Musk filed the lawsuit in February 2024 in a California court in the United States, accusing the founders of OpenAI a company he helped establish — of misusing the organization’s assets after he contributed $38 million in funding.
He wanted the court to order the return of more than $130 billion to OpenAI’s non-profit division.
However, Elon Musk lost the case. After 90 minutes of deliberation, the panel of judges dismissed his complaint.
The court ruled that Musk had waited too long to file the lawsuit, meaning the legal deadline for bringing the case had already expired.
Following the ruling, Musk reacted angrily on X, saying the judge had effectively given people permission to loot non-profit organizations as long as they could keep it secret for a certain period of time.
Based on that decision, his lawyer, Marc Toberoff, announced that they plan to appeal the ruling.
Toberoff described the case as a “travesty” and an injustice, adding that they will take their appeal to a higher court.
They argue that OpenAI should not simply be allowed to shift from a non-profit organization to a profit-driven company after receiving charitable funding and donations.
