Elon Musk Loses $150 Billion Lawsuit Against OpenAI and Sam Altman After Jury Verdict

May 18, 2026

A California jury unanimously rejected Elon Musk's $150 billion lawsuit against OpenAI and CEO Sam Altman on May 18, 2026, after less than two hours of deliberation following a three-week trial in Oakland. The jury found Musk's claims of breach of charitable trust and unjust enrichment were filed outside the three-year statute of limitations. Musk, who helped start OpenAI in 2015 and donated roughly $38 million, sued in 2024 alleging Altman and co-founder Greg Brockman abandoned the nonprofit's charitable mission for personal profit after restructuring enabled growth of a for-profit arm. OpenAI recently raised $122 billion at an $850 billion valuation, while Musk's competing xAI merged with SpaceX at a $1.25 trillion valuation in February 2026.

Jury verdict outcome

▪U.S. District Judge Yvonne Gonzalez Rogers dismissed Elon Musk's claims of breach of charitable trust and unjust enrichment as untimely.
▪A jury on May 18, 2026 rejected Elon Musk's claims against OpenAI CEO Sam Altman after less than two hours of deliberations.
▪Jurors heard testimony from Sam Altman, Greg Brockman, Microsoft CEO Satya Nadella, and Elon Musk during the trial.
▪The court dismissed Elon Musk's claim against Microsoft in the OpenAI lawsuit.
▪U.S. District Judge Yvonne Gonzalez Rogers agreed with the advisory jury's determination that Sam Altman and OpenAI were not liable.
▪The three-week trial in the Elon Musk versus OpenAI case took place in Oakland, California.

Musk-Altman rivalry origins

▪Elon Musk left the OpenAI board three years after helping start the organization in 2015.
▪Elon Musk started his own competing AI lab, xAI, in 2023.

Breach of charitable trust claims

▪Elon Musk sued Sam Altman and OpenAI in 2024, alleging they violated their commitment to keep the artificial intelligence lab as a nonprofit.
▪Lawyers for OpenAI argued that Elon Musk's donations were not restricted in any way.
▪Elon Musk's lawsuit claimed that Sam Altman and Greg Brockman abandoned OpenAI's founding charitable mission in pursuit of their own personal profit.
▪Elon Musk testified he gave roughly $38 million to OpenAI on the understanding it would develop AI for the benefit of humanity, not enrich any one person.

Statute of limitations defense

▪Elon Musk's lawyer, Steven Molo, reserved his client's right to appeal the verdict.

OpenAI nonprofit-to-profit transition

▪Elon Musk's team wanted the court to force OpenAI and Microsoft to give up as much as $134 billion in ill-gotten gains.
▪Elon Musk's team wanted the court to unwind OpenAI's 2025 restructuring that enabled the growth of its for-profit arm.
▪Elon Musk's team wanted the court to remove Sam Altman and OpenAI President Greg Brockman from leadership.

Upcoming IPO plans

▪OpenAI raised $122 billion at a valuation of over $850 billion in late March 2026.
▪SpaceX was valued at $1.25 trillion after merging with xAI in February 2026.
▪SpaceX could make its IPO prospectus public during the week of May 18, 2026.
▪SpaceX confidentially filed for an IPO in April 2026.