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Court dismisses Elon Musk’s case against Sam Altman and OpenAI

OpenAI CEO Sam Altman arrives to court at the Ronald V. Dellums Federal Building on May 12, 2026 in Oakland, California. (Photo by Benjamin Fanjoy/Getty Images)

(NEW YORK) — A jury on Monday found that Elon Musk waited too long to bring claims accusing OpenAI, under Sam Altman’s leadership, of abandoning its public-benefit mission as it moved toward a for-profit structure.

The nine-person advisory jury determined that the claims against OpenAI and Altman were barred due to the statute of limitations. Judge Yvonne Gonzalez Rogers accepted the determination and dismissed the claims.

The three-week trial at a federal courthouse in Oakland, California, featured testimony from Musk and Altman, as well as Microsoft CEO Satya Nadella.

When Musk sued OpenAI and Altman two years ago, he claimed that the company abandoned its mission of benefiting humanity.

Musk, a co-founder of OpenAI, said he reached an agreement with the company’s leaders on the nonprofit course of the firm when it launched in 2015.

Musk accused the company of later breaching agreement when it made ChatGPT-4 available for use by Microsoft — meaning the tech giant got access to the then-most powerful version of its popular chatbot under an exclusive licensing agreement. Microsoft and OpenAI have renegotiated the exclusive licensing agreement, allowing OpenAI to strike deals with other tech firms.

OpenAI rebuked the charges, calling them “baseless.” Microsoft also denied any wrongdoing. Musk, the world’s richest person, counts $803 billion in wealth, according to Forbes. He was seeking $150 billion in damages from the tech companies, as well as the removal of Altman from OpenAI’s board of directors.

Musk also sought a legal order that requires OpenAI to abide by its alleged founding mission of aiding humanity and retaining its nonprofit form

OpenAI, which is not publicly traded, valued itself at $852 billion after a round of funding in March. Microsoft’s value — as measured by market capitalization — stands at about $3.1 trillion.

Musk pleaded two claims against OpenAI: unjust enrichment and breach of charitable trust.

Lawyers for Altman argued that Musk was motivated by a pursuit of control over OpenAI, rather than an effort to safeguard its non-profit status. In fact, Musk sought to fold OpenAI into Tesla — a move that would have absorbed the venture into a for-profit entity, lawyers for Altman said in a legal filing.

In 2018, Musk told a former OpenAI employee that financial support from Tesla would help OpenAI compete with tech giant Google, the filing said.

“Tesla [was] the only path that could even hope to hold a candle to Google,” Musk said, according to the legal filing.

For his part, Musk said in the lawsuit that the agreement on OpenAI’s non-profit status was memorialized in a legal filing when OpenAI was incorporated.

In the lawsuit, Musk alleged that Altman and OpenAI President Greg Brockman reaffirmed the founding agreement in written messages over the ensuing years.

“[I] remain enthusiastic about the non-profit structure!” Altman wrote to Musk in 2017, according to the lawsuit.

Musk, who helped bankroll OpenAI, launched a rival for-profit AI company in 2023 called xAI, which built a chatbot that competes with ChatGPT.

Acknowledging his previous criticism of the pace and ambitions of AI development, Musk said in a conference call on X in July 2023 that he entered the industry reluctantly.

Copyright © 2026, ABC Audio. All rights reserved.

2nd earthquake hits Indonesia following powerful magnitude 7.7 quake

Indonesian military and rescue personnel search through debris at a damaged building following a magnitude 7.7 earthquake on August 15, 2026. (Indonesian National Search and Rescue Agency (Basarnas/Handout))(NEW YORK) -- A magnitude 6.9 earthquake hit Indonesia just hours after a more powerful magnitude 7.7 quake struck off the coast of the eastern part of the country, according to the U.S. Geological Survey.At least 47 people have been killed, according to the National Disaster Management Agency (BNPB), with the earthquakes knocking down some buildings and leading hundreds to evacuate amid fears of a tsunami, officials said.At least six others were injured and two more are missing, according to the Associated Press.More than 300 houses were destroyed or damaged, according to Indonesia's National Disaster Management Agency.More than 100 public facilities have also been destroyed or damaged, including 87 educational facilities, 18 health facilities, six offices and five places of worship.Emergency crews, including members of the Indonesian National Armed Forces, were conducting evacuations and assessing damage.The agency said the earthquake, which struck shortly before 5 a.m. local time, was strongly felt across the province of East Nusa Tenggara.The quake initially triggered fears of a tsunami, and a warning from Indonesia's Meteorology, Climatology and Geophysics Agency, issuing alerts to stay away from beaches and calls for people to evacuate. However, those warnings later expired, according to the Associated Press.Before then, about 2,000 residents in the Nagekeo Regency on the Flores island "carried out self-evacuation as a precautionary measure after the earthquake and due to the early warning of a tsunami," the disaster management agency said.The earthquake's epicenter was located about 60 kilometers north-northwest of Ende in Indonesia's Flores region at a depth of about 10 kilometers, according to USGS.There were a number of strong aftershocks reported nearby, including a 6.1 quake and a 5.9 quake also north of Ende, according to the USGS. Photos from the area showed damage to buildings. Copyright © 2026, ABC Audio. All rights reserved.
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