A jury in Oakland. California, dismissed Elon Musk’s $150 billion lawsuit against OpenAI and CEO Sam Altman, ruling that the statute of limitations had expired before the case was filed in 2024, according to Al Jazeera. The case. Which had drawn widespread attention. Centered on whether OpenAI had betrayed its nonprofit mission by pivoting to a for-profit model, However, the jury determined that Musk had waited too long to bring the suit.

Jury rules on statute of limitations

After deliberating for less than two hours, the nine-member jury unanimously concluded that the statute of limitations had expired before Musk filed the lawsuit in 2024, according to Al Jazeera. The court accepted the finding. And U.S; District Judge Yvonne Gonzalez Rogers dismissed the case — the jury served in an advisory role, but the judge followed their recommendation, as confirmed by NBC Bay Area.

Musk, who cofounded OpenAI in 2015 as a nonprofit, accused Altman and OpenAI president Greg Brockman of turning the organization into a for-profit entity for personal gain, according to Al Jazeera. The case had the potential to disrupt OpenAI’s financial structure and impact the fast-growing AI industry, as noted by SZ.de, OpenAI, the developer of ChatGPT, has a valuation of $852 billion and is preparing for a potential IPO.

OpenAI denies nonprofit promise

According to NBC Bay Area, Altman and OpenAI denied ever making a commitment to keep the organization nonprofit indefinitely. They argued that Musk filed the lawsuit because he could no longer exert unilateral control over the company. Musk had withdrawn his funding from OpenAI in 2020, which contributed to a significant rift between the former allies, as reported by SZ.de.

Musk claimed that OpenAI’s board had engaged in deceptive conduct, particularly after it fired Altman as CEO in 2023 before reinstating him days later, according to NBC Bay Area. He also sought to remove Altman from the board and to have damages paid to OpenAI’s charitable arm. However, the jury did not address the core issue of whether OpenAI had betrayed its nonprofit mission, as the case became focused on procedural grounds.

Musk considers appeal

Musk announced his intention to appeal the verdict, writing on social media that creating a legal precedent to exploit charitable organizations could harm donations in America, according to EL PAÍS. The appeal is likely to go to the Ninth Circuit Court of Appeals. Meanwhile, a separate antitrust phase of the lawsuit remains active, as reported by Nate (Korean).

OpenAI has been preparing for an IPO at a projected valuation of $730 billion, according to Nate. The ruling removes a major legal hurdle for the company. The trial, which lasted three weeks, involved testimony from Musk, Altman, Microsoft CEO Satya Nadella, and others in the tech industry. The proceedings highlighted the bitter falling-out between two of Silicon Valley’s top figures, as noted by NBC Bay Area.