Elon Musk Loses Lawsuit Against OpenAI in U.S. Court Ruling

A U.S. jury has ruled against billionaire Elon Musk in his lawsuit against OpenAI, finding that the AI firm is not liable to him over claims it abandoned its original mission to develop artificial intelligence for the benefit of humanity.

The unanimous verdict was delivered on Monday by a federal jury in Oakland, California, which also concluded that Musk filed the case too late.

The trial, which began on April 28, has been widely viewed as a landmark case for the future of artificial intelligence governance, particularly around who controls and benefits from advanced AI systems.

Artificial intelligence is now widely used across sectors including education, journalism, legal research, medical diagnosis, financial advice, facial recognition, and the creation of deepfake content, raising both opportunities and concerns.

Many critics argue that AI could disrupt job markets and deepen public mistrust due to ethical and safety risks.

The 11-day trial featured intense testimony in which both Musk and OpenAI CEO Sam Altman faced scrutiny over credibility and motives.

Each side accused the other of prioritising profit over public interest.

Musk’s legal team argued that OpenAI had shifted away from its founding promise and was instead focusing on enriching investors and insiders while neglecting safety concerns.

They also claimed that Microsoft was aware of OpenAI’s profit-driven direction despite its public commitments.

OpenAI, however, argued that Musk himself was motivated by financial interests and waited too long to challenge the company’s direction.

Its legal team maintained that Musk’s claims lacked credibility and consistency.

OpenAI is currently expanding its competition with firms such as Anthropic and Musk’s own AI company, xAI, as it prepares for a potential IPO that could value it at up to $1 trillion.

Microsoft has reportedly invested more than $100 billion in its partnership with OpenAI, according to testimony during the trial.