Jury dismisses Musk’s OpenAI lawsuit, clearing path for IPO
A unanimous verdict in Oakland federal court removes a major legal overhang for OpenAI and investor Microsoft, with judges ruling Elon Musk was aware of corporate restructuring as early as 2021.
A nine-person jury in a US federal court in Oakland, California, has unanimously dismissed Elon Musk’s lawsuit against OpenAI, ruling that the billionaire filed his claims outside the applicable statute of limitations. The verdict clears a significant legal obstacle for the artificial intelligence firm, removing uncertainty surrounding its planned initial public offering and affirming the liability of its leadership and major backers.
The jury determined that Musk was aware of OpenAI’s restructuring plans as early as 2021. Consequently, the court found that he missed the three-year window required to bring the litigation. The lawsuit, filed in 2024, alleged that OpenAI had misappropriated his $38 million donation and enriched executives Sam Altman and Greg Brockman by transitioning from a nonprofit to a for-profit structure.
As a result of the timing ruling, OpenAI executives Altman and Brockman were found not liable for Musk’s allegations. The jury also exonerated investor Microsoft, finding no liability for the technology giant after Musk alleged it aided in a scheme to enrich the company’s leadership. Judge Yvonne Gonzalez Rogers immediately affirmed the jury’s decision, dismissing the case without further delay.
Musk’s legal team, led by Marc Toberoff, confirmed that the billionaire intends to appeal the verdict. Reports from the courtroom indicated a somber mood for Musk’s counsel, with lawyers appearing “sunken in their chairs” following the announcement. In contrast, OpenAI attorney William Savitt, who had cross-examined Musk extensively, was reported to be wearing a “wide grin” during the proceedings.
Microsoft issued a statement celebrating the outcome, noting that the facts and timeline had been clear throughout the trial. The company reaffirmed its commitment to advancing artificial intelligence globally. Musk was absent from the courtroom when the verdict was read, having prioritised attendance at a summit between US President Donald Trump and Chinese President Xi Jinping in the days leading up to the decision.
