OpenAI defeats Elon Musk: Jury Rejects Elon Musk’s Lawsuit Against OpenAI and Sam Altman

By: Daisy

On: Tuesday, May 19, 2026 5:04 PM

OpenAI defeats Elon Musk
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OpenAI defeats Elon Musk: In a major legal defeat for the world’s richest man, a California federal jury on Monday unanimously rejected Elon Musk’s high-profile, $150 billion lawsuit against OpenAI and its chief executive, Sam Altman.

Following a contentious three-week trial in Oakland, the nine-person jury took less than two hours to deliberate before concluding that Musk had waited too long to file his claims, effectively rendering them expired under the statute of limitations.

U.S. District Judge Yvonne Gonzalez Rogers immediately accepted the advisory jury’s findings, officially dismissing the case and clearing a monumental hurdle for OpenAI as it prepares for a highly anticipated initial public offering (IPO) later this year.

Hair-Raising Testimony and Silicon Valley Animosity

OpenAI defeats Elon Musk

The trial provided a rare, unvarnished look into the deep-seated rivalry between Silicon Valley’s most influential titans. Taking the stand on the trial’s first day, Musk donned a dark suit and told his lawyers, “It’s actually very simple. It’s not OK to steal a charity… If it’s okay to loot a charity, the entire foundation of charitable giving will be destroyed.”

However, OpenAI’s legal team painted a starkly different picture. During his own testimony, Sam Altman asserted that Musk hadn’t merely supported the idea of OpenAI transitioning into a commercial business—he had actively vied for complete control over it before leaving the board in 2018.

Fallout and Vows to Appeal

OpenAI defeats Elon Musk

The verdict triggered an immediate war of words outside the courthouse and on social media.

William Savitt, lead attorney for OpenAI, hailed the decision as a triumph over a corporate distraction. “The finding of the jury confirms that what this lawsuit was was a hypocritical attempt to sabotage a competitor,” Savitt said, adding that OpenAI will continue focusing on developing safe AI while preparing potential counterclaims against Musk for abuse of the legal process.

A spokesperson for Microsoft echoed the sentiment, stating, “The facts and the timeline in this case have long been clear,” reaffirming the tech giant’s ongoing commitment to OpenAI.

Musk, meanwhile, took to his platform X (formerly Twitter) to fiercely lambast the outcome. Though he later deleted a post calling the judge a “terrible activist” who used the jury as a “fig leaf,” Musk firmly vowed to appeal the decision.

“Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality,” Musk wrote. He argued that the ruling creates a “dangerous precedent” that effectively grants “a free license to loot charities if you can keep the looting quiet for a few years!”

Trillion-Dollar Implications

The swift legal victory stabilises OpenAI’s corporate trajectory at a critical juncture. Unencumbered by the threat of court-ordered leadership changes or a forced multi-billion-dollar restructuring, the company is expected to forge ahead with its transition into a traditional for-profit business, clearing the path for an IPO that experts project could value OpenAI at a staggering $1 trillion.

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Daisy

Daisy Kumari is a digital journalist at Punjab Kesari's International Desk, where she covers United States news, global affairs, and stock market developments for one of India's largest english news organisations. She writes, edits, and publishes news stories with a focus on accuracy, SEO, and digital storytelling. She has hands-on newsroom experience from Indian Express, where she covered international news with a focus on US affairs, and from NewsX, where she worked on the output desk handling live broadcast copy and newsroom coordination. She holds a Bachelor of Science in Media Science from Inspiria Knowledge Campus, Siliguri. Her work is grounded in accuracy, editorial clarity, and an understanding of what digital news audiences need.