Musk lost the lawsuit, but Altman also "got a layer of his skin peeled off."

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Musk's lawsuit against OpenAI ended in defeat, but the aftermath of this three-week federal trial goes far beyond a mere verdict.

The jury took less than two hours to rule that Musk's lawsuit over OpenAI's commercialization had exceeded the statute of limitations, a decision immediately confirmed by the judge.

This result cleared the biggest legal obstacle on OpenAI’s road to going public—had the lawsuit succeeded, OpenAI could have faced approximately $150 billion in damages and a forced management change. However, the price of victory is also heavy: During the three-week trial, multiple former colleagues openly testified under oath that OpenAI CEO Sam Altman lied; these testimonies and internal documents have now entered the public record permanently, becoming unavoidable footnotes for investors evaluating this potential trillion-dollar IPO candidate.

According to Reuters, litigation attorney and AI expert James Rubinowitz stated: "This ruling removes the single biggest legal threat facing an IPO. Yet even in victory, OpenAI left the courtroom with the worst written evidence of its governance. Every institutional investor will conduct their own credibility assessment of Altman before buying in."

Statute of limitations ends Musk's claim, clearing IPO path

The core issue of the lawsuit was Musk’s accusation that Altman and OpenAI betrayed their original promise to keep the institution a nonprofit and serve all mankind, characterizing their move as "stealing from a charity." Musk repeated this characterization many times during the trial.

The jury bypassed this substantive dispute and dismissed all claims on the grounds of the statute of limitations. Musk’s attorney said an appeal would be filed, but did not disclose specific grounds.

From a market perspective, the outcome is widely regarded as favorable. Wedbush analyst Dan Ives called the ruling a "major victory" for Altman and OpenAI, though he also admitted Altman's personal image and reputation for leadership have been "deeply scarred."

Former colleagues testify under oath, Altman's credibility suffers broad doubt

Throughout the trial, Altman's integrity was a central issue. According to Bloomberg, Musk’s attorney Steven Molo said in closing arguments that five witnesses had questioned Altman’s honesty on the stand: "Those who worked with him called him a liar under oath—this is a very powerful word."

The disclosure of internal documents attracted particular attention. Former CTO Mira Murati wrote in a memo labeled "For Sam Only" that Altman's leadership style "created chaos and staff turnover," criticizing the company for "saying it’s focused, but actually doing everything and moving fast." In video testimony, when asked whether she considered Altman honest in autumn 2023, Murati paused for a long time before replying, "Not always." She also said that Altman had undermined her work and sowed discord among OpenAI executives.

Co-founder and former board member Ilya Sutskever submitted a 52-page memo describing Altman’s "persistent pattern of lying, undermining executives, and sowing discord among leadership."

Confronted with these doubts, Altman responded on the stand: "I believe I am an honest and trustworthy businessman." Current OpenAI chairman Bret Taylor also testified in his defense, saying Altman had always been forthright on conflict-of-interest issues, and had proactively sent an explanatory letter to the board before updates to conflict policies.

Governance chaos and conflict of interest issues surface

The trial also exposed multiple potential risks in OpenAI’s corporate governance. Trial documents revealed that Altman holds billions of dollars in investments in companies that do business with OpenAI, raising outside doubts about conflicts of interest. Altman said that in potential conflict situations, he usually recuses himself from related decisions.

Microsoft CEO Satya Nadella recalled during his testimony about Altman’s brief dismissal in 2023 that at the time, OpenAI "looked like a complete mess" to him. He said Microsoft was forced to reassure its own investors that its AI strategy remained unaffected. Microsoft is now seeking to renegotiate its partnership agreement with OpenAI, working to decouple its fortunes from the company.

OpenAI president Greg Brockman’s private diary was also disclosed in court. The diary showed that, at a time when OpenAI publicly championed the cause of "developing AI for the benefit of all humanity," Brockman was privately focused on personal wealth accumulation, writing in 2017: "What can get me to $1 billion?" According to court information, his current OpenAI stake is valued at nearly $30 billion.

Despite the victory, IPO prospects remain uncertain

Although legal risk has been significantly reduced, the impact of this trial on OpenAI’s IPO prospects is still difficult to fully quantify. OpenAI previously faced litigation risks including about $150 billion in possible damages and a forced management change, risks now largely eliminated.

However, during the trial, competitor Anthropic completed a $30 billion funding round, reaching a $90 billion valuation, surpassing OpenAI. This contrast has led the market to reassess OpenAI’s relative competitiveness.

For institutional investors considering participation in a potential OpenAI IPO, the trial left more questions than answers: Is a company with a controversial governance track record and a founder whose integrity has been publicly questioned by former colleagues really worth a trillion-dollar valuation? As Bloomberg observed, the jury opted to avoid a direct ruling on Altman’s honesty—but Wall Street may not be so forgiving.

Risk warning and disclaimerThe market carries risks; investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions herein fit their particular circumstances. Investment is at your own risk. ```