A federal jury in California has ruled against Elon Musk in his legal dispute with OpenAI, the artificial intelligence company he co-founded along with Sam Altman and Greg Brockman. The decision, delivered after less than two hours of deliberation, found that Musk’s claims were barred by the statute of limitations, effectively ending his challenge.

Musk filed the lawsuit in 2024, alleging that OpenAI’s leadership breached their founding agreement and wrongfully enriched themselves by transitioning the company from its original non-profit status to a for-profit entity. He argued that the shift prioritized financial gain over the company’s stated mission of benefiting humanity through safe AI development. Musk, who invested approximately £28 million in OpenAI before leaving its board in 2018, sought $134 billion in damages, as well as the removal of Altman and Brockman from their executive roles and the reversal of the organizational restructuring.

OpenAI countered that Musk was aware of plans to establish a for-profit arm as early as 2017 and that his suit was therefore filed too late under the three-year statute of limitations. Company representatives also characterized Musk’s claims as motivated by personal grievances following his departure amid a failed attempt to regain control of the organization. OpenAI emphasized that its non-profit division continues to oversee its core mission of advancing ethical AI.

During the three-week trial, which took place in Oakland, high-profile testimonies included those of Musk, Altman, Brockman, and Microsoft CEO Satya Nadella. The proceedings shed light on internal conflicts within OpenAI’s leadership and featured extensive examination of private communications detailing the company’s founding and its shift toward partial commercialization.

Judge Yvonne Gonzalez Rogers expressed agreement with the jury’s verdict, indicating that sufficient evidence supported the decision to dismiss Musk’s claims. The ruling removes a significant legal obstacle for OpenAI, which is reportedly preparing to pursue a public offering later this year, potentially valuing the company at around $1 trillion.

While the jury’s decision constitutes a clear victory for Altman and OpenAI, the trial revealed complex dynamics and disagreements between some of the tech industry’s most influential figures. The case highlighted the challenges of balancing technological innovation, corporate governance, and philanthropic intent in the rapidly evolving AI sector.