A US jury has ruled against Elon Musk in his lawsuit against OpenAI, dealing a major legal setback to the billionaire’s attempt to challenge the company’s direction and business structure.
The unanimous verdict came on Monday after an 11-day trial in federal court in Oakland, California.
Jurors concluded that Musk filed the case too late and found OpenAI not liable for allegedly abandoning its original mission to develop artificial intelligence for the benefit of humanity.
The closely watched case attracted global attention because it focused on the future of artificial intelligence, corporate control and the growing commercial race surrounding AI technology.
Musk accused OpenAI and its leadership of prioritising investor profits over public benefit and AI safety.
He also claimed that Microsoft knew OpenAI had shifted away from its founding principles long before the dispute became public.
Courtroom Battle Focused on Musk and Altman
The trial turned into a direct credibility battle between Musk and OpenAI chief executive Sam Altman.
Lawyers for both sides repeatedly questioned each other’s honesty and motivations during testimony and closing arguments.
In his closing statement, Musk’s lawyer Steven Molo argued that Altman’s credibility stood at the centre of the case.
“Sam Altman’s credibility is directly at issue,” Molo told jurors. “If you don’t believe him, they cannot win.”
OpenAI’s legal team countered that Musk himself had commercial motives and delayed legal action for too long.
“Mr. Musk may have the Midas touch in some areas, but not in AI,” OpenAI lawyer William Savitt said during closing arguments.
The lawsuit highlighted deep divisions within the artificial intelligence industry over regulation, safety and profit-making.
Musk co-founded OpenAI in 2015 before later distancing himself from the organisation. He has repeatedly criticised the company’s partnership with Microsoft and its move toward commercial AI development.
OpenAI argued that it continues pursuing safe AI development while also competing in a rapidly expanding technology market.
AI Industry Faces Growing Competition
The case also underscored the enormous financial stakes driving the global AI race.
OpenAI currently competes with firms including Anthropic and Musk’s own AI company, xAI.
During the trial, a Microsoft executive testified that the company had invested more than $100 billion in its partnership with OpenAI.
OpenAI is also reportedly preparing for a future public offering that could value the company at around $1 trillion.
Meanwhile, Musk’s xAI has become part of SpaceX, which is preparing for an initial public offering that analysts believe could surpass OpenAI’s valuation.
The courtroom battle unfolded as governments, businesses and consumers increasingly rely on AI tools for education, healthcare, finance, legal work and content creation.
At the same time, critics continue warning about job displacement, misinformation, surveillance and the risks posed by powerful AI systems.
The verdict marks a major moment in the intensifying struggle over who controls the future of artificial intelligence and how the technology should serve society.
