Musk Loses Lawsuit Against Altman

Elon Musk lost his legal challenge against OpenAI CEO Sam Altman. An advisory jury rejected his claims in under two hours, prompting a US district judge to dismiss the case in a federal court.

A jury concluded the action was barred by the statute of limitations, finding Musk had three years to sue but filed too late. The judge stated there was substantial evidence supporting the finding and indicated she was ready to dismiss the claims immediately. Musk’s lawyer reserved the right to appeal.

Musk sued Altman and OpenAI in 2024, arguing the company abandoned its non-profit mission after he helped found the AI company in 2015 and later left its board after a falling out with Altman. Microsoft, an OpenAI backer since 2019, was also named as a defendant, with Musk alleging the software giant aided the start-up’s apparent breach of charitable trust. The court dismissed the claims against Microsoft.

Musk asked the court to order OpenAI and Microsoft to pay up to $134 billion in alleged gains, remove Altman and OpenAI president Greg Brockman, and unwind a restructuring in 2025 that expanded the company’s for‑profit arm. OpenAI’s attorneys argued Musk filed the lawsuit only after launching his competing AI start-up xAI. Musk stated that any funds from a ruling in his favour should go back to the OpenAI charity rather than to him.

The ruling came as both executives push towards potential public market moves, with investors closely watching the AI sector’s funding race and competitive dynamics. Altman and Musk also publicly clashed over US President Donald Trump-backed joint venture Stargate, a $500 billion AI infrastructure initiative involving OpenAI.