Profit Conversion Advances to Jury Trial
Published on: Jan. 8, 2026, 3:55 p.m. | Source: scanx.trade
US District Judge Yvonne Gonzalez Rogers has ruled that Elon Musk's lawsuit against OpenAI can proceed to jury trial in March, finding sufficient disputed facts regarding the company's conversion from nonprofit to for-profit status. Musk alleges he contributed approximately $38 million (60% of early funding) based on assurances OpenAI would remain nonprofit, and seeks damages for alleged violations by co-founders Sam Altman and Greg Brockman. OpenAI denies the claims, calling Musk a "frustrated commercial competitor," while the case highlights broader competition in the AI market between Musk's xAI and OpenAI.
