HomeMusk's OpenAI Lawsuit Slated for Jury Trial in March
A U.S. judge has ruled that Elon Musk's lawsuit against OpenAI can proceed to trial, finding sufficient evidence to support the billionaire's claims.
Musk filed the lawsuit in 2024 against OpenAI and its co-founders, Sam Altman and Greg Brockman. He alleges they abandoned their original nonprofit mission to develop AI for humanity's benefit, instead prioritizing profit.
An early financial backer and co-founder of OpenAI, Musk left its board in 2018 after his proposal to become CEO was declined in favor of Altman. While citing potential conflicts with Tesla's AI work, he has since launched his own for-profit AI venture, xAI.
Since his departure, Musk has been a prominent critic of OpenAI's shift toward a for-profit model. In February 2025, he made an unsolicited $97.4 billion offer to acquire the company, which Altman rejected. Originally a nonprofit research lab founded in 2015, OpenAI began evolving in 2019 by forming a capped-profit subsidiary to secure the substantial capital needed for scaling and attracting top talent.
Musk's legal action did not prevent OpenAI's restructuring. In October 2025, the company formally converted its for-profit arm into a Public Benefit Corporation, with the original nonprofit retaining a 26% equity stake.
Musk is now seeking monetary damages, claiming OpenAI profited improperly. He asserts he provided around $38 million in early funding, along with guidance and credibility, based on promises the organization would remain nonprofit.
An OpenAI spokesperson told TechCrunch that Musk's lawsuit is "baseless and part of his ongoing pattern of harassment."
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Join the Disrupt 2026 Waitlist
Secure your spot on the Disrupt 2026 waitlist for priority access to Early Bird tickets. Previous Disrupt stages have featured leaders from Google Cloud, Netflix, Microsoft, Box, Phia, a16z, ElevenLabs, Wayve, Hugging Face, Elad Gil, and Vinod Khosla. They are among 250+ industry experts leading 200+ sessions designed to accelerate your growth and competitive advantage. You'll also connect with hundreds of startups driving innovation across all sectors.
San Francisco | October 13-15, 2026 WAITLIST NOW District Judge Yvonne Gonzalez Rogers stated her ruling was based on evidence indicating OpenAI's leadership assured Musk the original nonprofit framework would be preserved. A jury trial is tentatively set for March.
This article has been updated with commentary from OpenAI.
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A U.S. judge has ruled that Elon Musk's lawsuit against OpenAI can proceed to trial, finding sufficient evidence to support the billionaire's claims.
Musk filed the lawsuit in 2024 against OpenAI and its co-founders, Sam Altman and Greg Brockman. He alleges they abandoned their original nonprofit mission to develop AI for humanity's benefit, instead prioritizing profit.
An early financial backer and co-founder of OpenAI, Musk left its board in 2018 after his proposal to become CEO was declined in favor of Altman. While citing potential conflicts with Tesla's AI work, he has since launched his own for-profit AI venture, xAI.
Since his departure, Musk has been a prominent critic of OpenAI's shift toward a for-profit model. In February 2025, he made an unsolicited $97.4 billion offer to acquire the company, which Altman rejected. Originally a nonprofit research lab founded in 2015, OpenAI began evolving in 2019 by forming a capped-profit subsidiary to secure the substantial capital needed for scaling and attracting top talent.
Musk's legal action did not prevent OpenAI's restructuring. In October 2025, the company formally converted its for-profit arm into a Public Benefit Corporation, with the original nonprofit retaining a 26% equity stake.
Musk is now seeking monetary damages, claiming OpenAI profited improperly. He asserts he provided around $38 million in early funding, along with guidance and credibility, based on promises the organization would remain nonprofit.
An OpenAI spokesperson told TechCrunch that Musk's lawsuit is "baseless and part of his ongoing pattern of harassment."
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San Francisco | October 13-15, 2026 WAITLIST NOWDistrict Judge Yvonne Gonzalez Rogers stated her ruling was based on evidence indicating OpenAI's leadership assured Musk the original nonprofit framework would be preserved. A jury trial is tentatively set for March.
This article has been updated with commentary from OpenAI.
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