Elon Musk loses OpenAI trial: statute of limitations prevented a Musk victory

Elon Musk has lost his lawsuit against OpenAI and its CEO Sam Altman after a jury unanimously ruled he waited too long to file his claim, meaning the statute of limitations prevented a ruling in Musk's favor.

The verdict dismisses Musk's allegations that OpenAI's pivot to for-profit violated its founding mission and committed unjust enrichment. Musk alleged that OpenAI strayed from its original mission of being a non-profit company to a profit-driven model that prioritized commercial success. The trial centered around Musk's 2024 lawsuit, which made the aforementioned accusations.

However, a nine-person jury found that the statute of limitations had expired, with Musk having left the company in 2018. District Judge Yvonne Gonzalez Rogers agreed, dismissing all claims as "untimely."

"Claims of breach of charitable trust and unjust enrichment are dismissed as untimely," said the judge

The case, while high-profile, lacked the explosive revelations many had anticipated. Witnesses included Microsoft's Satya Nadella and OpenAI's Mira Murati, but seemingly the core issue remained the timeline. Musk, known for his legal battles, vowed to appeal, claiming the ruling could harm charitable giving. Microsoft, a major backer of OpenAI, welcomed the decision and called the timeline "clear."

Now, Musk has announced he will be turning to the Ninth Circuit for an appeal, as the Tesla CEO wrote, "the judge & jury never actually ruled on the merits of the case, just on a calendar technicality." Additionally, Musk said that anyone who is "following the case closely" will be able to see that "Altman & Brockman did in fact enrich themselves by stealing a charity." Adding, "The only question is WHEN they did it!"

Furthermore, Musk has said a part of the reason he is appearing in the Ninth Circuit is because creating a precedent "to loot charities is incredibly destructive to charitable giving in America."

Notably, this isn't the only lawsuit that involves Musk, OpenAI, and Altman, as the Tesla CEO's AI company xAI, filed in 2024 to prevent the company transitioning from a non-profit to a for-profit company.

Furthermore, OpenAI has sued Elon Musk over what it describes as a pattern of harassment. While we have reached a conclusion for one of the legal disputes between Musk and Altman, one thing is for certain, the war between the two tech titans will continue.