Elon Musk was one of the co-founders of OpenAI in 2015, alongside Sam Altman, Greg Brockman, and others. The organisation was established as a nonprofit with a founding mission to develop artificial intelligence for the benefit of humanity. Musk contributed approximately $38 million in donations during the company's early years.

Musk departed OpenAI in 2018 after co-founders declined to grant him control of the organisation. He later alleged he had been pushed out after proposing a merger with Tesla. He subsequently founded competing AI startup xAI in 2023. His estrangement from OpenAI deepened as ChatGPT's success elevated Altman's global profile and transformed OpenAI into a commercial powerhouse.

Musk first filed suit in a California state court in February 2024, accusing OpenAI of violating its nonprofit mission through its partnership with Microsoft. He withdrew that case in June 2024, then refiled in federal court in August 2024 — a move that would prove fateful, as the statute of limitations clock was running.

At the core of the lawsuit were two primary claims: breach of charitable trust and unjust enrichment. Musk alleged that Altman had deceived him by accepting millions in donations while privately planning to shift OpenAI toward a for-profit structure. He argued that this transition — and OpenAI's deepening commercial ties with Microsoft — betrayed the organisation's founding principles.

The lawsuit sought more than $134 billion in damages and called for the removal of both Sam Altman and Greg Brockman from their leadership positions. It also aimed to reverse OpenAI's restructuring into a for-profit entity — a move that would have directly disrupted the company's plans to pursue a public listing. On the stand, Musk framed the case around a simple moral argument: "It's not OK to steal a charity."

Altman countered forcefully, testifying that Musk had in fact supported the shift to a for-profit model and had sought long-term personal control of OpenAI — including suggesting the company could pass to his children upon his death. OpenAI and Microsoft argued throughout that there was never a binding promise to remain a nonprofit permanently.

After 11 days of testimony and arguments, the nine-member advisory jury took less than two hours to deliver a unanimous verdict. The panel determined that Musk's claims for breach of charitable trust and unjust enrichment were time-barred by the statute of limitations — meaning he had waited too long after the alleged wrongs occurred before filing suit. Because the charitable trust claim failed, the related claim that Microsoft had aided and abetted the breach also collapsed.

The verdict was advisory, but Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California promptly confirmed she agreed with the jury's findings, issuing her own ruling to toss the case. Crucially, the jury never ruled on whether Musk's underlying allegations were true or false — only that his legal window to bring those claims had expired.

Musk's legal team indicated they intend to appeal, arguing the verdict was a narrow decision on "technical legal issues" and that the substance of the allegations remained unaddressed. Musk himself posted on X that the ruling was a "calendar technicality" and a "free license to loot charities." Legal experts, however, note that overturning a fact-specific jury finding on appeal is a significant challenge.

Key Takeaways

• →A unanimous Oakland jury ruled against Elon Musk on May 18, 2026, finding his lawsuit against OpenAI and Sam Altman was barred by the statute of limitations — not on the merits of his claims.
• →Musk had sought over $134 billion in damages and the removal of both Sam Altman and Greg Brockman from their leadership roles at OpenAI.
• →The jury deliberated for less than two hours following 11 days of testimony — a swift conclusion to a case years in the making.
• →Because the case was dismissed on procedural grounds, the underlying question of whether OpenAI breached its founding nonprofit mission was never decided.
• →Musk has vowed to appeal, though legal experts caution that reversing a fact-specific jury finding on statute of limitations grounds is a significant challenge.
• →The verdict clears the way for OpenAI's for-profit restructuring and potential IPO, while cementing Microsoft's partnership with the $852 billion AI giant.