A California judge delivered a major blow to OpenAI as the former cleared the way for a jury trial in Elon Musk’s lawsuit against the AI tech giant and its CEO, Sam Altman. The decision, announced on January 7, ensures that one of the tech industry’s biggest feuds will be resolved in a public courtroom.
During a hearing in Oakland, U.S. District Judge Yvonne Gonzalez Rogers rejected efforts to dismiss the case. The judge declared there is “plenty of evidence” to suggest Musk may have been misled. Although much of the evidence remains circumstantial, the judge concluded that the question of whether a deceptive play occurred is one only a jury can answer.
US Judge moves for public trial as Elon Musk and Sam Altman’s legal drama escalates
At its heart, this is a story about the complete breakdown of a partnership that once promised to safeguard the future of humanity. Musk, who co-founded the organization in 2015 and provided roughly $38 million in early funding, contends that he was lured into the venture by a vision of an open-source, non-profit lab that would serve as a check on corporate greed.
According to a Business Insider update, Elon Musk argues that the company’s subsequent pivot toward a profit-oriented model and its multibillion-dollar partnership with Microsoft represent a fundamental abandonment of those ideals.
The judge appeared to find weight in this sense of grievance, noting that “assurances were made, and promises made” regarding the company’s structure that were potentially ignored as OpenAI evolved into a $500 billion enterprise. As reported by The Guardian, having been deceived in a “Shakespearean” fashion, Musk does not seem to intend to back down from this legal battle.
The defense, led by Altman, has consistently characterized the litigation as a baseless harassment campaign driven by a “frustrated competitor.” OpenAI’s attorneys argue that Musk was well aware of the company’s need for massive capital and its eventual for-profit plans as early as 2018. They maintain that the organization is still technically guided by its non-profit arm and that the lawsuit is an attempt by Musk to slow down a market leader.
This reflects a deeper rift between two tech leaders who were once allies. Altman has publicly expressed “concern” for Musk, suggesting his actions stem from a position of “insecurity,” while Musk takes to X repeatedly to accuse Altman of spreading lies.
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The Musk-Altman rivalry is expected to get more complex with the public trial
The ruling sets the stage for a dramatic trial in March. There, both Altman and Musk are expected to testify under oath. The proceedings will likely offer an unvarnished look into the private negotiations that shaped the modern AI landscape, including a 2017 diary entry from co-founder Greg Brockman that mused about the “flip to a for-profit.”
Beyond the rivalry, the outcome could redefine the rules for mission-driven companies. A jury will now decide whether a startup’s founding promises constitute a binding contract or a flexible vision that can be discarded in the pursuit of success. For an industry that currently sets the pace of global innovation, the verdict will determine the true value of a “founding mission” amid immense growth.
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