A federal jury has ruled against Elon Musk in his lawsuit against OpenAI, CEO Sam Altman, and president Greg Brockman, dealing a major legal setback to the billionaire’s attempt to challenge the company’s transformation into a for-profit AI giant.
The unanimous verdict came after an 11-day trial in Oakland, California, where jurors concluded Musk waited too long to bring his claims against OpenAI. The jury found the case was barred by the statute of limitations rather than ruling directly on whether OpenAI violated its founding principles.
Musk originally sued OpenAI in 2024, accusing the company of abandoning its nonprofit mission to develop artificial intelligence for the benefit of humanity. He argued that OpenAI executives secretly shifted the organization toward profit-driven operations while accepting tens of billions of dollars from Microsoft and other investors.
During the trial, Musk claimed he contributed roughly $38 million to OpenAI under the belief the organization would remain nonprofit and prioritize AI safety over commercial interests. He repeatedly described the company’s restructuring as “stealing a charity.”
OpenAI rejected the accusations and argued Musk had long known about discussions involving for-profit structures before leaving the company’s board in 2018. Defense lawyers also claimed Musk’s legal campaign was motivated partly by rivalry with OpenAI after launching competing AI company xAI.
The courtroom battle became one of Silicon Valley’s most closely watched legal fights because of its potential impact on the future governance of artificial intelligence. Musk had sought up to $150 billion in damages, demanded Altman’s removal from OpenAI leadership, and attempted to block the company’s restructuring plans.
The case also exposed deep tensions between Musk and Altman, who co-founded OpenAI together in 2015 before their relationship deteriorated publicly over the years. Throughout the trial, both sides attacked each other’s credibility and motives.
Musk’s lawyer, Steven Molo, argued jurors should distrust Altman’s testimony, pointing to witnesses who allegedly questioned the OpenAI CEO’s honesty. OpenAI’s legal team countered that Musk himself had previously supported profit-oriented expansion plans and only later objected after losing influence within the company.
Judge Yvonne Gonzalez Rogers accepted the jury’s advisory verdict and suggested Musk may face difficulty overturning the outcome on appeal because the jury’s finding centered on factual timing issues. Musk’s legal team nevertheless said it plans to appeal the ruling.
The decision represents a major victory for OpenAI as the company continues expanding aggressively in the global AI race. Analysts say the ruling removes a significant legal threat hanging over OpenAI’s future business plans, including a possible IPO that could value the company near $1 trillion.