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CNBC TV1816-01-2026, 08:26

OpenAI, Microsoft to Face Trial Over Musk's Claims of Betraying Founding Mission

  • A federal judge in Oakland, California, rejected requests by OpenAI and Microsoft to dismiss Elon Musk's claims.
  • The case will proceed to a jury trial in late April regarding Musk's allegations that OpenAI betrayed its charitable mission.
  • Musk claims OpenAI breached its promise to operate as a charitable trust and remain open source, despite taking billions from Microsoft.
  • The judge found Musk has legal standing to enforce these conditions, citing his $38 million seed money donation.
  • Fraud allegations against OpenAI were also allowed to proceed, based on co-founder Greg Brockman's 2017 emails and notes.

Why It Matters: OpenAI and Microsoft must face trial over Elon Musk's lawsuit alleging betrayal of OpenAI's founding mission.

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