OpenAI, the artificial intelligence (AI) firm behind ChatGPT, has won the lawsuit that Elon Musk, the CEO of Tesla (TSLA), had filed against it. On Monday, a U.S. federal jury dismissed all claims against the AI company after finding Musk waited too long to file the case. However, the billionaire tech investor has since announced plans to appeal.
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Jury Rules Musk Sued OpenAI Too Late
A nine-member advisory jury ruled against Musk’s claims that OpenAI had abandoned its nonprofit roots and that its CEO, Sam Altman, and President Greg Brockman misled him into donating during the firm’s early days.
The jury did not rule on whether those claims were true. Instead, it found that Musk had missed the three-year window to file his August 2024 lawsuit, as he had known about OpenAI’s growth plans years earlier.
The verdict was unanimous and took less than two hours following 11 days of testimony in the Oakland, California, court. Judge Yvonne Gonzalez Rogers agreed with the finding.
On the same grounds, the jury also rejected Musk’s claim that Microsoft (MSFT) aided Altman and Brockman in breaching their duty to OpenAI. Microsoft welcomed the decision, stating the facts and timeline had always been clear.
After the verdict, OpenAI’s lawyer Bill Savitt told reporters the lawsuit was simply an attempt to sabotage a competitor, saying the jurors sent it exactly where it belonged.
Musk Promises to Appeal Ruling After Court Loss
Musk said he plans to appeal, repeating his claims that Altman and Brockman used OpenAI as a path to personal wealth. In a post on X, he argued that the judge and jury never ruled on the merits of the case, calling the outcome a decision on “a calendar technicality.”
His legal team said they hoped an appeal would reverse the rulings on the statute of limitations. Judge Gonzalez Rogers, however, had already cautioned that Musk may face difficulty on appeal.
She said the evidence backing the jury’s finding was strong enough that she had been prepared to dismiss the case outright.
Wedbush analyst Dan Ives said the ruling removes a major legal hurdle and clears uncertainty around OpenAI’s path to a potential public listing. He added that it also marks a major win for Altman despite damage to his public image and leadership reputation.
Is OpenAI Going to IPO Soon?
OpenAI is likely to delay its IPO until 2027. Earlier sentiment suggested a late 2026 listing, but the firm’s CFO, Sarah Friar, and other leaders favor more time to scale its infrastructure and prepare for public-company requirements.
The company has also not filed regulatory paperwork or confirmed a listing date. Other upcoming listings include Musk’s rocket firm SpaceX and Claude AI maker Anthropic, both of which are reportedly preparing for a potential IPO between 2026 and 2027. For investors interested in tracking these firms ahead of their public debut, visit the TipRanks Private Company Center.
