The escalating legal battle between Elon Musk and OpenAI is set to culminate in a jury trial scheduled for spring 2026, according to a ruling by U.S. District Judge Yvonne Gonzalez Rogers in California.
This follows a February agreement between Musk and OpenAI to fast-track proceedings after Musk’s lawsuit accused OpenAI and its CEO Sam Altman of abandoning the company’s founding mission of developing artificial intelligence “for the benefit of humanity” rather than corporate profit.
OpenAI, co-founded by Musk in 2015, has since transitioned to a capped-profit model to secure large investments and compete in the increasingly capital-intensive AI industry. Musk, who left the company before it became a global leader in generative AI, argues that the for-profit shift contradicts the original intent of the organization.
Lawsuit at the Heart of a Power Struggle
At the center of the dispute is OpenAI’s development of ChatGPT and the decision to commercialize its research through a capped-profit arm backed by billions in funding. OpenAI has maintained that the shift was essential to fund massive computing resources and remain competitive.
Musk, who now leads rival AI company xAI, filed the lawsuit in 2023. His move came after OpenAI rejected a $97.4 billion unsolicited takeover offer earlier this year led by Musk and a consortium of investors. Altman reportedly declined with a terse “no thank you.”
In the meantime, Musk’s xAI has continued to grow, most recently acquiring his social media platform X in a deal that values the company at $33 billion. This merger enables co-investors in X to benefit from the value of Musk’s AI venture.
Also read: Musk’s $97.4B Offer to OpenAI Rejected by Altman
A Trial That Could Reshape AI Governance
Judge Rogers denied Musk’s request to pause OpenAI’s transition to a for-profit model, stating instead that a swift resolution via jury trial is the most appropriate course. With both sides alleging betrayal — Musk claims OpenAI is now driven by profit, while Altman accuses Musk of trying to sabotage a competitor — the trial could serve as a pivotal moment for AI governance and ethics.
OpenAI continues to seek additional funding as it expands its AI capabilities in a race that includes tech giants like Google and Meta, as well as startups including Musk’s own xAI.
