Elon Musk loses court battle against Sam Altman and OpenAI after 3-week trial

In a significant legal decision, a jury has sided with Sam Altman, CEO of OpenAI, dismissing Elon Musk's allegations after just a brief deliberation of under two hours. This marks the conclusion of a dramatic three-week trial that highlighted the contentious relationship between the two tech moguls, who were once allies. Presiding over the case, U.S. District Judge Yvonne Gonzalez Rogers confirmed the advisory jury's ruling that neither Altman nor OpenAI bore any liability. The court deemed Musk's claims—centered around alleged breaches of charitable trust and unjust enrichment—as untimely and ultimately without merit. Musk's legal team, led by attorney Steven Molo, indicated intentions to appeal the ruling, but Judge Gonzalez Rogers warned that she was prepared to dismiss such an appeal immediately, citing strong evidence supporting the jury's conclusions. The lawsuit, initiated by Musk in 2024, accused Altman and OpenAI of straying from their original nonprofit mission, which Musk contended he had supported with a substantial $38 million donation. Originally co-founding OpenAI in 2015, Musk distanced himself from the organization three years later. His lawsuit also included Microsoft, claiming the tech giant facilitated OpenAI's alleged breach of its charitable commitments. However, the court dismissed these claims against Microsoft as well. Celebrations ensued among OpenAI and Microsoft representatives as they exited the courtroom. Musk's demands included the return of as much as $134 billion and the removal of Altman and OpenAI President Greg Brockman from their positions, alongside a reversal of corporate changes made in 2025 that allowed for-profit operations. Musk argued that his contributions were meant to ensure AI development would benefit humanity rather than serve personal interests. In contrast, OpenAI's defense maintained that Musk's donations were unrestricted and that the company's restructuring was essential for competing effectively against rivals like Google DeepMind. In a notable twist, Musk has since launched his own AI venture, xAI, which now operates under the SpaceX umbrella. Throughout the trial, jurors heard testimonies from key figures, including Altman, Brockman, and Microsoft CEO Satya Nadella, as well as Musk himself. This verdict comes at a pivotal time for both billionaires, as they navigate their companies toward potential public offerings. OpenAI recently achieved a valuation exceeding $850 billion following a $122 billion fundraising round. Meanwhile, Musk is gearing up for an IPO for SpaceX, which recently merged with xAI, and is estimated at $1.25 trillion, with a public filing expected imminently.