Elon Musk vs. OpenAI: U.S. Court Greenlights Trial
A U.S. court has paved the way for a highly anticipated trial between billionaire Elon Musk and OpenAI, along with CEO Sam Altman, after a judge ruled that there is sufficient evidence to proceed to a jury.
Musk, a co-founder of OpenAI, filed the lawsuit over the company's shift from a nonprofit entity to a for-profit model, claiming it violated OpenAI's founding mission and commitments to serve the public good.
During a hearing in Oakland, California, the judge emphasized that the facts of the case cannot be resolved through a direct court ruling, necessitating a trial scheduled for March 2026.
The case unfolds amid intense competition in the generative AI market, including Musk's xAI, which develops the chatbot Grok, competing directly with OpenAI’s advanced AI models.
Musk is seeking unspecified financial damages, arguing that OpenAI earned unlawful profits despite his $38 million contribution during the company’s early funding and strategic support, based on the understanding that the company would remain non-profit. OpenAI and Sam Altman deny the claims, asserting the lawsuit lacks legal merit and is part of business competition, while reaffirming their commitment to responsible AI development.