Elon Musk is taking OpenAI to court in lawsuit against company he co-founded

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Elon Musk’s lawsuit against OpenAI, the creator of ChatGPT, is heading to trial after a judge decided it can proceed.

A California judge has determined there’s enough evidence to let a jury decide if Elon Musk is correct in saying OpenAI broke its original agreement to operate as a non-profit. A trial is scheduled to start in March.

Elon Musk, a co-founder of OpenAI, is taking legal action against the company and its CEO, Sam Altman. He claims they’ve changed OpenAI’s original purpose to prioritize making a profit.

US judge says there is “plenty of evidence”

Judge Yvonne Gonzalez Rogers stated there’s significant evidence indicating OpenAI’s leaders assured investors the organization would remain a non-profit. She decided the lawsuit shouldn’t be dismissed and should instead be decided by a jury.

According to Musk, he invested approximately $38 million in OpenAI when it first started, which he says made up around 60% of the company’s initial funding. He’s now suing to recover what he considers unfairly obtained profits, though the exact amount he’s seeking hasn’t been specified.

This development arrives as Elon Musk’s AI company, xAI, and its Grok chatbot begin to directly challenge OpenAI in the rapidly growing field of generative AI.

OpenAI has refuted the accusations made by Elon Musk and firmly rejected his claims. Following a recent hearing, the company released a statement asserting that Musk’s lawsuit is without merit and part of a consistent pattern of harassment, which they intend to prove in court.

Microsoft, also a defendant in the lawsuit, claims there’s no proof it assisted OpenAI in any improper actions.

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2026-01-08 18:25