A California jury has swiftly dismissed Elon Musk's lawsuit against OpenAI, with the statute of limitations proving to be the decisive factor.
In Oakland, California, the high-profile case brought by Elon Musk against OpenAI concluded on Monday. A nine-member jury, after less than two hours of deliberation, unanimously determined that Musk's claims fell outside the three-year statute of limitations and could not proceed. Presiding Judge Yvonne Gonzalez Rogers accepted the jury's recommendation and dismissed all charges in court.
Musk filed the lawsuit in 2024, alleging that OpenAI CEO Sam Altman and co-founder Greg Brockman had deviated from the company's original non-profit mission of "developing AI for the benefit of humanity," instead pursuing commercial profits, which he equated to "stealing a charity." During the three-week trial, Musk claimed his initial donation of $38 million was based on this promise. However, OpenAI's legal team argued that Musk's contribution came with no restrictive conditions and that the lawsuit stemmed from his failure to gain control of the company.
The ruling is significant for OpenAI, removing a potential legal hurdle for a future initial public offering and preserving its valuation structure, estimated at $85 billion. Market analysts widely view this as a crucial legal victory for OpenAI on its path of commercial transformation. Concurrently, related "aiding and abetting" charges against co-defendant Microsoft were also dismissed. Dan Ives, an analyst at Wedbush Securities, commented that the case represents a major win for Altman and OpenAI, clearing the clouds on the road to an IPO.
Following the trial, Musk's legal team reserved the right to appeal.
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