The unanimous verdict was delivered in a federal court in Oakland, California, where jurors concluded that Musk had filed the case too late under the applicable statute of limitations. The jury reportedly deliberated for less than two hours before reaching its decision.
Following the ruling, Musk’s legal team said it reserved the right to appeal. However, US District Judge Yvonne Gonzalez Rogers indicated that overturning the verdict could prove difficult because the timing issue was based on factual findings supported by evidence presented during the trial.
“There’s a substantial amount of evidence to support the jury’s finding,” the judge said in court.
Musk filed the lawsuit in 2024, accusing OpenAI, Chief Executive Sam Altman and President Greg Brockman of betraying the organisation’s founding principles.
He alleged that he had been persuaded to contribute $38 million to OpenAI under the belief it would remain a nonprofit focused on developing safe artificial intelligence for humanity’s benefit. Musk argued that OpenAI later shifted toward profit-driven operations by creating a for-profit arm and securing tens of billions of dollars in investment from Microsoft and other backers.
Musk described the company’s actions as “stealing a charity.”
OpenAI was founded in 2015 by Altman, Musk and several others. Musk left the company’s board in 2018, while OpenAI established its for-profit subsidiary the following year.
During the trial, OpenAI argued that Musk himself had commercial ambitions in the AI sector and had waited too long to bring legal action.
“Mr. Musk may have the Midas touch in some areas, but not in AI,” OpenAI lawyer William Savitt said during closing arguments.
The case featured 11 days of testimony and arguments, with both sides repeatedly challenging each other’s credibility.
Musk’s lawyer Steven Molo focused heavily on Altman’s trustworthiness, telling jurors that several witnesses had questioned the OpenAI chief’s honesty during testimony.
“Sam Altman’s credibility is directly at issue,” Molo argued. “If you don’t believe him, they cannot win.”
The lawsuit also included claims against Microsoft for allegedly aiding OpenAI’s transformation into a profit-focused enterprise. After the verdict, a Microsoft spokesperson welcomed the decision, saying the facts and timeline had always been clear.
The case highlighted growing tensions within the rapidly expanding artificial intelligence industry, where companies are competing aggressively in areas ranging from education and healthcare to finance and software development.
OpenAI currently competes with major AI firms including Anthropic and xAI.
Reports indicate that OpenAI is preparing for a potential initial public offering that could value the company at around $1 trillion.
Meanwhile, Musk’s AI venture xAI is now integrated into SpaceX, which is also preparing for a major IPO that could potentially surpass OpenAI’s valuation.
