Elon Musk Appeals After Legal Setback Against OpenAI

Elon Musk has announced his intention to appeal after losing a $134 billion lawsuit against OpenAI. On the platform X, Musk described the verdict as a "calendar technicality," arguing that the central question—whether OpenAI's commercial branch illegally profited at the expense of the nonprofit organization—was never addressed substantively. The jury dismissed all of Musk's claims solely on the grounds of statute of limitations, without addressing the actual allegations. The verdict form shows that the jury only answered questions regarding the statute of limitations.

Musk expressed his opinion by stating, "There is no doubt for anyone following the case closely that Altman and Brockman have indeed profited by stealing from a charity. The only question is WHEN they did it!" He also announced his intention to file an appeal with the Ninth Circuit Court of Appeals.

OpenAI's lawyers argued during the trial that Musk's donations were unconditional. They claimed that the restructuring of the organization was necessary to compete in the costly race against Google DeepMind. Judge Yvonne Gonzalez Rogers upheld the jury's verdict, stating that there was substantial evidence supporting their decision.

The trial, which took place in Oakland, California, saw the jury reject Elon Musk's complaint against Sam Altman and OpenAI after only two hours of deliberation. Judge Yvonne Gonzalez Rogers indicated that she was ready to dismiss the complaint "on the spot," highlighting the strength of the evidence supporting the jury's conclusion. The complaint against Microsoft, which has been investing in OpenAI since 2019, was also dismissed, according to CNBC.

Musk initially filed the lawsuit in 2024, claiming that OpenAI had broken its promise to remain a nonprofit organization. He was seeking up to $134 billion in "ill-gotten gains" and the ousting of Sam Altman and Greg Brockman. OpenAI's lawyers argued that Musk himself had proposed a for-profit structure on the condition of retaining control, which apparently convinced the jury. Musk's attorney, Steven Molo, reserved the right to appeal after the verdict.