Elon Musk vs OpenAI set for jury trial after judge rejects dismissal bid

Sam Altman, Elon Musk

• Judge says Musk's lawsuit against OpenAI will go to jury trial in March
• Musk claims OpenAI misled him about its nonprofit goals and Microsoft partnership.
• OpenAI denies claims, calls lawsuit baseless and part of harassment pattern

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A courtroom showdown between Sam Altman and Elon Musk is now all but confirmed, after a California judge said she plans to reject OpenAI’s attempt to dismiss Musk’s lawsuit.

During a hearing on Wednesday, US District Judge Yvonne Gonzalez Rogers said the case would proceed to a jury trial, adding that there was enough evidence for Musk’s claims to be tested in court. “This case is going to trial,” she said, describing the evidence as circumstantial but sufficient.

What Musk is alleging

Musk’s lawsuit, filed in 2024, accuses OpenAI of misleading him about its long-term direction after it moved away from its original nonprofit structure towards a profit-driven model. Central to the dispute is OpenAI’s partnership with Microsoft, which Musk argues violates the organisation’s founding mission to develop AI for the benefit of humanity.

Musk claims he donated around $38 million to OpenAI over the years based on assurances that the nonprofit structure would be preserved. He is seeking monetary damages and is also asking the court to void Microsoft’s licensing agreement with OpenAI.

Judge says jury should decide

At the hearing, the judge said there was evidence that Musk may have been deceived, citing assurances and promises about OpenAI’s structure that were allegedly not fully disclosed. At the same time, she noted that OpenAI’s defence also has strong arguments, concluding that the matter should ultimately be decided by a jury. The trial is scheduled for March.

OpenAI has strongly denied Musk’s allegations, arguing that he was aware of its for-profit ambitions as early as 2018. The company has also stressed that it remains controlled by its nonprofit arm.

An OpenAI spokesperson described the lawsuit as baseless and part of a broader pattern of harassment, saying the company looks forward to presenting its case at trial.

Musk’s lawyer, Steven Molo, welcomed the ruling and said the team is eager to present evidence of what it claims is wrongdoing by OpenAI and its leadership, as per a report by Business Insider.

Musk co-founded OpenAI in 2015 but left in 2018, citing potential conflicts with Tesla’s AI work. Since then, he has become one of OpenAI’s most vocal critics and launched his own AI company, xAI, in 2023. Musk and xAI have filed multiple lawsuits against OpenAI, including a separate case accusing it of trade secret theft and aggressive recruitment.