Musk Plans to Appeal After OpenAI Jury Verdict — But Legal Experts Say It’s Done

TLDR

• A California jury found OpenAI and its leaders not liable in Musk’s lawsuit, ruling he filed outside the statute of limitations.
• Musk had claimed OpenAI “stole a charity” by converting from a nonprofit to a for-profit company.
• The verdict removes an estimated $134 billion overhang from Musk’s damages claims against OpenAI.
• Tesla shares fell 3% on Monday; Microsoft shares rose slightly following the verdict.
• Musk says he plans to appeal, but legal experts believe the case is “pretty much over.”

Elon Musk has lost his lawsuit against OpenAI and its co-founders Sam Altman and Greg Brockman after a California jury ruled against him on Monday. The jury found the defendants not liable because Musk filed his legal claims outside the statute of limitations.

The three-week trial was held in Oakland at the US District Court for the Northern District of California. Judge Yvonne Gonzalez Rogers confirmed she accepted the jury’s verdict.

Musk had alleged that when OpenAI converted from a nonprofit to a for-profit company, Altman and Brockman had unjustly enriched themselves. He argued he donated money to the startup under the understanding it would remain a nonprofit.

OpenAI was co-founded in 2015 by Musk, Altman, and others. Musk left the company in 2018, several years before it made its transition to a for-profit structure.

What Happened in Court

During the trial, Musk’s attorney Steven Molo tried to paint Altman as untrustworthy. He referenced Altman’s brief removal from the OpenAI board in 2023, when board members said he hadn’t been consistently candid. Altman was reinstated just days later.

OpenAI’s legal team pushed back, saying multiple witnesses confirmed Musk never made his donations conditional on the company remaining a nonprofit. They also argued the lawsuit was filed too late.

What the Verdict Means for OpenAI and Investors

The outcome is a win for OpenAI and its backers. Wedbush analyst Dan Ives said the verdict removes an estimated $134 billion overhang from Musk’s damages claims.

Microsoft, which has invested more than $10 billion in OpenAI, also benefits. Microsoft shares were up slightly at $423.33 on Monday. Amazon, SoftBank, and Nvidia are among other major backers of OpenAI, which is currently valued at around $1 trillion.

Amazon announced a $50 billion multiyear investment in OpenAI in February. OpenAI is racing to go public and is viewed as a leading candidate for one of the biggest IPOs of 2026.

Tesla shares fell 3% on Monday following the verdict.

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