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On January 16, 2026, OpenAI and Microsoft were unable to sidestep a legal confrontation with Musk. Musk alleged that OpenAI had strayed from its original mission as a public-benefit entity following the receipt of billions of dollars in investment from Microsoft and its intention to transform into a for-profit company. The federal judge in Oakland, California, denied OpenAI and Microsoft's motion to dismiss the lawsuit, determining that the case would move forward to a jury trial scheduled for late April. In response, an OpenAI spokesperson contended that Musk's lawsuit is baseless and represents a continuation of his persistent harassment, asserting that they will demonstrate this in court while also underscoring their ongoing commitment to the OpenAI Foundation. Musk's legal counsel and a Microsoft representative have not yet issued statements.
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