Elon Sues OpenAI for Betrayal After $38 Million Airbnb-Style Investment
KEY POINTS
- •In 2024, Elon Musk filed a lawsuit claiming OpenAI misled him by switching from a nonprofit to a for-profit model.
- •Judge Yvonne Gonzalez Rogers denied OpenAI’s attempt to dismiss the case, scheduling a trial for March in Oakland, California.
- •Musk donated $38 million to OpenAI and is seeking damages plus cancellation of Microsoft’s licensing agreement.
In a delightful 2024 courtroom plot twist set in Oakland, California, Elon Musk is suing OpenAI and CEO Sam Altman for allegedly pulling a sneaky switcheroo—shifting from nonprofit AI 'for the benefit of humankind' to a sharp-toothed for-profit machine. Despite donating a cool $38 million (enough to fund about a billion Mars tweets), Elon complains OpenAI cozied up with Microsoft like it was an AI Tinder date gone wrong. Judge Yvonne Gonzalez Rogers rejected Altman's last-minute defense request, saying there's enough circumstantial evidence—fancy lawyer speak for 'a spicy rumor mill'—to drag this debacle to a jury by March. Meanwhile, Elon’s xAI company, which sounds like a lovechild of Twitter and a secret lab, is already throwing lawsuits about trade secrets, making it a very messy family reunion.
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Musk’s lawsuit feels like a Netflix drama where billionaire bros throw $38 million at childhood friends, then argue over who betrayed whom. The answer? Everyone.
When you donate millions to a nonprofit then sue them over being profitable, you’ve officially joined the billionaire soap opera club.
Elon: ‘I changed the AI world for humanity.’ Also Elon: ‘Let me sue you for betraying my charity!’
Source: Businessinsider | Published: 1/7/2026 | Author: Grace Kay
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