Judge Rules Elon Musk's Lawsuit Against Sam Altman's OpenAI Will Proceed to Trial

A federal judge in California has rules that Elon Musk’s lawsuit against OpenAI and its chief executive Sam Altman contains sufficient evidence to warrant a jury trial, rejecting attempts by OpenAI’s legal team to have the case dismissed.

Business Insider reports that U.S. District Judge Yvonne Gonzalez Rogers announced during a Wednesday hearing that she intends to deny motions from Sam Altman’s attorneys to dismiss the lawsuit brought by Elon Musk against OpenAI and its leadership. The judge’s decision clears the path for the case to proceed to trial, which is currently scheduled for March.

The legal action, originally filed by Musk in 2024, centers on allegations that OpenAI deceived him regarding the company’s transformation from its founding nonprofit structure to a profit-focused business model. According to the lawsuit, Musk contributed approximately $38 million to the artificial intelligence company over several years, believing he was supporting an organization dedicated to developing AI technology for the broader benefit of humanity rather than for commercial gain.

The Tesla CEO is pursuing both monetary compensation and a legal ruling that would nullify the licensing arrangement between OpenAI and Microsoft. Musk’s complaint argues that OpenAI’s partnership with Microsoft and its shift toward a for-profit orientation represent a fundamental betrayal of the company’s original mission and the commitments made to early supporters and donors.

Judge Gonzalez Rogers expressed confidence in the strength of the evidence presented in the case during the hearing, which was convened to assess whether the available evidence justified moving forward with a jury trial. The judge stated there was substantial evidence supporting Musk’s allegations, though she acknowledged much of it was circumstantial in nature. She noted that circumstantial evidence is typical in cases of this type.

During Wednesday’s proceedings, Judge Gonzalez Rogers indicated that the evidence suggested assurances and commitments had been made regarding OpenAI’s organizational structure remaining intact. She also noted that significant information appeared to have been withheld from Musk. However, the judge acknowledged that OpenAI’s defense presented compelling counterarguments, stating that ultimately a jury would need to resolve the factual disputes between the parties.

Legal representatives for OpenAI have consistently disputed Musk’s claims, asserting that he was informed about the company’s intentions to pursue a for-profit model as far back as 2018. OpenAI has also emphasized that despite structural changes, the organization remains under the control of its nonprofit parent entity. A spokesperson for OpenAI characterized Musk’s lawsuit as without merit and part of what the company describes as a continued pattern of harassment. The spokesperson stated that OpenAI looks forward to refuting the allegations at trial and remains committed to supporting the OpenAI Foundation, which the company describes as among the most well-funded nonprofit organizations in existence.

Steven Molo, representing Musk in the litigation, expressed appreciation for the court’s decision and stated that the legal team anticipates presenting comprehensive evidence of alleged misconduct by the defendants to the jury.

This lawsuit represents one of several legal actions Musk has initiated against OpenAI. In September, xAI, the artificial intelligence company founded by Musk, filed a separate lawsuit against OpenAI alleging theft of proprietary information and deliberate targeting of xAI employees for recruitment purposes. At that time, an OpenAI representative described that legal action as another instance of ongoing harassment by Musk.

The relationship between Musk and OpenAI dates back to 2015 when Musk was among the founding members of the organization. He departed from the company in 2018, citing potential conflicts of interest between his involvement with OpenAI and Tesla’s own artificial intelligence initiatives. Following his departure, Musk has been a vocal critic of both Altman and OpenAI, particularly regarding the company’s organizational structure and business practices.