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Musk claims OpenAI violated its founding mission in

restructuring to a for-profit entity

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OpenAI denies claims, calls Musk's lawsuit baseless

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Musk was a co-founder of OpenAI, now runs a rival AI

company

By Mike Scarcella

WASHINGTON, Jan 7 (Reuters) - Billionaire entrepreneur

Elon Musk persuaded a judge on Wednesday to allow a jury trial

on his allegations that ‌ChatGPT maker OpenAI violated its

founding mission in its high-profile restructuring to a

for-profit entity.

Musk was a cofounder of OpenAI in 2015 but ​left in 2018 and

now runs an AI company that competes with it.

U.S. District Judge Yvonne ‍Gonzalez Rogers in Oakland,

California, said at a hearing that there was "plenty ⁠of

evidence" suggesting OpenAI's leaders ⁠made assurances that its

original nonprofit structure was going to be maintained.

The judge said there were enough disputed facts to let ‌a

jury consider the claims at a trial scheduled for ​March, rather

than decide the issues herself. She said she would issue a

written order after the hearing that addresses OpenAI's bid to

throw out the case.

The court battle ⁠comes amid a broader showdown over dominance ‍in

the market for ​generative artificial intelligence. Musk's xAI

and its chatbot Grok are competing with OpenAI and other

technology developers.

Musk is seeking unspecified monetary damages from what he

calls "ill-gotten gains" by OpenAI.

OpenAI in a ‍statement after the hearing said, "Mr Musk's

lawsuit continues to be baseless and a part of his ongoing

pattern of harassment, and we look forward to demonstrating this

at trial."

Musk's artificial intelligence startup, xAI, did not

immediately respond to a request for comment.

Musk contends he contributed about $38 million, roughly 60%

of OpenAI's early funding, along with strategic guidance and

credibility, based on assurances that the organization would

remain a nonprofit ​dedicated to ‍the public benefit.

The lawsuit accuses OpenAI co-founders Sam Altman and Greg

Brockman of plotting a for-profit switch to enrich themselves,

culminating in multibillion-dollar deals with Microsoft ( MSFT )

and a recent restructuring.

OpenAI, ​Altman and Brockman have denied the claims, and they

called Musk "a frustrated commercial competitor seeking to slow

down a mission-driven market leader."

Microsoft ( MSFT ), which is also a defendant, urged Gonzalez Rogers

to toss Musk's claims against it. A lawyer for Microsoft ( MSFT ) said

there was no evidence that the company "aided and abetted"

OpenAI.

Microsoft ( MSFT ) did not immediately respond to a request for

comment.

Lawyers for OpenAI at the hearing asked Gonzalez Rogers to

enter judgment against Musk, contending that he had ​not shown

enough of a factual basis to sustain his allegations including

fraud and breach of contract.

OpenAI also contends that Musk failed to bring his

allegations in a timely manner. Gonzalez Rogers said the jury

would be asked to weigh whether the lawsuit was ‍filed outside

the statute of limitations.