Musk sues OpenAI for $134B over broken nonprofit promises
Jury trial set for April 27 after judge finds "plenty of evidence" of fraud
Elon Musk filed a lawsuit against OpenAI, Sam Altman, Greg Brockman, and Microsoft in the U.S
District Court for the Northern District of California
On January 7, 2026, Judge Yvonne Gonzalez Rogers ruled that four claims survived summary judgment: breach of charitable trust, constructive fraud, fraud, and unjust enrichment The judge stated there was 'plenty of evidence' supporting Musk's allegations that he received assurances about OpenAI's nonprofit mission.
Key People
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Elon Musk
Plaintiff; co-founder and early funder of OpenAI
Musk donated approximately $38 million (60% of early funding) to OpenAI based on promises it would remain a nonprofit with open-source AI. He left the board in 2018. He now seeks $79B-$134B in damages, alleging fraud and breach of charitable trust.
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Sam Altman
CEO of OpenAI; defendant
Altman co-founded OpenAI and led its transition from nonprofit to capped-profit subsidiary in 2019. Musk alleges Altman made specific assurances about OpenAI remaining nonprofit and open-source that were subsequently broken. Altman argues the transition was necessary to attract the capital needed to develop safe AI.
Greg Brockman
Co-founder and former President of OpenAI; defendant
Brockman was a co-founder who helped establish OpenAI's original nonprofit mission. He is named as a defendant alongside Altman for allegedly making assurances to Musk about the nonprofit structure that were not honored.
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Microsoft
Corporate defendant; OpenAI's largest investor
Microsoft invested $13.75 billion in OpenAI and is named for allegedly 'aiding and abetting' the conversion from nonprofit to for-profit. The investment gave Microsoft significant commercial access to OpenAI's technology through exclusive licensing agreements.
Judge Yvonne Gonzalez Rogers
U.S. District Judge, Northern District of California
Judge Gonzalez Rogers ruled on January 7, 2026 that four of Musk's claims survived summary judgment, finding 'plenty of evidence' supporting the allegations. She will preside over the jury trial beginning April 27, 2026.
California Attorney General Rob Bonta
State Attorney General overseeing nonprofit conversions
The California AG has oversight authority over nonprofit-to-for-profit conversions. His office has been reviewing OpenAI's proposed restructuring separately from the Musk lawsuit, as California law requires AG approval for changes to charitable organizations.
Claims & Perspectives
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Musk donated approximately $38 million to OpenAI, representing 60% of its early funding
Court filings and financial records confirm Musk donated approximately $38 million to OpenAI between 2015 and 2018. Multiple sources corroborate that this represented roughly 60% of the organization's early funding, making Musk its largest individual donor during the foundational period.
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Judge Gonzalez Rogers found 'plenty of evidence' supporting Musk's claims
Judge Gonzalez Rogers used the phrase 'plenty of evidence' in her January 7, 2026 ruling denying OpenAI's motion for summary judgment. She found sufficient evidence of assurances made to Musk about the nonprofit mission to warrant a jury trial on breach of charitable trust, constructive fraud, fraud, and unjust enrichment claims.
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The lawsuit seeks $79 billion to $134 billion in damages
Court filings confirm the damages range of $79 billion to $134 billion. The lower figure reflects a conservative estimate of OpenAI's valuation; the higher figure accounts for Microsoft's involvement and broader profits generated through the alleged breach of charitable trust.
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Microsoft invested $13.75 billion in OpenAI
Microsoft's cumulative investment in OpenAI totals approximately $13.75 billion across multiple rounds, including a $10 billion investment announced in January 2023. This investment is well-documented in SEC filings and press releases from both companies.
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OpenAI was originally founded as a nonprofit in 2015
OpenAI's founding announcement in December 2015 explicitly describes it as a 'non-profit artificial intelligence research company' with the goal of advancing AI 'in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.'
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Four claims survived summary judgment: breach of charitable trust, constructive fraud, fraud, and unjust enrichment
Judge Gonzalez Rogers' January 7, 2026 order specifically identifies these four causes of action as surviving summary judgment. Other claims may have been dismissed, but these four will proceed to jury trial beginning April 27, 2026.
What you can do
Follow the trial proceedings starting April 27, 2026
civic action
The Musk v. OpenAI trial will be one of the most consequential technology cases in recent history. Follow court filings and reporting to understand how the jury evaluates promises made by nonprofit technology organizations.
Contact your state attorney general about nonprofit oversight
civic action
State attorneys general have authority over nonprofit organizations in their jurisdiction. Ask what oversight exists for technology nonprofits that convert to for-profit entities.
Support organizations advocating for AI transparency and governance
civic action
Organizations like the AI Now Institute, Electronic Frontier Foundation, and Center for AI Safety work on AI governance issues including corporate accountability and transparency.