FOLLOW US

Wed

August 19, 2026

America April 14, 2025 3 mins read

OpenAI, Microsoft Push to End Elon Musk’s Lawsuit Over ChatGPT’s For-Profit Shift

America ı By Rochdi Rais

0 Comments

EU Eyes Microsoft OpenAI Stake

CALIFORNIA — OpenAI and Microsoft are seeking to shut down Elon Musk’s lawsuit accusing them of betraying the original nonprofit vision behind ChatGPT, calling the billionaire’s claims legally baseless in motions filed Thursday in California federal court.

The Musk OpenAI lawsuit dismissal effort comes as both companies argue that Musk, now on his third version of the complaint, still hasn’t proven any contractual or fraudulent promises were made—let alone broken—when OpenAI transitioned from a nonprofit to a for-profit structure.

“Now on his third complaint, Musk still cannot plead a contract or a fraudulent promise,” OpenAI said in its brief, noting that Musk’s framing of his financial contributions as a quid pro quo falls apart under scrutiny.

OpenAI: “No False Promises, No Contract”

OpenAI asserts that Musk’s latest complaint offers no evidence of fraud or intent to deceive. “He says his charitable donations were not donations at all,” OpenAI’s attorneys wrote, “but the product of a quid pro quo. Yet the only well-pleaded allegations defeat rather than support that characterization.”

The company urged the court to dismiss the remaining claims with prejudice, citing Musk’s failure to allege that OpenAI made knowingly false promises at the time of the alleged agreement.

OpenAI has also filed a counterclaim, accusing Musk of relentless harassment and referencing a $97.4 billion “sham bid” Musk allegedly made for the company’s assets earlier this year.

Microsoft: “We Weren’t Even Involved”

Microsoft, added to the suit later in 2023, argued in its own motion that it played no role in any of the alleged agreements Musk claims were breached.

“At best,” Microsoft said, the lawsuit suggests it should have known about discussions it wasn’t involved in. That lack of direct knowledge, the tech giant said, is fatal to Musk’s claims.

The Dispute's Origin and Legal Backdrop

The high-stakes battle began in March 2024 in California state court, with Musk accusing OpenAI CEO Sam Altman, Microsoft, and others of “setting the founding agreement aflame” by shifting OpenAI’s business model to favor profit. He likened the alleged betrayal to raising funds to save the Amazon rainforest only to start a for-profit logging operation.

At the time, Musk claimed he had been misled as an early funder of OpenAI and had believed the company would remain public-serving.

After dropping the original state court case just before a dismissal hearing, Musk refiled in federal court weeks later. OpenAI immediately moved for dismissal, accusing Musk of using the courts as a competitive tactic amid the rise of his own AI venture, xAI, a direct competitor to ChatGPT.

Trial Timeline and Legal Representation

The court recently set a trial date for March 2026. Meanwhile, legal teams are pushing ahead with procedural maneuvers:

  • OpenAI is represented by Jordan Eth, William Frentzen, and David J. Wiener of Morrison Foerster LLP, and William Savitt, Bradley R. Wilson, Sarah K. Eddy, and Nathaniel Cullerton of Wachtell Lipton Rosen & Katz.

  • Microsoft is represented by Russell P. Cohen and Nisha Patel of Dechert LLP.

  • Elon Musk is represented by Marc Toberoff and Jaymie Parkkinen of Toberoff & Associates PC.

The case is Elon Musk et al. v. Samuel Altman et al., case number 4:24-cv-04722, in the U.S. District Court for the Northern District of California.

Previous Article

Ninth Circuit Revives AirDoctor’s $2.5M Damages Bid in Trademark Default Case

Read More
2770 Posts

Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America August 18, 2026
Penn State Cocaine Ring Used Pledges, AG Says
By – Michallie Harrison
America August 17, 2026
Hakeem Jeffries Sidesteps Medicare for All
By – Michallie Harrison
America August 17, 2026
Flock License Plate Cameras Spark New…

Every time a car rolls past certain intersections, a quiet,…

By – Rihem Akkouche
America August 17, 2026
Rebel Creamery Filed for Chapter 11…

A courtroom loss can sometimes hit a company harder than…

By – Rihem Akkouche
America August 17, 2026
Integrity Technologies $55B Navy Contract Lands…

A North Dakota telecommunications firm just landed a deal so…

By – Rihem Akkouche
America August 17, 2026
Von Miller Cowboys Contract Brings Future…

Some homecomings happen quietly. This one came with a social…

By – Rihem Akkouche
America August 17, 2026
Hayden Panettiere Death Confirmed at 36,…

Hayden Panettiere spent her life growing up in front of…

By – Rihem Akkouche
America August 17, 2026
Supreme Court Again Rejects Trump Bid…

The justices denied rehearing without comment, leaving the 2023 civil…

By – Milosh Potikj
America August 17, 2026
Supreme Court Again Rejects Trump Bid…

The justices denied rehearing without comment, leaving the 2023 civil…

By – Milosh Potikj
America August 17, 2026
Defense Giant L3Harris Replaces CEO Christopher…

The defense firm named Sam Mehta as its new chief,…

By – Milosh Potikj
America August 17, 2026
Hayden Panettiere Dies at 36 as…

The actor was found unresponsive Sunday in South Carolina, where…

By – Milosh Potikj
America August 17, 2026
Trump Orders Cut to U.S.-South Korea…

The 11-day drill began Monday with 18,000 South Korean troops,…

By – Milosh Potikj
America August 17, 2026
Lake Powell Hits Record Low, Putting…

The reservoir is now about 30 feet above the level…

By – Milosh Potikj
America August 16, 2026
Chalk, Charges, and Controversy: Law Firm’s…

INSIDE THIS REPORT A Hartford personal injury firm stenciled at…

By – Samuel Lopez
America August 14, 2026
Apple TV Adds Titanic, The Sixth…

Apple TV is expanding its streaming appeal by adding a…

By – Jackie Allen
America August 13, 2026
FinCEN Flags Nearly $5 Billion in…

The Financial Crimes Enforcement Network, or FinCEN, has identified billions…

By – Jackie Allen
America August 13, 2026
Tiger Woods and Nike: 27-Year Partnership…

Tiger Woods built one of the most lucrative athlete-brand partnerships…

By – Jackie Allen
America August 12, 2026
Heat Dome Brings Dangerous Temperatures Across…

A powerful Heat dome is expanding across the United States,…

By – Jackie Allen
America August 12, 2026
Retirement Rises as Older Americans Leave…

Retirement is becoming an increasingly attractive option for older Americans…

By – Jackie Allen
America August 12, 2026
AI Hallucinations: Why Artificial Intelligence Can…

AI Hallucinations have become one of the most important limitations…

By – Jackie Allen
America August 16, 2026
Avi Loeb’s Stellar 3I/ATLAS Promises Fall…

INSIDE THIS REPORT Harvard’s Avi Loeb generated massive hype around…

By – Samuel Lopez
America August 16, 2026
The NDA Question: Why UAP Insiders’…

Inside This Report ODNI’s July 31, 2026 preliminary guidance tells…

By – Samuel Lopez
America August 15, 2026
Harvard’s RoboBees Could Transform Disaster Response—But…

Inside This Report RoboBees are ultra-light flying robots inspired by…

By – Samuel Lopez
America August 14, 2026
White House Denies Role in Josh…

LOS ANGELES — The White House is denying any role…

By – Michallie Harrison
America August 13, 2026
Equifax $100M Settlement Marks Record Payout…

For three weeks in the spring of 2022, a hidden…

By – Rihem Akkouche
America August 13, 2026
Taylor Farms Jalapeño Recall Salmonella Scare…

A single shipment of peppers has set off a chain…

By – Rihem Akkouche
America August 13, 2026
Taylor Farms Jalapeño Recall Salmonella Scare…

A single shipment of peppers has set off a chain…

By – Rihem Akkouche
America August 8, 2026
Joe Biden: Hunter Says the Prostate…

Former President Joe Biden is experiencing a worsening battle with…

By – Jackie Allen
America August 1, 2026
Stormed the Border: Spain Says 25,000…

CEUTA, Spain (AP) — Spanish authorities say thousands of migrants…

By – Jackie Allen
Breaking News July 29, 2026
Trump Ends Medicare Part D Subsidy,…

The Trump administration is ending a Medicare Part D subsidy…

By – Michallie Harrison
Health July 17, 2026
Taylor Farms Linked to Third Major…

Taco Bell became the public face of a massive Cyclospora…

By – Michallie Harrison
America July 4, 2026
Beach Closures Expand Across Long Island…

Beach Closures were spread across parts of New York just…

By – Jackie Allen
America August 13, 2026
Prichard Colon Death: Once-Unbeaten Boxer Dies…

Prichard Colon never threw another punch after that October night…

By – Rihem Akkouche
America August 12, 2026
209 Triple-Doubles, Two Offers Declined: Russell…

There were two NBA teams ready to hand Russell Westbrook…

By – Rihem Akkouche
America August 11, 2026
Part 2. Archbald Faces Big Expansion…

In Archbald, Pennsylvania, a community of roughly 7,000 residents, the…

By – Jackie Allen
America August 10, 2026
WNBA Draws Political Firestorm as Transgender…

The WNBA has become the latest battleground in the increasingly…

By – Jackie Allen
Sports July 31, 2026
FIFA World Cup Stake Sale Sparks…

The proposed FIFA World Cup stake sale has triggered a…

By – Michallie Harrison
America July 28, 2026
5 of the Best Free-to-Read Online…

Online Comic Books have changed the way readers discover superheroes,…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter