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Musk loses OpenAI suit as jury cites expired claim

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A three‑week trial in Oakland ended Monday with a jury finding that billionaire Elon Musk filed his lawsuit against OpenAI after the statute of limitations had expired. Musk, who co‑founded the AI lab in 2015, sued the company and later added Microsoft, seeking more than $150 billion in damages and the removal of CEO Sam Altman, in a case that could reshape AI governance.

OpenAI transformed from a nonprofit into a for‑profit venture in 2018, attracting investment from Microsoft and now carries an estimated $730 billion market value. The shift sparked a power struggle that prompted Musk’s departure and his claim that the firm abandoned its humanitarian mission for profit. Testimony from Satya Nadella, Greg Brockman and Shivon Zilis illustrated the deep ties between the companies, and set a precedent.

Judge dismissed the core claim but left open antitrust allegations involving Microsoft board members and OpenAI’s fundraising practices. Those issues could trigger a second phase, though the court has expressed doubt given the competitive AI field. Musk’s lawyers announced an appeal, signaling that the legal battle may continue to shape investor sentiment toward AI conglomerates for regulators and shareholders alike.