Elon Musk loses lawsuit against OpenAI

A U.S. federal jury has ruled against billionaire entrepreneur Elon Musk in his high-profile lawsuit against OpenAI, concluding that the artificial intelligence company was not legally liable for allegedly abandoning its original mission of developing AI for the benefit of humanity.

The unanimous verdict was delivered Monday in a federal court in Oakland, California, after nearly two weeks of testimony, legal arguments and intense scrutiny of the relationship between Musk, OpenAI and its leadership.

Jurors determined that Musk had filed the lawsuit too late, effectively rejecting his claims that OpenAI breached its founding principles by prioritizing commercial interests and investor profits over public benefit and AI safety.

The closely watched trial, which began on April 28, has been regarded as a landmark case for the future of artificial intelligence, raising broader questions about how AI technology should be governed, commercialized and regulated globally.

The legal battle also spotlighted growing tensions within the rapidly expanding AI industry, where concerns continue to mount over transparency, safety, ethics and corporate control of advanced AI systems.

Artificial intelligence is increasingly being used across multiple sectors, including healthcare, education, finance, journalism, legal services and facial recognition technologies. However, the technology has also triggered widespread debate over job displacement, misinformation, privacy concerns and the rise of AI-generated deepfakes.

During the 11-day trial, lawyers for both sides repeatedly attacked the credibility and motives of key figures involved in the dispute, particularly OpenAI CEO Sam Altman and Elon Musk himself.

Musk’s legal team argued that OpenAI had shifted away from its original nonprofit mission and was instead focused on enriching investors and insiders through aggressive commercialization strategies.

In his closing argument, Musk’s lawyer Steven Molo questioned Sam Altman’s credibility, reminding jurors that several witnesses had described the OpenAI CEO as lacking candour.

“Sam Altman’s credibility is directly at issue,” Molo argued before the jury. “If you don’t believe him, they cannot win.”

Musk also accused OpenAI and its major partner Microsoft of knowingly prioritizing profits over the safe and ethical development of artificial intelligence.

According to Musk, OpenAI failed to uphold its founding commitment to develop AI technology that would benefit humanity rather than serve corporate financial interests.

OpenAI’s legal team strongly rejected those allegations, arguing that Musk himself was motivated by business competition and financial interests rather than concerns about AI ethics.

The company maintained that Musk delayed too long before bringing legal action and insisted there was no breach of any founding agreement.

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

The case also highlighted the enormous financial stakes currently driving the global AI race.

OpenAI, widely recognized for developing advanced AI systems such as ChatGPT, is competing with major artificial intelligence firms including Anthropic and Musk’s own AI company, xAI.

Reports presented during the trial indicated that OpenAI is preparing for a possible future public offering that could value the company at nearly $1 trillion.

Microsoft, OpenAI’s largest strategic partner, has reportedly invested more than $100 billion into its collaboration with the AI company, according to testimony from a Microsoft executive during the proceedings.

Meanwhile, Musk’s AI startup xAI has been integrated into his broader technology ecosystem alongside SpaceX, his aerospace company, which is also reportedly preparing for a future public offering that could rival OpenAI in scale.

Industry analysts say the verdict could have major implications for the governance of artificial intelligence companies and future legal disputes involving AI ethics, corporate structures and investor influence.

The outcome also underscores the growing commercialization of artificial intelligence as global technology firms race to dominate one of the world’s fastest-growing industries.