A federal jury in Oakland unanimously rejected Elon Musk’s lawsuit against OpenAI, Sam Altman, and Microsoft, ruling that all claims were barred by the statute of limitations.

Key Points

• The nine-member jury reached a verdict in less than two hours, finding Musk filed his claims well past the legal deadline.
• Musk sought $130 billion in damages and the dismantling of OpenAI’s for-profit structure, alleging a breach of the company's original nonprofit mission.
• Judge Yvonne Gonzalez Rogers accepted the verdict, noting that the statute of limitations issue was a factual determination that makes an appeal difficult.
• OpenAI recently closed a $122 billion funding round at an $852 billion valuation, with major investments from Nvidia, Amazon, and SoftBank.
• The trial involved testimony from six tech billionaires and the public release of extensive internal communications regarding OpenAI’s corporate transition.

Why it Matters

This verdict removes the most significant legal obstacle currently facing OpenAI as it prepares for a potential public offering. By clearing Microsoft and OpenAI leadership of wrongdoing, the court has effectively solidified the company's current for-profit business model and its ongoing restructuring efforts.