Musk Sought Settlement With OpenAI Days Before Trial, Filings Show
SAN FRANCISCO — Elon Musk approached OpenAI co-founder Greg Brockman with a settlement offer just days before the start of their federal trial, according to court filings first reported by Business Insider.
The disclosure, contained in newly surfaced court documents, adds new details to the ongoing legal battle between Musk and the artificial intelligence company he helped found. The case centers on OpenAI’s transition from a nonprofit research lab to a for-profit corporation — a move Musk has argued betrays the organization’s founding mission.
The timing of the settlement approach — coming on the eve of trial — suggests a possible willingness by Musk to resolve the dispute outside the courtroom, even as both sides had publicly signaled readiness to litigate. The specific terms of the proposed settlement were not immediately clear from the filings.
Brockman, who co-founded OpenAI alongside Musk and CEO Sam Altman in 2015, departed the company in 2024 before returning in a different capacity. His role as the recipient of the settlement overture underscores the personal dimensions of a case that has become one of the most high-profile legal disputes in the AI industry.
Musk initially sued OpenAI in early 2024, alleging the company had abandoned its nonprofit charter and open-source commitments in pursuit of commercial interests, particularly through its multibillion-dollar partnership with Microsoft Corp. OpenAI has countered that Musk’s claims are motivated by competitive interests, noting his own AI venture, xAI, competes directly with OpenAI’s products.
The case has drawn attention from the AI industry, legal scholars and policymakers for its potential to set precedents around nonprofit governance, fiduciary duties and the corporate structures that underpin some of the most powerful AI systems in the world.
OpenAI’s proposed for-profit conversion has separately faced regulatory review, with attorneys general in multiple states examining whether the transition adequately protects the public interest and the nonprofit’s original charitable assets.
Neither Musk’s legal team nor OpenAI immediately responded to requests for comment on the settlement disclosure. The case is being heard in federal court in California.
The revelation comes as the AI industry faces questions over governance and corporate accountability, with lawmakers in Washington and state capitals weighing new frameworks to regulate the technology.
