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America May 18, 2026 5 mins read

Musk Loses Case Against OpenAI as Jury Delivers Unanimous Verdict in Less Than Two Hours

America ı By Rihem Akkouche

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Musk loses case against OpenAI

It took the jury less time to reach a verdict than it takes to watch a feature film. After 11 days of testimony that raked two of the most powerful figures in artificial intelligence across the coals of credibility, honesty, and billion-dollar betrayal, a unanimous federal jury in Oakland on Monday ruled against Elon Musk in his lawsuit against OpenAI — finding not that OpenAI was innocent of wrongdoing, but that Musk had simply waited too long to make his case.

The verdict, delivered in under two hours of deliberation, lands as a significant legal defeat for the world's richest person and closes — at least for now — one of the most closely watched courtroom confrontations in the history of the technology industry. Lawyers for OpenAI embraced each other the moment the decision was announced.

The Case That Put AI's Soul on Trial

Musk filed his lawsuit in 2024, leveling accusations that cut to the existential heart of what OpenAI was supposed to be. He alleged that OpenAI co-founders Sam Altman and Greg Brockman had manipulated him into contributing $38 million to the organization's founding mission — building safe artificial intelligence for the benefit of all humanity — and then systematically dismantled that mission by quietly attaching a for-profit business to the original nonprofit structure and accepting tens of billions of dollars from Microsoft and other investors.

Musk called it, with characteristic bluntness, "stealing a charity."

OpenAI was co-founded by Altman, Musk, and several others in 2015. Musk departed the board in 2018. The for-profit arm was established the following year. From that sequence of events, Musk constructed a legal argument that the organization he helped create had been hijacked by the very people he trusted to steward it.

OpenAI's counter-narrative was equally pointed: it was Musk, the company's lawyers argued, who had seen dollar signs from the beginning — and who had then waited far too long, under applicable statutes of limitations, to claim the founding agreement had been breached.

"Mr. Musk may have the Midas touch in some areas," OpenAI attorney William Savitt told jurors in his closing argument, "but not in AI."

The Verdict and the Judge's Warning

The jury found in OpenAI's favor on the threshold question of timing — determining that Musk had brought his case too late under the applicable statute of limitations. The deliberation lasted less than two hours, a timeline that suggested jurors found the factual record on the timeliness question relatively clear-cut.

US District Judge Yvonne Gonzalez Rogers was candid about the evidentiary landscape following the verdict. When Musk's attorney announced he reserved the right to appeal, the judge offered a sobering assessment of those prospects.

"There's a substantial amount of evidence to support the jury's finding, which is why I was prepared to dismiss on the spot," Gonzalez Rogers said — language that served as a judicial warning that an appellate path would be steep and difficult to navigate.

Credibility on the Witness Stand

The 11 days of trial were as much a referendum on the credibility of the individuals involved as they were a legal proceeding. Both Musk's and Altman's honesty came under sustained attack from opposing counsel, and the courtroom became a theater of competing narratives about who wanted what, who said what to whom, and who ultimately cared more about money than mission.

Musk's attorney Steven Molo pressed hard on Altman's trustworthiness in closing arguments, reminding jurors that multiple witnesses had questioned Altman's candor during testimony — and that Altman himself had declined to give an unqualified affirmation of his own honesty when directly asked.

"Sam Altman's credibility is directly at issue," Molo argued. "If you don't believe him, they cannot win."

The jury, deliberating for less than two hours, effectively rendered that argument moot — finding that the timing of the lawsuit, not the underlying allegations about Altman's conduct, was the dispositive issue.

Microsoft's Role — and Its Statement

Microsoft, which has committed more than $100 billion to its partnership with OpenAI according to executive testimony at trial, faced an aiding and abetting claim as part of the litigation. The jury's verdict swept that claim away alongside Musk's primary allegations.

In a statement following the verdict, a Microsoft spokesperson embraced the outcome without ambiguity. "The facts and the timeline in this case have long been clear and we welcome the jury's decision to dismiss these claims as untimely."

The Stakes Beyond the Courtroom

The trial had been framed by observers as something larger than a dispute between wealthy founders — a proxy battle over the future of artificial intelligence itself, over who controls it, who profits from it, and whether its development can be meaningfully governed by anything other than market forces.

OpenAI is now preparing for a potential initial public offering that analysts believe could value the company at $1 trillion. Musk's own AI venture, xAI, has been folded into SpaceX, which is simultaneously preparing an IPO that some projections suggest could exceed even OpenAI's in size.

The irony of two adversaries — each claiming the moral high ground on AI safety and public benefit — both racing toward trillion-dollar market valuations is not lost on the industry watching from the sidelines.

Monday's verdict does not resolve the deeper questions about AI's trajectory that animated the lawsuit. It resolves only the question of whether Musk's legal vehicle was roadworthy enough to carry those questions to judgment. The jury decided it was not — and it decided so in less time than it takes to charge a Tesla.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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