Jury dismisses Musk’s suit against OpenAI as time-barred

An Oakland federal jury on May 18 unanimously dismissed all claims in Elon Musk’s lawsuit against OpenAI and CEO Sam Altman, finding the complaint was filed after the three-year statute of limitations. U.S. District Judge Yvonne Gonzalez Rogers adopted the advisory jury’s verdict.

Musk filed the suit in 2024, alleging Altman broke an early promise to keep OpenAI structured as a nonprofit focused on public benefit. The jury did not reach the merits of that allegation because it found the claims untimely.

Musk wrote on X that the outcome was a ‘calendar technicality’ and confirmed he will appeal to the Ninth Circuit Court of Appeals. In court, his lawyers reserved the right to appeal. Judge Gonzalez Rogers indicated she was prepared to dismiss an appeal based on the jury’s finding.

OpenAI counter-sued, arguing the lawsuit was filed in bad faith and used as a competitive tool. The company pointed to Musk’s commercial interest: he founded xAI in 2023 and its Grok model competes directly with OpenAI’s ChatGPT.

OpenAI is pursuing rapid growth. The company is reported to be approaching a $730 billion pre-funding valuation and has indicated plans for a public offering by the end of 2026. OpenAI’s name has also appeared in discussions about tokenized stock products that offer retail exposure to private companies.

Because the jury resolved the case on timing grounds, federal courts did not address the factual or legal questions about the alleged nonprofit pledge. If the Ninth Circuit declines review, Musk’s nonprofit-breach claim would likely be closed in the federal system.

The verdict is part of a multi-year dispute between Musk and OpenAI that has included court filings and public statements. OpenAI and Musk’s ventures continue to compete commercially.