Elon Musk Loses Battle Against OpenAI

Elon Musk Loses Battle Against OpenAI

By Gayane Tadevosyan
·2 min read

Elon Musk has officially lost his lawsuit against Sam Altman and OpenAI after a federal jury rejected claims that the company abandoned its original nonprofit mission for personal profit.


After less than two hours of deliberations, the jury sided with Altman and OpenAI, ending one of the AI industry’s biggest legal battles between the former collaborators turned rivals.


U.S. District Judge Yvonne Gonzalez Rogers said there was “substantial evidence” supporting the verdict. Musk’s lawyer, Steven Molo, said the team may still appeal.


Musk originally filed the lawsuit in 2024, arguing that OpenAI violated its founding promise to develop artificial intelligence “for the benefit of humanity” after shifting toward a for-profit structure.


Musk co-founded OpenAI in 2015 before leaving the company’s board in 2018. In court, he claimed Altman and OpenAI President Greg Brockman abandoned the organization’s charitable mission to build a highly profitable AI business.


Microsoft was also named in the lawsuit because of its multibillion-dollar investment in OpenAI, with Musk arguing the company helped support OpenAI’s restructuring.


Musk’s legal team reportedly sought up to $134 billion in damages and attempted to reverse OpenAI’s 2025 restructuring that expanded its for-profit operations.


During testimony, Musk said he donated roughly $38 million to OpenAI believing the company would prioritize public benefit rather than private enrichment.


OpenAI’s lawyers argued the donations came without restrictions and said restructuring was necessary to compete with rivals like Google DeepMind. They also presented evidence showing Musk had previously discussed turning OpenAI into a for-profit company himself under certain conditions involving Tesla.


The trial included testimony from major tech figures including Altman, Brockman, and Satya Nadella.


The verdict comes as both Musk and Altman continue expanding their AI ambitions while preparing their companies for possible future public offerings.