A California judge has ruled that Elon Musk's lawsuit against OpenAI and its CEO, Sam Altman will proceed to trial. The legal action, which alleges the company deviated from its original nonprofit mission, is scheduled for a trial in March. The ruling follows a public exchange of criticisms between Musk and Altman on the social media platform X.
Trial Ruling and Legal Arguments
US District Judge Yvonne Gonzalez Rogers stated during a hearing on Wednesday her intention to reject efforts to dismiss the case, concluding that "plenty of evidence" exists to support Musk's claims.
"This case is going to trial," the judge said, noting the evidence is "circumstantial, but that's how these things work."
Musk filed the lawsuit in 2024, alleging that OpenAI misled him by transitioning from its original nonprofit structure to a for-profit model, which includes a partnership with Microsoft. Musk claims to have donated $38 million to OpenAI to support its initial mission of developing artificial intelligence 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 that "there were assurances made, and promises made, that the structure would be maintained" and that "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 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 stated:
"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."
Public Exchange on Social Media
Ahead of the trial, Musk initiated an exchange on X by posting a statement suggesting that individuals should not use ChatGPT. His post referenced a previous claim linking OpenAI's chatbot to the deaths of nine children and adults since 2022.
Sam Altman responded by defending ChatGPT and OpenAI's commitment to user protection. Altman also criticized Tesla's Autopilot technology, stating that a previous experience with it led him to believe it was unsafe for release. He further commented on "some of the Grok decisions" and added, "You take 'every accusation is a confession' so far."
Product Safety Concerns and Lawsuits
Multiple wrongful-death lawsuits have been filed against OpenAI, alleging that ChatGPT use has contributed to worsening mental health conditions, resulting in instances of suicide and murder involving children and young adults.
Safety concerns surrounding Tesla’s self-driving technology have also been central to several wrongful-death lawsuits. One such case involved a 2019 crash in Florida that resulted in the death of a 22-year-old woman. A jury determined Tesla was 33% liable for the crash, awarding the plaintiffs $329 million in damages.
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 launched his own AI company, xAI.
Additional Legal Action
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."