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Elon Musk’s Legal Defeat Against OpenAI

Tue, May 19, 2026(140d ago)Technology

A federal jury in Oakland has effectively ended Elon Musk’s high-profile legal challenge against OpenAI, ruling that the billionaire waited too long to file his lawsuit. The decision, which focused on statutes of limitations rather than the substance of Musk’s complaints, provides a significant win for OpenAI and its leadership. By dismissing the claims, the court avoided what could have been an existential threat to the company, potentially preventing a forced return to a nonprofit structure that would have jeopardized its ongoing growth, massive investments from partners like Microsoft, and future IPO plans.

Following the verdict, OpenAI’s legal team characterized the lawsuit as a strategic attempt to undermine a competitor, while Musk was quick to express his dissatisfaction on X. He criticized both the outcome and the presiding judge, labeling the process unfair and pledging to appeal. While the trial delved into the internal drama and personality clashes between tech titans, industry experts suggest this ruling serves as a vital turning point, clearing away the uncertainty that has hung over OpenAI and allowing the company to move forward without the weight of this legal battle.

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