OpenAI Eyes IPO, Musk Loses Lawsuit, AI Backlash Grows

OpenAI is preparing to confidentially file for an initial public offering as soon as Friday, marking a pivotal moment for the AI industry just days after a jury dismissed Elon Musk’s $150 billion lawsuit against the company. Meanwhile, a growing backlash among college graduates against AI has highlighted deepening public anxiety over job displacement, creating a complex picture of an industry at a crossroads.

A Landmark IPO on the Horizon

OpenAI is working with investment banks Goldman Sachs and Morgan Stanley to file a draft IPO prospectus with the Securities and Exchange Commission as soon as May 22, according to CNBC. The company, currently valued at more than $850 billion by private investors, could command a valuation of up to $1 trillion in what would be one of the largest public market debuts in Silicon Valley history.

The confidential filing process allows OpenAI to submit draft registration statements to the SEC without immediate public disclosure, giving the company flexibility to test market reception. OpenAI has not officially confirmed the timeline, stating only that it “regularly evaluate[s] a range of strategic options” and that its “focus remains on execution,” according to a company representative cited by CNBC.

Musk’s Lawsuit Dismissed on Procedural Grounds

The IPO preparations come on the heels of a significant legal victory for OpenAI. On Monday, a nine-person jury in Oakland federal court unanimously dismissed Elon Musk’s lawsuit against OpenAI, CEO Sam Altman, President Greg Brockman, and Microsoft, finding that Musk had missed the three-year statute of limitations window to file his claim. The jury deliberated for approximately 90 minutes before reaching its verdict, which Judge Yvonne Gonzalez accepted immediately, as reported by CBS News.

Musk, who co-founded OpenAI in 2015 and invested $38 million, had sought $150 billion in damages, Altman’s removal from the board, and the unwinding of OpenAI’s for-profit restructuring. He argued that the company had breached its original charitable mission by creating a for-profit subsidiary in 2019 and partnering with Microsoft.

OpenAI attorney William Savitt called the lawsuit “a hypocritical attempt to sabotage a competitor,” while Musk vowed to appeal, calling the ruling a “calendar technicality” in a post on X. The jury never ruled on the merits of the case, leaving unresolved the fundamental question of whether OpenAI violated its charitable trust.

The Trial’s Revealing Testimony

The three-week trial laid bare the fractured relationship between two of Silicon Valley’s most prominent figures. Altman testified that Musk “wanted to be CEO” of OpenAI and that he was “extremely uncomfortable” with the idea, according to NPR. When asked if he was “completely trustworthy,” Altman hesitated before responding, “I believe I am an honest and trustworthy businessperson.”

Microsoft, which generated $9.5 billion in revenue from its OpenAI partnership as of March 2025, welcomed the verdict. WedBush Securities analyst Dan Ives noted that the ruling “takes a worst-case scenario off the table” for OpenAI’s IPO ambitions.

AI Backlash Erupts at Commencement Ceremonies

As OpenAI navigates its corporate future, a different kind of reckoning is unfolding on college campuses across the United States. University of Arizona students jeered former Google CEO Eric Schmidt during his commencement speech on May 17 when he discussed AI’s future, according to CBS News. Commencement speakers at the University of Central Florida and Middle Tennessee State University received similar reactions.

“His speech was incredibly disrespectful to students,” said Olivia Malone, a 22-year-old University of Arizona graduate. “We as students are discouraged from using it and penalized for using it. And then to have our speaker be the champion of AI is just like, OK? Why?”

The protests reflect a broader anxiety. Gallup data shows that only 43% of people ages 15 to 34 think it’s a good time to find a job, down from 75% in 2022. The unemployment rate for 20- to 24-year-olds stood at 7.6% in April 2026, well above the national average of 4.3%.

A Deepening Trust Gap

Pew Research Center data reveals a striking disconnect between AI experts and the general public: 73% of AI experts believe AI will have a positive impact on work, compared to just 23% of U.S. adults. CBS News polling found that 42% of Americans think AI will eliminate jobs in their field, while 45% believe AI companies will hurt the economy.

Goldman Sachs research shows that job openings in occupations highly exposed to AI are now below pre-pandemic levels, affecting roles such as legal assistants, proofreaders, and insurance claims clerks. Meanwhile, LinkedIn added 639,000 AI-related job postings in the U.S. between 2023 and 2025, suggesting the technology is reshaping the labor market even as it creates new opportunities.

What Lies Ahead

OpenAI’s IPO, if it proceeds, will test investor appetite for AI companies at valuations that would have seemed unthinkable just a few years ago. The company faces stiff competition from Anthropic, which is reportedly in talks to raise funds at a $900 billion valuation. Musk’s planned appeal adds an element of uncertainty, though legal experts note that procedural dismissals are difficult to overturn.

For the broader public, the tensions on display — between AI’s promise and its perils, between expert optimism and public skepticism — are unlikely to resolve quickly. As economist Dean Baker of the Center for Economic and Policy Research cautioned, drawing parallels to the dot-com era: “The part of the story that we can be certain about is that, as was the case with the last two bubbles, the economic forecasters will miss it.”