Elon Musk loses lawsuit against OpenAI in unanimous verdict
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- May 18, 2026
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Steven Molo makes an opening statement near his client Musk last month.
REUTERS
Altman’s trustworthiness was central to Musk’s case. Musk’s legal team leaned heavily on testimony from key OpenAI figures — including former board members Tasha McCauley and Helen Toner as well as Murati — who said Altman didn’t always tell the truth.
“My concern was about Sam saying one thing to one person and completely the opposite to another person,” Murati said in taped testimony played to a packed Oakland, Calif., federal courtroom.
Musk’s lawsuit alleged that Brockman, Altman and OpenAI violated the company’s charitable mission when it launched a for-profit entity and raised billions to help it grow into the juggernaut it is today. The suit also accused Microsoft of aiding and abetting the scheme by pumping some $13 billion into OpenAI’s for-profit arm.
In his testimony during the trial’s first week, Musk said, “This lawsuit is very simple: It is not OK to steal a charity.” Musk repeated versions of the phrase throughout his time on the witness stand.
Musk’s lawsuit alleged Altman and OpenAI violated the company’s charitable mission when it launched a for-profit entity and raised billions to help it grow into the juggernaut it is today.
REUTERS
Musk also at one point texted Altman after news of one of Microsoft’s investments into OpenAI became public, calling the agreement a “bait and switch.”
Altman and the other defendants countered that Musk was well aware of and even supported OpenAI’s for-profit endeavors. Altman’s lawyers provided evidence that appeared to show Musk agreeing that an entity that could raise cash in exchange for equity was needed to compete with the likes of Google.
Brockman detailed a 2017 meeting in a Musk mansion where he and other OpenAI top brass including Altman, head of technology Mira Murati and Zilis showed up. Whiskey was served, Brockman testified, the OpenAI group discussed a for-profit entity and the conversation was “celebratory.”
An attorney who has represented large tech companies but is not involved in the OpenAI suit said he believed Musk’s case grew stronger throughout the trial. He specifically cited Altman’s time on the stand getting hammered by Musk’s lawyer about whether he was trustworthy.
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