Musk’s lawsuit over OpenAI restructuring cleared for trial
A U.S. judge has cleared a lawsuit filed by Elon Musk against OpenAI to proceed to a jury trial, allowing claims over the company’s shift from a nonprofit to a for-profit structure to be tested in court.
Musk, who co-founded OpenAI in 2015 and left in 2018, argues that the organization violated its original mission by restructuring in a way that ultimately enabled multibillion-dollar deals, including with Microsoft. He claims he contributed about $38 million in early funding and support based on assurances OpenAI would remain nonprofit and serve the public interest, News.Az reports, citing Reuters.
At a hearing in Oakland, U.S. District Judge Yvonne Gonzalez Rogers said there was “plenty of evidence” suggesting OpenAI leaders had given such assurances, and that disputed facts should be weighed by a jury at a trial scheduled for March.
OpenAI, along with co-founders Sam Altman and Greg Brockman, denies the allegations and called the lawsuit “baseless,” accusing Musk of trying to hinder a market rival. Microsoft, also named as a defendant, argued there was no evidence it aided in any wrongdoing.
The case unfolds as competition intensifies in the generative AI sector, where Musk’s startup xAI and its Grok chatbot are vying with OpenAI and other developers. A written order from the court is expected.
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