Elon Musk Takes OpenAI to Court Over Shift From Nonprofit Mission

3 hours ago 2

April 27, 2026 | 11:48 am

TEMPO.CO, JakartaElon Musk’s lawsuit accusing OpenAI of abandoning its non-profit mission is set to go to trial on Monday, with jury selection underway in California.

The case marks a high-stakes legal battle between Musk and a company he co-founded in 2015 but now rivals through his artificial intelligence firm, xAI. OpenAI’s ChatGPT has become a major competitor to xAI’s Grok, intensifying tensions between the two sides.

As reported by Bangkok Post, the dispute stems from Musk’s claim that OpenAI has deviated from its original mission as a non-profit organization intended to develop artificial intelligence for the benefit of humanity. Court documents indicate that OpenAI Chief Executive Sam Altman initially convinced Musk to support the creation of a non-profit research lab whose technology “would belong to the world.”

Musk invested millions of dollars into the venture before later distancing himself from the company.

Over time, OpenAI established a commercial subsidiary, arguing that massive funding was required to support the development of advanced AI systems. Microsoft has since invested billions of dollars in the company, with its CEO Satya Nadella expected to testify during the trial.

Musk alleges that he was misled about OpenAI’s long-term direction and that the shift toward a profit-driven model violated its founding principles. His lawsuit calls for the company to return to a fully non-profit structure and seeks the removal of Altman and co-founder Greg Brockman from leadership.

In response, OpenAI has denied the accusations and argued that Musk’s departure was driven by disagreements over control rather than the company’s mission. The firm maintains that its current hybrid structure—combining a non-profit foundation with a for-profit arm—is necessary to sustain technological development.

According to France 24, the case also highlights broader concerns about the future of artificial intelligence, particularly whether its benefits should be directed toward the public or concentrated among a limited group of stakeholders.

OpenAI has publicly criticized Musk’s legal action, describing it as an attempt to undermine a competitor. In a statement posted on X, the company said the lawsuit is “driven by ego, jealousy, and a desire to slow down a rival.”

Musk initially sought damages of up to $134 billion but has since withdrawn any personal financial claim, stating that any potential compensation should be directed to OpenAI’s non-profit foundation.

The trial will be overseen by Judge Yvonne Gonzalez Rogers, who is expected to issue a decision by mid-May, guided by the findings of an advisory jury. She retains the authority to determine any remedies independently.

The outcome of the case could have significant implications for the governance of AI companies and the balance between commercial interests and public benefit in one of the world’s fastest-growing industries.

Read: Mexican President Weighs Lawsuit Against Elon Musk Over Cartel Claims

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