Musk to proceed with lawsuit against OpenAI despite governance changes

OpenAI announces a new governance structure where its non-profit parent oversees the for-profit business and becomes a major shareholder

Elon Musk plans to move forward with his lawsuit against OpenAI, his attorney Marc Toberoff confirmed on Monday, despite the AI company’s decision to retain its non-profit arm’s control over its for-profit operations.

Earlier in the day, OpenAI announced a revised governance structure in which its non-profit parent will continue to oversee the for-profit business and become a major shareholder. The update marks a shift from earlier plans that would have reduced the non-profit’s oversight.

Musk, a co-founder of OpenAI, filed the lawsuit earlier this year seeking to block the organization’s move away from its original nonprofit mission and governance structure. The case includes broader claims about the company’s direction and use of its technology. A jury trial is scheduled for March 2026.

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