Elon Musk gets his day in court over OpenAI's for-profit restructure and "ill-gotten gains" — here’s what’s at stake

Tesla CEO and billionaire Elon Musk has filed several lawsuits against OpenAI over the past few years, alleging a stark betrayal of the company’s founding mission, involvement in racketeering activities, and a false humanitarian agenda.

OpenAI has made multiple requests to have the lawsuit thrown out. Still, U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, ruled that it will proceed to a jury trial scheduled for March 2026 (via Reuters). The judge further indicated that there was "plenty of evidence" suggesting that OpenAI's leadership promised to maintain its original non-profit structure. “This case is going to trial,” Gonzalez added.

Musk claims that the ChatGPT maker violated its founding mission by evolving from a non-profit research lab to a for-profit venture. The billionaire says he invested approximately $38 million in OpenAI's founding mission; however, the company later signed an exclusive multibillion-dollar licensing deal with Microsoft.

The billionaire alleged that Greg Brockman and Sam Altman conspired to transform OpenAI into a for‑profit entity for their own enrichment. This sparked controversy and ultimately led Musk to file a lawsuit he described as “a $157 billion, for‑profit, market‑paralyzing gorgon,” with Microsoft named as a defendant.

Interestingly, OpenAI CEO Sam Altman still insists that, despite the fact that OpenAI evolved into a for-profit venture, it is still controlled by its non-profit arm. He also threw in a jab against Musk, indicating that he'd also attempted to restructure OpenAI into a for-profit before leaving the company.

To that end, Elon Musk is seeking a return of what he refers to as "ill-gotten gains" from OpenAI's multibillion-dollar partnership with Microsoft, plus damages. However, the specific amount is yet to be established as it is expected to be set by the jury, which could potentially amount to millions of dollars.

"We look forward to presenting all the evidence of the defendants' wrongdoing to the jury," indicated Steven Molo, the lead trial attorney for Elon Musk and xAI, after the hearing.

Depending on the jury's decision on the matter, Sam Altman and OpenAI may end up losing millions of dollars. Additionally, it could also impact how research labs train AI models and even how companies and partnerships are organized.

Will Elon Musk's lawsuit against OpenAI's for-profit evolution hold any water in court? Let me know in the comments and vote in the poll!

Follow Windows Central on Google News to keep our latest news, insights, and features at the top of your feeds!