Elon Musk has lost his legal battle against Sam Altman, Greg Brockman, OpenAI, and Microsoft after a California jury unanimously ruled that his claims were filed too late under state law.
Musk had accused OpenAI’s leadership of “stealing a charity” by transforming the organization from a nonprofit AI research lab into a company with a powerful for-profit arm. He argued that the shift violated the original mission and agreements established during OpenAI’s founding years.
Despite weeks of testimony that exposed the internal tensions, rivalries, and power struggles behind OpenAI’s rise, the case ultimately centered on procedural legal questions rather than the broader ethical debate over artificial intelligence and nonprofit governance.
At the core of the defense strategy was the argument that any alleged wrongdoing occurred years earlier and therefore fell outside the legal deadline for bringing claims. OpenAI argued that the events Musk challenged had taken place before 2021, depending on the specific allegation involved. Jurors ultimately agreed with that position, leading to a relatively brief deliberation before delivering their verdict.
“There was a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” Judge Yvonne Gonzalez Rogers said following the ruling.
The outcome removes one of the biggest legal threats hanging over OpenAI as the company reportedly moves closer toward a potential IPO and broader corporate restructuring plans.
OpenAI’s lead attorney, Bill Savitt, sharply criticized Musk’s lawsuit after the verdict, saying the jury quickly recognized the case as baseless.
“It did not take them two hours to conclude that Mr. Musk’s lawsuit is nothing more than an after-the-fact contrivance that bears no relationship to reality,” Savitt said. “This lawsuit is a hypocritical attempt to sabotage a competitor.”
Microsoft, which had been accused by Musk of helping OpenAI breach its charitable obligations, also welcomed the verdict. A company spokesperson said Microsoft remained committed to advancing AI technologies through its partnership with OpenAI.
During the proceedings, the court also examined the financial damages Musk claimed to have suffered. Musk’s legal team argued that OpenAI and Microsoft had gained tens of billions of dollars through the alleged misconduct, with expert estimates placing the figure between $78.8 billion and $135 billion.
However, Judge Rogers appeared skeptical of those calculations and questioned whether the analysis properly reflected the facts of the case.
“Your analysis seems to be devoid of connection to the underlying facts,” she told the damages expert presented by Musk’s team.
Following the ruling, Musk responded publicly on X, arguing that the verdict was based on timing rather than the substance of his accusations.
“There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!” Musk wrote.
He also confirmed plans to appeal the decision to the Ninth Circuit Court of Appeals, arguing that the case raises broader concerns about nonprofit organizations being converted into profit-driven entities.
