Elon Musk loses OpenAI case after jury finds lawsuit over nonprofit AI mission filed too late

A federal jury in California on Monday (May 18) ruled against billionaire entrepreneur Elon Musk in his lawsuit against OpenAI, finding the artificial intelligence company not liable for allegedly abandoning its original mission to benefit humanity.

The unanimous verdict was reached in federal court in Oakland, California, after jurors deliberated for less than two hours.

Musk accused OpenAI and its leadership of transforming the organization from a nonprofit focused on safe artificial intelligence to a for-profit company backed by major investors, including Microsoft.

Court says Musk waited too long to sue

The jury concluded that Musk filed the lawsuit too late within the applicable statutory time limits.

After the sentencing, U.S. District Judge Yvonne Gonzalez Rogers indicated that overturning the verdict on appeal may be difficult.

“There is a substantial amount of evidence to support the jury’s finding and I was therefore prepared to dismiss on the spot,” the judge told the court.

Musk’s attorney Steven Molo said the billionaire reserves the right to appeal the decision.

What Musk Claimed Against OpenAI

In a lawsuit filed in 2024, Musk accused OpenAI CEO Sam Altman and company president Greg Brockman of tricking him into donating roughly $38 million to support OpenAI’s nonprofit mission.

Musk argued that OpenAI later moved toward a commercial business structure without honoring its original commitments.

He described the company’s actions as follows:

“Theft of charity.”

The lawsuit also alleged that OpenAI improperly prioritized profits and investor interests over AI safety and the public good.

OpenAI has hindered the business shift

OpenAI rejected Musk’s claims during the 11-day test, arguing that the company evolved in response to the huge costs associated with developing advanced artificial intelligence systems.

OpenAI’s lawyers argued that Musk himself was financially motivated and delayed filing the lawsuit for years after he left OpenAI’s board in 2018.

“Mr. Musk may have the Midas touch in some areas, but not in AI,” OpenAI attorney William Savitt told jurors during closing arguments.

OpenAI’s legal team also argued that the company needs outside investment to remain competitive in the fast-growing artificial intelligence industry.

Sam Altman’s credibility becomes a central theme

The trial often focused on the credibility of both Musk and Altman.

Musk’s attorney repeatedly questioned Altman’s honesty during closing arguments.

“Sam Altman’s credibility is directly in question,” attorney Steven Molo told jurors.

“If you don’t believe in him, they can’t win,” he added.

Witnesses during the trial reportedly questioned Altman’s sincerity, while Musk himself acknowledged during testimony that he was not “completely trustworthy” under all circumstances.

The rise of OpenAI and Microsoft’s partnership explored

OpenAI was founded in 2015 by Altman, Musk and several others as a non-profit research organization focused on developing safe artificial intelligence.

Musk left the company’s board in 2018.

A year later, OpenAI created a profitable subsidiary that later secured massive investment from Microsoft and other backers.

During the trial, testimony revealed that Microsoft has invested more than $100 billion in its partnership with OpenAI.

The company is reportedly preparing for a future public offering that could value OpenAI at nearly $1 trillion.

Rivalry in the field of AI is intensifying

The case highlighted growing tensions in the artificial intelligence industry as companies compete to dominate the rapidly evolving AI technology.

OpenAI currently competes with firms including Anthropic and xAI, Musk’s own artificial intelligence company.

Musk’s xAI is now part of SpaceX, which is reportedly preparing for an IPO that could rival or surpass OpenAI’s future market value.

The lawsuit also revived broader public concerns about artificial intelligence, including concerns about job displacement, misinformation, deepfakes, and AI safety.

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