Elon Musk Loses OpenAI Lawsuit on Statute of Limitations Grounds

In the case of Musk v. Altman, a jury delivered a unanimous advisory verdict stating that Elon Musk's lawsuit against OpenAI was filed too late, thus preventing his claims due to the relevant statutes of limitations. US District Judge Yvonne Gonzalez Rogers promptly accepted this verdict. Musk announced via X his intention to appeal, contending that the court did not address the substantive issues. OpenAI, co-founded by Musk and others in 2015 as a nonprofit, received a $38 million donation from him, reportedly based on commitments from Sam Altman and Greg Brockman to maintain its nonprofit status. Musk's lawsuit in 2024 alleged breach of charitable trust and unjust enrichment, aiming to reverse a 2025 restructuring that transformed OpenAI into a public benefit corporation. OpenAI countered that the statute of limitations had lapsed: three years for breach of charitable trust and two years for unjust enrichment. The jury determined that Musk had the opportunity to uncover the alleged breach prior to 2021. Musk testified that he became aware in 2022 of OpenAI's departure from its nonprofit goals when Microsoft proposed a $10 billion investment. The trial also revealed Musk's 2017 suggestion to establish a for-profit subsidiary and his 2020 tweet claiming OpenAI was "captured by Microsoft." Musk intends to appeal to the Ninth Circuit Court of Appeals.