California jury sides with OpenAI, finds Musk claims filed too late
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The news: A California jury has unanimously dismissed Elon Musk’s lawsuit against OpenAI and Sam Altman after less than two hours of deliberation, finding that Musk brought his claims of breach of charitable trust and unjust enrichment after the statute of limitations had expired.
The verdict clears the way for OpenAI’s planned initial public offering, which according to reports could value the company at close to USD1 trillion.
Musk had sought damages of more than USD180 billion, the removal of Altman and president Greg Brockman from their leadership roles, and the unwinding of OpenAI’s conversion to a for-profit company. He had described the conversion as “stealing a charity.”
The context: The jury found Musk was aware of the behaviour described in his complaint as far back as 2021 but did not file suit until 2024, after the three-year statute of limitations had expired.
What they said: According to media reports, US District Judge Yvonne Gonzalez Rogers said she was “prepared to dismiss on the spot,” citing “a substantial amount of evidence to support the jury’s finding.”
Musk’s lawyer gave a one-word response to the verdict: “Appeal.”
OpenAI’s lead counsel William Savitt said he was “delighted” with the decision, while Microsoft, also a defendant, welcomed the jury’s finding in a statement.
“The facts and the timeline in this case have long been clear and we welcome the jury’s the decision to dismiss these claims as untimely,” the company said.
Musk’s xAI is pursuing separate trade-secret theft and antitrust claims against OpenAI.
The sources: The New York Times, The Wall Street Journal, Reuters
