TL;DR
A U.S. judge found evidence supporting Elon Musk’s claim that OpenAI leaders made assurances about maintaining a nonprofit structure, and has scheduled a jury trial for March. Musk, a co-founder and early backer, seeks monetary damages; OpenAI calls the suit baseless.
What happened
District Judge Yvonne Gonzalez Rogers ruled there is evidence that OpenAI’s leadership made assurances about preserving its original nonprofit structure, supporting Elon Musk’s claims and allowing the case to proceed to a jury trial in March. Musk filed the lawsuit in 2024 against OpenAI and co-founders Sam Altman and Greg Brockman, alleging they abandoned contractual commitments by shifting toward profit-seeking arrangements rather than the nonprofit mission to develop beneficial AI. Musk, who helped fund and co-found OpenAI and later launched xAI, left the lab’s board in 2018 citing potential conflicts. He says he contributed roughly $38 million early on and provided guidance and credibility based on promises the organization would remain a nonprofit. OpenAI has described the lawsuit as baseless and part of an ongoing pattern of harassment. The company completed a formal restructuring in October 2025 that left the for-profit branch as a Public Benefit Corporation while the original nonprofit retained a 26% equity stake.
Why it matters
- The trial will test legal claims about governance commitments made during the creation and restructuring of AI organizations.
- Its outcome could influence how founders, funders and startups document and enforce promises about nonprofit or public-benefit missions.
- A ruling against OpenAI could carry financial consequences and shape investor and public trust in AI labs that shift business models.
- The case spotlights tensions between rapid AI scaling, funding needs, and organizational structures meant to protect public-interest aims.
Key facts
- Judge: District Judge Yvonne Gonzalez Rogers found evidence supporting Musk’s claim about nonprofit assurances.
- Trial: A jury trial has been scheduled for March (tentatively set).
- Plaintiff and defendants: Elon Musk sued OpenAI and co-founders Sam Altman and Greg Brockman in 2024.
- Musk’s role: He was an early backer and co-founder of OpenAI and left the board in 2018, citing potential conflicts.
- Investment claim: Musk says he invested about $38 million in early funding and provided guidance and credibility.
- Corporate history: OpenAI was founded in 2015 as a nonprofit research lab and created a for-profit subsidiary with a capped-profit model in 2019.
- Restructuring: In October 2025 OpenAI completed a formal restructuring; the for-profit branch became a Public Benefit Corporation and the original nonprofit retained a 26% equity stake.
- Other actions: Musk launched his own for-profit company xAI and made an unsolicited $97.4 billion bid to buy OpenAI in February 2025, which Altman rejected.
- OpenAI response: An OpenAI spokesperson told TechCrunch the lawsuit is baseless and part of a pattern of harassment.
What to watch next
- The March jury trial date and whether the court proceeds on that schedule (confirmed in the source).
- Whether the jury finds that OpenAI’s leaders made enforceable assurances about preserving a nonprofit structure (not confirmed in the source).
- Potential monetary damages Musk might obtain and any resulting settlement or remediation (not confirmed in the source).
Quick glossary
- Public Benefit Corporation: A corporate form that allows a company to pursue profit while also committing to produce a public benefit; legal duties can include balancing shareholders and the stated public purpose.
- Nonprofit: An organization structured to pursue a mission without distributing profits to owners; surplus funds are typically reinvested to support the mission.
- Capped-profit model: A business arrangement where investor returns are limited to a predetermined cap, aiming to attract capital while constraining profit distribution.
- Jury trial: A legal proceeding in which a group of citizens (the jury) evaluates evidence and renders a verdict on disputed facts.
Reader FAQ
What is Musk accusing OpenAI of?
He alleges OpenAI’s leaders broke promises to maintain a nonprofit structure and pursued profit instead, and he is seeking monetary damages.
When will the case go to trial?
A jury trial has been scheduled for March (as reported by the judge).
How much did Musk say he invested in OpenAI?
Musk says he invested about $38 million in early funding.
Will OpenAI be forced to change its structure as a result of the lawsuit?
not confirmed in the source
Elon Musk’s lawsuit against OpenAI will go to trial after a U.S. judge said there is evidence to support the billionaire’s case. Musk sued OpenAI and its co-founders Sam Altman…
Sources
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