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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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‘Beloved’ mom’s body recovered after boat capsized near Alcatraz Island in San Francisco Bay

An undated photo of Tondra Madruga who died when a boat capsized in San Francisco Bay on July 14, 2026. (Madruga Family)(SAN FRANCISCO) -- The body of a 58-year-old woman has been recovered after a boat capsized and sank near Alcatraz Island in San Francisco Bay, marking the second person confirmed dead from the incident.The San Francisco Medical Examiner's Office identified the second victim as Tondra Madruga. Two people remain missing.Madruga's relatives said in a statement that they're "heartbroken by the loss of our beloved mother, daughter, sister, and aunt.""Our hearts remain with every family impacted, and we sincerely appreciate your kindness and understanding," the family said. "We extend our heartfelt thanks to the U.S. Coast Guard, the San Francisco Fire Department, the San Francisco Police Department, all of the first responders, and the civilian boaters and community members who selflessly assisted in the search and rescue efforts. Your dedication and support mean more to our family than words can express."Authorities said they believe 20 people were aboard the Volare, a 50-foot cabin cruiser based out of Stockton, California, when it was hit by a wave Tuesday evening, causing it to capsize.One man who was aboard was taken to the shore severely injured and, despite CPR being administered, was pronounced dead, officials said. He was identified by the Office of the Chief Medical Examiner as 79-year-old Clifford Joseph Boisa.A dog also died, San Francisco Fire Chief Dean Crispen said.Three people were taken to the hospital and later released, Crispen said.Crispen told reporters that authorities believe there was a memorial service that the 20 passengers, all adults and mostly comprised of family members, were taking part in on the vessel when it capsized. One survivor said it was a memorial for her sister, ABC San Francisco station KGO reported.The Coast Guard announced Wednesday that it suspended search operationsJarod Toczko, commander for U.S. Coast Guard Sector San Francisco, said the decision to suspend the search was not easy, but his teams swept through 950 square nautical miles and hadn't found the missing people or the boat.Toczko said there was a "high possibility that individuals could have been trapped in the vessel."Rescuer Justin Marceline told KGO that some passengers were "banging on the windows, trying to get out" of the boat."It was pretty wild, seeing that, honestly," Marceline said, adding that conditions in the water were "really bad.""The people that were bobbing in the water, we pulled them out first," Marceline said. "The people in the water were elderly folks, they were conscious, but people were too tired and worn out."Toczko praised those who jumped to save the passengers."No question, no doubt...those people saved lives," he said.ABC News' Emily Shapiro and Jennifer Watts contributed to this report.Copyright © 2026, ABC Audio. All rights reserved.
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