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Home » Elon Musk Loses Legal Battle with OpenAI

Elon Musk Loses Legal Battle with OpenAI

Maisah Bustami by Maisah Bustami
May 19, 2026
in News
Reading Time: 2 mins read
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A US jury on Monday ruled in favor of OpenAI, dismissing Elon Musk’s lawsuit and finding the AI company not responsible for deviating from its mission to benefit humanity. The verdict was unanimous, with the court in Oakland, California, noting Musk’s case was filed too late.

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The trial, which started on April 28, was seen as a pivotal moment for the future of OpenAI and artificial intelligence as a whole, raising questions about its ethical use and the distribution of benefits, including financial gains.

Artificial intelligence is woven into many sectors, from education and facial recognition to financial planning, journalism, legal research, healthcare, and even malicious deepfake creation. Despite its usefulness, many individuals remain wary, concerned about job displacement and the potential misuse of the technology.

After 11 days of testimony and heated debates, both Musk and Sam Altman’s credibility were questioned repeatedly. Both parties accused each other of prioritizing profits over public interests.

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Musk’s attorney, Steven Molo, emphasized that several witnesses cast doubt on Altman’s honesty and questioned whether he could be trusted. “Sam Altman’s credibility is directly at issue,” Molo stated. “If you don’t believe him, they can’t win.”

Musk accused OpenAI of distributing profits to investors and insiders at the nonprofit’s expense, accusing the organization of neglecting safety in the pursuit of monetary gain. He also alleged that Microsoft was aware from the start that OpenAI’s focus was more about profit than altruism.

OpenAI responded by claiming Musk was primarily motivated by financial interests himself and that he delayed making accusations, despite the company’s pledge to develop safe AI for humanity.

“Mr. Musk might have a Midas touch in certain areas, but not in AI,” OpenAI lawyer William Savitt argued during closing statements.

OpenAI faces competition from other AI firms such as Anthropic and xAI and is preparing for an initial public offering (IPO) that could value the company at up to $1 trillion.

Microsoft has invested over $100 billion in its partnership with OpenAI, a Microsoft executive testified. Meanwhile, Musk’s AI venture, xAI, is integrated with SpaceX, his space and rocket company, which is also eyeing an IPO larger than OpenAI’s.

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Maisah Bustami

Maisah Bustami

Maisah is a writer at Digital Phablet, covering the latest developments in the tech industry. With a bachelor's degree in Journalism from Indonesia, Maisah aims to keep readers informed and engaged through her writing.

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