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Technology

Elon Musk Loses OpenAI Lawsuit, Cites "Calendar Technicality" in Appeal Plan

· · 2 min read

A California court dismissed Elon Musk's high-profile lawsuit against OpenAI, ruling he waited too long to file his claims. Musk announced plans to appeal, asserting that the court never addressed his core allegations regarding OpenAI abandoning its original nonprofit mission.

Elon Musk's high-stakes lawsuit against artificial intelligence giant OpenAI has been dismissed by a California court. The ruling, delivered after a jury found Musk had exceeded the statute of limitations for filing the case, prompted a strong reaction from the billionaire, who vowed to appeal the decision.

Musk Alleges "Calendar Technicality" Not Core Issues

Musk, a co-founder of OpenAI in 2015 before his departure in 2018, stated on X (formerly Twitter) that the judge and jury "never actually ruled on the merits of the case, just on a calendar technicality." He reiterated his accusations against OpenAI CEO Sam Altman and President Greg Brockman, alleging they enriched themselves by diverting the company from its initial charitable objectives.

"Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality," Musk posted. "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!"

He confirmed his intention to challenge the verdict at the Ninth Circuit Court of Appeals, arguing that allowing such a precedent could harm charitable giving in the United States.

Court Focused on Filing Deadline

The lawsuit, initiated in 2024, sought substantial damages of up to $150 billion and aimed to reverse OpenAI's transition to a for-profit entity. Musk's legal team argued that OpenAI had violated its foundational commitment to develop AI "for the benefit of humanity" rather than for private financial gain.

However, an advisory jury in Oakland, California, concluded that Musk had been aware of OpenAI's shift towards a commercial structure years prior to filing the legal action. This placed the lawsuit outside California's three-year statute of limitations. Judge Yvonne Gonzalez Rogers subsequently adopted the jury's finding, dismissing the case after less than two hours of deliberation.

The court's decision focused solely on whether Musk had filed his lawsuit within the legally mandated timeframe, without making a judgment on the veracity of his claims regarding OpenAI's alleged breach of its charitable mission. Claims against Microsoft, also named as a defendant for its investment in and alleged role in OpenAI's restructuring, were similarly dismissed.

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