- A California jury dismissed Elon Musk’s lawsuit against OpenAI after finding the claims were filed outside the legal time limit.
- Musk accused Sam Altman and OpenAI of abandoning the organisation’s original non-profit mission in favour of commercial growth.
- OpenAI argued Musk was already aware of plans for a for-profit structure and said the lawsuit was aimed at damaging a competitor.
Sam Altman and OpenAI have secured a courtroom victory over Elon Musk after a federal jury ruled the billionaire’s lawsuit was filed beyond the legal deadline permitted under California law. The dispute focused on claims that OpenAI had strayed from its original charitable purpose by developing a for-profit business structure.
The verdict was reached in Oakland after jurors spent under two hours deliberating following a three-week trial featuring evidence from several major Silicon Valley figures, including Musk, Altman, Greg Brockman and Microsoft chief executive Satya Nadella. Judge Yvonne Gonzalez Rogers later confirmed she agreed with the jury’s findings and dismissed the claims.
Musk co-founded OpenAI in 2015 before departing the organisation in 2018. In his lawsuit, filed in 2024, he alleged Altman and Brockman violated OpenAI’s founding agreement by steering the company towards profit-making activities rather than maintaining a purely charitable mission. Musk said he donated around US$38 million (AU$53.2 million) based on assurances the organisation would operate for the benefit of humanity.
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OpenAI Rejects Claims Over Founding Mission
OpenAI denied the allegations and maintained Musk had long known about discussions surrounding a for-profit structure. Lawyers for the company argued restructuring was necessary to compete with rivals such as Google DeepMind in the increasingly expensive artificial intelligence sector.
The lawsuit also named Microsoft as a defendant, accusing the company of helping OpenAI transition towards commercial operations after investing in the business. The jury’s ruling resulted in those claims being dismissed as well.
After the decision, Musk criticised the outcome on X and said he intended to appeal. OpenAI representatives welcomed the verdict, describing the case as an attempt to hinder a commercial rival rather than a legitimate charitable dispute.
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