Musk Loses $130 Billion OpenAI Lawsuit
- by dailycaller
- May 18, 2026
- 0 Comments
- 0 Likes Flag 0 Of 5
Font Size:
A California jury ruled that Elon Musk, the majority shareholder of X, took too long to launch a lawsuit against OpenAI and Microsoft on Monday.
The jury issued its advisory decision that the statute of limitations had run out following around 90 minutes of deliberating, and U.S. District Judge Yvonne Gonzalez Rogers concurred with their ruling, CNN reported. The judge ruled that “claims of breach of charitable trust and unjust enrichment are dismissed as untimely” and claimed she was ready to dismiss Musk’s allegations “on the spot,” according to CNBC. The three-week trial came after Musk filed a lawsuit against OpenAI and Altman in 2024 alleging they broke a commitment to maintain the artificial intelligence lab as strictly a nonprofit. (RELATED: Sam Altman Gives Anything But Straight Answer When Asked Why You Should Trust Him)
The Tesla and SpaceX founder helped launch the AI company in 2015 but exited its board after three years. He also sued Microsoft claiming the software firm helped the startup breach the alleged charitable commitment.
The lawyers for OpenAI alleged that the firm’s mission remained the same, that a non-profit foundation board still managed it and Musk held back a lawsuit until he launched xAI, a rival AI firm, according to CNN. Musk launched xAI in 2023, CNBC reported. The jury ruled that Musk knew of the behavior allegedly covered by the lawsuit as far back as 2021, according to CNN. OpenAI’s lawyers also alleged the donations via Musk did not have a commitment to remain a non-profit and that the billionaire repeatedly called on OpenAI to launch a for-profit operation to challenge Google.
Musk’s head attorney alleged that OpenAI CEO Sam Altman and OpenAI’s leadership used the nonprofit like a “shell” once they formed a for-profit subsidiary in 2019 by transferring workers and intellectual property to it, NPR reported. The firm gave up its obligation to safety and open sourcing in exchange for enriching “investors and insiders” after reaching a $10 billion agreement with Microsoft, Musk lawyer Steven Molo argued.
Breaking: A jury sided with Sam Altman and OpenAI in a landmark lawsuit brought by Elon Musk, who alleged that the startup behind the world’s most popular chatbot “stole a charity” when it converted into a for-profit company https://t.co/gTzyhzKSG4
Please first to comment
Related Post
Stay Connected
Tweets by elonmuskTo get the latest tweets please make sure you are logged in on X on this browser.
Energy




