Musk Loses Legal Challenge Against OpenAI Over Filing Delay

Elon Musk waited too long to sue OpenAI and its leaders, a jury in Oakland, California, has decided.

Elon Musk lost a legal challenge against OpenAI and its executives, including CEO Sam Altman, after a jury found the lawsuit was filed beyond the allowable time limit. (Image: ChatGPT Facebook)

The jury found that Musk’s lawsuit was barred by the statute of limitations after about 90 minutes of deliberation, Hadas Gold and Samantha Delouya reported for CNN.

The verdict was advisory, but Judge Yvonne Gonzalez Rogers said she agreed with the jury’s finding.

“The court now confirms the prior indication that it would accept the jury’s findings as its own,” Rogers said. “I think that there’s a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” she added.

Musk helped co-found and fund OpenAI, contributing $38 million during its early years.

He sued OpenAI Chief Executive Officer Sam Altman, company president Greg Brockman, and OpenAI in February 2024, alleging that they “stole a charity” and unjustly enriched themselves when the organization adopted a structure that included a for-profit arm.

“I was a fool,” Musk told the court earlier this month. “I gave them free funding to create a startup.”

Musk’s case threatened to disrupt OpenAI as the company reportedly explored plans for a public offering. The jury’s decision marked a legal win for OpenAI and its leadership.