A federal judge rules that there is sufficient evidence to weigh Elon Musk’s claims that the AI giant betrayed its founding non-profit mission.
- Green Light for Trial: A US judge has rejected OpenAI’s attempt to dismiss the case, ruling that there is enough evidence of broken promises regarding the company’s non-profit structure to proceed to a jury trial in March.
- The Core Betrayal: Musk alleges that he contributed millions based on assurances that OpenAI would remain dedicated to public benefit, accusing leadership of pivoting to a for-profit model to enrich themselves and Microsoft.
- A Clash of Titans: The legal dispute highlights a fierce rivalry in the generative AI market, with OpenAI dismissing the suit as “baseless harassment” from a frustrated competitor, while Musk seeks damages for “ill-gotten gains.”
The high-stakes legal showdown between the world’s richest man and the world’s most prominent AI company is officially moving to the courtroom. A US district judge has ruled that Elon Musk’s lawsuit against OpenAI and its CEO, Sam Altman, will go to trial, rejecting the company’s bid to have the case thrown out. The decision marks a significant procedural victory for Musk, who accuses the ChatGPT developer of abandoning its founding humanitarian mission in favor of profit.
“Plenty of Evidence”
During a hearing in Oakland, California, US District Judge Yvonne Gonzalez Rogers stated that there was “plenty of evidence” to suggest that OpenAI’s leaders had indeed made assurances to Musk that the organization’s original non-profit structure would be maintained. Rather than deciding the complex issues herself, Judge Rogers determined that there were enough disputed facts to allow a jury to consider the claims.
The trial is currently scheduled for March. While lawyers for OpenAI urged the judge to enter a judgment against Musk—arguing he failed to show a factual basis for fraud or breach of contract—Rogers maintained that the factual disputes required a jury’s deliberation. She noted that she would issue a written order detailing the ruling soon.
The Allegations: Mission vs. Money
At the heart of the lawsuit is Musk’s contention that he was misled during OpenAI’s formative years. As a co-founder, Musk claims he contributed approximately $38 million (£28 million)—roughly 60% of the organization’s early funding—along with strategic guidance and credibility. He argues this support was given strictly based on promises that OpenAI would remain a non-profit dedicated to the benefit of humanity.
Musk’s legal team accuses co-founders Sam Altman and Greg Brockman of plotting a switch to a for-profit model to enrich themselves, a shift solidified by multi-billion dollar deals with Microsoft and recent corporate restructuring. Musk is seeking unspecified monetary damages for what he terms “ill-gotten gains.”
Steven Molo, a lead trial attorney for Musk, expressed confidence following the hearing, stating, “We look forward to presenting all the evidence of the defendants’ wrongdoing to the jury.”
OpenAI’s Defense: Harassment from a Competitor
OpenAI has vehemently denied the allegations, framing the lawsuit not as a principled stand for non-profit ethics, but as a strategic attack by a rival. In a statement released after the hearing, the company described the lawsuit as “baseless and a part of [Musk’s] ongoing pattern of harassment.” They characterize Musk as “a frustrated commercial competitor seeking to slow down a mission-driven market leader.”
The defense also argues that Musk failed to bring his allegations in a timely manner. This procedural defense will also be tested in court; Judge Rogers indicated that the jury would be asked to weigh whether the lawsuit was filed outside the statute of limitations.
The Broader AI Showdown
This courtroom dispute is playing out against the backdrop of an intense battle for dominance in the generative artificial intelligence market. Musk’s own AI company, xAI, and its chatbot Grok are in direct competition with OpenAI’s ChatGPT.
The lawsuit also implicates OpenAI’s biggest backer, Microsoft. Although Microsoft urged the judge to dismiss claims against it—arguing there was no evidence it “aided and abetted” OpenAI’s alleged wrongdoing—the tech giant remains a defendant in the wider controversy.
As the March trial date approaches, the tech world will be watching closely. The outcome could have profound implications not just for the parties involved, but for the governance and future commercialization of artificial intelligence.