Elon Musk's Lawsuit Against OpenAI Moves to Trial
A California judge has ruled that Elon Musk's lawsuit against OpenAI and its CEO, Sam Altman, will proceed to trial. During a hearing on Wednesday, US District Judge Yvonne Gonzalez Rogers stated her intention to reject efforts to dismiss the case, affirming that "This case is going to trial." The judge indicated that "plenty of evidence" exists to support Musk's case, describing it as "circumstantial, but that's how these things work." A trial is scheduled for March.
Allegations and Legal Arguments
Musk filed the lawsuit in 2024, alleging that OpenAI misled him by deviating from its original 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 to support its initial mission of developing AI 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 Response and Other Lawsuits
OpenAI's lawyers have denied Musk's allegations, asserting that Musk was aware of the company's for-profit plans as early as 2018. They also emphasize that OpenAI remains under the control of its nonprofit arm. A spokesperson for OpenAI commented, "Mr Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial." The spokesperson added that the company remains "focused on empowering the OpenAI Foundation, which is already one of the best resourced nonprofits ever."
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."
This lawsuit is not the only legal action Musk has taken against OpenAI. In September, his AI company, xAI, filed a lawsuit against OpenAI, accusing it of trade secret theft and targeting its employees for recruitment. OpenAI previously characterized this lawsuit as "the latest chapter in Mr. Musk's ongoing harassment."
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 subsequently launched his own AI company, xAI.