Musk’s $134bn OpenAI bid fails in US court

Elon Musk’s attempt to force OpenAI and Microsoft to surrender up to $134 billion in alleged gains collapsed in a US federal court after a jury rejected his claims and a judge moved to dismiss the case, dealing a major blow to the billionaire’s fight against the company he helped found

The case, which had drawn intense attention across the technology and investment world, ended quickly after an advisory jury reportedly rejected Musk’s claims in less than two hours. The jury found that Musk waited too long to file the lawsuit, ruling that the action was blocked by the statute of limitations.

A US district judge said there was substantial evidence supporting the jury’s conclusion and indicated she was prepared to dismiss the claims immediately.

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The ruling represents one of the biggest courtroom defeats yet for Musk in his increasingly public battle with Altman and OpenAI, over the future of artificial intelligence.

Musk had sued Altman, OpenAI and Microsoft in 2024, accusing the company he helped establish in 2015 of abandoning its original non-profit mission in pursuit of massive commercial profits.

The billionaire entrepreneur argued that OpenAI shifted away from its founding principles after Microsoft invested heavily in the company beginning in 2019. Musk claimed Microsoft helped OpenAI breach what he described as a charitable trust tied to the organisation’s original structure.

However, the court also dismissed the claims against Microsoft, delivering a double victory for both companies as they continue to dominate the global AI market.

Musk had demanded sweeping penalties. According to reports, he asked the court to force OpenAI and Microsoft to pay up to $134 billion in alleged gains. He also sought the removal of Altman and OpenAI president Greg Brockman from leadership positions.

In addition, Musk wanted the court to reverse OpenAI’s 2025 restructuring, which expanded the company’s for-profit operations and strengthened its ability to attract investors and raise capital.

But OpenAI’s legal team argued the lawsuit was driven more by business competition than principle. The company’s lawyers reportedly told the court that Musk only launched the legal action after creating his rival AI company, xAI, which now competes directly with OpenAI in the race to build advanced AI systems.

The ruling highlights how personal and commercial tensions between Musk and Altman have evolved into one of the most important rivalries in the technology industry.

Musk was once an early supporter and board member of OpenAI before leaving the organisation after disagreements with Altman and other executives. Since then, relations between both men have deteriorated publicly, with repeated clashes over AI safety, funding, corporate structure and political influence.

Despite seeking huge financial damages, Musk reportedly said any money won from the lawsuit should return to the OpenAI charity rather than to himself personally.

The case also comes at a critical moment for the global AI industry, where companies are racing to secure investment, computing infrastructure and market dominance ahead of potential public listings and broader commercial expansion.

Investors have closely watched the legal fight because it could have affected OpenAI’s corporate structure, partnerships and long-term valuation. OpenAI has become one of the most valuable private technology companies in the world following the explosive success of ChatGPT and growing demand for generative AI tools.

The courtroom defeat may further strengthen Altman’s position as OpenAI pushes deeper into enterprise AI, infrastructure development and global expansion.

The conflict between Musk and Altman has also stretched beyond the courtroom. Both executives recently clashed publicly over Stargate, a proposed $500 billion AI infrastructure initiative backed by US President Donald Trump and involving OpenAI.

The project aims to massively expand AI computing capacity in the United States and reflects the growing geopolitical importance of artificial intelligence infrastructure.

Industry analysts say the failed lawsuit could reshape perceptions around governance disputes in the AI sector, especially as companies increasingly balance non-profit origins with investor-driven growth.

For Musk, the decision is another setback in his effort to challenge OpenAI’s transformation into a commercial AI powerhouse.

For Altman and OpenAI, the ruling removes a major legal threat at a time when competition in artificial intelligence is intensifying globally.