Jury Rejects Elon Musk’s OpenAI Lawsuit, Finding Statute of Limitations Had Expired

A California jury has unanimously dismissed Elon Musk’s lawsuit against OpenAI, CEO Sam Altman, and Microsoft. The jury determined that Musk waited too long to bring the claims, resulting in the expiration of the statute of limitations on both the breach of charitable trust and unjust enrichment claims against OpenAI. As a result, Microsoft’s remaining claims were dismissed as a matter of law following the jury’s decision on the OpenAI claims. The jury reached its verdict in around two hours after a three-week trial that featured testimony from Musk, Altman, Microsoft CEO Satya Nadella, and other figures from the tech industry.What Elon Musk’s Lawsuit Actually ClaimedMusk claimed that Altman violated the original non-profit agreement of OpenAI by shifting the ChatGPT developer toward a for-profit structure after Musk donated $38 million in the company’s early days.He argued that this change was deceptive because OpenAI’s initial goal was to create AI for the benefit of humanity, not for profit. However, the jury decided that the statute of limitations had expired, so it was not necessary to assess the validity of either claim.How Musk, OpenAI, and Microsoft Responded to the VerdictMusk responded on X shortly after the verdict, saying that the decision amounted to “a free license to loot charities if you can keep the looting quiet for a few years.” He also criticized the judge, calling him a “terrible activist” who was using the jury “as a fig leaf.”That post was later deleted. In a follow-up message, Musk said he plans to appeal, claiming the jury did not decide “on the merits of the case” and that the outcome was based on a “calendar technicality.”OpenAI spokesperson Sam Singer described the verdict as “a tremendous victory” and suggested that the lawsuit was “an effort by Mr Musk to slow down a competitor.” William Savitt, OpenAI’s lawyer, added that the jury found Musk lied during his testimony about the company’s origins.Microsoft, which was also named in claims related to aiding and abetting OpenAI’s transition, said: “The facts and the timeline in this case have long been clear,” and reaffirmed its commitment to working with OpenAI.Appeal Prospects and the Origins of OpenAILegal experts cited in the reporting expressed skepticism about Musk’s chances on appeal. Carl Tobias, a law professor at the University of Richmond, noted that the jury’s decision was very fact-based and pointed out that appellate courts rarely overturn jury verdicts like this.Raffi Melkonian, an appellate lawyer, added that winning an appeal of a jury verdict is generally very difficult. Musk’s lawyer, Marc Toberoff, told reporters outside court, “This war is not over, and I would sum it up in one word: appeal.”OpenAI was established in 2015 by Musk, Altman, and others as a non-profit research organization. Musk stepped down from the board in 2018 after his co-founders rejected his attempt to gain control of the company. Altman testified that Musk supported the move to a for-profit model but wanted control over the new entity, reportedly suggesting at one point that control might pass to his children after his death.The verdict concludes one of the highest-profile legal disputes in the AI industry so far, though the planned appeal means the case could drag on further.

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