In a legal showdown that continues to rattle the tech world, Elon Musk is moving ahead with his lawsuit against OpenAI, despite the company’s recent announcement that its nonprofit arm will retain control of its operations. Musk’s attorney, Marc Toberoff, confirmed on Monday that the billionaire entrepreneur has no plans to withdraw the case.
The legal battle stems from Musk’s long-standing concerns about OpenAI’s shift away from its original mission as an open-source, nonprofit research lab. Musk, who co-founded OpenAI in 2015, has accused the company—now led by CEO Sam Altman—of prioritizing profit over public good, especially following its growing alliance with Microsoft.
Earlier this week, OpenAI revealed a restructuring plan that appeared aimed at easing those concerns. The company said that its nonprofit board would continue to oversee the for-profit entity and even become a significant shareholder. The move was framed as a recommitment to OpenAI’s foundational values, but Musk’s team isn’t convinced.
“Nothing in today’s announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of Altman, his investors, and Microsoft,” said Toberoff. He criticized the company for failing to provide clear details about how the nonprofit would retain real control, particularly regarding its stake in the for-profit side of the business.
The lawsuit, filed earlier this year, accuses OpenAI of breaching its founding agreement by locking away its most advanced AI technologies for commercial gain, contrary to its original open-access promise. Musk and other critics, including notable AI experts like Geoffrey Hinton and even competitors like Meta, argue that OpenAI’s evolution poses risks not just to innovation, but also to ethical AI development.
OpenAI, however, dismissed Musk’s continued legal action as a “bad-faith attempt to slow us down.” A company spokesperson said the legal challenge lacked merit and was merely a distraction from the real progress they’re making in the field of AI.
The trial is currently scheduled to begin in March 2026, setting the stage for a dramatic legal battle between one of the world’s most influential tech founders and a company he helped create. With global attention focused on the implications of artificial intelligence, the outcome of this case could shape the governance and ethics of AI for years to come.
Whether Musk is driven by principle, rivalry, or a mix of both, one thing is clear—he’s not letting this go without a fight.
