Elon Musk Loses High-Stakes Lawsuit Against OpenAI

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A US jury has ruled against billionaire entrepreneur Elon Musk in his lawsuit against OpenAI, finding the artificial intelligence firm not liable for allegedly abandoning its original mission to benefit humanity.

The unanimous verdict was delivered on Monday in a federal court in Oakland, California, where jurors concluded that Musk had filed the lawsuit too late under the applicable statute of limitations. The jury reportedly deliberated for less than two hours.

The closely watched case was widely viewed as a major legal battle that could shape the future direction of artificial intelligence development, including questions surrounding ethics, profit-making and public benefit.

The ruling also clears a significant obstacle for OpenAI as the company reportedly moves closer to a potential initial public offering (IPO) that could value the business at nearly US$1 trillion.

Despite the victory, OpenAI chief executive Sam Altman faced scrutiny during the trial after several witnesses allegedly questioned his honesty, with some describing him as a liar during testimony.

Following the verdict, Musk’s legal team said the tech billionaire reserves the right to appeal the decision.

“This one is not over,” Musk lawyer Marc Toberoff told reporters outside court, insisting there were still major legal issues that could be challenged on appeal.

US District Judge Yvonne Gonzalez Rogers, who oversaw the trial, indicated Musk could face difficulties overturning the ruling because the jury’s decision was based heavily on factual findings regarding timing.

Musk filed the lawsuit in 2024, accusing OpenAI, Altman and company president Greg Brockman of misleading him into contributing US$38 million to the organisation before allegedly transforming it from a nonprofit into a profit-driven business backed by major investors including Microsoft.

He claimed the company had betrayed its original purpose of developing safe artificial intelligence for the benefit of humanity and instead prioritised profits and investor enrichment.

OpenAI, however, argued that Musk himself had commercial ambitions and waited too long to pursue legal action despite already knowing about the company’s growth strategy years earlier.

Lawyers for OpenAI described Musk’s claims as an attempt to undermine a business rival, particularly after Musk later launched his own AI company, xAI, which is now linked to SpaceX.

The trial lasted 11 days and featured heated exchanges over the credibility of both Musk and Altman, with each side accusing the other of prioritising money over public interest.

Meanwhile, Microsoft, which reportedly invested more than US$100 billion into its partnership with OpenAI, also welcomed the jury’s decision after facing claims tied to the lawsuit.

The case has intensified global debate surrounding the future of artificial intelligence, corporate influence and the balance between technological advancement and public accountability.

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