HeadlinesBriefing favicon HeadlinesBriefing.com

Musk’s courtroom defeats threaten OpenAI showdown

Financial Times Companies •
×

Elon Musk has accumulated an unprecedented run of courtroom defeats since January, losing on claims that OpenAI stole xAI secrets, a boycott lawsuit against X, and two suits tied to his 2022 Twitter takeover, including a fraud verdict that could cost him billions. He also uses X publicly. The string of losses arrives as he readies for an Oakland trial against OpenAI later this month.

His lawyers have complained of judicial bias, objecting to a Delaware judge’s LinkedIn ‘like’ and mocking a jury’s ‘4.20’ joke. In the OpenAI case Musk seeks $134bn in damages, arguing the nonprofit turned profit and abandoned its charter. The presiding judge dismissed the figure as speculative, further weakening his position. The court also barred questions about Musk’s alleged ketamine use at Burning Man.

Stakeholders worry the litany of suits distracts Musk from steering X, xAI and the pending SpaceX IPO, slated for June at a $17.5tn valuation. Internal critics label the battles an ego‑driven clash with Sam Altman that hampers operational focus. With the Oakland trial set, Musk’s legal woes now pose a tangible risk to his broader corporate agenda.