In a Musk OpenAI lawsuit, Elon Musk lost his legal challenge against OpenAI in federal court after an advisory jury rejected his claims in under two hours. The jury concluded the action was barred by the statute of limitations, finding that Musk had three years to file suit but waited too long.
A US district judge dismissed the case, stating there was substantial evidence supporting the jury’s finding. Musk’s lawyer reserved the right to appeal the decision, according to reports.
Details of the Musk OpenAI lawsuit
Musk filed the Musk OpenAI lawsuit in 2024, claiming that the company had abandoned its non-profit mission after he helped found the artificial intelligence company in 2015 and later departed its board following a disagreement with Altman. He named Altman, OpenAI, and Microsoft as defendants, alleging that Microsoft aided OpenAI’s breach of charitable trust. The court dismissed the claims against Microsoft.
In the lawsuit, Musk sought up to $134 billion in alleged gains from the company. He also requested that the court order the removal of Altman and OpenAI president Greg Brockman, and unwind a 2025 restructuring that expanded the company’s for-profit operations.
OpenAI’s defense and timing arguments
OpenAI’s legal team argued that Musk filed the lawsuit only after launching his competing artificial intelligence startup, xAI. This timing, they contended, undermined the legitimacy of his claims about the company’s mission drift.
Musk stated that any funds awarded to him should be directed to “the OpenAI charity” rather than retained personally, according to reports of his court statements.
Broader context and competitive dynamics
The ruling emerged as both Musk and Altman pursue potential public market moves. Investors are closely monitoring the artificial intelligence sector’s funding competition and market dynamics. Altman and Musk have also publicly disagreed over Stargate, a $500 billion artificial intelligence infrastructure initiative backed by US President Donald Trump that involves OpenAI.
Microsoft has backed OpenAI since 2019 and remains a key investor in the company.
