A U.S. federal jury in Oakland, California has ruled against Elon Musk in his lawsuit against OpenAI, finding the company not liable for allegedly straying from its original nonprofit mission.
The unanimous verdict concluded that Musk brought the case too late under the statute of limitations, ending a closely watched three-week trial that examined the future direction of artificial intelligence development and governance.
Jurors deliberated for less than two hours before reaching their decision.
The case was widely seen as a landmark legal battle over whether OpenAI deviated from its founding principles of developing AI “for the benefit of humanity.”
Following the ruling, OpenAI’s legal position was strengthened, potentially smoothing the path toward a possible initial public offering that analysts say could value the company at up to $1 trillion.
However, the trial also exposed reputational tensions around OpenAI’s leadership, including testimony from witnesses who criticised CEO Sam Altman, with some describing him as untruthful during proceedings.
Musk has said he will appeal the verdict, repeating allegations that OpenAI leadership improperly shifted the organisation toward profit-driven motives.
“Altman & Brockman did in fact enrich themselves by stealing a charity,” Musk wrote on X, referring also to OpenAI President Greg Brockman. “The only question is WHEN they did it!”
OpenAI rejected the claims, arguing that Musk waited too long to file his lawsuit and was aware of the company’s commercial direction years earlier.
Judge Yvonne Gonzalez Rogers noted that Musk may face significant challenges on appeal, stating that substantial evidence supported the jury’s finding.
The lawsuit alleged that OpenAI and its leadership misled Musk into contributing about $38 million before transitioning the organisation into a for-profit structure supported by major investors, including Microsoft.
Microsoft, which has invested heavily in OpenAI, was also named in an aiding-and-abetting claim, though it welcomed the verdict and said it aligned with the case timeline and evidence presented.
Legal representatives for Musk argued that OpenAI’s transformation from a nonprofit research lab into a commercially driven enterprise represented a breach of its original mission. OpenAI’s legal team countered that Musk’s claims were “hypocritical” and motivated by competitive interests, given his own AI venture, xAI.
The ruling removes a major legal uncertainty surrounding OpenAI as it continues to expand its commercial partnerships and investment base.
Industry analysts say the decision could accelerate OpenAI’s long-anticipated IPO plans while intensifying competition in the global AI sector.
The trial also highlighted broader concerns about artificial intelligence, including safety, governance, and its potential impact on employment and society.
