Elon Musk's lawsuit against OpenAI is set to proceed to trial, as a U.S. judge found sufficient evidence to support the billionaire's claims. Musk initiated legal action against OpenAI and its co-founders, Sam Altman and Greg Brockman, in 2024. He alleges that they violated their foundational contractual agreements by prioritizing profit-seeking ventures over the organization's initial nonprofit mission, which was dedicated to developing artificial intelligence for the benefit of humanity.

Musk, a pivotal early financial supporter and co-founder of OpenAI, resigned from its board in 2018. This departure followed the rejection of his proposal to assume the role of CEO, with the co-founders instead appointing Altman. Officially, Musk cited potential conflicts of interest arising from Tesla's own AI development for self-driving cars. Since his departure, Musk has been a prominent critic of OpenAI's pivot to a for-profit structure. His vocal opposition even led to an unsolicited $97.4 billion offer to acquire OpenAI in February 2025, an offer that Altman subsequently rejected.

OpenAI, originally established in 2015 as a nonprofit research laboratory, began its transition away from a purely nonprofit model in 2019. It did so by forming a for-profit subsidiary operating under a "capped-profit" framework, which limited investor returns. This strategic shift was designed to secure the substantial funding necessary for scaling its operations and attracting top-tier talent. Despite Musk's lawsuit, it was unable to halt OpenAI's corporate transformation. In October 2025, the company finalized its formal restructuring, with the for-profit division becoming a Public Benefit Corporation, while the original nonprofit entity maintained a 26% equity stake.

Musk is now seeking monetary damages, claiming these are for "ill-gotten gains" by OpenAI. He asserts that his approximately $38 million in early funding, along with his guidance and credibility, were provided based on explicit assurances that OpenAI would remain a nonprofit organization. In response, an OpenAI spokesperson informed TechCrunch that Musk's lawsuit is "baseless and a part of his ongoing pattern of harassment." District Judge Yvonne Gonzalez Rogers based her decision on evidence suggesting that OpenAI's leadership indeed made assurances regarding the preservation of its original nonprofit structure, as alleged by Musk. A jury trial has been tentatively scheduled for March.