TLDR
- A California jury found OpenAI and its leaders not liable in Musk’s lawsuit, ruling he filed outside the statute of limitations.
- Musk had claimed OpenAI “stole a charity” by converting from a nonprofit to a for-profit company.
- The verdict removes an estimated $134 billion overhang from Musk’s damages claims against OpenAI.
- Tesla shares fell 3% on Monday; Microsoft shares rose slightly following the verdict.
- Musk says he plans to appeal, but legal experts believe the case is “pretty much over.”
Elon Musk has lost his lawsuit against OpenAI and its co-founders Sam Altman and Greg Brockman after a California jury ruled against him on Monday. The jury found the defendants not liable because Musk filed his legal claims outside the statute of limitations.
Regarding the OpenAI case, the judge & jury never actually ruled on the merits of the case, just on a calendar technicality.
There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question…
— Elon Musk (@elonmusk) May 18, 2026
The three-week trial was held in Oakland at the US District Court for the Northern District of California. Judge Yvonne Gonzalez Rogers confirmed she accepted the jury’s verdict.
Musk had alleged that when OpenAI converted from a nonprofit to a for-profit company, Altman and Brockman had unjustly enriched themselves. He argued he donated money to the startup under the understanding it would remain a nonprofit.
OpenAI was co-founded in 2015 by Musk, Altman, and others. Musk left the company in 2018, several years before it made its transition to a for-profit structure.
What Happened in Court
During the trial, Musk’s attorney Steven Molo tried to paint Altman as untrustworthy. He referenced Altman’s brief removal from the OpenAI board in 2023, when board members said he hadn’t been consistently candid. Altman was reinstated just days later.
“Sam Altman’s credibility is directly at issue in this case,” Molo told jurors. “If you cannot trust him, if you don’t believe him, they cannot win.”
OpenAI’s legal team pushed back, saying multiple witnesses confirmed Musk never made his donations conditional on the company remaining a nonprofit. They also argued the lawsuit was filed too late.
Musk announced on X that he plans to appeal. “There is no question to anyone following the case in detail that Altman and Brockman did in fact enrich themselves by stealing a charity,” he wrote. “The only question is WHEN they did it.”
Carl Tobias, a law professor at the University of Richmond, told Barron’s the chances of a successful appeal are slim. “I think the case is pretty much over,” he said. “It’s all fact specific, so I don’t think there’s any legal question there.”
What the Verdict Means for OpenAI and Investors
The outcome is a win for OpenAI and its backers. Wedbush analyst Dan Ives said the verdict removes an estimated $134 billion overhang from Musk’s damages claims.
Microsoft, which has invested more than $10 billion in OpenAI, also benefits. Microsoft shares were up slightly at $423.33 on Monday. Amazon, SoftBank, and Nvidia are among other major backers of OpenAI, which is currently valued at around $1 trillion.
Amazon announced a $50 billion multiyear investment in OpenAI in February. OpenAI is racing to go public and is viewed as a leading candidate for one of the biggest IPOs of 2026.
Tesla shares fell 3% on Monday following the verdict.
The case may now be remembered less for its legal outcome and more for what it revealed about a very public falling out. “When billionaires break up it can be expensive and nasty,” Tobias said.
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