Elon Musk gets his day in court over OpenAI’s for-profit restructure and “ill-gotten gains” — here’s what’s at stake

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In recent years, Elon Musk, the CEO of Tesla and a billionaire, has sued OpenAI multiple times. He claims the company has broken its original promise, engaged in illegal activities, and falsely presented itself as a charitable organization.

So, OpenAI has been trying to get this lawsuit dismissed, but it looks like it’s actually going to trial! Judge Yvonne Gonzalez Rogers in California decided there’s enough evidence to suggest OpenAI’s leaders originally promised to stay a non-profit. She even said, and I quote, “This case is going to trial,” which is pretty definitive. We’re looking at a jury trial scheduled for March 2026, according to Reuters. It’s a big development and I’m really curious to see how this all plays out.

As an analyst, I’ve been following the dispute between Elon Musk and OpenAI closely. Essentially, Musk argues that OpenAI has strayed from its original, non-profit purpose by becoming a commercial entity. He states he contributed around $38 million to help launch OpenAI with the understanding it would remain focused on research, not profit. A key point of contention is the subsequent, large-scale licensing agreement OpenAI made with Microsoft, which he views as a departure from that initial mission.

As a researcher following this situation, I’ve learned that the billionaire claims Greg Brockman and Sam Altman worked together to change OpenAI into a company that would generate profits for themselves. This caused a lot of debate, and eventually led him to file a lawsuit. He described the lawsuit as potentially costing $157 billion, crippling the market, and named Microsoft as the defendant.

As an analyst, I’m following the case where Elon Musk is pursuing financial recovery from OpenAI, claiming Microsoft’s partnership resulted in what he considers unfair profits. He’s not only seeking to recoup those funds, but also damages, though the exact amount will be determined by the jury – it could easily reach millions of dollars.

Following the hearing, Elon Musk and xAI’s lawyer, Steven Molo, stated they are eager to share all evidence of the defendants’ misconduct with the jury.

The outcome of the jury’s decision could cost Sam Altman and OpenAI a significant amount of money – potentially millions of dollars. Beyond that, it could also change the way AI research labs train their models and how businesses and collaborations are structured.

Do you think Elon Musk has a strong case in his lawsuit against OpenAI? Share your thoughts in the comments and vote in the poll!

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2026-01-08 16:09