On May 18, Fox News reported that a U.S. federal jury ruled that Elon Musk’s lawsuit against OpenAI and its CEO Sam Altman was invalid because it was filed too late. The court found that the allegations exceeded the legal statute of limitations, meaning neither defendant could be held legally liable.
The unanimous verdict came after less than two hours of deliberation by a federal jury in Oakland, California. The case lasted 11 days and involved testimony from multiple witnesses. The jury did not rule on Musk’s central claim that OpenAI had “abandoned its nonprofit mission,” instead rejecting the case solely on statute-of-limitations grounds.
Court records show that Musk, one of OpenAI’s co-founders, left the organization in 2018 after failing to push through a merger with Tesla and failing to secure support for a for-profit restructuring plan under his leadership.
Dispute over nonprofit mission and commercialization
Musk argued in the lawsuit that OpenAI had violated its original nonprofit purpose established in 2015 — developing artificial intelligence “for the benefit of humanity.” He claimed the company strayed from that mission after introducing a for-profit structure in 2019.
According to court filings, Musk contended that the restructuring violated a “charitable commitment” and sought legal accountability.
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OpenAI denied making any promise to remain permanently nonprofit, arguing that organizational changes were necessary to compete in the high-cost AI development landscape.
Jury ruling and court position
According to CNBC, the federal jury in Oakland found that Musk waited too long after the alleged agreement was violated to file his lawsuit, exceeding California’s three-year statute of limitations.
That “advisory jury opinion” was later adopted and enforced by District Judge Yvonne Gonzalez Rogers.
At the conclusion of the trial, the judge said substantial evidence supported the jury’s conclusion and expressed caution regarding Musk’s prospects on appeal.
OpenAI attorney William Savitt told reporters, “It’s not a technical decision, it’s a substantive one. It says: You brought your claims too late, and you did it because you were sitting on them to use them as a weapon of a competitor who can’t compete in the marketplace.”
Musk plans appeal
Musk’s legal team said it would appeal to the U.S. Court of Appeals for the Ninth Circuit. Musk himself posted on X that the ruling was merely “a calendar technicality,” maintaining that Altman and Greg Brockman benefited financially from nonprofit assets through OpenAI’s restructuring.
Musk attorney Steven Molo said the team reserved the right to pursue additional legal remedies and suggested further procedural challenges may follow.
Meanwhile, Musk attorney Marc Toberoff said outside the courthouse that the central issue was preventing charitable structures from being commercially exploited.
OpenAI and Microsoft’s response
OpenAI and its partner Microsoft were both named as defendants, though related claims against Microsoft were also dismissed.
Microsoft said the timeline and factual record had always been clear, welcomed the court’s ruling on the statute-of-limitations issue, and said it would continue working with OpenAI to advance artificial intelligence technology, the New York Times reported.
According to The Hill, OpenAI CEO Sam Altman and his management team maintained throughout the trial that the company never promised to remain permanently nonprofit and denied any legal basis for claims that charitable assets had been misused.
The case also reflects broader competition between two technology leaders. Musk launched xAI in 2023 to enter the generative AI market, while OpenAI has continued expanding its commercial operations and fundraising efforts.
As both companies pursue separate capital market strategies, the dispute over AI governance and control may continue through appeals and potentially higher levels of judicial review.
