Elon Musk Loses Landmark Lawsuit Against OpenAI
Elon Musk suffered the worst possible defeat in its legal battle against OpenAI as a federal jury and judge ruled that it waited too long to present its claims against the AI startup and its top executives, Sam Altman and Greg Brockman.
The jury’s decision was a non-binding recommendation sent to U.S. District Judge Yvonne Gonzalez Rogers, although she immediately accepted it Monday as her own, making it final.
The nine-member panel delivered the unanimous verdict in an Oakland, Calif., courtroom after deliberating for less than two hours. They found that the statute of limitations had expired well before Musk filed his suit in 2024. Musk had hoped to convince the jury that Altman and Brockman, with the help of Microsoft’s money, had transformed OpenAI into a huge company far beyond what was envisioned when the three of them and others founded it as a nonprofit nearly 11 years ago.
Because the jury found the case was not filed on time, it did not weigh on Musk’s three allegations, including charitable breach of trust, unjust enrichment and, against Microsoft, aiding and abetting.
Musk, Altman and Brockman were not present when the jury presented its verdict. Elon Musk’s lawyer, Marc Toberoff, made a one-word comment to reporters exiting the courtroom: “Appeal.” Lawyers for OpenAI were not immediately available for comment.
But William Savitt, OpenAI’s lawyer, said last week that Musk’s trial and subsequent trial had been a “gloriously performed” “spectacle of hypocrisy.” Musk, who was ordered by the court not to tweet during the trial, has not spoken about it in recent weeks.
Despite Musk’s disappointing semi-final result, the trial appears to have tarnished the public image of OpenAI and its top executives. New details have emerged about Brockman’s wealth and Altman’s alleged history of dishonesty. Both were also taken away from their daily jobs for dozens, if not hundreds, of hours to take depositions, prepare to testify, sit on the witness stand and appear in court.
Musk spent far less time in the courtroom than OpenAI executives, about three days before never returning. He even traveled to China for President Donald Trump’s state visit last week, even though he technically could have been called to testify again on short notice. “I will say it was a surprise for us to see that,” Savitt told the media last week. “Instead of being in the jurisdiction where he brought the case, ready to appear before the jurors he summoned, [he] I decided to board Air Force One and go to China.
Although the case had financial and emotional stakes, it was also a contest of bravado between two tech billionaires who broke up a brief partnership of convenience over an alleged leadership conflict, only to end up pursuing remarkably similar visions for the future of generative AI. Musk’s attempt to settle the lawsuit just before the trial began was rebuffed.
This is a developing story. Please check back for updates.
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