Elon Musk's Lawsuit Accusing ChatGPT-Maker OpenAI Of Betraying Its Nonprofit Mission Can Go To Trial, Judge Rules

On Wednesday, a U.S. judge ruled that Elon Musk's lawsuit accusing OpenAI of abandoning its founding nonprofit mission in favor of profit-driven restructuring will proceed to a jury trial.

Judge Clears Path For Jury Trial In OpenAI Lawsuit

Speaking at a hearing in Oakland, California, U.S. District Judge Yvonne Gonzalez Rogers said there is sufficient evidence for a jury to hear the case, Reuters reported.

She said jurors should decide whether OpenAI violated commitments it allegedly made to remain a nonprofit organization.

The trial is scheduled for March. Gonzalez Rogers said she will later issue a written order addressing OpenAI's request to throw out the case.

Musk Claims OpenAI Broke Founding Promises

Musk, who co-founded OpenAI in 2015 and left the organization in 2018, alleges he provided about $38 million — roughly 60% of its early funding — based on assurances the company would operate as a nonprofit dedicated to the public good.

The lawsuit accuses OpenAI co-founders Sam Altman and Greg Brockman of orchestrating a shift toward a for-profit model to enrich themselves, pointing to multibillion-dollar commercial deals, including OpenAI's partnership with Microsoft Corp (NASDAQ:MSFT).

Musk is seeking unspecified monetary damages, which he describes as "ill-gotten gains."

OpenAI, Microsoft Push Back Against Allegations

OpenAI, Altman and Brockman have denied the claims, characterizing Musk as a commercial rival attempting to undermine a leading AI company.

Last year, OpenAI's board turned down a $97.4 billion takeover offer from Musk and a group of his investors.

In a statement following the hearing, OpenAI said Musk's lawsuit is "baseless" and part of a pattern of harassment.

Microsoft, also named as a defendant, urged the court to dismiss the claims against it, arguing there is no evidence it aided or abetted any alleged misconduct.

Meanwhile, Musk's AI startup xAI has surpassed expectations after raising $20 billion in a Series E funding round.

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