Elon Musk vs OpenAI and Microsoft case heads to jury trial in April as judge allows lawsuit — Here’s all we know

A federal judge in Oakland, California, on January 15 rejected OpenAI and Microsoft’s requests to dismiss Elon Musk’s lawsuit against the maker of ChatGPT over its conversion from a nonprofit to a for-profit organization. Bloomberg report.

The world’s richest man added that he claimed OpenAI, led by Sam Altman, had betrayed its founding mission as a public charity that received billions of dollars in funding from Microsoft.

With the judge’s green light, the case will now go to jury trial in April 2026.

Notably, Musk co-founded OpenAI (started in 2015) and launched his own artificial intelligence startup xAI in 2023.

‘Unfounded, pattern of harassment’: OpenAI reacts

OpenAI said in a statement that it welcomed the lawsuit and that the billionaire technocrat’s lawsuit was baseless and a form of harassment.

“Mr. Musk’s lawsuit remains unfounded and part of an ongoing pattern of harassment, and we look forward to demonstrating this at trial. We remain focused on strengthening the OpenAI Foundation, already one of the most well-resourced nonprofits ever.”

The report stated that Musk’s lawyer Marc Toberoff and Microsoft representatives did not immediately respond to questions about the court decision.

Musk and OpenAI case: What did the court say?

In her ruling, U.S. District Judge Yvonne Gonzalez Rogers refused to dismiss Musk’s lawsuit alleging that OpenAI had failed to fulfill its promise to operate as a charitable organization.

While the evidence is unclear, Musk wrote that he claims that his contributions to OpenAI “have a specific charitable purpose, adding two key conditions: that OpenAI be open source and that it remains a nonprofit organization—purposes consistent with OpenAI’s charter and mission.”

Rogers also rejected OpenAI’s argument that Musk’s use of an intermediary to donate $38 million in seed money to the startup does not remove him from legal standing to try to enforce those terms.

“To remain otherwise would, contrary to the modern trend, significantly reduce the application of a wide range of charities,” he wrote.

The judge also refused to dismiss Musk’s allegations of fraud, pointing to OpenAI co-founder Greg Brockman’s emails and private notes from 2017.

In a September email, Brockman told Musk that OpenAI “wants to continue its non-profit structure.” According to the decision, two months later he wrote in a private note: “I cannot say that we are committed to a non-profit organization. I do not want to say that we are committed. If we are doing a b-corp after three months then it is a lie.”

OpenAI ownership: How much does Microsoft own?

OpenAI announced in October 2025 that it was restructured with a valuation of $ 500 billion. Microsoft owns a 27% stake, but its parent will retain control of its for-profit operations.

The transition has sparked bitter debate between Musk and Altman since 2024. The two were once business partners. In 2025, OpenAI also rejected Musk’s unsolicited offer to buy the assets of the nonprofit that controlled the company for $97.4 billion.

Altman criticized Musk’s lawsuit challenging OpenAI’s restructuring as a weaponization of the legal system to slow down a rival.

(With input from Bloomberg)