Nine jurors in a San Francisco federal courtroom returned a unanimous verdict on Thursday, finding that Elon Musk's lawsuit against OpenAI, its co‑founders Sam Altman and Greg Brockman, and Microsoft should be dismissed on procedural grounds. The jury concluded that any alleged harms Musk claimed to have suffered occurred before the filing deadline set by California law, effectively barring his claims.
Musk's complaint, filed in 2022, accused the defendants of "stealing a charity" by converting the nonprofit research lab OpenAI into a for‑profit affiliate. He argued that the move deprived him of the value of his early contributions and cost him billions. The case, which attracted testimony from leading Silicon Valley figures, ultimately hinged on narrow legal questions rather than the dramatic backstory of OpenAI's evolution.
The defense centered on a statute‑of‑limitations argument. For each of the three counts, the plaintiffs had to show that the alleged injury occurred after a specific cutoff date: August 5, 2021 for the first count, August 5, 2022 for the second, and November 14, 2021 for the third. Jurors found the defense persuasive, noting that the evidence indicated any wrongdoing predated those thresholds.
Judge Yvonne Gonzalez Rogers, who presided over the trial, said the jury's finding was “substantial” and that she was prepared to dismiss the case on the spot. "There was a substantial amount of evidence to support the jury’s finding," she remarked after the verdict was read.
OpenAI's lead attorney, Bill Savitt, hailed the decision as a decisive blow to what he called a “hypocritical attempt to sabotage a competitor.” He added that the lawsuit was “nothing more than an after‑the‑fact contrivance that bears no relationship to reality.” Microsoft, also named in the suit for allegedly aiding the alleged breach of charitable trust, issued a brief statement reaffirming its commitment to its partnership with OpenAI, saying it remained focused on advancing AI for people and organizations worldwide.
The trial also featured expert testimony from Dr. C. Paul Wazzan, who attempted to quantify the alleged damages at between $78.8 billion and $135 billion. The judge expressed skepticism about the methodology, noting that the analysis seemed disconnected from the underlying facts.
With the verdict rendered, any discussion of potential damages became moot. The court had been preparing to assess a possible award had the jury found in Musk's favor, but that phase of the case will not proceed.
When asked for comment, Musk's lead counsel, Marc Toberoff, responded succinctly: “One word: Appeal.” The legal team has not disclosed a timeline for filing an appeal, but the statement suggests they intend to continue the fight.
The decision removes the most immediate legal obstacle facing OpenAI as it moves toward a reported initial public offering. Industry observers had noted that a successful lawsuit could have forced a restructuring of the organization, potentially complicating its path to the public markets.
While the case concluded on procedural grounds, it underscored the growing tension between high‑profile tech entrepreneurs and the rapidly evolving AI sector. Musk, who has long been vocal about the risks of artificial intelligence, now faces a setback in his attempt to challenge the governance of one of the field's leading firms.
This article was written with the assistance of AI.
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