Jury Rejects Musk’s OpenAI Suit, Exposing 2017 Tesla Use of Charity-Funded Researchers
Updated
Updated · TechCrunch · May 19
Jury Rejects Musk’s OpenAI Suit, Exposing 2017 Tesla Use of Charity-Funded Researchers
50 articles · Updated · TechCrunch · May 19
A federal jury swiftly rejected Elon Musk’s claims against OpenAI founders and Microsoft, with the case undercut by the statute of limitations and evidence he knew of the disputed conduct years earlier.
2017 testimony from Greg Brockman showed Musk asked OpenAI researchers to spend weeks helping Tesla’s struggling Autopilot team, and a person familiar with the episode said Tesla did not reimburse OpenAI.
That account weakened Musk’s charitable-trust theory by showing his own tax-deducted donations funded nonprofit staff who then worked for his for-profit car company, an arrangement one Columbia law professor said would not be legal.
Jurors also heard Musk pushed in 2017 for sole control of a potential OpenAI for-profit affiliate—offering free Teslas and threatening to withhold donations—complicating his argument that OpenAI’s later structure betrayed its mission.
Musk has already vowed to appeal, but the verdict reinforced OpenAI’s position that his challenge arrived too late after years of decisions made around its nonprofit and commercial structure.
With Musk's lawsuit dismissed, is OpenAI's path to its planned $850 billion IPO now completely clear?
Are US courts too slow to effectively rule on the complex legal and ethical issues of generative AI?
As the Pentagon partners with xAI, how can it manage risks from AI reflecting a founder's politics?
Elon Musk v. OpenAI: The $134 Billion Lawsuit That Could Reshape AI Ethics and Tech Industry Governance
Overview
As of May 18, 2026, a nine-member jury in Oakland is deliberating Elon Musk's lawsuit against OpenAI, following recent closing arguments. The jury’s decision is expected to begin on May 19, but a major issue is whether Musk waited too long to file his claims. OpenAI’s attorneys argue that Musk cannot credibly claim OpenAI breached its founding agreement or that he was essential to its success, given when he left. Even if the jury sides with Musk, the case could be dismissed on procedural grounds like the statute of limitations, highlighting how legal technicalities may outweigh the case’s substance.