Tesla CEO Elon Musk on Monday vowed to appeal after a federal jury in California ruled against him in his legal battle with OpenAI and its co-founders, including Sam Altman. The lawsuit, filed by Musk in 2024, accused OpenAI of abandoning its original nonprofit mission and turning the organisation into a profit-driven company for personal gain. However, the jury found that Musk had filed the case too late, saying the claims were outside the three-year statute of limitations. Judge Yvonne Gonzalez Rogers accepted the jury’s recommendation, bringing one of Silicon Valley’s biggest AI courtroom fights to a dramatic pause, though Musk has made it clear the battle is far from over.
Jury sides with OpenAI and dismisses Musk’s lawsuit over timing issue
As per reports, the federal jury sided with OpenAI, OpenAI President Greg Brockman, Sam Altman, The OpenAI Foundation and Microsoft in the closely watched case. Elon Musk had argued that OpenAI’s leadership violated a foundational promise to keep the company structured as a nonprofit working for public benefit.
However, jurors concluded that Musk’s lawsuit had crossed the legal filing deadline. According to the ruling, the billionaire waited too long to bring his claims before the court under California’s statute of limitations laws. Judge Yvonne Gonzalez Rogers, who had earlier sought the jury’s recommendation on the matter, later confirmed and accepted the verdict officially.
Elon Musk says ruling was based on a ‘calendar technicality’
Soon after the verdict, Elon Musk reacted strongly on X and confirmed that he would challenge the decision through an appeal. Writing on the social media platform, Musk said the case was decided not on facts but on timing. “There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!” Musk wrote.
He further criticised the outcome and warned about its larger impact on charities and nonprofit organisations in America. “Creating a precedent to loot charities is incredibly destructive to charitable giving in America,” the Tesla and SpaceX CEO added. Musk had claimed in court filings that the $38 million he contributed to OpenAI was meant to support nonprofit AI research and not commercial expansion.
Lawyer says ‘war is not over’ as appeal plans begin
Reports say that Elon Musk’s lawyer Marc Toberoff also confirmed immediately after the ruling that an appeal would follow. Speaking briefly to reporters outside the courtroom, Toberoff gave a one-word response: “Appeal”.
He later compared Musk’s legal fight to difficult battles from American history and suggested the case was far from finished. “There were major losses for Americans, but who won the war? And this one is not over,” Toberoff said.
OpenAI dispute becomes one of Silicon Valley’s biggest AI battles
The lawsuit had become one of the most closely followed legal fights in Silicon Valley. Musk alleged that OpenAI’s leadership transformed the organisation from a nonprofit research initiative into a company focused on commercial profit and personal enrichment.
The ruling now marks a major legal victory for Sam Altman and OpenAI, though Elon Musk’s planned appeal means the broader fight over AI governance and nonprofit commitments could continue in higher courts.
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Khalid Qasid is a media enthusiast with a strong interest in documentary filmmaking. He holds a Master’s degree in Convergent Journalism from AJK MCRC. He has also written extensively on esports at Sportsdunia. Currently, he covers world and general news at NewsX Digital.
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