Oakland court: jury rejects Elon Musk's lawsuit against Sam Altman and OpenAI

On Monday, May 18, 2026, a jury in Oakland put an end to a long-running dispute between two of the most influential figures in the tech world.

In less than two hours of deliberation, they dismissed all of Elon Musk’s claims against Sam Altman and OpenAI, a surprise end to a three-week process that has captured the attention of not only the legal community but also everyone who follows the development of artificial intelligence.

A quick end to a long drama

Federal Judge Yvonne Gonzalez Rogers immediately agreed with the jury’s verdict. She found that Musk’s claims for breach of charitable trust and unjust enrichment were filed out of time. According to the judge, “there is a significant amount of evidence that supports the jury’s conclusion.” Musk’s lawyer, Steven Molo, immediately announced his intention to appeal the decision, but the courtroom was already filled with applause from the OpenAI and Microsoft defense teams.

The lawsuit was filed in 2024. Musk accused his former partners of straying from the nonprofit lab's original mission. He demanded the return of up to $134 billion in "illegally obtained profits," the removal of Altman and OpenAI President Greg Brockman from their leadership positions, and the reversal of a 2025 restructuring that allowed the company's commercial wing to develop.

The Roots of Conflict: From Shared Dreams to Rivalry

The story began in 2015, when Musk, along with Altman and others, founded OpenAI as a non-profit organization. The goal was to create artificial intelligence for the benefit of humanity. Musk invested approximately $ 38 million, expecting that the funds would be used exclusively for scientific purposes. However, in 2018, he left the board of directors, and later launched his own laboratory xAI, which became part of SpaceX in 2026.

OpenAI's lawyers argued that Musk's donations were unrestricted. Restructuring the company was the only way to compete with Google DeepMind in the expensive race for leadership. During the trial, the jury heard testimony from Altman, Brockman, Microsoft CEO Satya Nadella, and Musk himself. The story of how Musk once offered to turn OpenAI into a commercial structure on condition that he retained control was particularly vivid.

Financial rates and the future of the market

The verdict comes as both sides prepare to go public. OpenAI raised $122 billion in late March at a valuation of more than $850 billion. The company is actively developing ChatGPT models and is trying to keep up with Anthropic in the enterprise market. Meanwhile, SpaceX, combined with xAI, reached a valuation of $1,25 trillion after the merger in February 2026. A confidential IPO application was filed in April, and a prospectus is expected to be published this week.

Microsoft, also named as the defendant, escaped any liability. The court found that the claims against the company were unfounded. This decision is particularly important for the market, as it was Microsoft that actively invested in OpenAI since 2019 and helped scale the technology.

What the verdict means for the AI ​​industry

The court’s decision highlights how difficult it is to regulate the mission of nonprofits once they become powerful commercial players. OpenAI’s lawyers have argued that it was the restructuring of its business model that allowed the company to attract the resources it needed to develop advanced models. Now that the lawsuit has been dismissed, OpenAI can focus on further development without legal obstacles.

This is not Musk's first defeat in the fight for influence in the field of artificial intelligence. His xAI continues to develop within SpaceX, and the entrepreneur himself is preparing for a large-scale IPO. Analysts believe that the verdict could affect how other founders of technology companies build relationships with investors and regulators.

Market and public reaction

Microsoft shares rose 1,8% after the verdict. Investors saw the decision as a sign of stability for the OpenAI ecosystem. At the same time, a lively discussion about the ethical limits of commercializing artificial intelligence has erupted on social media. Many experts emphasize that the court decision does not put an end to the debate about whether a non-profit mission can coexist with multi-billion dollar profits.

In Oakland itself, journalists and supporters of both sides gathered outside the courthouse. Representatives of OpenAI and Microsoft hugged and congratulated each other, while Musk’s team immediately began preparing an appeal. Judge Gonzalez Rogers emphasized that she was ready to dismiss the lawsuit “on the spot,” but gave the jurors the opportunity to express their position.