Elon Musk loses landmark lawsuit against OpenAI

Elon Musk suffered The worst possible defeat in his legal battle against OpenAI as a federal jury and judge ruled that he waited too long to file his claims against the AI ​​startup and its top executives, Sam Altman and Greg Brockman.

Although the jury’s decision was a non-binding recommendation sent to U.S. District Judge Yvonne Gonzalez Rogers, she immediately accepted the decision as her own, making it final.

“Our intention is to appeal,” Musk’s lead lawyer, Stephen Mollo, told the judge.

One of his other lawyers, Mark Toberoff, made a one-word comment to reporters exiting the courtroom: “Appeal.” He later said the ruling reminded him of moments of the American Revolutionary War including the Siege of Charleston and the Battle of Bunker Hill. “These were huge losses for the Americans, but who won the war?” Toberoff said. “And this is not over yet.”

OpenAI’s lawyers hugged in the courtroom after the verdict was read. William Savitt, the company’s lead prosecutor, told reporters that the “overwhelming” amount of evidence presented in the case allowed the jury to act quickly. “The evidence that Mr. Musk’s lawsuit was simply a ploy by a competitor was overwhelming,” he said.

Throughout the trial, Gonzalez-Rogers questioned Musk’s motives for fighting OpenAI. But she concluded on Monday that the three-week global spectacle was worthwhile.

“I thought it was an important case that needed to be tried… so that we could have a trial to achieve clarity,” she told lawyers for both sides. “There is a significant amount of evidence to support the jury’s findings, which is why I was willing to accept and immediately reject the jury’s findings.”

The nine-member panel issued the unanimous ruling in an Oakland, California, courtroom on Monday after deliberations that lasted less than two hours. They found that statutes of limitations expired long before Musk filed his lawsuit in 2024. Musk had hoped to convince a jury that Altman and Brockman, with the help of Microsoft money, turned OpenAI into a behemoth far beyond what was envisioned when the three and others founded it as a nonprofit nearly 11 years ago.

Because the jury found that the case was not brought on time, it did not consider Musk’s three claims, including breach of charitable trust, unjust enrichment, and aiding and abetting against Microsoft. Losing on what amounts to a technicality could provide Musk with an opportunity to continue to try his case publicly by arguing that the jury never ruled against his basic argument of ripping off a charity.

Savitt, OpenAI’s attorney, disputed that claim on Monday. He added: “It is not a technical decision, it is a fundamental decision.” “It says you filed your claims too late, that you did so because you were sitting on them to be used as a weapon by a competitor who couldn’t compete in the market, and so we’re pleased with the outcome.”

Microsoft spokesman Alex Horik said in a statement that “the facts and timeline in this case have been clear for a long time” and that the tech giant remains “committed to our work with OpenAI to advance and scale AI.”

Musk, Altman and Brockman were not present when the jury delivered its verdict. Musk has said little about the matter in recent weeks, under a court order not to tweet during the trial.

Despite the disappointing outcome for Musk, the trial appears to have tarnished the public image of OpenAI and its senior executives. New details have emerged about Brockman’s wealth and Altman’s alleged history of dishonesty. They were also pulled away from their day jobs for dozens, if not hundreds, of hours to conduct depositions, prepare to testify, sit on the witness stand, and show face in court.