Wednesday, May 20Wednesday, May 20A federal jury in Oakland, California, ruled on Monday, 18.05.2026, that Elon Musk’s lawsuit against OpenAI, its CEO Sam Altman, co-founder Greg Brockman, and Microsoft was filed too late, barring it under the statute of limitations. The verdict effectively dismissed Musk’s claims that OpenAI abandoned its original nonprofit mission by accepting billions in funding from Microsoft and restructuring into a for-profit entity. Musk, who initially provided funding for OpenAI but left after failing to secure more control, argued that the company had deviated from its founding principles of developing AI "for the benefit of humanity." The jury’s decision was unanimous, though the trial concluded on procedural grounds rather than addressing the substantive allegations .
Musk has vowed to appeal the verdict, framing it as a precedent that could enable the "looting of charities." In a post on X, he stated that the ruling undermines accountability for nonprofit organizations that shift toward profit-driven models. Legal experts, however, noted that the case’s procedural resolution left unanswered the broader question of how much flexibility nonprofits have to restructure after making public commitments to donors .
The trial exposed deep divisions within Silicon Valley’s AI sector, revealing internal power struggles and profit motives that contradicted the industry’s earlier rhetoric about prioritizing safety and public benefit. Court documents and testimony highlighted tensions dating back to 2017, when OpenAI executives expressed concerns about Musk’s potential to become a "dictator" over the company. Musk, in turn, proposed folding OpenAI into Tesla before ultimately departing. The trial also confirmed reports of OpenAI’s discussions with Anthropic about a potential merger during Altman’s brief 2023 ouster, further illustrating the sector’s competitive and often personal rivalries .
Despite the legal setback, OpenAI emerged with its leadership intact, avoiding the immediate threat of Musk forcing changes through the courts. Analysts suggested that a Musk victory could have led to Altman’s removal, echoing his 2023 ouster. Instead, the company can continue its expansion, though the trial has further damaged public trust in AI’s governance. Critics argue that the case underscored the industry’s shift away from its original humanitarian goals, with AI now viewed as a tool for profit and power consolidation. Public approval of AI has declined sharply, trailing even controversial institutions like U.S. Immigration and Customs Enforcement (ICE) .
The verdict also highlighted the partisan divide over AI in the U.S., with Republicans increasingly embracing the technology while Democrats grow more skeptical. OpenAI’s reputational score, for instance, is now 12 points higher among Republicans than Democrats, reflecting broader trends in public perception of AI companies. This shift coincides with concerns about job displacement, data privacy, and federal overreach, though younger voters—particularly Gen Z—remain the most apprehensive about AI’s economic impact .
> Background: **Jury unanimously rejects Elon Musks OpenAI lawsuit over expired claims.** — *11 hours ago*
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