Elon Musk has won the right to take his fight with OpenAI to a jury, after a U.S. judge ruled that his claims over the company’s shift toward a for-profit model raise factual disputes too serious to dismiss.
At a hearing in Oakland, a federal judge said the record contains substantial evidence suggesting OpenAI’s leadership once gave assurances that the organization would remain anchored to its original nonprofit mission. Those competing accounts, the court concluded, belong before a jury rather than being settled by a judge at this stage.
The decision keeps alive Musk’s lawsuit accusing OpenAI of abandoning its founding promise in pursuit of commercial gain. A trial is now slated for March, with a written order expected to formally reject OpenAI’s attempt to end the case early.
Musk helped launch OpenAI in 2015 but exited three years later. He now runs xAI, a rival artificial intelligence company, placing the dispute squarely within an intensifying battle for dominance in generative AI. In court filings, Musk argues that he poured roughly $38 million into OpenAI’s early days—about 60% of its initial funding—along with strategic guidance and credibility, based on representations that it would operate as a nonprofit for the public good.
The lawsuit alleges that OpenAI’s top executives orchestrated a pivot toward profit, ultimately enabling massive commercial arrangements, including multibillion-dollar deals with Microsoft. Musk is seeking damages tied to what he describes as improperly obtained gains.
OpenAI has pushed back forcefully, rejecting the accusations as unfounded and portraying Musk as a disgruntled competitor trying to slow a fast-moving rival. The company maintains that its restructuring was lawful and mission-driven, even as it expanded commercial partnerships.
Microsoft, also named in the case, has argued there is no evidence it played any role in wrongdoing, insisting it did not assist or encourage any alleged misconduct. The court declined to remove it from the case at this stage.
Another issue now headed to the jury is timing. OpenAI contends Musk waited too long to sue, potentially running afoul of legal deadlines. The judge said jurors will be asked to decide whether the claims were brought within the allowable period.
For Musk, the ruling marks a crucial opening. For OpenAI, it means a public trial that could place its origin story—and its evolution—under a microscope, just as artificial intelligence becomes one of the most contested frontiers in global technology.
