Musk Takes OpenAI to Trial Over Non-Profit Promise as Jury Selection Begins
Jury selection is scheduled to start on Monday in a closely watched lawsuit filed by Elon Musk against artificial intelligence company OpenAI, which he accuses of abandoning its original non-profit purpose. The case places the billionaire entrepreneur in direct legal confrontation with an organisation he helped launch but now competes against in the AI market.
The dispute stems from OpenAI’s founding in 2015 as a non-profit research lab intended to develop artificial intelligence for broad public benefit. Court documents indicate that Musk contributed about $38 million to the project before stepping away from the venture.
Musk claims he backed the initiative based on assurances that its technology would remain publicly oriented rather than commercially driven. His legal team argues that OpenAI later departed from that commitment by creating a profit-focused structure and pursuing large-scale investment.
The company, which now operates through a non-profit foundation overseeing a commercial arm, has secured billions of dollars in funding, including support from Microsoft. Its rapid growth has positioned it as a major force in artificial intelligence and a competitor to Musk’s own AI efforts.
In the lawsuit, Musk is asking the court to compel OpenAI to return to a purely non-profit model. He is also seeking the removal of senior leadership, including chief executive Sam Altman, and requesting substantial financial damages.
OpenAI has rejected the allegations, arguing that Musk’s departure was linked to disagreements over control rather than its organisational structure. The company maintains that the legal action is aimed at slowing a rival as competition in the AI sector intensifies.
The judge overseeing the proceedings expects the jury to determine whether OpenAI violated any commitment made to Musk. If the panel rules in his favour, the court will later decide on possible corrective measures and any compensation.