OAKLAND, California — A U.S. jury has ruled in favor of OpenAI in Elon Musk’s lawsuit against the artificial intelligence company, finding it not liable for allegedly abandoning its original mission to develop AI for the public good, in a decision that removes a major legal obstacle to a potential initial public offering.
The unanimous verdict delivered Monday in federal court in Oakland found that Musk filed his claims too late, bringing a swift conclusion after less than two hours of jury deliberation following a three-week trial.
The case centered on Musk’s allegation that OpenAI, along with Chief Executive Sam Altman and President Greg Brockman, deviated from the organization’s founding nonprofit principles by shifting toward a for-profit model and forming deep financial ties with Microsoft and other investors.
OpenAI was founded in 2015 by Altman, Musk and others as a nonprofit research organization focused on safe artificial intelligence. Musk left the board in 2018, and OpenAI established a for-profit arm the following year as it expanded operations and funding.
The verdict strengthens OpenAI’s position as it considers a possible initial public offering that analysts have valued at up to $1 trillion, removing what had been seen as a significant legal overhang.
However, the trial also exposed reputational scrutiny of OpenAI leadership. Witness testimony included sharply conflicting accounts of Altman’s credibility, with some witnesses describing concerns about his honesty during internal disputes over the company’s direction.
Musk said he would appeal the decision, accusing OpenAI leadership of misleading him and improperly converting a nonprofit mission into a profit-driven enterprise.
“Altman & Brockman did in fact enrich themselves by stealing a charity,” Musk wrote on his social media platform X, repeating claims that the company abandoned its founding principles. OpenAI has denied the allegations.
Musk’s legal team argued that he was induced to contribute millions in funding before OpenAI shifted its structure, while OpenAI countered that Musk was aware of the company’s direction years before filing suit and missed the legal deadline to bring claims.
U.S. District Judge Yvonne Gonzalez Rogers said after the verdict that an appeal would likely face difficulty, noting that the jury’s finding rested on factual questions related to timing and evidence presented during the trial.
OpenAI’s legal counsel described the lawsuit as untimely and unfounded, calling it an attempt to damage a competitor. Microsoft, which has invested heavily in OpenAI and is closely tied to its development efforts, said it welcomed the verdict and that the claims had long been without merit.
Industry analysts said the ruling removes a major uncertainty for OpenAI as it continues to scale commercial operations in a competitive artificial intelligence market that includes Musk’s own startup, xAI.
The case also highlighted broader tensions in the tech industry over the governance of artificial intelligence, including concerns about safety, commercialization and control of rapidly advancing systems.
Following the verdict, legal representatives for Musk signaled continued litigation, while OpenAI maintained that the ruling affirmed its legal and structural position as it moves forward with expansion plans.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
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