Nine jurors took less than two hours to throw out a $134 billion claim.
On May 18, a nine-person advisory jury in the U.S. District Court for the Northern District of California unanimously found that Elon Musk filed his lawsuit against OpenAI too late—the three-year statute of limitations had passed. Judge Yvonne Gonzalez Rogers immediately adopted the jury's conclusion and dismissed the case, ending three weeks of trial without ever addressing the merits.
Claim Amount Rivaled OpenAI's Half-Year Fundraising
Musk sought substantial damages:
- OpenAI: $65.5 billion to $109.4 billion
- Microsoft: $13.3 billion to $25.1 billion
- Total: $79 billion to $134 billion
The basis was "unjust enrichment"—Musk argued that OpenAI had secretly converted its nonprofit charter into a for-profit structure, cheating him as an early donor and co-founder. Beyond monetary damages, he also demanded that Sam Altman be removed from the board.
Musk co-founded OpenAI with Altman in 2015, contributed $38 million, and left the board in 2018. The trial, a continuation of a 2024 lawsuit, featured testimony from Musk, Altman, Greg Brockman, and Microsoft CEO Satya Nadella.
Why Musk Lost: The Three-Year Statute of Limitations
The jury's reasoning was straightforward: Musk "knew or should have known" about OpenAI's shift to for-profit status at least three years before filing. Claims for breach of charitable trust carry a three-year statute of limitations, and Musk missed the deadline.
Judge Rogers stated:
"There's a substantial amount of evidence to support the jury's finding, which is why I was prepared to dismiss on the spot."
Key evidence like Brockman's private diary, Microsoft's $100 billion+ partnership, and Nadella's testimony never factored in. The case ended on procedural grounds.
Musk Vows Appeal, but Uphill Battle Ahead
Musk reacted angrily on X, calling Judge Rogers a "terrible activist" and the ruling "a free license to loot charities—as long as you can hide for a few years." He described it as a "calendar technicality."
His lead attorney, Marc Toberoff, told reporters simply: "Appeal." He called the case "at its core a travesty."
However, overturning a statute-of-limitations dismissal at the Ninth Circuit is extremely difficult. Such procedural dismissals are far harder to reverse than merits-based ones, as they require no re-examination of evidence—only the timing calculation.
Broader Implications
The ruling eases pressure on OpenAI. The company is pursuing a $852 billion valuation restructuring and an IPO of up to $175 billion, and the lawsuit had been a distraction for its legal team. The jury's decision removes a major obstacle.
But Musk didn't lose everything. The trial's three weeks of testimony placed OpenAI's full transition from nonprofit to for-profit, Brockman's diary, and Altman's internal decisions from 2017–2019 into the public record. These could serve as ammunition for future lawsuits or regulatory investigations.
Whether Musk's xAI can leverage this to secure more SpaceX computing orders remains to be seen.
Sources: Musk's $134 Billion Case Against OpenAI Collapsed in Under Two Hours — Without a Word on the Merits (TechTimes); CocoLoop; Musk loses case against OpenAI (CNN Business); Jury sides with OpenAI, saying Elon Musk's lawsuit was not filed on time (PBS News); Musk slams Altman trial verdict as a 'technicality,' vows to appeal (CNBC)