Elon Musk – who is an OpenAI co-founder – filed a lawsuit against the company and its chief execuitve officer Sam Altman in 2024 over allegations that the artificial intelligence research organisation’s persuit of moving from a non-profit to a for-profit corporation breaches the terms of his previous donations to the firm to get it off the ground, as well as fraud.
Elon Musk’s lawsuit against OpenAI and its chief executive officer Sam Altman has moved closer to a trial.
The 53-year-old billionaire – who is an OpenAI co-founder and donated approximately $45 million to get the artificial intelligence research organisation off the ground in November 2023 – began taking legal action against its 40-year-old CEO, the company itself and its biggest supporter, Microsoft, in 2024.
It comes as Elon claims OpenAI is continuing to pursue its ambition to turn from a non-profit to a for-profit corporation – which the Tesla boss thinks the move is a breach of the terms of his previous donations to the firm and fraud.
Musk also requested a preliminary injunction – a temporary court order that prevents any changes or disruptions to a case before the court decides on it – to stop OpenAI’s conversion.
However, a judge declined this in March but agreed to accelerate the trial – which is scheduled to take place in March 2026.
As well as that, Judge Yvonne Gonzalez Rogers, of the Northern District of California, rejected some parts of the case – including Elon’s breach of contract claims – on Thursday (01.05.25), but she was satisfied that Musk has made adequate allegations against OpenAI and Altman, and she is keeping the fraud allegations alive.
In her ruling – which OpenAI can appeal against – Judge Rogers said: “Musk adequately alleges that the defendants promised to maintain OpenAI’s non-profit status and structure in order to obtain his contributions, and that they intended to do so in order to obtain the capital needed to create a for-profit venture to enrich themselves.
“Although there is no express contract, Musk adequately pleads in the alternative that there is an implied-in-fact contract.”
Elon Musk’s lawsuit against OpenAI and CEO moves step closer to trial
