OAKLAND, United States — A federal jury has ruled against billionaire Elon Musk in his legal battle against OpenAI, handing a major victory to the company behind ChatGPT.
The decision, delivered on Monday in a federal court in Oakland, found that Musk waited too long to file the lawsuit against OpenAI and its co-founders.
The ruling effectively ends one of Silicon Valley’s most closely watched legal disputes without fully addressing Musk’s central claims.
Jury sides with OpenAI
The jury concluded that Musk’s claims against OpenAI Chief Executive Officer Sam Altman, President Greg Brockman, the OpenAI Foundation, and Microsoft were barred by statutes of limitation.
Judge Yvonne Gonzalez Rogers accepted the jury’s recommendation and confirmed the ruling.
The verdict followed a three-week trial featuring testimony from several high-profile technology executives.
Musk accused OpenAI of abandoning its nonprofit mission
Musk had argued that OpenAI abandoned its original nonprofit mission by transforming into a profit-driven artificial intelligence giant.
The Tesla and SpaceX boss claimed that donations he made to the organisation were intended to support AI development for the benefit of humanity, not commercial gain.
He alleged that OpenAI’s leadership improperly shifted the company’s direction after receiving his financial backing.
OpenAI celebrates legal victory
Outside the court, OpenAI lawyer William Savitt described the case as an attempt to undermine a competitor.
“The finding of the jury confirms that this lawsuit was a hypocritical attempt to sabotage a competitor,” Savitt said.
The ruling shields OpenAI from potentially significant consequences.
Had Musk succeeded, the company could have been forced to return to its nonprofit structure, threatening planned investment and public listing ambitions.
Musk vows appeal
Following the decision, Musk said he would appeal the ruling.
In posts on X, he argued that the jury never considered the substance of the case because the dispute was resolved on procedural grounds.
He also criticised Judge Gonzalez Rogers, accusing her of setting a dangerous legal precedent.
OpenAI’s ties with investors remain intact
The verdict also protects OpenAI’s relationships with major investors, including Microsoft, Amazon, and SoftBank.
Technology analyst Dan Ives of Wedbush Securities described the outcome as a critical win for OpenAI and Altman.
“This clears the path for an IPO by removing this black cloud,” Ives said.
