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Jury Rejects Elon Musk’s OpenAI Lawsuit as Time-Barred After Three-Week Trial

The time-bar ruling clears a key legal hurdle for OpenAI's business plans.

Overview

  • A nine-person federal jury in Oakland on Monday unanimously said Musk filed too late, and Judge Yvonne Gonzalez Rogers said she would adopt the advisory verdict.
  • The trial ran about three weeks and featured testimony from Musk, OpenAI leaders Sam Altman and Greg Brockman, and Microsoft CEO Satya Nadella.
  • Musk accused OpenAI of abandoning its nonprofit mission, said he donated about $38 million in its early years, and sought to unwind the restructuring, remove Altman and Brockman, and return roughly $134–$150 billion to the nonprofit arm.
  • Microsoft, named as a co-defendant for allegedly helping the shift to a for-profit model, welcomed the outcome and defended its investment partnership with OpenAI.
  • The decision removes a major near-term legal obstacle to OpenAI’s commercial plans and a potential IPO, though Musk’s lawyers said they plan to appeal, and the court did not reach the merits of his claims.