A federal judge in California has ruled that Elon Musk’s lawsuit against OpenAI and CEO Sam Altman can proceed to a jury trial, rejecting the company’s attempt to have the case dismissed. The decision paves the way for a high-profile courtroom showdown centered on allegations of betrayal, broken promises, and the future of artificial intelligence.
U.S. District Judge Yvonne Gonzalez Rogers made the announcement during a hearing on Wednesday, stating that Musk’s claims presented sufficient evidence—both direct and circumstantial—to warrant trial. The case is now scheduled to move forward in March.
Musk’s lawsuit, filed in 2024, accuses OpenAI of abandoning its original nonprofit mission in favor of profit-driven partnerships, particularly with Microsoft. Musk claims he contributed $38 million to OpenAI under the belief that the organization was committed to using AI for the benefit of humanity, not commercial exploitation.
At the center of the dispute is OpenAI’s evolving structure. Musk argues that the leadership misled him and other donors by secretly shifting the company’s direction while continuing to promote a nonprofit image. He is seeking monetary compensation as well as a ruling that would invalidate OpenAI’s licensing deal with Microsoft.
Judge Gonzalez Rogers emphasized that the evidence suggests OpenAI made specific commitments regarding its nonprofit status that may have been concealed or misrepresented. She noted that while OpenAI’s legal team offered strong rebuttals, the facts in dispute must be resolved by a jury.
OpenAI denies any wrongdoing, arguing that Musk was aware of structural changes as early as 2018 and claiming his lawsuit is part of a broader pattern of harassment. A company spokesperson called the case meritless and reiterated support for the OpenAI Foundation, describing it as one of the most well-funded nonprofit organizations in the world.
Musk’s attorney, Steven Molo, welcomed the court’s decision and said the legal team is prepared to present detailed evidence of misconduct at trial. The case highlights the growing tension between profit and public trust in the artificial intelligence sector, with one of Silicon Valley’s most powerful voices seeking to hold a once-collaborative venture accountable.
This lawsuit is one of multiple legal actions Musk has initiated against OpenAI. In September, his company xAI filed a separate suit alleging misappropriation of proprietary information and recruitment of its employees. OpenAI called that case another example of Musk’s attempts to undermine the company’s leadership.
The relationship between Musk and OpenAI dates back to 2015, when he helped found the organization. He left in 2018, citing conflicts with Tesla’s own AI development, but has since become one of OpenAI’s most outspoken critics.
