A California judge has ruled that Elon Musk's lawsuit against OpenAI and its CEO, Sam Altman, will proceed to trial. The lawsuit alleges that OpenAI deviated from its original nonprofit mission and structure to adopt a profit-oriented model. During a hearing, US District Judge Yvonne Gonzalez Rogers rejected efforts to dismiss the case, finding sufficient evidence for the case to advance to a jury. A trial is scheduled for March.
Legal Proceedings Advance to Trial
On Wednesday, US District Judge Yvonne Gonzalez Rogers ruled that Elon Musk's lawsuit against OpenAI and its CEO, Sam Altman, will proceed to trial. The judge indicated her intention to reject efforts to dismiss the case, stating, "This case is going to trial." Judge Rogers added that "plenty of evidence" exists to support Musk's case, describing it as "circumstantial." The trial is scheduled for March.
Allegations of Mission Deviation
Musk filed the lawsuit in 2024, alleging that OpenAI misled him by departing from its initial nonprofit mission and structure to adopt a profit-oriented model, which includes a partnership with Microsoft. Musk claims to have donated $38 million to OpenAI with the intent of supporting its original mission: developing artificial intelligence for the benefit of humanity. He is seeking monetary damages and a judgment to nullify Microsoft's licensing agreement with OpenAI.
Judge Gonzalez Rogers stated she found sufficient evidence suggesting Musk may have been deceived, allowing the case to advance to a jury. She noted, "There were assurances made, and promises made, that the structure would be maintained," and "There was lots of information that was not shared." The judge also acknowledged "strong arguments by the defense," concluding that "the jury is going to get to decide."
OpenAI's Defense and Statements
OpenAI's lawyers have denied Musk's allegations. They assert that Musk was aware of the company's plans to develop a for-profit structure as early as 2018. OpenAI also emphasizes that its operations remain under the control of its nonprofit arm. A spokesperson for OpenAI commented that "Mr Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment," and that the company looks "forward to demonstrating this at trial." Steven Molo, Musk's trial attorney, expressed gratitude for the court's decision, stating, "We look forward to presenting all the evidence of the defendants' wrongdoing to the jury."
Related Legal Actions and Public Discourse
This lawsuit is not the only legal action Musk has taken against OpenAI. In September, his AI company, xAI, filed a separate lawsuit against OpenAI, accusing it of trade secret theft and targeting its employees for recruitment. OpenAI previously characterized this xAI lawsuit as "the latest chapter in Mr. Musk's ongoing harassment."
In a separate development, Sam Altman and Elon Musk engaged in a public exchange on the social media platform X. Musk posted a statement suggesting that individuals should not use ChatGPT, referencing a previous claim linking OpenAI's chatbot to the deaths of nine children and adults since 2022. Altman responded by defending ChatGPT and OpenAI's commitment to user protection. Altman also criticized Tesla's Autopilot technology, stating a past experience led him to believe it was unsafe for release, and commented on "some of the Grok decisions."
Multiple wrongful-death lawsuits have been filed against OpenAI, alleging that ChatGPT use has contributed to worsening mental health conditions, leading to instances of suicide and murder involving children and young adults. Similarly, safety concerns surrounding Tesla's self-driving technology have been central to several wrongful-death lawsuits, including a 2019 crash in Florida where a jury determined Tesla was 33% liable, awarding plaintiffs $329 million in damages.
Background on Musk's Involvement with OpenAI
Musk co-founded OpenAI in 2015 but departed from the company in 2018, citing potential conflicts of interest with Tesla's AI ambitions. Since his departure, Musk has voiced criticisms regarding Altman and OpenAI, including its corporate structure. In 2023, Musk launched his own AI company, xAI.