Lawsuits

Jury Rules Against Musk in OpenAI Lawsuit

Was Musk's lawsuit a failed legal gamble or a stand against OpenAI's broken mission?

Published MAY 18

Jury Rules Against Musk in OpenAI Lawsuit

Story

Above: Lawyers for OpenAI speak outside federal court in Oakland, Calif., on May 18. Image credit: David Paul Morris/Bloomberg/Getty Images

The Facts

A nine-person federal jury unanimously ruled against Elon Musk in his lawsuit against OpenAI and CEO Sam Altman, finding his claims were filed after the statute of limitations expired. Judge Yvonne Gonzalez Rogers accepted the verdict and dismissed the case.
FOX News
The Wall Street Journal
The jury's deliberations lasted less than two hours following an 11-day trial in Oakland, Calif. The jury found Musk was aware of OpenAI's shift toward a for-profit model as far back as 2021, making his August 2024 filing untimely under the three-year statute of limitations.
The New York Times
ZeroHedge
Musk, a co-founder who contributed roughly $38 million to OpenAI in its early years, alleged that Altman and co-founder Greg Brockman breached a charitable trust by converting the nonprofit into a for-profit entity. He sought up to $150 billion in damages and the removal of Altman and Brockman.
BBC News
NPR
OpenAI attorneys argued that Musk had supported a for-profit conversion as early as 2017 and sought majority control of the venture. They contended his 2024 lawsuit was motivated by competitive rivalry, filed after he launched his own AI startup, xAI, in 2023.
ZeroHedge
The Wall Street Journal
The jury's verdict also dismissed Musk's claims against Microsoft, which he accused of aiding OpenAI's transition to a for-profit structure through investments totaling $13 billion between 2019 and 2023. Microsoft said, "the jury's decision to dismiss these claims as untimely."
The New York Times
NPR
Musk's lead attorney said his client intends to appeal the verdict. Antitrust claims against OpenAI and Microsoft were also made in the case, with the judge pledging to hear them at a later date.
BBC News
Inc
The Wall Street Journal

Sources Split

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CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

The jury's unanimous verdict against Musk is a clear win for OpenAI, Sam Altman and Microsoft. Musk knew about the alleged misconduct as early as 2021 but waited until 2024 to sue — well past the three-year statute of limitations. This clears the path for OpenAI's IPO and leaves Musk further than ever from the company he once helped build.

Ed Krassenstein on X

Inc

Narrative B

The jury tossed the case on a timing technicality, not because the underlying claims were wrong. OpenAI took $38 million in founding donations under a nonprofit mission, then restructured into an $850 billion for-profit machine tied to Microsoft. This is a betrayal of the original promise, and an appeal is already in the works.

Mario Nawfal on X