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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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Colorado bicyclist rescued after using memorial shelter honoring another cyclist who died on same trail

Click here for updates on this story    MESA COUNTY, Colorado (KCNC) -- On a day with record-setting heat, a mountain biker suffered a mechanical failure on the Palisade Plunge Trail, which claimed the life of a Colorado Springs cyclist four years earlier. A mechanical breakdown threatened to strand the unidentified cyclist Monday about 10 miles from the trail's end. Mesa County Search and Rescue (MCSAR) personnel responded and met the cyclist at a memorial shade structure erected last November by the family and friends of Jeff Higgins.Higgins, 52, died of heat exposure and dehydration on June 11, 2022. He was found unconscious beside the trail by three other cyclists who called 9-1-1 and stayed with Higgins. But those cyclists had also run out of water and needed help. Monday, nearby Grand Junction broke its record high temperature for the day by three degrees. Mesa County's rescue team reached the cyclist by driving an all-terrain vehicle up the trail to the shade structure. The cyclist was given water and time to rehydrate before those rescuers hauled that rider and broken bicycle downhill into Palisade."We're grateful this mission ended safely and that a space created in Jeff Higgins' memory provided shade and comfort when it was needed," MCSAR stated on social media. "Our hearts are with Jeff's family & loved ones, and we hope it brings them comfort knowing his memory is helping others along the Plunge."That is certainly the case. "It's exactly the reason we put it there," said Higgins's widow, Amy. "Jeff would never want to discourage someone from doing something they wanted to do, and still return home safe to their family." Amy Higgins fought back tears as she described the effort to put the shelter near where he husband passed away - from commissioning a Grand Junction artist, Jeff Bates, to design and build it to coordinating with the U.S. Bureau of Land Management, Town of Palisade, and City of Grand Junction for permission to locate it. In November, members of the Palisade mountain biking community joined the family to place the shelter at what she called "the bailout," the last convenient point for cyclists to exit the trail or first responders to reach them. Less than a year after it was put there, it has already served its purpose, Amy Higgins marveled."And I'm really happy for that," she shared. Less than a year after it was put there, it has already served its purpose, Amy Higgins marveled."And I'm really happy for that," she shared. Jeff Higgins's brother Dan was there when shovels hit the dirt last November. "We're thankful knowing the structure built in Jeff's honor has now helped a rider," he told CBS Colorado. "That's what it was meant to do."He noted that section of trail now has much better signage to alert cyclists to the "bailout" point and shelter. The Palisade Plunge is a 32-mile path from the top of Grand Mesa to Palisade. It opened in 2018. The Higgins family has been unable to make contact with the three cyclists who stopped to help Jeff Higgins on the trail four years ago. Amy Higgins said she wants to meet them and thank them, if possible.Please note: This story was provided to CNN Wire by an affiliate and does not contain original CNN reporting. This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.
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