Elon Musk’s legal battle against OpenAI is set to advance to a jury trial in March, following a U.S. judge’s ruling indicating substantial evidence backing Musk’s claims. In 2024, Musk filed a lawsuit against OpenAI, along with its co-founders Sam Altman and Greg Brockman, arguing they deviated from their foundational goal of developing AI for the benefit of humanity to focus on profit-making.
As one of OpenAI’s early financial supporters and co-founder, Musk’s relationship with the firm soured after he stepped down from the board in 2018, when his attempt to assume the CEO position was rebuffed in favor of Altman. Citing potential conflicts with Tesla’s AI initiatives, Musk distanced himself from OpenAI but has since expressed strong criticism regarding its transition to a profit-driven model. Notably, he made a significant offer to purchase OpenAI for $97.4 billion in February 2025, which was declined.
Founded in 2015 as a nonprofit research entity, OpenAI began evolving away from this model in 2019 by introducing a for-profit subsidiary designed to attract funding and top-tier talent. Despite Musk’s efforts to challenge this shift, OpenAI successfully transitioned to a Public Benefit Corporation in October 2025, allowing it to maintain a 26% equity stake in the original nonprofit structure.
Musk’s lawsuit seeks financial reparations, alleging he incurred losses from what he terms “ill-gotten gains” by OpenAI, claiming his $38 million investment was predicated on assurances that the organization would retain its nonprofit status. District Judge Yvonne Gonzalez Rogers stated that there are sufficient grounds as per the evidence to support Musk’s assertions, leading to the scheduling of the upcoming jury trial.
