Skip to content

Musk Loses His Lawsuit Against Altman and OpenAI: Jury Rules Statute of Limitations, IPO Path Clears

1 min read
Share

A jury of nine Californians decided unanimously: Elon Musk has lost his lawsuit against Sam Altman, Greg Brockman, OpenAI and Microsoft. The case was thrown out on statute of limitations - the judge concluded Musk filed the charges too late.

Musk accused them of "stealing a charity" - the argument being that OpenAI, founded as a non-profit, had been transformed into a profit machine for the personal benefit of Altman and Brockman. The jury didn't debate whether that was true. It just established that, if it did happen, it happened between August and November 2021 - and Musk's filing deadlines had long since expired.

Judge Yvonne Gonzalez Rogers went even further: she said she personally would have thrown the case out immediately. A strong message ahead of the verdict.

For OpenAI, this is a bigger win than it looks. According to reports the company is preparing an IPO, and Musk's lawsuit was one of the biggest legal threats that could have forced a reorganisation ahead of the listing. OpenAI lawyer Bill Savitt summed it up tersely: "They kicked it exactly where it belongs - to the side."

Musk, as usual, declared the loss a victory. He claims the jury confirmed Altman and Brockman "improperly enriched themselves" - it's just that "the only question left is WHEN they did it." The appeal to the Ninth Circuit has been announced.

Is this the end of the saga between Musk and his former co-founders? Probably not. Musk sues when he loses, and he sues when he wins. But for the first time, OpenAI can breathe - at least until the next round.