Musk OpenAI Lawsuit Cleared for Jury Trial

A U.S. judge ruled that Elon Musk’s lawsuit against OpenAI can proceed to trial, citing evidence supporting his claims. Musk alleges the company abandoned its nonprofit mission in favor of profit-driven operations.

By Maria Konash Published: Updated:

A U.S. federal judge has allowed Elon Musk’s lawsuit against OpenAI and its co-founders Sam Altman and Greg Brockman to proceed to a jury trial, finding evidence that could support Musk’s claims. District Judge Yvonne Gonzalez Rogers said there are indications OpenAI leaders made assurances that the organization would maintain its original nonprofit structure. A trial is tentatively scheduled for March.

Musk sued in 2024, alleging OpenAI violated early agreements by shifting toward profit-driven operations rather than its founding mission to develop AI for the public good. Musk was an early financial backer and co-founder, investing about $38 million before leaving the board in 2018. He has since criticized OpenAI’s transition, including its creation of a capped-profit subsidiary in 2019 and its 2025 restructuring into a Public Benefit Corporation, with the original nonprofit retaining a minority stake.

Musk is seeking monetary damages tied to what he describes as improperly generated profits. OpenAI has denied the claims, calling the lawsuit baseless. The case highlights growing legal scrutiny over governance, accountability, and commercialization strategies in large AI organizations.

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