A federal jury in Oakland, California, delivered a unanimous verdict on Monday, rejecting Elon Musk's lawsuit against OpenAI and its leadership. The panel found that Musk's claims, which accused the company of abandoning its original nonprofit mission, were filed too late. The judge subsequently adopted the jury's advisory verdict and dismissed the case.
The ruling removes a significant legal obstacle for OpenAI as it prepares for a potential initial public offering (IPO). The ChatGPT developer is reportedly targeting a valuation around $1 trillion, according to Reuters. The verdict also provides a major win for CEO Sam Altman and president Greg Brockman, who were personally named in the suit.
Musk, who co-founded OpenAI in 2015, alleged that the company's shift from a nonprofit to a for-profit model breached its founding principles. He sought approximately $150 billion in damages and demanded the removal of Altman and Brockman. However, the jury disagreed, finding no liability on the part of OpenAI, Altman, or Brockman.
During the trial, Altman testified that Musk was initially supportive of the for-profit transition and even attempted to take control of the company. Altman claimed Musk once sought a 90% stake in OpenAI. “I hope as OpenAI continues to do well, the nonprofit will do even better,” Altman said in court, according to Reuters.
The verdict comes as the AI industry faces intense competition for funding, talent, and computing resources. OpenAI competes directly with Anthropic and Musk's own AI venture, xAI. Microsoft, which has a tight partnership with OpenAI, had a Microsoft executive value the collaboration at over $100 billion, according to court testimony.
Musk's legal team indicated they may appeal the decision. However, U.S. District Judge Yvonne Gonzalez Rogers noted that an appeal would be challenging due to the factual basis for the statute of limitations ruling. She stated there was a “substantial amount of evidence” supporting the jury's finding.
The trial also featured testimony from former OpenAI chief technology officer Mira Murati, who described internal tensions during the 2023 leadership shake-up. She said she worried about Altman “saying one thing to one person and completely the opposite to another person,” and that the company was at “catastrophic risk of falling apart.”
Despite the verdict, the broader debate over whether powerful AI platforms should operate as public utilities or fast-growing tech firms remains unresolved. For now, OpenAI's leadership remains intact, and its strategic direction is unchanged. The legal battle, however, may not be over, as Musk's side has signaled a potential appeal.
