OAKLAND, California, May 18, 2026, 11:05 (PDT)
- Elon Musk lost his lawsuit over OpenAI’s change from a nonprofit after a U.S. jury ruled unanimously against him.
- A ruling cuts down the legal risk to OpenAI’s structure just as the company gets ready for a potential public listing.
- Musk’s team could appeal, but the judge said there was “substantial” evidence supporting the jury’s verdict. Al Jazeera
Jury rejects Musk lawsuit against OpenAI, says case too late
A U.S. jury on Monday ruled against Elon Musk in his lawsuit accusing OpenAI of straying from its mission to benefit humanity. The panel found OpenAI not liable and said Musk’s case was filed too late.
The verdict is important now since it lifts a big legal risk for OpenAI, CEO Sam Altman and president Greg Brockman as the ChatGPT developer targets more commercial business. OpenAI is getting ready for a potential IPO, with a reported valuation around $1 trillion, according to Reuters.
AI firms are chasing cash, users and chips. OpenAI is up against Anthropic and Elon Musk’s xAI. Microsoft has a tight partnership with OpenAI, which a Microsoft executive valued at over $100 billion, according to court testimony.
A federal jury in Oakland sided unanimously after fewer than two hours of deliberations, serving in an advisory capacity. U.S. District Judge Yvonne Gonzalez Rogers then adopted the verdict and tossed Musk’s claims, according to the Associated Press.
Statute of limitations issues were at the heart of it. The Verge said two claims from Musk were too late, and a third didn’t move forward after a related claim got tossed.
Elon Musk accused Sam Altman, Greg Brockman, OpenAI and Microsoft of shifting a nonprofit lab to a profit-focused operation after he invested tens of millions in the company. Reuters reported Musk is seeking around $150 billion in damages for OpenAI’s nonprofit, and wants Altman and Brockman out.
OpenAI pushed back on that claim. Altman told the court last week that Musk was on board with making OpenAI for-profit and later tried to take control. According to Altman, Musk at one point wanted a 90% stake in OpenAI. He said Musk’s “steal a charity” comments were difficult to hear. “I hope as OpenAI continues to do well, the nonprofit will do even better,” Altman said. Reuters
The trial saw both sides trade shots over credibility. Musk’s lawyer Steven Molo told the jury, “Sam Altman’s credibility is directly at issue.” OpenAI’s lawyer William Savitt hit back, saying, “Mr. Musk may have the Midas touch in some areas, but not in AI.” Reuters
Ex-OpenAI tech chief Mira Murati told the court Altman had sown distrust at the top, saying she worried about “Sam saying one thing to one person and completely the opposite to another person.” She said OpenAI was at “catastrophic risk of falling apart” in the 2023 leadership shake-up. Reuters
OpenAI still faces some risk, as the dispute with Musk could continue. Musk’s lawyer said he might appeal, but Rogers said an appeal would be tough because the timing was based on facts, and there was a “substantial amount of evidence” for the jury’s finding. Al Jazeera
OpenAI’s leaders stay where they are, and the company’s strategy doesn’t change for now. The bigger question—should the strongest AI platforms operate as public utilities or as fast-growing tech firms—remains unsolved. That fight stays mostly out of court for now.
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