Musk Loses Big Against OpenAI! $150 Billion Lawsuit Dismissed, Key Reason Is "Filing Too Late"

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Author: Max, Crypto City OpenAI Wins, Musk's Lawsuit Fully Dismissed by Court According to NBC reports, the two-year legal battle between Musk (Elon Musk) and OpenAI has recently taken a major turn. A US California federal jury ruled on May 18 that the multiple allegations brought by Musk against OpenAI, Sam Altman, Greg Brockman, and Microsoft were invalid because they exceeded the statutory limitation period, effectively declaring this $150 billion lawsuit a complete failure. The case was heard by the United States District Court for the Northern District of California, and the jury completed its verdict in less than two hours. Judge Yvonne Gonzalez Rogers subsequently accepted the jury's opinion, determining that OpenAI and the related defendants did not need to bear legal responsibility, while also dismissing Musk's claims of "breach of charitable trust" and "unjust enrichment." Musk officially filed the lawsuit in 2024, with the core argument being that OpenAI had deviated from its non-profit original intention when it was founded in 2015, and gradually shifted toward commercialization after substantial investment from Microsoft. He argued that OpenAI should have aimed to "benefit humanity" and avoid AI development being completely dominated by commercial interests. Court Determines Musk Filed Suit Too Late OpenAI's lawyer Bill Savitt pointed out in court that Musk had long been aware of changes in OpenAI's organizational structure and adjustments to its business model, but delayed for many years before filing the lawsuit. The court ultimately accepted this argument, determining that the relevant claims had exceeded the statute of limitations stipulated by California law. According to California law, the statute of limitations for lawsuits involving charitable trusts is 3 years, while for unjust enrichment it is 2 years. The jury believed that Musk had known very early on that OpenAI was gradually shifting to a for-profit model, and therefore could not reassert related rights many years later. Musk's team countered that the core dispute in this case was not a matter of timing, but whether OpenAI had violated its original promises. Musk stated in court that he had always believed Sam Altman's statements about OpenAI's vision, and therefore did not realize until later that the entire organization had completely changed direction. However, the court also pointed out that Musk's team was never able to produce a legally binding formal document proving that OpenAI could never transform into a for-profit structure. The entire trial ultimately relied heavily on early emails, conversation records, and verbal discussions among the founders. Obstacles to OpenAI's Commercialization Path Removed According to the lawsuit, Musk's team had requested the court to conduct a large-scale restructuring of OpenAI, including removing Sam Altman, overturning OpenAI's recent commercialization structure, and even demanding that Microsoft return the enormous benefits obtained from its cooperation with OpenAI. OpenAI's lawyers emphasized that large AI models require massive computing power, chips, and financial support, and without a commercialization structure, it would be difficult to compete with rivals such as Google DeepMind. OpenAI also mentioned that Musk had actually discussed a for-profit model in the past, and even hoped that Tesla would lead OpenAI's development. This verdict is also seen by outside observers as a major victory on OpenAI's commercialization path. Since Musk's lawsuit could have originally brought high uncertainty to OpenAI's future IPO, financing, and cooperation with Microsoft, the related legal risks have now clearly decreased following the court's ruling. Currently, OpenAI's market valuation has approached $850 billion, continuing to engage in AI competition with Anthropic, Google DeepMind, and xAI. It is widely believed that if OpenAI successfully goes public in the future, it may become one of the largest global technology IPOs in recent years. Conflict Between Musk and OpenAI Will Continue Although the result of this lawsuit can be considered a major setback for Musk, the conflict between the two sides has not completely ended. Musk's lawyer Steven Molo has stated that he will file an appeal, arguing that this ruling is mainly a procedural issue rather than the substance of the case itself. There are still multiple legal cases ongoing between Musk and OpenAI, including OpenAI's countersuit against Musk for using malicious litigation strategies, as well as xAI's antitrust lawsuit against OpenAI and Apple. As xAI continues to advance the Grok model, the competition between Musk and OpenAI is gradually returning from the legal battlefield to the AI market itself. Especially as AI models begin to influence the search, social, financial, and enterprise software markets, this conflict has gradually evolved into a battle for global AI dominance. (The above content is excerpted and reprinted with authorization from partner "Crypto City". Original link)

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