Musk vs. OpenAI headed to trial after judge’s ruling

WEB DESK: A federal judge has cleared the way for a high-stakes legal battle between Elon Musk and OpenAI, ruling that his lawsuit against the artificial intelligence company and its CEO, Sam Altman, will proceed to trial.

During a hearing on Wednesday, U.S. District Judge Yvonne Gonzalez Rogers announced her intention to reject OpenAI’s motion for summary judgment, stating, “This case is going to trial.” She determined that sufficient evidence exists for a jury to consider Musk’s central allegation: that OpenAI misled him when it shifted from its original nonprofit mission to a for-profit model.

“I think there’s plenty of evidence,” Judge Rogers said. “It’s circumstantial, but that’s how these things work.” She noted that “assurances were made, and promises made, that the [nonprofit] structure would be maintained,” and suggested that key information was withheld from Musk.

The lawsuit, originally filed in 2024, contends that OpenAI breached its founding agreements and fiduciary duties when it pursued a lucrative partnership with Microsoft. Musk, a co-founder of OpenAI who left the company in 2018, claims he donated approximately $38 million based on the understanding that the organization would develop artificial intelligence “for the benefit of humanity.” He is seeking monetary damages and a court order to invalidate OpenAI’s licensing agreement with Microsoft.

OpenAI’s legal team has vigorously disputed the claims, arguing that Musk was aware of potential for-profit plans as early as 2018 and that the company remains ultimately governed by its nonprofit arm. An OpenAI spokesperson called the lawsuit “baseless” and part of a “pattern of harassment,” adding they look forward to proving their case at trial.

Steven Molo, an attorney representing Musk, welcomed the judge’s decision, stating, “We’re grateful for the court’s ruling. We look forward to presenting all the evidence of the defendants’ wrongdoing to the jury.”

A trial is currently scheduled for March. This lawsuit is one of several legal disputes Musk has initiated against OpenAI, including a separate trade secrets case filed by his own AI firm, xAI, last September.

Web Desk