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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.

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Woman, 5-month-old baby die after vessel overturns in New York Harbor

A woman and a 5-month-old baby died after a vessel overturned in New York Harbor on Saturday night, according to police. Authorities are investigating whether the vessel was an illegal charter, the U.S. Coast Guard said on Sunday.The New York Police Department said it was called to an overturned vessel near Liberty Island at 10:55 p.m. on Saturday. The authority deployed a harbor unit, as well as a scuba and aviation team to the scene, where 12 individuals had been rescued from the water before their arrival.However, the 27-year-old woman and the 5-month-old baby girl were located and transported to NYU Langone Hospital, where they were declared deceased on arrival, according to authorities. It was not immediately clear whether they are related. The remaining survivors are reported to be in stable condition.  "We are deeply saddened by the tragic loss of life last night, and our thoughts are with the victims' family and loved ones during this incredibly difficult time," Captain Doreen McCarthy, the Coast Guard Sector New York Commander, said in a statement. "We are extremely grateful for the heroic, swift actions of our partner agencies and Good Samaritan vessel who assisted in rescuing survivors from the water."Police said it is investigating the cause of the deadly incident.The NYPD's Deputy Commissioner of Public Information confirmed to CBS News that Manuel Hernandez, 46, of New York, was arrested Sunday on 13 counts of reckless endangerment.An illegal charter is any passenger-for-hire vessel operation that lacks Coast Guard credentials, safety equipment and inspection certificates, the Coast Guard said.
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