Jury Dismisses Elon Musk’s Lawsuit Against OpenAI Over Statute of Limitations

A California federal jury on Monday unanimously dismissed Elon Musk’s lawsuit against OpenAI, CEO Sam Altman, and others, ruling that Musk filed his claims too late under the statute of limitations. The verdict marks a significant legal victory for OpenAI and preserves the company’s current business structure.

The nine-person jury, serving in an advisory role, found that Musk missed the three-year window to bring his claims, which alleged that Altman and OpenAI co-founder Greg Brockman breached their duty to the nonprofit organization by converting it into a for-profit entity and enriching themselves. The jury also rejected Musk’s claim that Microsoft aided and abetted this alleged breach. Judge Yvonne Gonzalez Rogers accepted the jury’s findings and dismissed Musk’s claims.

Musk, who co-founded OpenAI and invested $38 million in its early years, sought $150 billion in damages and the removal of Altman from leadership. The lawsuit accused OpenAI of breaking its promise to remain a nonprofit and turning into a money-making venture now valued at $852 billion. Musk described the case as a “textbook tale of altruism versus greed” and testified that “it’s not OK to steal a charity.”

OpenAI attorney William Savitt called the lawsuit a “hypocritical attempt to sabotage a competitor,” noting the jury took less than two hours to reach its decision. Microsoft, an early investor in OpenAI’s for-profit arm, welcomed the verdict, stating it “dismisses these claims as untimely.”

The trial, held over three weeks in Oakland, featured testimony from Musk, Altman, OpenAI and Microsoft executives, legal experts, and six tech billionaires. It highlighted the fractured relationship between Musk and Altman, once on good terms but now at odds as OpenAI grew into a leading AI company. Altman testified that Musk wanted to be CEO of OpenAI, a prospect he found “extremely uncomfortable.”

Legal experts testified that OpenAI’s for-profit subsidiary, created in 2019 and governed by the nonprofit entity, did not violate charitable trust laws. Harvard law professor John Coates said the for-profit arm generated value for the nonprofit, estimating it at around $200 billion. Microsoft reported $9.5 billion in revenue from the partnership as of March 2025.

Musk’s legal team indicated plans to appeal, with lawyer Steven Molo describing the verdict as a narrow decision on “technical legal issues.” Molo said they hope an appeals court will reverse rulings related to the statute of limitations and cited the continuing violation doctrine as a basis for appeal, which the judge had declined to include in jury instructions.

Musk explained during the trial that he delayed suing because he trusted Altman’s reassurances but filed after Microsoft invested $10 billion in OpenAI’s for-profit arm in 2023. “Thinking that someone might steal your car is not the same as someone stealing it,” Musk said. “I would have filed a lawsuit sooner if I thought they had stolen the charity sooner.”

The verdict maintains the status quo for OpenAI, which completed a restructuring last year leaving a nonprofit foundation in charge while confirming large ownership stakes for investors including Microsoft. The case drew widespread attention for its high-profile participants and the broader implications for the AI industry.