A U.S. court has reportedly dismissed Elon Musk’s massive $150 billion lawsuit against OpenAI and its chief executive Sam Altman, marking a major legal setback in the billionaire’s escalating battle over the future of artificial intelligence.

Musk had accused OpenAI and CEO Sam Altman of abandoning the organization’s original non-profit mission and prioritizing commercial interests through its partnership with Microsoft.

The lawsuit alleged that OpenAI’s transition toward a profit-driven structure violated its founding principles and unfairly concentrated power over advanced AI technologies.

However, the court reportedly rejected key claims in the case, dealing a blow to Musk’s efforts to challenge OpenAI’s corporate direction and its growing dominance in the global AI race.

Elon Musk, who co-founded OpenAI in 2015 before later distancing himself from the organization, has become one of its fiercest critics following the explosive rise of ChatGPT and generative AI technologies.

The dispute has evolved into one of Silicon Valley’s most closely watched rivalries, with Musk launching his own AI venture, xAI, to compete directly against OpenAI.

Legal analysts say the ruling could strengthen OpenAI’s position as it continues expanding commercial AI products, enterprise partnerships and global infrastructure investments.

The case also highlighted growing tensions within the AI industry over governance, transparency and the concentration of advanced AI capabilities among a handful of major technology firms.

OpenAI has repeatedly defended its restructuring efforts, arguing that large-scale investment is necessary to fund increasingly expensive AI research, computing infrastructure and safety development.

The legal defeat comes amid intensifying global competition in artificial intelligence, where companies including Google, Meta and Anthropic are racing to dominate the next generation of AI systems.