A US federal jury in Oakland, California, has ruled against Elon Musk in his high-profile lawsuit against OpenAI. The unanimous verdict found the artificial intelligence organization not liable for allegations that it strayed from its founding mission to develop safe AI for the benefit of humanity. The jury deliberated for less than two hours before concluding that Musk had brought his legal challenge too late, falling outside the allowed statute of limitations.
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The 11-day trial was widely viewed as a defining moment for the future of the AI industry, spotlighting debates over commercialization, ethics, and governance. Musk’s legal team reserved the right to appeal the decision, but US District Judge Yvonne Gonzalez Rogers suggested an appeal would face an uphill battle. “There’s a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” Judge Rogers noted following the verdict.
Musk originally filed the lawsuit in 2024, accusing OpenAI CEO Sam Altman and President Greg Brockman of manipulating him into contributing $38 million during the company’s formative years. He alleged that the executives breached their founding agreement by quietly attaching a lucrative, for-profit arm to the original non-profit structure, subsequently accepting over $100 billion in investments from Microsoft. Musk’s counsel characterized the shift as “stealing a charity,” arguing that OpenAI shifted its priorities away from public safety toward enriching insiders and corporate backers.
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OpenAI countered that Musk’s claims were driven by commercial jealousy rather than altruism, arguing that he delayed legal action until OpenAI achieved massive market success. “Mr. Musk may have the Midas touch in some areas, but not in AI,” William Savitt, a lawyer representing OpenAI, stated during closing arguments. Throughout the trial, the credibility of both billionaires faced intense scrutiny, with Musk’s team highlighting inconsistencies in Altman’s testimony, and OpenAI’s defence painting Musk as a disgruntled former partner trying to hinder a rival.
Co-founded by Altman, Musk, and others in 2015, OpenAI established its commercial arm a year after Musk left its board in 2018. Today, OpenAI directly competes with other industry heavyweights, including Anthropic and Musk’s own xAI. The legal victory clears a major hurdle for OpenAI as it prepares for a potential initial public offering that could value the company at $1 trillion. Meanwhile, Musk’s xAI was recently absorbed into his aerospace firm, SpaceX, which is concurrently fast-tracking its own massive public debut.
