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Elon Musk Loses Court Case Against OpenAI and Sam Altman

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Jury rules lawsuit was filed too late, ending major legal challenge over OpenAI’s structure
Tobi Active
May 19, 2026
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3
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Elon Musk has lost his lawsuit against OpenAI and its co-founder Sam Altman after a California jury unanimously ruled that the case was filed after the legal deadline.

Musk had accused Altman, OpenAI, and Microsoft of turning what he described as a nonprofit mission into a for-profit business structure, which he called “stealing a charity.” However, the jury did not evaluate those claims in detail and instead focused on timing rules under the law.

The court found that any harm Musk may have experienced happened too long ago to be legally challenged. OpenAI’s defense argued that the statute of limitations had already expired, and the jury agreed.

The case included testimony from major Silicon Valley figures and explored early decisions made during OpenAI’s formation. However, the final ruling came down to procedural issues rather than the broader dispute over the company’s mission.

Judge Yvonne Gonzalez Rogers noted that the evidence supported dismissing the case based on timing. She said there was enough proof to rule that the claims did not meet legal requirements.

Following the verdict, OpenAI’s legal team described the lawsuit as baseless and said it misrepresented the company’s work and intentions. Microsoft also welcomed the decision and reiterated its support for OpenAI’s AI development efforts.

The ruling removes a significant legal obstacle for OpenAI as it continues to expand and prepares for potential future corporate changes, including reported discussions around a possible public listing.

Elon Musk has indicated that he plans to appeal the decision.

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