Musk Loses OpenAI Trial
A federal jury ruled against Elon Musk in his lawsuit targeting OpenAI CEO Sam Altman and the company, CNBC reported Monday. The jury delivered its decision after less than two hours of deliberations, ending a three-week trial that put Silicon Valley’s most bitter rivalry on full public display.
What the OpenAI Trial Verdict Means
U.S. District Judge Yvonne Gonzalez Rogers accepted the advisory jury’s finding that Altman and OpenAI bore no liability. Musk’s lead attorney, Steven Molo, immediately reserved his client’s right to appeal. Gonzalez Rogers signaled she was ready to dismiss any appeal quickly. She noted substantial evidence supported the jury’s conclusion.
Musk had sought a sweeping remedy. His legal team pushed for up to $134 billion in disgorgement from OpenAI and co-defendant Microsoft. They also wanted OpenAI President Greg Brockman and Altman removed from leadership. And they sought to reverse OpenAI’s 2025 restructuring, which expanded its for-profit operations significantly.
Background: A Founding Dispute Years in the Making
Musk co-founded OpenAI in 2015 alongside Altman and others. He departed the board three years later. When he filed suit in 2024, he alleged OpenAI executives had abandoned their founding charitable mission to benefit themselves personally. Musk testified he donated roughly $38 million to the organization on the understanding it would develop artificial intelligence for broad public benefit, not private enrichment.
OpenAI’s defense pushed back hard. Lawyers argued Musk’s contributions carried no legal restrictions on how the company could evolve. They also contended that restructuring was the only realistic path to competing against well-funded rivals like Google DeepMind. Crucially, they presented evidence that Musk himself had floated for-profit structures for OpenAI, at one point suggesting the company merge into Tesla.
The jury heard testimony from Altman, Brockman, Microsoft CEO Satya Nadella, and Musk himself over the course of the trial.
What Comes Next for Both Billionaires
The verdict arrives at a charged moment for both men. OpenAI raised $122 billion at an $850 billion-plus valuation in late March and is racing to extend its lead in consumer AI while competing with Anthropic in enterprise markets. Musk, meanwhile, is expected to begin investor meetings ahead of a SpaceX IPO imminently. SpaceX filed its prospectus confidentially in April and could make it public this week. The company was valued at $1.25 trillion after merging with Musk’s xAI lab in February.
Read Next: SpaceX Merger With xAI Valued Combined Entity at $1.25 Trillion
