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Jury Rejects Elon Musk’s OpenAI Suit as Too Late

The time‑bar ruling eases OpenAI’s near‑term legal risk ahead of potential market moves.

Overview

  • OpenAI, Sam Altman, Greg Brockman and Microsoft won a unanimous verdict Monday in Oakland that found Musk’s 2024 lawsuit was filed too late, and Judge Yvonne Gonzalez Rogers dismissed the case.
  • Because the suit was time‑barred, the jury did not rule on Musk’s claim that OpenAI abandoned its nonprofit mission or improperly enriched insiders.
  • Musk had sought to remove Altman and Brockman, unwind OpenAI’s 2025 reorganization, and force a return of roughly $134–150 billion to the nonprofit arm.
  • The decision reduces immediate legal risk for OpenAI and, according to multiple reports, could clear the path for a possible IPO.
  • Musk said he will appeal to the Ninth Circuit, and Microsoft welcomed the outcome, saying the facts and timeline were clear.