{"id":500858,"date":"2026-01-08T07:55:09","date_gmt":"2026-01-08T07:55:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/500858\/"},"modified":"2026-01-08T07:55:09","modified_gmt":"2026-01-08T07:55:09","slug":"musk-lawsuit-over-openai-for-profit-conversion-can-head-to-trial-us-judge-says","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/500858\/","title":{"rendered":"Musk lawsuit over OpenAI for-profit conversion can head to trial, US judge says"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Musk claims OpenAI violated its founding mission in restructuring to a for-profit entity<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">OpenAI denies claims, calls Musk&#8217;s lawsuit baseless<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Musk was a co-founder of OpenAI, now runs a rival AI company<\/li>\n<\/ul>\n<p>WASHINGTON, Jan 7 (Reuters) &#8211; Billionaire entrepreneur <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/elon-musk\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">Elon Musk<\/a> persuaded a judge on Wednesday to allow a jury trial on his allegations that ChatGPT maker OpenAI violated its founding mission in its high-profile restructuring to a for-profit entity.<\/p>\n<p>Musk was a cofounder of OpenAI in 2015 but left in 2018 and now runs an AI company that competes with it.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/legal\/litigation\/musk-lawsuit-over-openai-for-profit-conversion-can-head-trial-us-judge-says-2026-01-07\/undefined?location=article-paragraph&amp;redirectUrl=%2Flegal%2Flitigation%2Fmusk-lawsuit-over-openai-for-profit-conversion-can-head-trial-us-judge-says-2026-01-07%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">here.<\/a><\/p>\n<p>U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, said at a hearing that there was \u201cplenty of evidence\u201d suggesting OpenAI\u2019s leaders made assurances that its original <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/openai-remain-under-non-profit-control-change-restructuring-plans-2025-05-05\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">nonprofit structure<\/a> was going to be maintained.<\/p>\n<p>The judge said there were enough disputed facts to let a jury consider the claims at a trial scheduled for March, rather than decide the issues herself. She said she would issue a written order after the hearing that addresses OpenAI&#8217;s bid to throw out the case.<\/p>\n<p>The court battle comes amid a <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/musks-xai-raises-20-billion-upsized-series-e-funding-round-2026-01-06\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">broader showdown<\/a> over dominance in the market for generative artificial intelligence. Musk\u2019s xAI and its chatbot Grok are competing with OpenAI and other technology developers.<\/p>\n<p>Musk is seeking unspecified monetary damages from what he calls &#8220;ill-gotten gains&#8221; by OpenAI.<\/p>\n<p>OpenAI in a statement after the hearing said: &#8220;Mr Musk&#8217;s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial.&#8221;<\/p>\n<p>Musk&#8217;s artificial intelligence startup, xAI, did not immediately respond to a request for comment.<\/p>\n<p>Steven Molo, a lead trial attorney for Musk and xAI, said after the hearing that &#8220;we look forward to presenting all the evidence of the defendants&#8217; wrongdoing to the jury.&#8221;<\/p>\n<p>Musk contends he contributed about $38 million, roughly 60% of OpenAI\u2019s early funding, along with strategic guidance and credibility, based on assurances that the organization would remain a nonprofit dedicated to the public benefit.<\/p>\n<p>The lawsuit accuses OpenAI co-founders Sam Altman and Greg Brockman of plotting a for-profit switch to enrich themselves, culminating in multibillion-dollar deals with Microsoft <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/MSFT.O\" rel=\"noopener\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(MSFT.O), opens new tab<\/a> and <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/technology\/artificial-intelligence\/openai-remove-non-profit-control-give-sam-altman-equity-sources-say-2024-09-25\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" target=\"_blank\" rel=\"noopener\">a recent restructuring<\/a>.<\/p>\n<p>OpenAI, Altman and Brockman have denied the claims, and they called Musk &#8220;a frustrated commercial competitor seeking to slow down a mission-driven market leader.&#8221;<\/p>\n<p>Microsoft, which is also a defendant, urged Gonzalez Rogers to toss Musk&#8217;s claims against it. A lawyer for Microsoft said there was no evidence that the company &#8220;aided and abetted&#8221; OpenAI.<\/p>\n<p>Microsoft did not immediately respond to a request for comment.<\/p>\n<p>Lawyers for OpenAI at the hearing asked Gonzalez Rogers to enter judgment against Musk, contending that he had not shown enough of a factual basis to sustain his allegations including fraud and breach of contract.<\/p>\n<p>OpenAI also contends that Musk failed to bring his allegations in a timely manner. Gonzalez Rogers said the jury would be asked to weigh whether the lawsuit was filed outside the statute of limitations.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Mike Scarcella in Washington; Editing by David Bario and Matthew Lewis<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"noopener\">Purchase Licensing Rights<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Musk claims OpenAI violated its founding mission in restructuring to a for-profit entity OpenAI denies claims, calls Musk&#8217;s&hellip;\n","protected":false},"author":3,"featured_media":500859,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[216147,217022,216192,216193,100774,64,217902,216194,218125,216216,216152,224746,216215,216214,216153,67458,101727,165856,216142,218100,218101,216399,216400,217025,224744,4630,217026,165849,216149,224741,216155,216201,217029,216402,224745,216408,224743,216202,218390,218391,217031,242,18705,216158,224742,216157,67,132,68],"class_list":{"0":"post-500858","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-amers","9":"tag-arti","10":"tag-bact","11":"tag-bisv","12":"tag-biz","13":"tag-business","14":"tag-clj","15":"tag-cmpny","16":"tag-destlit","17":"tag-destocabsm","18":"tag-destocatpm","19":"tag-destolit","20":"tag-destousbsm","21":"tag-destoustcm","22":"tag-destoustpm","23":"tag-fin","24":"tag-fins","25":"tag-gen","26":"tag-govact","27":"tag-gvgvf","28":"tag-gvgvf1","29":"tag-invbis","30":"tag-invm","31":"tag-itse","32":"tag-judic","33":"tag-legal","34":"tag-mlaisv","35":"tag-mtpix","36":"tag-namer","37":"tag-nrlpaolit","38":"tag-packageus-top-news","39":"tag-privt","40":"tag-publ","41":"tag-pve","42":"tag-reorg","43":"tag-reuters-legal","44":"tag-rulescompany-openai","45":"tag-sci","46":"tag-sofw","47":"tag-sofw1","48":"tag-swit","49":"tag-tech","50":"tag-tmt","51":"tag-topcmb","52":"tag-topicbusiness-elon-musk","53":"tag-topnws","54":"tag-united-states","55":"tag-unitedstates","56":"tag-us"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/500858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=500858"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/500858\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/500859"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=500858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=500858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=500858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}