Washington | A U.S. federal judge has cleared the way for a jury trial in billionaire entrepreneur Elon Musk’s lawsuit against OpenAI, ruling that there is sufficient evidence for jurors to examine claims that the ChatGPT maker abandoned its founding nonprofit mission in pursuit of profit.
The ruling, delivered on Wednesday by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, is a significant setback for OpenAI, which had sought dismissal of the case. The judge said the dispute raises factual questions that cannot be resolved without a trial, which is now scheduled for March.
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At the heart of the lawsuit is Musk’s allegation that OpenAI — founded in 2015 as a nonprofit research organisation — violated its original commitment to serve the public interest by restructuring itself into a for-profit enterprise. OpenAI has strongly denied the claims, calling the lawsuit meritless and motivated by competitive rivalry.
Court sees evidence of assurances on nonprofit mission
During the hearing, Judge Gonzalez Rogers said the record contained “plenty of evidence” suggesting that OpenAI’s leadership had made assurances that the organisation’s nonprofit structure would be preserved.
“There are enough disputed facts here that a jury should decide them,” the judge said, rejecting OpenAI’s request for summary judgment. She added that a written order addressing OpenAI’s arguments would follow.
One key issue for the jury, the judge noted, would be whether Musk filed the lawsuit within the applicable statute of limitations — a procedural defence OpenAI has raised.
From nonprofit idealism to commercial dominance
Musk was a co-founder of OpenAI and played a central role in its early funding and strategic direction. The organisation was launched with the stated goal of ensuring that artificial general intelligence would benefit humanity, not private shareholders.
Musk left OpenAI in 2018 and has since emerged as a direct competitor through his artificial intelligence startup xAI, whose chatbot Grok competes with OpenAI’s products.
According to the lawsuit, Musk contributed approximately $38 million, accounting for nearly 60% of OpenAI’s early funding, along with industry credibility and strategic guidance. He says those contributions were made based on assurances that OpenAI would remain a nonprofit entity dedicated to the public good.
Musk is seeking unspecified monetary damages, describing them as recovery of “ill-gotten gains” arising from OpenAI’s alleged departure from its founding principles.
Allegations against OpenAI leadership
The lawsuit accuses OpenAI’s top executives — including co-founders Sam Altman and Greg Brockman — of engineering a shift toward a for-profit structure to enrich themselves. Musk claims this transformation culminated in multibillion-dollar commercial arrangements, most notably OpenAI’s deepening partnership with Microsoft.
Musk alleges fraud and breach of contract, arguing that OpenAI’s leadership pursued commercial dominance at the expense of commitments made to its founders and early backers.
OpenAI, Altman and Brockman have denied wrongdoing, portraying Musk as “a frustrated commercial competitor seeking to slow down a mission-driven market leader.”
Microsoft pushes back
Microsoft, which is named as a defendant in the lawsuit, has asked the court to dismiss the claims against it. A lawyer representing the company told the court there was no evidence Microsoft had “aided or abetted” any alleged misconduct by OpenAI.
The company did not immediately respond to requests for comment following the hearing.
OpenAI rejects allegations
In a statement issued after the court session, OpenAI said it remained confident in its position.
“Mr. Musk’s lawsuit continues to be baseless and part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial,” the company said.
Musk’s company xAI did not issue an immediate public response.
Legal teams prepare for trial
Steven Molo, a senior trial lawyer representing Musk and xAI, welcomed the judge’s decision, saying it would allow the case to be tested before a jury.
“We look forward to presenting all the evidence of the defendants’ wrongdoing to the jury,” Molo said.
Wider implications for the AI industry
The lawsuit unfolds amid an intense global contest for leadership in generative artificial intelligence, a sector reshaping technology, business and geopolitics. Legal experts say the case could set an important precedent for how nonprofit-founded technology organisations are allowed to evolve into profit-driven enterprises.
With a jury trial now confirmed, OpenAI’s internal communications, governance decisions and funding arrangements are likely to face unprecedented scrutiny — not just in court, but across an industry grappling with the balance between public mission and private power.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
