Musk Loses OpenAI Lawsuit, Plans Appeal
OpenAI to potentially pursue a public offering that could value the company at around $1 trillion.
A U.S. jury has ruled in favor of Elon Musk’s lawsuit against OpenAI, deciding the AI company was not liable for allegedly abandoning its original mission of benefiting humanity. Jurors in a California federal court unanimously concluded Musk filed the case too late, reaching a verdict after less than two hours of deliberation.
The closely watched three-week trial was seen as a major test for the future of artificial intelligence, especially around its purpose, governance, and who should profit from it. The ruling also clears a smoother path for OpenAI to potentially pursue a public offering that could value the company at around $1 trillion.
Despite the legal win, OpenAI CEO Sam Altman faced reputational pressure during the trial, with several witnesses questioning his honesty. Musk announced plans to appeal, maintaining that Altman and OpenAI President Greg Brockman used the organization for personal enrichment.
“Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!”
“Creating a precedent to loot charities is incredibly destructive to charitable giving in America.”
Judge Yvonne Gonzalez Rogers indicated Musk could face difficulties on appeal, saying there was substantial evidence supporting the jury’s conclusion that the lawsuit was filed outside the legal time limit.
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Musk’s lawsuit claimed OpenAI misled him into contributing $38 million before shifting toward a for-profit structure backed by billions from Microsoft and other investors. OpenAI argued Musk had long known about its commercial ambitions and waited too long to sue.
OpenAI lawyer Bill Savitt described the case as:
“an after-the-fact contrivance that bears no relationship to reality,”
and called it:
“a hypocritical attempt to sabotage a competitor.”
The trial also highlighted growing public concerns over AI, including job displacement, misinformation, and deepfakes, while both sides accused the other of prioritizing profit over public benefit.
