After losing court on Monday, Elon Musk said he plans to file an appeal after a judge ruled he waited too long to sue. OpenAIextends one of Silicon Valley’s most watched legal battles over artificial intelligence.
Legal experts say the appeals process alone could cost Musk more than that $20 million as the battle between the founders of OpenAI continues to escalate in the community.
The case occurred during the AI boom, when investors poured billions into chips, data centers and competing AI platforms as companies raced to capitalize on the rapid growth in artificial intelligence.
A federal court in Oakland dismissed Musk’s claims against OpenAI, the CEO Sam Altman and the president Greg Brockman after the jury found that Musk missed the legal deadline required to bring the lawsuit.
Musk has blamed OpenAI’s leadership for transforming the company from its for-profit startup into an AI giant focused on rapid capital growth.
The judge acted in an advisory role, but the Judge Yvonne Gonzalez Rogers he accepted this decision as the court’s decision after less than two hours of deliberation following a three-week trial.
Musk responded to X that the court did not address his allegations.
“There is no question to anyone following this case in detail that Altman & Brockman actually enriched themselves by stealing charity,” Musk wrote. “The only question is WHY DID THEY DO IT!”
The case showed how far apart the former partnerships were and gave the jury an inside look at OpenAI’s early years before the company became one of the most important businesses in the AI industry.
OpenAI has argued throughout the trial that there was never a binding agreement requiring the organization to remain permanently non-profit. The company’s lawyers also argued that Musk’s lawsuit was driven less by philanthropic issues and more by competition from his AI company, xAI.
Outside court, OpenAI’s lawyers argued that the ruling confirmed what they had sought for months: Musk’s case was about competition, not charity.
The court dispute also revealed the huge sums now tied up in artificial intelligence. OpenAI’s valuation has grown as companies race to build the next wave of AI technology following the success of ChatGPT.
MicrosoftOpenAI’s largest investor and co-defendant in the lawsuit, welcomed the decision and said it remains committed to expanding its relationship with OpenAI.
Musk had sought damages tied to OpenAI’s charitable arm and pushed for Altman’s ouster from OpenAI’s board. His legal team argued that OpenAI’s leadership was benefiting personally as the company moved toward commercialization.
One of the most striking moments in the case came when Musk told the jury: “It is NOT okay to steal from a charity.”
The hearing also raised questions about Altman’s brief ouster as OpenAI CEO in 2023 before returning to work days later. Former board members testified that they had concerns about Altman’s lack of transparency during internal discussions about the company’s direction.
Towards the end of his testimony, Altman described the breakdown of his relationship with Musk as a personal tragedy.
“I felt like he abandoned us, he didn’t keep his promises, he put the company in a very difficult place, he put the job in jeopardy,” Altman said. “It was a very painful thing for me.”
Musk has vowed to file an appeal, keeping Silicon Valley’s biggest rivalry alive.
