By Micah Jonah
January 8, 2026
A U.S. judge has allowed a jury trial to proceed in Elon Musk’s lawsuit, alleging that OpenAI violated its founding mission by converting into a for-profit entity.
Musk, a co-founder of OpenAI in 2015 who left the company in 2018, now runs xAI, an AI company competing with OpenAI. The lawsuit claims Musk contributed about $38 million, roughly 60 percent of OpenAI’s early funding, along with strategic guidance, based on assurances that the organization would remain a nonprofit, dedicated to public benefit.
The legal action names OpenAI co-founders Sam Altman and Greg Brockman, as well as Microsoft, as defendants. Musk alleges that Altman and Brockman orchestrated the for-profit switch to enrich themselves, culminating in multibillion-dollar deals with Microsoft and a recent restructuring. Musk is seeking unspecified monetary damages from what he calls “ill-gotten gains” by OpenAI.
U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, said there is sufficient evidence suggesting OpenAI made assurances that it would maintain its nonprofit structure. She ruled that disputed facts should be resolved by a jury at a trial scheduled for March rather than by the court. The jury will also consider whether the lawsuit was filed within the statute of limitations.
OpenAI called the lawsuit baseless and part of Musk’s ongoing pattern of harassment.
Microsoft urged the court to dismiss claims against it, stating there is no evidence that it “aided and abetted” OpenAI.
Musk’s attorney, Steven Molo, said the team looks forward to presenting all evidence of wrongdoing to the jury.
The case underscores the intense competition in the generative AI market as new players like xAI challenge established companies.
