Elon Musk’s lawsuit against the leadership of OpenAI has failed. A jury in Oakland ruled that Musk had delayed filing legal action for too long, as the statutory limitation period had already expired. Judge Yvonne Gonzalez Rogers subsequently affirmed the jury’s verdict.
Musk, who was a co-founder of OpenAI and reportedly invested $38 million in its early years, filed the lawsuit in February 2024 against CEO Sam Altman, President Greg Brockman, and OpenAI itself. He accused the company of essentially “stealing” the organization by introducing a profit-oriented structure. Microsoft was also named a co-defendant, as the suit claimed the company supported these accusations through its investments in OpenAI. Musk had left OpenAI in 2018 and subsequently launched his own AI company, xAI, in 2023.
The dispute threatened to derail OpenAI’s plans for a potential IPO. The jury’s ruling effectively serves as a victory for OpenAI and its founders, Altman and Brockman. Although the jury had served in a non-decisive capacity, Judge Gonzalez Rogers stated that her decision aligned with the jury’s. She noted that there was a “significant amount” of evidence to support the jury’s finding.