Court Rules Against Elon Musk in OpenAI Lawsuit

A court ruled against Elon Musk in his lawsuit against OpenAI and its co-founder Sam Altman on Monday. The ruling found that Musk waited too long to file the case. Musk has described the decision as creating a free license to loot charities if the activity stays hidden for several years.

Musk agreed to settle claims from former Twitter executives and thousands of former employees last year. In March, a court ruled against him in a case brought by Twitter investors who said they were misled during the takeover. That same month, a judge dismissed his lawsuit against advertisers who left the platform.

In May, a judge reversed certain actions by the government cost-cutting department Musk helped lead, citing unconstitutional viewpoint discrimination.

Musk criticized the judge in the OpenAI case as a terrible activist and said he plans to appeal. He also posted on X about the ruling. Shubha Ghosh, a lawyer and law professor at Syracuse University, said Musk is asserting his rights like other businesspeople.

Dorothy Lund, a lawyer and law professor at Columbia Law School, said Musk has the resources to continue legal actions. 5 million for failing to disclose his initial Twitter stock purchases did not prevent Musk from pursuing other matters. When a judge invalidated his Tesla pay package in December 2024, Musk reincorporated the company in Texas and obtained shareholder approval for a new package.