Key Points
The lawsuit between Elon Musk and Sam Altman has concluded, allowing both billionaires to focus fully on preparing their respective companies for public listings. SpaceX is set to file its IPO prospectus as early as this week, while OpenAI, led by Altman, is targeting a market debut later this year. Gene Munster, an analyst at Deepwater Asset Management, stated: "Now they can both fully concentrate on building massive commercial empires powered by artificial intelligence."
On April 30, 2026, in Oakland, California, Elon Musk appeared at the Ronald V. Dellums Federal Courthouse. On Monday, Musk lost his lawsuit against OpenAI CEO Sam Altman, bringing a temporary end to the legal dispute between the former friends and co-founders. As both companies prepare for what could be historic initial public offerings, a larger commercial rivalry between the two figures is now underway. In February, following its merger with AI startup xAI, SpaceX reached a valuation of $1.25 trillion. The company plans to release its IPO prospectus as early as this week. OpenAI, which Musk helped found in 2015 before a falling-out led to the lawsuit, is now valued at over $850 billion and aims to go public within the year. Historically, only two tech companies, Facebook and Alibaba, have achieved market capitalizations exceeding $100 billion on their first day of trading. Gene Munster, Managing Partner at Deepwater Asset Management, commented in an interview: "The courtroom drama is over. The real show now is how these two companies will leverage AI to build vast commercial ecosystems." Both SpaceX and OpenAI have complex development histories. Investors' willingness to enter at high valuations stems largely from confidence in their core leadership—particularly figures like Musk, the world's wealthiest individual, and Altman, a controversial leader who was briefly ousted by his company's board less than three years ago. In recent weeks, the legal case disrupted the competitive landscape in the race for advanced AI models and technology, bringing the two industry leaders face-to-face in a federal courtroom in Oakland, California. Musk formally sued OpenAI and Altman in 2024, accusing them of abandoning their original non-profit mission. The two sides have frequently traded public barbs over the past two years. On Monday, an advisory jury ruled that Musk's claims were barred by the statute of limitations, and the district court judge adopted that ruling. The court did not rule on the merits of Musk's breach-of-charitable-trust allegations, only that the lawsuit was filed too late. Musk's attorneys stated they would appeal to the U.S. Court of Appeals for the Ninth Circuit. Musk himself posted on social media platform X, asserting that the loss was merely a procedural outcome based on timing. He wrote: "Anyone who understands this case knows that Altman and Brockman did use a charity for personal gain. The only question is when they started." Public Perception: Musk's Loss Highlights Petty Grudges Longtime investor in Musk's ventures, Ross Gerber, stated bluntly that Musk's insistence on appealing worries SpaceX investors. Gerber has consistently criticized Musk for spreading himself too thin across multiple industries. Gerber said: "He has no idea how the public sees him. To outsiders, he looks like a sore loser, jealous of others' success." Furthermore, Gerber argued that Musk's claim of defending the non-profit's original mission is untenable. Previously, The New York Times reported, based on tax documents, that Musk's foundation failed to meet the minimum required charitable distribution, with most donations going to organizations closely tied to him. "The idea that Elon Musk is the guardian of American charity is a joke. He doesn't realize how absurd his statements are." Even setting aside the legal dispute, Musk faces significant challenges in finalizing SpaceX's long-term development plan. The company's core business involves government contracts for launching large, reusable rockets. This week, it plans to conduct the 12th test flight of its Starship vehicle from its Starbase facility in Texas, alongside unveiling a new iteration. SpaceX's business portfolio is vast, including the Starlink satellite internet service, the recent acquisition of AI firm xAI, ownership of social platform X, and last month's agreement to acquire AI code development company Korso for $60 billion. Musk maintains absolute control over this empire. Last week, several public pension funds managing over a trillion dollars in assets collectively wrote to SpaceX's management, expressing deep concern over the company's unusual governance structure and the risks it poses to shareholder rights. The institutions also noted that Musk's attention is divided among multiple ventures. Both SpaceX and Tesla Motors have milestone-based compensation plans, effectively competing for the founder's focus. Altman Gains Breathing Room, But IPO Path Remains Rocky The legal victory allows OpenAI to shed a significant burden, enabling Altman to refocus on operations. However, the trial also exposed numerous potential risks to prospective investors. During the trial, the plaintiff's attorneys repeatedly questioned Altman's character, accusing him of dishonesty and habitual lying. In testimony, Altman was also questioned about criticisms of his management style from industry figures, including former OpenAI employee and Anthropic co-founder Dario Amodei. Additionally, the board's brief ousting of Altman in 2023 was revisited, with the board citing a lack of candor in his communications. Altman testified that he never intentionally misled the board. A major challenge for OpenAI is its funding gap. Altman and company executives testified that developing and operating top-tier AI models requires massive capital for computing resources. The company has raised over $180 billion but continues to burn cash at a high rate. During its IPO preparations, investors are pressuring it to present a clear path to profitability. It also faces intense competition, notably from Anthropic, which is gaining significant market share in enterprise services and intelligent code. Since the trial began last month, Anthropic has aggressively expanded into enterprise AI services, financial sector AI agents, and secured a major computing center project in Memphis, Tennessee. Internal personnel changes are also demanding Altman's attention. Co-defendant and OpenAI President Greg Brockman has officially taken over product strategy. The previous lead stepped down in April due to a worsening neuroimmune condition, with Brockman temporarily assuming the role. Jake Dollarhide, CEO of Longbow Asset Management, analyzed that SpaceX will likely go public first, with Anthropic following closely, leaving OpenAI in a difficult position. "Altman's courtroom victory won't last long. If Musk's SpaceX and xAI go public first, they'll capture market favor with first-mover advantage. If OpenAI lags and Anthropic goes public soon after, as the third major AI IPO, OpenAI would be left competing for the remaining, limited investor enthusiasm."
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