On 6th January 2026, U.S. District Judge Yvonne Gonzalez Rogers ruled that Elon Musk's lawsuit accusing OpenAI of abandoning its founding nonprofit mission will proceed to a jury trial in March. Speaking at a hearing in Oakland, California, the judge determined there is sufficient evidence for jurors to decide whether OpenAI violated commitments it allegedly made to remain a nonprofit organisation. The case centres on Musk's claim that OpenAI betrayed its original mission to develop AI that benefits humanity in favour of profit-driven restructuring.
Musk, who co-founded OpenAI in 2015 and departed in 2018, alleges he provided approximately $38 million—roughly 60% of the company's early funding—based on assurances it would operate as a nonprofit dedicated to the public good. He filed suit against OpenAI and co-founders Sam Altman and Greg Brockman in 2024, claiming they breached contractual agreements by pursuing profits instead of the nonprofit's founding mission. Since his departure, Musk has been a vocal critic of OpenAI's transition to a for-profit model, even making an unsolicited $97.4 billion bid to acquire the company in February 2025, which Altman rejected. Despite the lawsuit, OpenAI completed its formal restructuring in October 2025, with the for-profit branch becoming a Public Benefit Corporation whilst the original nonprofit retained a 26% equity stake. Musk now seeks monetary damages from what he describes as ill-gotten gains, arguing that OpenAI has evolved from a nonprofit research lab into a capitalistic enterprise now valued at $500 billion.
The March trial will determine whether OpenAI violated its founding commitments, with Musk's $38 million investment and the company's $500 billion valuation serving as key focal points. OpenAI has dismissed the lawsuit as baseless and part of a pattern of harassment, but the judge's decision ensures a jury will evaluate whether the organisation's transformation from nonprofit to for-profit entity constitutes a breach of its original agreements. This case underscores the tension between AI development's commercial imperatives and its stated public-interest mission, with the outcome potentially influencing how tech companies structure their governance and funding commitments.
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Sources:
1. https://finance.yahoo.com/news/elon-musks-lawsuit-accusing-chatgpt-203111738.html
2. https://techcrunch.com/2026/01/08/elon-musks-lawsuit-against-openai-will-face-a-jury-in-march/
3. https://ca.finance.yahoo.com/news/judge-indicates-elon-musks-fraud-003209709.html
