A U.S. judge has ruled that Elon Musk's lawsuit against OpenAI will proceed to trial, citing sufficient evidence to support the billionaire's claims. Musk initiated the legal action in 2024 against OpenAI and its co-founders, Sam Altman and Greg Brockman, accusing them of breaching their original contractual commitments. He alleges the organization abandoned its nonprofit mission to develop AI for humanity's benefit in favor of pursuing profits.

Musk was an early financial supporter and co-founder of OpenAI. He stepped down from the board in 2018 after his attempt to become CEO was declined by the other founders, who instead selected Altman for the role. While Musk officially pointed to potential conflicts with Tesla's self-driving AI projects, he has since been an outspoken critic of OpenAI's shift toward a for-profit structure. In February 2025, he made an unsolicited offer to purchase OpenAI for $97.4 billion, which Altman turned down.

Founded in 2015 as a nonprofit research lab, OpenAI started distancing itself from its purely charitable origins in 2019. The organization established a for-profit subsidiary operating under a "capped-profit" model, which restricted investor returns. This move was intended to secure the substantial funding required for scaling operations and recruiting leading talent.

Despite Musk's lawsuit, OpenAI moved forward with its corporate restructuring, formally completing the transition in October 2025. The for-profit division was converted into a Public Benefit Corporation, with the original nonprofit retaining a 26% equity stake. Musk is now pursuing monetary damages, claiming OpenAI profited from "ill-gotten gains." He asserts that he contributed approximately $38 million in early funding, along with guidance and credibility, based on promises that OpenAI would stay nonprofit.

District Judge Yvonne Gonzalez Rogers indicated that her ruling was influenced by evidence suggesting OpenAI's leadership had assured the preservation of its nonprofit framework, as Musk contends. A jury trial has been scheduled for March.