A federal judge in Oakland, California, has cleared the way for Elon Musk’s lawsuit against OpenAI and Microsoft (MSFT) to move forward for a jury trial in April. On Thursday, the judge rejected renewed attempts by OpenAI and Microsoft to dismiss the case, with the trial scheduled to begin on April 27.
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Musk argues that OpenAI, founded as a public-interest nonprofit, broke its promise by taking billions of dollars from Microsoft and moving toward a for-profit business model.
Musk vs. OpenAI, Microsoft
In their last attempt, OpenAI and Microsoft were unable to block a trial over Musk’s claims that the AI company strayed from its original mission.
Following this, U.S. District Judge Yvonne Gonzalez Rogers declined to dismiss Musk’s claim that OpenAI broke its promise to operate as a charitable organization. She said that while the evidence is still uncertain, Musk argues that his funding came with clear conditions. According to Musk, he donated money to support a specific charitable goal and expected OpenAI to remain open source and nonprofit, in line with its original mission.
The judge also rejected OpenAI’s argument that Musk lacked the right to bring the case because he donated the $38 million through an intermediary. She ruled that using a third party to donate does not prevent Musk from trying to enforce the terms he says were attached to his contribution.
Microsoft: Guilty or Not?
Judge Gonzalez Rogers said it will be up to a jury to decide whether Microsoft played a role in helping OpenAI break its obligations to donors such as Musk. She noted that Musk presented substantial evidence suggesting Microsoft may have had more than a general suspicion that OpenAI was acting improperly.
However, the judge dismissed Musk’s claim that Microsoft unfairly benefited at his expense.
Which Is the Best AI Stock, According to Analysts?
Investors looking to buy into OpenAI in 2025 may be disappointed, as the company is still private and not publicly traded.
However, those interested in the AI sector can explore other leading AI-related stocks. Using TipRanks’ stock comparison tool, investors can compare top AI companies and conduct further research to find the most promising options based on analyst ratings and insights. Below is a screenshot for reference.
