Elon Musk’s lawsuit against OpenAI thrown out by US federal court

The long-running legal battle between billionaire entrepreneur Elon Musk and artificial intelligence company OpenAI has finally reached a dramatic conclusion. In a significant setback for Musk, a US federal court ruled in favor of OpenAI and its CEO Sam Altman, dismissing Musk’s high-profile lawsuit against the company. The case centered around Musk’s allegations that OpenAI had abandoned its original mission of developing artificial intelligence for the benefit of humanity and instead transformed into a profit-driven organization focused on investors and commercial success. Musk argued that the company had moved away from the nonprofit ideals it was founded upon. However, OpenAI strongly rejected these accusations throughout the trial. The company claimed that Musk’s criticism was fueled by growing competition in the rapidly expanding AI industry. OpenAI’s lawyer, William Savitt, argued in court that Musk’s claims lacked merit and suggested that his frustration stemmed from the company’s success in artificial intelligence. The lawsuit was heard in a federal court in Oakland, California, where a nine-member jury unanimously ruled against Musk. The court concluded that Musk had waited too long to file the lawsuit, which became a major factor in the dismissal of the case. Federal Judge Yvonne Gonzalez Rogers also supported the verdict and immediately rejected Musk’s arguments. During the proceedings, Musk’s legal team, led by attorney Steven Mollo, claimed that OpenAI had betrayed its founding vision by prioritizing profits and investor interests over public benefit. Musk also criticized Microsoft, accusing the tech giant of being aware of OpenAI’s alleged transformation into a commercial enterprise. Court discussions revealed that Microsoft had invested more than $100 billion into OpenAI, highlighting the scale of the partnership between the two companies. Elon Musk originally filed the lawsuit in 2024 against OpenAI, Sam Altman, and company president Greg Brockman. Musk, who was once one of OpenAI’s co-founders, argued that the organization had broken its initial promise to operate transparently and for the greater good of humanity. With the court now ruling decisively in OpenAI’s favor, the verdict marks a major legal and reputational victory for Sam Altman and the company, while representing a significant defeat for Musk in one of the tech industry’s most closely watched courtroom battles.