Why Did Elon Musk Lose His Lawsuit Against OpenAI?

TEMPO.CO, Jakarta - Tech billionaire Elon Musk has reportedly lost his lawsuit against Sam Altman and OpenAI after a California jury unanimously ruled that the case was filed well past the legal statute of limitations.

In the lawsuit, Musk accused Sam Altman, Greg Brockman, OpenAI, and Microsoft of "stealing a charity" by transforming the artificial intelligence research laboratory into a commercial business entity. However, the nine-member jury determined that the alleged damages Musk cited had occurred before the legal deadline required to file the suit.

The trial, which revisited OpenAI's foundational history and drew testimony from several prominent Silicon Valley figures, centered on allegations that the defendants made and broke explicit promises to Musk. OpenAI's defense countered that Musk's claims were long expired, arguing that any purported losses took place prior to 2021.

Judge Yvonne Gonzalez Rogers noted that the jury’s verdict was backed by a substantial body of evidence. "There is a large amount of evidence supporting the jury's findings; that's why I am prepared to dismiss this case then and there," Rogers stated following the verdict, according to a TechCrunch report on May 18, 2026.

The ruling neutralizes one of the major threats to OpenAI, effectively shielding the company from a potential restructuring just as reports surface regarding its plans for an initial public offering (IPO).

OpenAI's lead counsel, Bill Savitt, dismissed Musk’s legal challenge as entirely meritless. "It did not take [the jury] two hours to conclude … that Mr. Musk’s lawsuit is nothing more than an after-the-fact contrivance that bears no relationship to reality," Savitt said.

"They kicked it exactly where it belongs — just to the side. This lawsuit is a hypocritical attempt to sabotage a competitor," he continued.

Microsoft, which also faced litigation for allegedly facilitating OpenAI's breach of charitable trust, welcomed the outcome. The tech giant reaffirmed its commitment to its ongoing partnership with OpenAI to advance artificial intelligence technology.

The proceedings also touched upon the potential financial penalties had Musk triumphed. However, the judge openly questioned expert analyses that pegged the alleged illicit gains accumulated by OpenAI and Microsoft at anywhere between US$78.8 billion and US$135 billion.

Following the reading of the verdict, Musk immediately signaled his intent to challenge the decision. In a post on X, he wrote, "There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!"

"I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America," Musk added.

Meanwhile, Musk’s attorney, Marc Toberoff, offered only a terse response when pressed for comment. "One word: Appeal."

Read: Indonesia Scraps OpenAI from Digital VAT Collector List

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