OpenAI and Microsoft will have to face trial after a US court declined to dismiss Elon Musk’s lawsuit alleging that OpenAI abandoned its original charitable mission. Musk claims the Sam Altman–led startup violated its founding principles by accepting billions of dollars from Microsoft and moving toward a for-profit structure.
US District Judge Yvonne Gonzalez Rogers ruled that Musk’s allegations that OpenAI breached its promise to operate as a nonprofit charitable trust were sufficient to proceed. She noted that Musk maintains his financial support was given for a specific charitable purpose, with clear conditions that OpenAI remain open source and non-profit, in line with its original charter. The judge also rejected OpenAI’s argument that Musk lacked standing because he donated through an intermediary.
The court allowed Musk’s fraud claims to move forward, citing internal communications from co-founder Greg Brockman that suggested continued commitment to a nonprofit model. However, the judge dismissed Musk’s claim that Microsoft was unjustly enriched, finding no contractual relationship or evidence of unfair benefit.
OpenAI announced its restructuring last October, granting Microsoft a 27 percent stake while retaining nonprofit oversight. Musk and Altman have been locked in legal disputes since 2024, as Musk’s xAI now competes directly with OpenAI.
