Elon Musk’s legal case against OpenAI is scheduled to be heard by a jury in March

Elon Musk’s Lawsuit Against OpenAI Moves Forward

A U.S. judge has determined that there is sufficient evidence for Elon Musk’s legal action against OpenAI to proceed to trial. Musk’s lawsuit targets OpenAI and its co-founders, Sam Altman and Greg Brockman, accusing them of abandoning the company’s original nonprofit mission in favor of pursuing financial gain.

Background of the Dispute

Elon Musk, who helped establish OpenAI and provided significant early funding, stepped down from the board in 2018 after his attempt to become CEO was declined in favor of Sam Altman. Musk officially cited potential conflicts with Tesla’s AI initiatives as his reason for leaving.

Since his departure, Musk has become an outspoken opponent of OpenAI’s shift toward a for-profit structure. He even made an unsolicited $97.4 billion offer to acquire the company in early 2025, which was rejected by Altman. OpenAI, which began as a nonprofit research organization in 2015, started transitioning in 2019 by forming a for-profit subsidiary with capped returns for investors. This move was intended to attract the substantial funding and talent required for its growth.

Recent Developments

Musk’s legal efforts did not prevent OpenAI from completing its restructuring. By October 2025, OpenAI had finalized its transformation, with the for-profit arm becoming a Public Benefit Corporation and the original nonprofit retaining a 26% ownership stake.

Currently, Musk is seeking financial compensation, claiming that OpenAI’s profits were gained improperly. He asserts that his investment of approximately $38 million, along with his support and reputation, was based on the promise that OpenAI would remain a nonprofit entity.

Judge’s Ruling and Upcoming Trial

District Judge Yvonne Gonzalez Rogers stated that evidence suggests OpenAI’s leadership assured Musk that the nonprofit structure would be preserved. As a result, a jury trial has been scheduled for March.

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