Elon Musk loses OpenAI lawsuit, says court never ruled on core allegations

Elon Musk has expressed his disappointment following the dismissal of his lawsuit against OpenAI, asserting that the court never addressed the core allegations he raised against the organization and its leadership. Instead, Musk claims the case was thrown out on what he refers to as a "calendar technicality." The billionaire, who co-founded OpenAI in 2015 and departed in 2018, intends to take his appeal to the Ninth Circuit Court of Appeals after a California jury determined that he had delayed too long in filing his lawsuit. In a post on X, Musk stated, "Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality." He reiterated his accusations against CEO Sam Altman and president Greg Brockman, suggesting they have strayed from OpenAI's original nonprofit mission in pursuit of financial gain. Musk claimed, "There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!" This verdict arrives at a pivotal moment for both OpenAI and Musk as they approach significant public market opportunities. OpenAI has recently secured additional funding, elevating its valuation to over $850 billion, while Musk's SpaceX is gearing up for a highly anticipated IPO following its merger with xAI earlier this year. The lawsuit, filed in 2024, sought damages up to $150 billion and aimed to reverse OpenAI’s shift to a for-profit structure. Musk contended that OpenAI had breached its foundational pledge to develop artificial intelligence for the benefit of humanity rather than for private profit. However, the advisory jury in Oakland, California, concluded that Musk was aware of OpenAI’s transition toward a commercial model long before initiating the lawsuit, placing it outside California’s three-year statute of limitations. Judge Yvonne Gonzalez Rogers endorsed the jury's decision after a brief deliberation of less than two hours, ultimately dismissing the case without ruling on whether OpenAI had indeed violated its charitable mission. "There’s a substantial amount of evidence to support the jury’s finding," Judge Rogers remarked at the conclusion of the three-week trial. Musk's legal team has announced plans to challenge the ruling in the appellate court. In his post on X, Musk cautioned that allowing such a precedent could undermine charitable giving across the United States, stating, "I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America." The lawsuit also implicated Microsoft, with Musk accusing the tech giant of facilitating OpenAI's shift away from its nonprofit origins after investing billions into the startup. However, the court dismissed the claims against Microsoft as well.