Musk loses lawsuit against OpenAI on statute of limitations

Elon Musk's legal challenge against OpenAI and its co-founders has ended in failure, with a unanimous jury verdict ruling that his lawsuit was filed too late. The case centered on Musk's accusation that Sam Altman, Greg Brockman, OpenAI, and Microsoft had “stolen a charity” by transforming OpenAI into a for-profit entity. However, the jury accepted the defendants' statute of limitations defense, determining that any harm Musk may have suffered occurred before the relevant deadlines: August 5, 2021, for the first count; August 5, 2022, for the second; and November 14, 2021, for the third. Judge Yvonne Gonzalez Rogers noted the evidence strongly supported the jury's finding, remarking she would have dismissed the case immediately. The verdict came during a hearing to decide potential damages—Musk's expert had claimed between $78.8 billion and $135 billion in wrongful gains—but those calculations are now moot. OpenAI’s lead attorney Bill Savitt called the lawsuit “an after-the-fact contrivance” and a hypocritical attempt to sabotage a competitor.

Following the ruling, Musk posted on X that the procedural grounds amounted to a moral victory, claiming “there is no question … that Altman & Brockman did in fact enrich themselves by stealing a charity.” He announced plans to appeal to the Ninth Circuit, warning that allowing charities to be looted would undermine charitable giving. Microsoft, which was also a defendant, welcomed the verdict, reiterating its commitment to its partnership with OpenAI. The case’s conclusion removes a significant legal hurdle as OpenAI reportedly prepares for an IPO. The judge was notably skeptical of Musk's damages analogy, telling his expert that the analysis “seems to be devoid of connection to the underlying facts.” Musk’s lead counsel, Marc Toberoff, said only: “One word: Appeal.”