If you have been keeping tabs on the legal battle between Elon Musk and Sam Altman, there is breaking news. Elon Musk has lost the court battle against OpenAI, Sam Altman, Greg Brockman, and Microsoft.
Jury sides with OpenAI as Musk’s lawsuit collapses over filing deadline
After weeks of courtroom arguments and Silicon Valley drama, a California jury unanimously ruled against Musk, effectively shutting down one of the biggest legal threats hanging over OpenAI ahead of its rumored IPO plans.
For those unaware, Musk accused OpenAI and its leadership of “stealing a charity” after the company transitioned to a for-profit structure. He also sued Microsoft for allegedly helping OpenAI breach its original charitable mission. However, the jury ultimately sided with the defendants after agreeing that Musk waited too long to file the claims.
At the center of the case was OpenAI’s statute of limitations defense. According to the company, any alleged harms tied to Musk’s claims happened years earlier, well before the legal filing deadlines expired. The jury apparently found that argument convincing enough to quickly reach a unanimous verdict.
As reported by TechCrunch, Judge Yvonne Gonzalez Rogers also appeared skeptical during discussions around possible damages. Musk’s legal team attempted to compare his contributions to OpenAI with investments in a traditional startup. However, the judge openly questioned the logic behind the calculations presented in court. At one point, she reportedly told expert witness C. Paul Wazzan that his analysis seemed “devoid of connection” to the underlying facts.
Interestingly, Musk’s side had estimated OpenAI and Microsoft’s alleged wrongful gains, and demanded up to $135 billion in damages. Needless to say, those numbers are now irrelevant following the verdict.
Also read: Elon Musk’s xAI Sues Colorado over New AI Restrictions
Microsoft welcomes the outcome, Musk’s attorney likely to appeal the ruling
Meanwhile, Microsoft welcomed the decision and reiterated its commitment to working with OpenAI to scale AI globally. As for Elon Musk, his lead attorney Marc Toberoff responded to TechCrunch with a simple “One word: Appeal” reply.
With OpenAI reportedly preparing for a future public offering, this outcome removes a potentially massive legal complication hanging over the company.
