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Judge Signals Parts of Elon Musk’s Lawsuit Against OpenAI Could Go to Trial

By  |  February 5, 2025
OpenAI

A US federal judge has indicated that portions of Elon Musk’s lawsuit against OpenAI may proceed to trial, with the Tesla CEO expected to take the stand and testify, according to CNBC. The ruling comes as Musk seeks to halt OpenAI’s transition into a for-profit entity, intensifying the legal battle between the billionaire entrepreneur and OpenAI’s CEO, Sam Altman.

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    During a court session in Oakland, California, U.S. District Judge Yvonne Gonzalez Rogers made it clear that some aspects of the case will move forward. “Something is going to trial in this case,” she stated, adding that Musk will “sit on the stand, present it to a jury, and a jury will decide who is right.”

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    Per US CNBC, the hearing was focused on Musk’s request for a preliminary injunction to prevent OpenAI’s shift to a for-profit model before the trial concludes. This legal maneuver represents Musk’s latest effort to challenge OpenAI’s structural transformation, marking another chapter in the high-profile dispute between the world’s wealthiest individual and the artificial intelligence firm he helped establish.

    Read more: Indian Publishers Take Legal Action Against OpenAI Over Copyright

    Musk, who co-founded OpenAI alongside Altman in 2015, parted ways with the company before it gained significant traction. He later founded xAI in 2023, a competing AI startup. OpenAI, meanwhile, has argued that transitioning into a for-profit entity is necessary to secure the vast financial resources required to advance AI research and development.

    According to CNBC, Musk initially filed the lawsuit in 2023, asserting that OpenAI’s founders originally sought his financial backing for a nonprofit dedicated to developing artificial intelligence for the benefit of humanity. He contends that OpenAI has since deviated from its original mission and is now prioritizing commercial interests. Musk later expanded his lawsuit to include federal antitrust and additional claims, formally requesting in December that the court intervene to prevent OpenAI’s shift in corporate structure.

    At the center of the dispute is a pivotal moment in 2017 when an internal leadership struggle within OpenAI ultimately led to Altman assuming the role of CEO.

    Source: CNBC