Elon Musk has lost his lawsuit against Sam Altman and OpenAI

Nairavoice | May 18, 2026 246 0 2 min read

“There was a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss on the spot,” Judge Yvonne Gonzalez Rogers said after the verdict was delivered.

The end of the case means that one major threat to OpenAI — a possible restructuring — is now off the table ahead of its reported IPO.

“It did not take two hours to conclude … that Mr. Musk’s lawsuit is nothing more than an after-the-fact contrivance that bears no relationship to reality,” OpenAI’s lead attorney, Bill Savitt, said after the verdict. “They kicked it exactly where it belongs — just to the side. This lawsuit is a hypocritical attempt to sabotage a competitor.”

Microsoft, which Musk sued for aiding and abetting OpenAI’s alleged breach of charitable trust, welcomed the verdict. A spokesperson for the company said it “remained committed to our work with OpenAI to advance and scale AI for people and organizations around the world.”

The verdict came in the middle of a hearing to determine the potential damages to Musk if the verdict had gone the other way. While that discussion is moot for now, the judge appeared unconvinced by the analogy Musk’s lawyers drew between his charitable contributions and investments in a for-profit startup.

“Your analysis seems to be devoid of connection to the underlying facts,” she told Dr. C. Paul Wazzan, the expert who came up with Musk’s estimate of OpenAI and Microsoft’s wrongful gains at his expense — some $78.8 billion to $135 billion.

In a tweet after the ruling, Musk appeared to take the procedural grounds of the dismissal as a moral victory. “There is no question to anyone following the case in detail that Altman & Brockman did in fact enrich themselves by stealing a charity. The only question is WHEN they did it!” Musk wrote. “I will be filing an appeal with the Ninth Circuit, because creating a precedent to loot charities is incredibly destructive to charitable giving in America.”

Reached for comment by TechCrunch, Musk’s lead counsel, Marc Toberoff, said, “One word: Appeal.”

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