Musk Takes OpenAI to Jury, Seeks $38M in Damages
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 08 2026- Legal Proceedings Update: U.S. District Judge Yvonne Gonzalez Rogers has ruled that Musk's claims can proceed to a jury trial, indicating substantial disputed facts, with the trial set for March, which could impact OpenAI's business model and reputation.
- Funding Dispute: Musk alleges he invested approximately $38 million during OpenAI's early days, constituting about 60% of the startup capital, and accuses OpenAI of breaking promises by shifting to a profit model, potentially undermining its competitive position in the AI sector.
- Competitive Landscape: This lawsuit unfolds amid fierce competition in the generative AI market, with Musk's company xAI vying against OpenAI and other tech firms for market share, which could affect investor confidence in the involved companies.
- OpenAI's Counterattack: OpenAI and its founders firmly deny Musk's allegations, labeling them as “baseless harassment,” and plan to present evidence at trial, which may influence public perception of Musk and his ventures.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
