A California jury ruled that Elon Musk, the majority shareholder of X, took too long to launch a lawsuit against OpenAI and Microsoft on Monday.
The jury issued its advisory decision that the statute of limitations had run out following around 90 minutes of deliberating, and U.S. District Judge Yvonne Gonzalez Rogers concurred with their ruling, CNN reported. The judge ruled that “claims of breach of charitable trust and unjust enrichment are dismissed as untimely” and claimed she was ready to dismiss Musk’s allegations “on the spot,” according to CNBC. The three-week trial came after Musk filed a lawsuit against OpenAI and Altman in 2024 alleging they broke a commitment to maintain the artificial intelligence lab as strictly a nonprofit. (RELATED: Sam Altman Gives Anything But Straight Answer When Asked Why You Should Trust Him)
The Tesla and SpaceX founder helped launch the AI company in 2015 but exited its board after three years. He also sued Microsoft claiming the software firm helped the startup breach the alleged charitable commitment.
The lawyers for OpenAI alleged that the firm’s mission remained the same, that a non-profit foundation board still managed it and Musk held back a lawsuit until he launched xAI, a rival AI firm, according to CNN. Musk launched xAI in 2023, CNBC reported. The jury ruled that Musk knew of the behavior allegedly covered by the lawsuit as far back as 2021, according to CNN. OpenAI’s lawyers also alleged the donations via Musk did not have a commitment to remain a non-profit and that the billionaire repeatedly called on OpenAI to launch a for-profit operation to challenge Google.
Musk’s head attorney alleged that OpenAI CEO Sam Altman and OpenAI’s leadership used the nonprofit like a “shell” once they formed a for-profit subsidiary in 2019 by transferring workers and intellectual property to it, NPR reported. The firm gave up its obligation to safety and open sourcing in exchange for enriching “investors and insiders” after reaching a $10 billion agreement with Microsoft, Musk lawyer Steven Molo argued.
Breaking: A jury sided with Sam Altman and OpenAI in a landmark lawsuit brought by Elon Musk, who alleged that the startup behind the world’s most popular chatbot “stole a charity” when it converted into a for-profit company https://t.co/gTzyhzKSG4
— The Wall Street Journal (@WSJ) May 18, 2026
Musk called on the court to compel OpenAI to send over $130 billion to the firm’s nonprofit entity, strip Altman and OpenAI President Greg Brockman of their executive positions and reverse the institutional changes that turned the company into an AI giant. Musk refused to have any of the money paid to him personally, CNBC reported.
Musk, Altman, Brockman and CEO Satya Nadella of Microsoft testified. OpenAI cofounder Ilya Sutskever also testified, as did Shivo Zilis, one of Musk’s executives and the mother of four of his children, according to CNN.
“The finding of the jury confirms that what this lawsuit was was a hypocritical attempt to sabotage a competitor,” OpenAI’s lawyer, William Savitt, said Monday. “The fact is that OpenAI is a not-for-profit, mission-driven organization that has been and will continue to be faithful to that mission.”
A Microsoft spokesperson issued a statement to CNN following the jury’s ruling. “The facts and the timeline in this case have long been clear, and we welcome the jury’s decision to dismiss these claims as untimely,” the spokesperson said Monday.
The Daily Caller reached out to OpenAI and xAI for comment but has not heard back as of publication.