California jury dismisses Musk’s lawsuit against OpenAI and Altman
A unanimous verdict finds Elon Musk’s claims against Sam Altman, Greg Brockman, OpenAI and Microsoft were filed outside legal deadlines, though his legal team intends to appeal.
A California jury has delivered a unanimous verdict dismissing Elon Musk’s lawsuit against Sam Altman, Greg Brockman, OpenAI and Microsoft, effectively ending one of the most high-profile disputes in the technology sector. The nine jurors determined that Musk’s claims regarding mistreatment and breach of promise were filed outside the statutory limitation period, with the relevant harms occurring before the legal deadlines expired.
The trial, which delved into the early history of OpenAI and featured testimony from prominent Silicon Valley figures, ultimately hinged on narrow legal questions rather than the broader narrative of the dispute. OpenAI’s defence successfully argued that any alleged harms Musk sought to litigate had taken place before the applicable statutes of limitations expired. The specific dates cited by the defence varied by count: before August 5, 2021, for the first count; August 5, 2022, for the second count; and November 14, 2021, for the third count.
Judge Yvonne Gonzalez Rogers noted the strength of the evidence supporting the jury’s finding, stating she was prepared to dismiss the case on the spot had the deliberation not reached a unanimous conclusion. The examination of whether Altman and other defendants had made and broken promises to Musk failed to convince the jury that Musk held a valid claim under the current legal framework.
The ruling removes a significant legal threat to OpenAI ahead of its reported initial public offering. The case had been viewed as a potential destabilising factor for the AI lab, particularly regarding concerns about a potential restructuring. With the verdict now finalised, that immediate risk is considered off the table for the company’s capital markets ambitions.
Musk’s legal team has indicated an intention to challenge the decision. Marc Toberoff, Musk’s lead counsel, provided a brief response to the verdict, stating simply, “One word: Appeal.” The outcome of this anticipated appeal remains unknown, as does the specific timeline for OpenAI’s reported IPO, which remains subject to change.
