Elon Musk’s lawsuit against OpenAI to go before jury in March

Elon Musk’s lawsuit against OpenAI will proceed to a jury trial after a US judge ruled that there is sufficient evidence to support the billionaire’s claims, according to a report by TechCrunch.

Elon Musk filed the lawsuit in 2024 against OpenAI and its co-founders Sam Altman and Greg Brockman, alleging that the organisation breached its original contractual commitments by prioritising profit over its founding mission to develop artificial intelligence that benefits humanity.

Musk, who has since launched his own for-profit artificial intelligence company xAI, was an early financial backer and co-founder of OpenAI. He stepped down from the OpenAI board in 2018 after his attempt to assume the role of chief executive was rejected by the other co-founders, who instead appointed Altman. At the time, Musk stated that his departure was due to potential conflicts of interest with Tesla’s artificial intelligence work on self-driving technology.

Following his exit, Musk emerged as a vocal critic of OpenAI’s shift towards a for-profit structure. In February 2025, he made an unsolicited $97.4 billion bid to acquire OpenAI, which Altman rejected. OpenAI, founded in 2015 as a nonprofit research organisation, began moving away from its purely nonprofit model in 2019 by establishing a for-profit subsidiary operating under a capped-profit structure that limited investor returns. The model was introduced to enable the company to raise substantial funding and attract top talent.

Musk’s lawsuit did not prevent OpenAI from completing its corporate restructuring. In October 2025, the organisation finalised its transition, converting its for-profit arm into a Public Benefit Corporation, while the original nonprofit entity retained a 26 per cent equity stake.

Musk is now seeking monetary damages, claiming OpenAI generated ill-gotten gains after abandoning its nonprofit commitments. He has stated that he invested approximately $38 million in early funding, along with strategic guidance and credibility, based on assurances that OpenAI would remain a nonprofit organisation.

An OpenAI spokesperson informed TechCrunch that the company considers Musk’s lawsuit to be baseless and part of an ongoing pattern of harassment.

District Judge Yvonne Gonzalez Rogers stated that her decision was based on evidence indicating that OpenAI’s leadership may have provided assurances regarding the preservation of its nonprofit structure, as alleged by Musk. A jury trial has been tentatively scheduled for March.