The unanimous verdict, delivered Monday in a federal courtroom in Oakland, California, found that Musk’s lawsuit was filed too late under the applicable statute of limitations, effectively ending the case without the jury needing to determine whether OpenAI actually violated its founding principles.
Jurors reportedly deliberated for less than two hours before reaching the decision.
The case had drawn widespread attention across the global technology industry because of what was at stake: the future direction of artificial intelligence, the ethics of profit-driven AI development and who ultimately stands to benefit from one of the world’s fastest-growing technologies.
Following the ruling, Musk’s legal team signaled it may challenge the outcome.
However, U.S. District Judge Yvonne Gonzalez Rogers suggested any appeal could face serious hurdles, noting that the jury’s findings were strongly supported by evidence presented during the trial.
“There's a substantial amount of evidence to support the jury's finding, which is why I was prepared to dismiss on the spot,” the judge said after the verdict.
Musk Claimed OpenAI Betrayed Its Original Mission
In the lawsuit filed in 2024, Musk accused OpenAI and its executives — including Chief Executive Officer Sam Altman and President Greg Brockman — of misleading him into financially supporting the organization during its early nonprofit years before transforming it into a profit-focused enterprise backed by major investors.
Musk alleged that he contributed approximately $38 million to OpenAI under the belief that the company would remain a nonprofit research organization committed to building safe AI systems for public benefit.
According to the lawsuit, OpenAI later shifted direction by creating a for-profit arm and accepting billions of dollars in investments from companies including Microsoft.
Musk described the alleged actions as “stealing a charity.”
OpenAI was originally founded in 2015 by Altman, Musk and several other technology leaders with the stated mission of ensuring artificial intelligence benefits humanity broadly. Musk stepped away from the company’s board in 2018, while OpenAI established its for-profit structure the following year.
OpenAI Fires Back at Musk’s Motives
Throughout the trial, OpenAI’s legal team argued that Musk’s claims were not only untimely but also motivated by business competition rather than public interest concerns.
OpenAI lawyers contended that Musk became dissatisfied after the company’s rapid commercial success and sought to challenge a structure he had long known about.
“Mr. Musk may have the Midas touch in some areas, but not in AI,” OpenAI attorney William Savitt said during closing arguments.
The trial, which lasted 11 days, featured repeated attacks on the credibility of both Musk and Altman, with lawyers on each side accusing the other camp of prioritizing profits over ethical responsibility.
Musk’s attorney, Steven Molo, urged jurors to question Altman’s honesty, arguing that witness testimony had raised concerns about the OpenAI chief executive’s credibility.
“Sam Altman’s credibility is directly at issue,” Molo told jurors.
“If you don't believe him, they cannot win.”
Despite those arguments, the jury ultimately sided with OpenAI.
Following the decision, lawyers representing the company reportedly embraced in court as the verdict was read aloud.
Microsoft Also Cleared
The lawsuit had also targeted Microsoft, accusing the tech giant of aiding OpenAI’s alleged deviation from its nonprofit mission through its multibillion-dollar investment partnership.
Reacting to the verdict, a Microsoft spokesperson welcomed the jury’s decision.
“The facts and the timeline in this case have long been clear and we welcome the jury’s decision to dismiss these claims as untimely,” the company said in a statement.
Court testimony revealed that Microsoft has invested more than $100 billion into its partnership with OpenAI, underscoring the enormous financial stakes involved in the rapidly expanding AI industry.
Growing AI Race Raises Global Concerns
The legal battle unfolded against the backdrop of intensifying global competition in artificial intelligence, where companies are racing to dominate technologies increasingly used in education, journalism, healthcare, legal research, finance and content generation.
At the same time, concerns continue to grow over AI-related misinformation, deepfakes, job displacement and the broader societal impact of increasingly powerful machine learning systems.
OpenAI currently competes with major AI firms including Anthropic and Musk’s own AI venture, xAI.
OpenAI is reportedly preparing for a potential initial public offering that could value the company at nearly $1 trillion, reflecting investor confidence in the future of generative AI technologies.
Meanwhile, Musk’s xAI has been integrated into SpaceX and is also expected to pursue a major IPO that analysts believe could rival or even surpass OpenAI’s future market valuation.
The verdict marks another dramatic chapter in the growing rivalry between Musk and OpenAI — a conflict that increasingly reflects broader tensions between idealism, corporate power and the race to control the future of artificial intelligence.