Elon Musk is going to trial against OpenAI in April 2026 over its shift to a for-profit model

OpenAI has cautioned that Elon Musk is likely to make wild, attention-grabbing claims in his upcoming trial against the AI company, now worth $500 billion. 

The April 2026 trial, part of Musk’s lawsuit against the company he helped co-found, comes in addition to his other claims against the company. OpenAI informed its investors about this warning, which it said was intended to help mitigate their concerns about what Musk might say in court — and to address some of those concerns. 

Musk started OpenAI together with Sam Altman and other researchers in 2015. Back then, the company was a nonprofit, meaning it focused on research rather than generating revenue. 

But the tech firm has evolved in the years since into a for-profit entity, including a for-profit collaboration with Microsoft. That change is at the core of Musk’s lawsuit.

Musk files lawsuit against OpenAI

OpenAI informed investors of the warning to help mitigate concerns over what Musk might say in court. The trial marks a public escalation of a feud that has stretched back years, while the company’s letter aims to reassure investors. The tech firm has raised billions in venture capital funding, and its valuation has grown to $500 billion.

Musk filed a lawsuit against OpenAI in 2024, alleging he was “assiduously manipulated” and “deceived” after the AI company explored converting to a for-profit entity and established an “opaque web of for-profit OpenAI affiliates,” including its multibillion-dollar partnership with Microsoft.

Musk departed the company’s board in 2018. Still, he has argued that he is owed “the value of all intellectual property developed” from his contributions, potentially amounting to billions of dollars, according to a complaint.

The tech firm, however, strongly disagrees. In a letter to investors, the company described the lawsuit as “baseless” and said that, based on the record so far, the case is likely worth no more than the $38 million Musk donated when he helped start OpenAI.

The court has now ruled that Musk’s case will proceed to trial in the US District Court for the Northern District of California. This means a jury will hear both sides and decide whether Musk’s claims have merit.

OpenAI defends itself against Musk’s claims

OpenAI said Musk may use statements that are not based in reality to raise his profile in the media. These are the strategies Musk has employed in the past, and the firm said its team is ready to ensure a jury understands the facts. 

“Elon’s lawsuit remains baseless and without merit, and our team is focused on ensuring the jury sees these claims for what they are,” OpenAI said.

The company noted it had a strong case and was confident it would win, as indicated in its letter to investors. The company is also saying that even if Elon Musk tries hard to claim a large sum, the real value of the case is much lower than what he might claim in court. 

This trial demonstrates that people who once worked together can sometimes disagree over ideas, money, or technology. That’s because Musk and OpenAI had been in partnership much earlier and were working to build one of the most powerful AI companies in the world. Only to be on opposite sides in a huge lawsuit. 

This is part of the story of OpenAI. The company has burgeoned rapidly and is now worth hundreds of billions of dollars. 

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