Jury dismisses entire Musk v. OpenAI case on grounds of statute of limitations

On May 18, a federal jury in the United States unanimously ruled that Elon Musk’s lawsuit against OpenAI CEO Sam Altman, co-founder Greg Brockman, and OpenAI itself was filed well past the statutory statute of limitations, dismissing all claims. The jury also rejected Musk’s allegation that Microsoft aided the defendants in breaching their fiduciary duties. Nine jurors deliberated starting Monday morning and reached consensus in under two hours; presiding Judge Yvonne Gonzalez Rogers accepted and upheld the verdict in court. Steven Molo, Musk’s attorney, stated they would appeal, arguing the ruling pertained solely to “technical legal issues” rather than negating the merits of the case.

The trial lasted three weeks. Musk contended that Altman and others violated their fiduciary obligations when OpenAI transitioned from a non-profit to a for-profit entity, thereby enriching themselves unlawfully. OpenAI countered that discussions about transitioning to a for-profit model began as early as 2017, with a for-profit division established in 2019; since Musk filed his suit in 2024, both the three-year statute of limitations for breach of fiduciary duty and the two-year statute of limitations for unjust enrichment had expired. During testimony, Musk admitted he resolved to sue only after Microsoft invested $10 billion in OpenAI in 2023 in exchange for intellectual property rights. Bill Savitt, OpenAI’s counsel, later said the jury overwhelmingly sided with their position, while Microsoft welcomed the dismissal in a statement. Reportedly, Musk’s appeal will hinge on the “continuing violation doctrine” to circumvent the statute of limitations—a principle the judge had previously declined to instruct the jury on.

NBC News