Entrepreneur Elon Musk has lost his legal battle against OpenAI after a U.S. court dismissed his lawsuit on procedural grounds, ruling it was filed beyond the statute of limitations.

A jury in Oakland, California, reached its conclusion after roughly 90 minutes of deliberation, determining that Musk’s claims could not proceed due to legal time constraints. Judge Yvonne Gonzalez Rogers upheld the jury’s finding and officially dismissed the case.

The judge stated in court that there was sufficient evidence supporting the jury’s conclusion, leading to the dismissal of the lawsuit.

Background of the Case

Musk, a co-founder of OpenAI, had invested approximately $38 million during the company’s early stages. In February 2024, he filed a lawsuit against CEO Sam Altman and chairman Greg Brockman, alleging that OpenAI had shifted from a nonprofit mission to a for-profit structure and that he was unfairly pushed out.

During testimony, Musk admitted he had provided funding without conditions, stating, “I was foolish.”

OpenAI’s Defense

OpenAI’s legal team argued that the company’s core mission had not changed and that it remains governed by a nonprofit board. They also pointed out that Musk only filed the lawsuit after launching his competing AI company xAI.

Following the ruling, OpenAI attorney William Savitt said the decision confirmed the lawsuit was a strategic attempt to weaken a competitor.

Additional Proceedings

The trial featured testimony from high-profile figures including OpenAI co-founder Ilya Sutskever and former board member Shivon Zilis. Internal emails and communications regarding early funding and strategic discussions were also presented in court.

Musk’s Reaction

After the ruling, Musk criticized the judge via the social media platform X, calling the decision unfair. His legal team has announced plans to appeal.

Microsoft, also named as a defendant in the case, welcomed the court’s decision, stating that Musk’s claims were untimely.