A federal judge in Oakland, California, on January 15 declined OpenAI and Microsoft’s request to dismiss Elon Musk’s lawsuit over OpenAI’s shift from a non-profit to a for-profit entity, according to Bloomberg. Musk alleges that the Sam Altman-led company violated its founding mission as a public charity while accepting billions from Microsoft. With the ruling, the case is set for a jury trial in April 2026.
US District Judge Yvonne Gonzalez Rogers stated she would not dismiss Musk’s claims, noting that he contends his contributions to OpenAI carried a “specific charitable purpose” with conditions that it remain a nonprofit and open source—consistent with its original charter. The judge said dismissing the case could undermine enforcement of charitable trusts.
She also allowed Musk’s fraud allegations to proceed, citing emails and private notes from co-founder Greg Brockman in 2017, where he indicated a shift away from the nonprofit structure.
OpenAI, valued at $500 billion, restructured in October 2025, giving Microsoft a 27% stake while retaining control through its nonprofit arm. Musk, who founded xAI in 2023, and Altman have clashed since 2024, with Altman calling Musk’s lawsuit an attempt to slow a competitor.
