A federal court in Oakland has dismissed Elon Musk’s lawsuit against Sam Altman, Greg Brockman, OpenAI, and Microsoft due to late filing, according to NBC News.
The jury of nine found that the claims were barred by the statute of limitations. Deliberations took less than two hours.
In the case, Musk claimed that OpenAI had abandoned its original non-profit mission and effectively transformed into a profit-driven entity. The defendants allegedly “stole a charitable organization” by creating a commercial division and allowing the leadership to personally profit.
The timing of the lawsuit filing was crucial. OpenAI’s defense argued that the alleged damages occurred before 2021. Different deadlines applied to various aspects:
- before August 5, 2021;
- before November 14, 2021;
- before August 5, 2022.
The jury found the defendants’ arguments convincing. The verdict was delivered during a separate hearing on potential compensation Musk might have received if he had won.
Judge Yvonne Gonzalez Rogers also criticized the plaintiff’s damage estimates. Musk’s expert assessed the alleged wrongful gains of OpenAI and Microsoft at $78.8 billion to $135 billion. Rogers stated that the calculations were not linked to the facts established in the case.
OpenAI’s lawyers portrayed the case as an attempt to pressure a competitor. The company’s lead attorney, Bill Savitt, called the lawsuit a “belated fabrication” and an attempt at sabotage. Following the decision, Microsoft welcomed the outcome and stated it would continue its partnership with Altman’s company to advance AI systems.
Musk responded differently:
“For anyone who has closely followed the case, there is no doubt that Altman and Brockman indeed enriched themselves by stealing a charitable organization. The only question is when they did it.”
The entrepreneur announced his intention to appeal.
The decision removes one of the main legal obstacles for OpenAI amid discussions of a potential IPO.
Back in October 2025, the AI startup completed a restructuring, during which the company was split into a commercial corporation and a non-profit foundation.