Musk’s lawsuit against OpenAI entered a decisive stage in California on Thursday, as a nine-person jury began deliberating on whether or not the artificial intelligence company betrayed its foundational non-profit mission. The trial, closely watched by the tech industry, pits Elon Musk, OpenAI, and Microsoft against each other in a dispute blending contracts, corporate control, and the future of generative AI.
The first phase of the case, held over three weeks in Oakland, thus reaches its practical close. Judge Yvonne González Rogers instructed the jury to issue a unanimous decision, although the recommendation will not yet be the final verdict. At this stage, jury members will review the core evidence before resuming full analysis next Monday, as there is no deliberation on Fridays.
What’s at Stake in Musk’s Lawsuit Against OpenAI
Musk’s lawsuit against OpenAI revolves around a central allegation: that the company and its executives abandoned the initial promise to build an open, non-profit organization and turned it into a high-value commercial business. Musk argues that he was induced to contribute some $38 million in early funding under that idea, in a company founded in 2015 that today has a multi-billion dollar valuation.
According to the version presented in the courtroom, the litigation targets not only OpenAI, but also its co-founders Sam Altman and Greg Brockman, in addition to Microsoft, which has injected around $13 billion into the project. The Redmond-based company, however, has argued that it should not have been included in the lawsuit because Musk never raised a formal objection to its investment.
Musk’s Arguments
During his testimony, Musk himself said he felt “like a fool” for having contributed money that he described as practically free funding in OpenAI’s early years. His legal team insists that the company’s structure changed course when it began receiving massive capital and consolidating a strategic alliance with Microsoft.
The businessman’s defense also argues that there was a breach of contract and unjust enrichment. Furthermore, it claims that the dispute was filed within the legal deadline and does not stem from a commercial war, despite the subsequent emergence of xAI, the artificial intelligence firm created by Musk.
OpenAI and Microsoft’s Response
OpenAI has responded that Musk left the company in 2018 after failing to gain control of it. Its lawyers maintain that it was the billionaire himself who tried to steer the organization toward a for-profit model, which would weaken his current claim. Microsoft, for its part, argued that its investment was made legitimately and that the case should not burden its role as a technology partner.
The litigation carries greater weight than a dispute between powerful names. If the jury finds merit in the allegations, the judge will use that recommendation to issue the final resolution in a second phase. If not, OpenAI will emerge strengthened just as scrutiny over its models, governance, and relationship with major investors continues to grow.
Musk’s Lawsuit Against OpenAI and the Future of AI
Musk’s lawsuit against OpenAI comes at a time when artificial intelligence is under regulatory and commercial pressure worldwide. The case may mark how the transition of an organization born for research purposes into a corporate giant backed by private capital is interpreted. For the sector, the signal is clear: what is being discussed is no longer just innovation, but also foundational promises, control, and corporate responsibility.
Musk’s lawsuit against OpenAI will now remain in the hands of the jury, while the industry watches whether California ultimately gives a favorable reading to the argument that an original mission can change without legal consequences or if, on the contrary, the case opens the door to new disputes over the business model behind AI.
