OpenAI defeats Elon Musk in court, removing the biggest obstacle to a future IPO

An American jury on Monday fully rejected Elon Musk’s lawsuit against OpenAI. Jurors unanimously concluded that the company had not violated its obligations and that the lawsuit itself had been filed too late. The verdict was reached after less than two hours of deliberation.

According to Reuters, the court’s decision significantly clears the path for a future OpenAI IPO, which could value the company at more than $1 trillion.

The core of the long-running conflict

The lawsuit was filed in August 2024. Elon Musk accused Sam Altman, Greg Brockman, and OpenAI of abandoning the company’s original mission of developing artificial intelligence for the benefit of humanity rather than for profit.

According to Musk, he had been misled when he invested $38 million during OpenAI’s early years, only for the organization later to transform into a commercial enterprise and secure tens of billions of dollars in funding from Microsoft.

OpenAI argued the opposite, claiming that Musk himself recognized the project’s enormous financial potential and waited far too long to bring legal action. The company maintained that the three-year statute of limitations had expired well before the lawsuit was filed.

Judge Yvonne Gonzalez Rogers reportedly noted that Musk would face significant difficulties on appeal because the statute-of-limitations issue was factual in nature and the jury had sufficient evidence to support its conclusion.

Reactions from both sides

Musk said he plans to appeal the verdict. In a post on X, he repeated his accusations, arguing that Altman and Brockman had enriched themselves by effectively taking over what had originally been a nonprofit organization.

OpenAI’s lawyers described the lawsuit as a “belated fabrication” and a “hypocritical attempt to harm a competitor.” One of the company’s attorneys said the jury had effectively sent the case “to the sidelines where it belongs.”

What the ruling means for OpenAI and the market

The legal victory removes a major source of uncertainty hanging over the company. Analysts, including those at Wedbush Securities, called the outcome a major win for Sam Altman and OpenAI, despite testimony during the trial that reportedly damaged the CEO’s reputation by portraying him as dishonest.

OpenAI can now focus more fully on preparations for a future public offering. At the same time, Musk’s SpaceX is also preparing for a possible stock offering of its own, which could become even larger.

In brief

A U.S. court has fully dismissed Elon Musk’s lawsuit against OpenAI, ruling that it was filed too late. Jurors sided with the company after less than two hours of deliberation. The decision removes a major legal risk for OpenAI and opens the door to a potential IPO that could value the company at more than $1 trillion, marking a significant victory for Sam Altman. Musk has said he will appeal, although both the judge and legal experts believe his chances are limited.