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Elon Musk loses OpenAI lawsuit in federal court in Oakland

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A federal jury in Oakland rules that Elon Musk’s claims against OpenAI, Sam Altman, Greg Brockman and Microsoft are time-barred, ending the case before a merits review

A federal jury in Oakland has ruled against Elon Musk in his lawsuit involving OpenAI, finding that the claims brought against Sam Altman, OpenAI president Greg Brockman, the OpenAI foundation, and Microsoft were time-barred.

The jury determined that Musk’s legal action had not been filed within the applicable statute of limitations, rejecting the core procedural basis of his case. U.S. District Judge Yvonne Gonzalez Rogers, who oversaw the proceedings, accepted the jury’s finding and formally confirmed the verdict.

The trial, which lasted three weeks, featured testimony from several prominent figures in the technology sector. Musk argued that OpenAI’s transition toward a for-profit structure represented a departure from its original nonprofit mission.

According to Musk’s claims, OpenAI was originally intended as a nonprofit research organization focused on developing artificial intelligence for the benefit of humanity. He alleged that executives, including Altman and Brockman, improperly diverted a $38 million donation he had made to support that mission.

Musk also contended that the company’s evolution into a highly valued artificial intelligence firm undermined its founding principles and created a conflict with its original structure.

OpenAI, valued in the legal arguments at around $850 billion in connection with ChatGPT’s growth and investor backing, was cited by Musk as having shifted away from its initial nonprofit framework. The case also referenced the involvement of major investors including Microsoft, Amazon, and SoftBank.

Had Musk prevailed, he would have sought to force OpenAI back into a nonprofit structure, a move that could have disrupted its planned initial public offering and affected its commercial partnerships.

However, the jury did not reach the substantive issues raised in the case. It concluded instead that Musk had filed his lawsuit four years after his last donation in 2024, exceeding the legal time limit and bringing the proceedings to an early end without a ruling on the merits.

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