Elon Musk’s lawsuit against OpenAI is set to go to trial after a US judge said there was too much evidence to support the billionaire’s case.
The world’s richest man, who co-founded OpenAI, is suing the ChatGPIT developer and its chief executive, Sam Altman, claiming its leaders violated the organization’s founding mission by altering the model for profit.
U.S. District Judge Yvonne Gonzalez Rogers said at a hearing in Oakland, California, that there was plenty of evidence to suggest that OpenAI leaders had assurances that its original nonprofit structure would be maintained.
He said there were enough disputed facts to let a jury consider the claims at a hearing in March, rather than decide the issues themselves. Rogers said she would issue a written order after the hearing that would address OpenAI’s attempt to dismiss the case.
The court dispute comes amid a broader clash over market dominance in generative artificial intelligence. Musk’s xAI and its chatbot Grok are competing with OpenAI and other technology developers.
Musk is seeking unspecified monetary damages from “ill-gotten gains” by OpenAI.
In a statement after the hearing, OpenAI said: “Mr. Musk’s lawsuit is baseless and part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial.”
Musk’s startup xAI did not immediately respond to a request for comment.
Billionaire and XAI lead trial lawyer Steven Molloy said after the hearing: “We look forward to presenting all the evidence of the defendants’ wrongdoing to the jury.”
Musk argues that he contributed approximately 60% of OpenAI’s initial funding, $38m (£28m), with strategic guidance and credibility, based on assurances that the organization would remain a non-profit dedicated to public benefit.
The lawsuit accuses OpenAI co-founders Altman and Greg Brockman of conspiring to switch to for-profits to enrich themselves, culminating in a billion-dollar deal with Microsoft and a recent restructuring.
OpenAI, Altman and Brockman have denied the claims, and described Musk as “a desperate commercial competitor who is trying to slow down a mission-driven market leader”.
Microsoft, which is also a defendant, urged Rogers to dismiss Musk’s claims against it. A Microsoft lawyer said there was no evidence that the company “aided and abetted” OpenAI.
Microsoft has been contacted for comment.
OpenAI’s lawyers at the hearing asked Rogers to rule against Musk, arguing that he has not shown a sufficient factual basis to sustain his allegations, including fraud and breach of contract.
OpenAI also argues that Musk failed to bring forward its allegations in a timely manner. The judge said the jury would be asked to find out whether the suit was filed outside the statute of limitations.
