TL;DR
A federal judge denied motions to dismiss a lawsuit brought by Elon Musk against OpenAI and Microsoft, scheduling a jury trial for late April in Oakland. Musk alleges OpenAI abandoned its original nonprofit mission after taking large investments from Microsoft; OpenAI and Microsoft say the case is baseless.
What happened
A federal judge refused requests from OpenAI and Microsoft to throw out Elon Musk’s lawsuit, clearing the way for a jury trial slated for late April in an Oakland courtroom. Musk’s complaint centers on his claim that OpenAI, which he co-founded in 2015 with Sam Altman and others as a nonprofit, betrayed that founding mission by accepting substantial funds from Microsoft and reorganizing with for-profit elements. Musk left OpenAI and launched xAI in 2023. OpenAI has pushed back, calling the lawsuit without merit and accusing Musk of using litigation to slow the company. The judge determined there was enough evidence to let jurors weigh whether OpenAI violated its nonprofit commitments and whether Microsoft knowingly assisted any breach. However, the court dismissed Musk’s separate assertion that Microsoft was unjustly enriched at his expense.
Why it matters
- A jury decision could clarify legal limits on nonprofits that later form for-profit partnerships or attract large corporate investments.
- The case places a major AI industry partnership—OpenAI and Microsoft—under judicial scrutiny, which may affect future commercial deals and governance choices.
- Outcome could influence investor and public perceptions of how AI labs balance mission-driven goals with lucrative corporate relationships.
- The litigation increases uncertainty for competitive dynamics among leading AI developers, especially as former collaborators become rivals.
Key facts
- A federal judge denied motions to dismiss filed by OpenAI and Microsoft.
- The case is set for a jury trial in late April in an Oakland federal courtroom.
- Elon Musk filed the lawsuit alleging OpenAI abandoned its nonprofit commitments after taking billions from Microsoft and restructuring.
- OpenAI was co-founded in 2015 by Musk, Sam Altman and others as a nonprofit entity.
- Musk left OpenAI and founded xAI in 2023.
- The judge ruled there is sufficient evidence for a jury to decide whether OpenAI violated nonprofit promises.
- A jury will also consider whether Microsoft knowingly assisted OpenAI in breaching those commitments.
- The court dismissed Musk’s claim that Microsoft was unjustly enriched.
What to watch next
- The jury trial scheduled for late April in Oakland and the evidence presented there.
- Whether jurors find that OpenAI breached its nonprofit obligations.
- Whether the jury concludes Microsoft knowingly aided any alleged breach.
Quick glossary
- Jury trial: A legal proceeding in which a group of citizens determines facts and renders a verdict under law.
- Nonprofit: An organization that operates for purposes other than generating profits for private owners or shareholders.
- Unjust enrichment: A legal claim that one party unfairly benefited at another’s expense; remedies vary by case and jurisdiction.
- OpenAI: A research lab and company focused on artificial intelligence; founded in 2015 with both nonprofit and later commercial elements.
- Microsoft: A large technology company that has invested in and partnered with several AI developers.
Reader FAQ
What did the judge rule?
The judge denied dismissal motions and set the case for a jury trial in late April.
What is Elon Musk alleging?
He says OpenAI abandoned its nonprofit mission after taking large investments from Microsoft and restructuring; he filed suit over that conduct.
Is Microsoft accused of wrongdoing?
The judge allowed a juror to decide whether Microsoft knowingly helped OpenAI breach its promises, but rejected Musk’s unjust enrichment claim against Microsoft.
Will the case settle before trial?
not confirmed in the source
IN BRIEF Posted: 10:45 PM PST · January 15, 2026 IMAGE CREDITS: PHOTOPSIST / GETTY IMAGES Connie Loizos Silicon Valley’s messiest breakup is definitely headed to court OpenAI and Microsoft…
Sources
- Silicon Valley’s messiest breakup is definitely headed to court
- OpenAI, Microsoft lose last chance to avoid trial with Musk
- OpenAI, Microsoft Lose Last Chance to Avoid Trial With Musk
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