OAKLAND, California — Tesla Chief Executive Elon Musk has lost his high-stakes legal battle against OpenAI after a federal jury determined that he waited too long to file his claims, marking a major setback in the billionaire’s ongoing feud with the artificial intelligence startup he co-founded.
On Monday (local time), a nine-member jury in the U.S. District Court for the Northern District of California in Oakland delivered a unanimous verdict against Musk, concluding that the statute of limitations on his claims had already run out before the lawsuit was initiated.
The legal dispute centered on Musk’s allegations of breach of public trust and unjust enrichment against OpenAI and its CEO, Sam Altman. Under California law, the legal deadlines to bring such civil claims are limited to two and three years, respectively, from the moment the plaintiff becomes aware of the alleged misconduct.
The jury concluded that Musk had been fully cognizant of OpenAI’s shift toward a commercial model prior to August 2021. Consequently, his formal complaint, filed in August 2024, was deemed past the legal expiration date.
During the trial, Musk’s legal team argued that the delay in filing was justified because Sam Altman had repeatedly made reassuring statements that lulled Musk into a false sense of security. However, the jury rejected this defense after just over an hour of deliberation.
While the jury's verdict serves as an advisory opinion, presiding U.S. District Judge Yvonne Gonzalez Rogers formally adopted the findings and dismissed all of Musk's claims. "There is substantial evidence supporting the jury's conclusion," Judge Rogers stated.
Although Musk’s attorneys emphasized that they retain the right to appeal the decision, Judge Rogers signaled that overturning the ruling would be an uphill battle, noting that the expiration of a statute of limitations is a factual determination that appellate courts rarely reverse.
Following the verdict, OpenAI issued a statement welcoming the decision and sharply criticizing the tech mogul’s motives. The company asserted that the lawsuit was a frivolous attempt to handicap a market competitor, reiterating that OpenAI has always remained faithful to its original mission and will continue to do so.
The legal battle dates back to Musk’s initial financial backing of OpenAI. Musk claimed he contributed approximately $38 million to the entity based on explicit promises that it would operate strictly as a non-profit organization. He alleged he was deceived when OpenAI subsequently pivoted toward a highly lucrative, commercialized partnership with Microsoft.
In contrast, OpenAI has consistently maintained that Musk was fully aware of and initially supported the transition to a commercial structure. The company argued that Musk only severed ties with the board after his attempts to seize total control of the entity were blocked, subsequently launching his own rival AI firm, xAI, and using the legal system to undermine OpenAI’s market dominance.
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