland, California, dismissed Elon Musk’s lawsuit against OpenAI and its top executives on Monday, ruling he filed his claims too late. The nine-person jury, deliberating for just two hours, found Musk missed the deadline for the statute of limitations, and Judge Yvonne Gonzalez Rogers accepted the verdict as the court’s final decision. The trial, lasting three weeks, exposed tensions between Musk and OpenAI’s leadership, including CEO Sam Altman and president Greg Brockman. Musk, a co-founder and initial investor of $38 million, accused them of betraying OpenAI’s original nonprofit mission and pivoting toward profit. He sought damages for OpenAI’s charitable arm and Altman’s ouster from the board in 2023, though Altman was reinstated days later. Testimony revealed Musk’s belief that OpenAI’s shift—now valued at $852 billion—violated an alleged agreement to remain nonprofit. Altman and Brockman denied any such promise, arguing Musk knew OpenAI’s direction could change. Brockman disclosed his stake in OpenAI is worth about $30 billion, while Musk accused them of ‘stealing a charity’ during his combative cross-examination. Witnesses, including former board members Helen Toner and Tasha McCauley, discussed the 2023 board decision to fire Altman before his rapid return. Microsoft CEO Satya Nadella also testified, highlighting OpenAI’s partnership with Microsoft. Musk’s lawsuit framed Altman and Brockman as unjustly enriching themselves from OpenAI’s growth, while OpenAI dismissed the case as sour grapes aimed at undermining its success. Musk’s rival AI venture, xAI, launched in 2023, was cited as a potential motive behind the lawsuit. OpenAI’s legal team challenged Musk’s claims, accusing him of complicating the case. The court’s dismissal leaves Musk without legal recourse to challenge OpenAI’s transition from nonprofit origins to a for-profit entity.